Does your church need to apply for 501c3 status before it can receive tax deductible donations? Nope! So why would a church apply for this?
According to IRS Publication 557, as well as IRS Code 508: “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 apply for and obtain recognition of exempt status from the IRS.”
So breathe a sigh of relief, church planter. You can tell your financial partners that their gifts are tax deductible whether you have a 501(c)(3) determination letter or not.
Why then would a church go through all the hassle of applying for its own 501(c)(3) Determination Letter? Are the benefits worth the work involved? How would a church go about putting together an application? We want to help you answer those questions. Contact us at planting@church-planting.net or read these helpful blog posts by Patrick Bradley: