What Does it Mean to Be Tax-Exempt?

Tax-exempt charitable corporations are a surprisingly common part of American life. Most churches, colleges, libraries and charities are organized as tax-exempt charitable corporations, free from the burden that an income tax imposes on most people and businesses. However, being tax-exempt doesn’t mean you’re entirely free of obligations, and if you’re not careful, your tax-exempt corporation could find its status stripped, exposing it to massive financial liability. Continue reading “What Does it Mean to Be Tax-Exempt?”

Reporting Requirements of Tax-Exempt Religious Entities

One of the most significant benefits of running a nonprofit religious organization is the tax-exempt status you can qualify for. However, that doesn’t mean you don’t need to worry about the IRS or tax authorities at all. It’s important for everyone, including tax-exempt entities, to be aware of their reporting requirements, lest they incur potential legal or financial liabilities. Continue reading “Reporting Requirements of Tax-Exempt Religious Entities”

The Finance of Faith: Finances for Tax Exempt Organizations

Normally, one of the benefits of running a religious non-profit organization is being tax exempt. Religious non-profits can easily obtain tax-exempt status under sections 501(c)(3) and 501(c)(4) of the Internal Revenue Code, and free themselves of many of the reporting requirements that other organizations are subject to. That said, however, a religious non-profit cannot simply ignore its finances altogether. Remaining diligent about your finances can be incredibly important if your organization ever runs into trouble. Continue reading “The Finance of Faith: Finances for Tax Exempt Organizations”

How to Qualify for Tax Exempt Status

Religious organizations do a great deal of good in the world, and the tax code recognizes that by allowing churches and other religious organizations to obtain tax-exempt status. Sometimes referred to as 501(c)(3) religious organizations (in reference to the section of the federal tax code that governs charitable organizations), these religious organizations are at the heart of charity and religious life in the United States. However, tax-exempt status isn’t automatic, and it isn’t unconditional, and there are a few things you’ll need before you can get it.

Continue reading “How to Qualify for Tax Exempt Status”