When religious organizations apply for 501(c)(3) tax exempt as a non-profit, charitable organization, IRS expects certain guidelines to be strictly adhered to by the religious organizations. Firstly, the religious beliefs of the organization are sincerely and firmly adhered to. Secondly, their religious practices, creed and beliefs are not illegal or too unconventional to fall under the clearly defined public policy regarding religion.
So when filing the non profit 501c3 tax exempt application, avoid exhibiting or allowing your organizational members to exhibit forbidden religious beliefs or practices. But the doctrine and creed, if shown to be genuinely held by the followers, will not be a matter of objection by IRS.
In case of churches and their connected organizations, exemption is granted with the submission of the 501c3 tax exempt application. File the 1023 Form and receive the official recognition of exemption as it helps with federal income tax reduction and also in receiving tax deductibles. For that exemption form, submission should include mention of your organization being a church, religious order or religious organization that is an essential element of the church and has been carrying out function or functions of the church. IRS considers the circumstances and information of every religious organization independently rather than follow the same definition as beliefs and religious practices vary too much for a singular outline of characteristics for churches to be judged by.
Associations and conventions of churches will also be considered as churches even when the members of the organization as well as organizations have voting rights in the organizations. Affiliated organizations are considered integrated auxiliaries as long as the organization falls under the rulings of 501(c)(3) tax exempt application. It must be affiliated with the church or an organization of churches and must be supported internally. Internal support is nullified if offering admittance, providence, services or facilities for sale regularly occurs, accept when goods or facilities are sold at lesser than market price; along with a more than fifty percent support from business, government or by providing services and facilities of any kind.
Men’s and women’s organizations, seminaries, missionaries and youth groups even if satisfy these nullification criteria are still auxiliaries of the church even in cases where they are not internally supported.
Church or any other religious organization will not be qualified for non profit 501c3 tax exemption if any segment of its income is used to inure any individual. Individuals may be granted charitable deductions when connected with contributions to the church.
In today’s world, many churches pursue community betterment programs and encourage others o do the same. As much this noble cause is appreciable, many of the unconventional social problems of US call of unconventional solutions. These problems can become the reason any government organization can become reluctant to affiliate themselves with your practices. Thus, caution must be practiced at all times to adhere to public policy or conventional boundaries while helping others as well.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.