501(c)(3) Federal Income Tax Exemption For Religious Organizations

Churches and religious organizations, like manyinterdenominational and ecumenical organizations,
other charitable organizations, qualify forand other entities whose principal purpose is the
exemption from federal income tax under IRCstudy or advancement of religion. In order to be
section 501(c)(3) and are generally eligible torecognized as a church, and to receive the
receive tax-deductible contributions.benefits of such recognition, an organization must
To qualify for tax-exempt status, such anpossess the following 14 attributesoDistinct Legal
organization must meet the certain specificExistenceoRecognized form of worship and
requirements. These requirements generally outlinecreedoDefinite and distinct ecclesiastical
the specific purposes for which the organizationgovernmentoDistinct religious historyoFormal code
has been organized and operated. Many religiousof doctrine and disciplineoMembership not
groups seeking exemption from federal incomeassociated with any other church or
taxes under section 501(c)(3) are in fact organizeddenominationoOrganization of ordained
and operated for religious purposes, but areministersoLiterature of its ownoEstablished place
unsure as to whether they should be classified asof worshipoRegular CongregationsoRegularly
a church or as another religious organization, suchscheduled religious servicesoSunday schools for
as a faith-based ministry.religious instruction of youthoSchools for
To be considered a church by the Internalpreparation of its ministries is important to be
Revenue Service, an organization must meetaware of the specific classification the IRS has
specific guidelines. If an organization fails to meetallowed for your organization, as churches,
these specific standards they may still be eligibleexempt under subsection 170(b)(1)(A)(i) and
for federal tax exemption, however they will bereligious organizations, exempt under
subject to different compliance regulations.170(b)(1)(A)(vi) are subject to differing reporting
Religious organizations that are not churchesrequirements.
typically include nondenominational ministries,