Church Compliance FAQs

Can you assist with setting up our nonprofit organization?

Yes.  We have dedicated experts on staff that are able to assist with formation documents and everything needed to get you started.  We provide set up for church associations, churches, integrated auxiliaries of churches, foreign missions societies and independent ministries.

Is our church required to have a 501(c)(3) “determination letter” from the IRS stating that we are exempt from federal income tax?

No.  Contrary to popular belief, churches (including integrated auxiliaries and conventions or associations of churches) that meet the requirements of section 501(c)(3) of the Internal Revenue Code are automatically considered tax exempt and are not required to file for formal recognition as such. However, there may be some administrative conveniences and other benefits to having this on file.  We would be more than happy to assist with consultation on this process.  

If we incorporate a ministry, will it be automatically 501(c)(3) exempt, and will it be required to file an annual Form 990?

Most independent ministries are required to apply for 501(c)(3) status by filing IRS Form 1023. Additionally, most of these ministries are required to file an annual Form 990 (an informational return available to the public). However, there are several types of organizations that are exempt from one or both of the Form 1023 and Form 990 requirements.   We are able to assist you with determining whether your organization may be able to be structured to fit in one of these preferred, exempt type entities.       

What type of paperwork are we required to keep up with on an annual basis as a nonprofit?

Generally, the nonprofit is required to hold at least one annual meeting of the Board of Directors per year, generally at the beginning of the year.  The organization should keep annual meeting minutes of the meeting and ensure they are properly signed every year.  In addition, special meetings of the Board, special resolutions and other minutes may be needed throughout the year for special circumstances such as major purchases, sales of assets, and other significant events. 

How do we get started?

Send us a message or give us a call at 317-570-9573.   

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