| This article discusses the steps one would need to | | | | note that Churches which meet the organizational |
| take in order to create a tax exempt Church. | | | | requirements of the IRS are automatically |
| The process for creating a Church involves some | | | | deemed tax exempt and need not apply for tax |
| paperwork which must be taken - first - at the | | | | exempt status. Although there is no requirement |
| state level and - second - at the federal level. | | | | for a Church to apply for tax exemption with the |
| Initially, to create a Church (or Synagogue or | | | | IRS, Church founders and officials may find it |
| Mosque), the first step you would need to take is | | | | beneficial to obtain formal recognition by the IRS |
| create a non profit entity at the state level. In | | | | as a tax exempt entity, thus ensuring that the |
| other words, you will need to incorporate the | | | | Church can reap all of the benefits and |
| Church by filing its organizing document, i.e., the | | | | advantages of a federally-recognized tax exempt |
| articles of incorporation, with the state in which | | | | entity. |
| the Church will be physically located. Usually the | | | | Interestingly, the term "Church" is not actually |
| agency that handles this task is the "Department | | | | defined under the Internal Revenue Code. |
| of State", but some states designate another | | | | However, the IRS has established a set of criteria |
| state agency for the handling of their corporation | | | | to determine whether or not an organization |
| filings. | | | | qualifies as a Church for federal tax purposes. |
| The most likely, and appropriate, legal form for a | | | | Accordingly, the following is a list of factors which |
| Church organization is a "non profit" or "not for | | | | the IRS looks for in order to ascertain whether |
| profit" corporation. You should contact your state | | | | your organization will qualify as a Church: |
| agency handling corporation filings to determine | | | | does it have a distinct legal existence? |
| whether that agency has a standard form for | | | | does it have a recognized creed and form of |
| creating a non profit organization. If so, you should | | | | worship? |
| make sure that your non profit filing is in | | | | does it have a definite and distinct |
| accordance with that state-mandated form. Once | | | | ecclesiastical government? |
| you have prepared the articles of incorporation, | | | | does it have a formal code of doctrine and |
| you must send it in to the appropriate state | | | | discipline? |
| agency along with the state's filing fee. It usually | | | | does it have a distinct religious history? |
| takes the state about two weeks to process the | | | | does it have an established membership? |
| filing of your Church's articles of incorporation. If | | | | does it have an organization of ordained |
| you are not comfortable incorporating your | | | | ministers trained in religious instruction? |
| Church on your own, then you should consider | | | | does it have an established place of worship? |
| securing the assistance of an attorney or | | | | does it have a religious literature of its own? |
| accountant to prepare your Church's organizing | | | | does it have regular congregations and |
| document. | | | | religious services? |
| Once you have incorporated your Church at the | | | | While the above criteria, taken as a whole, might |
| state level, the next - and very crucial - step is | | | | seem difficult to satisfy, the IRS does not |
| for the organization to apply for tax exempt | | | | necessarily require each and every of the |
| status with the IRS as a 501c3 organization. | | | | foregoing factors to be literally present for an |
| Before we go any further, however, we should | | | | organization to successfully qualify as a Church. |