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Adding Church To 501c3 Non-profit Charity

Corporate Law Discussions

Adding Church To 501c3 Non-profit Charity

Postby Alao » Thu Dec 08, 2016 4:59 pm

Dear Harvey,

I have been the president of my 501c3 non-profit charity located in CA.  The charity is a community outreach ministry of prayer, evangelism, clothes, food and bibles to the needy.  My 501c3 has a banking account, ministers, board of directors, active and in good status.  Because we are successful, the public is asking of me to start a weekly church, to hear preaching.  I do not have a building and the church service will be only one day per week.  

My questions are the following:

1.  Can I add a new church to my current 501c3 nonprofit charity, even if the two will have two separate names?  If so, is this a good idea and what forms will I need without having to reapply for 501c3 status, since we have little funds?

2.  Can I add my new church to my current 501c3 banking account, even though they are under two different names. If I can, how should I proceed?

A church under my current 501c3 would be ideal as I do not want to go through the process of incorporating the church, opening up a new bank account and going through all the hassles of 501c3 procedures.  Thank you in advance for your direction.  God Bless you!  Terry

ANSWER: Before I could answer well, I would need to know whether your present nonprofit is incorporated in California and, if so, under which part of the law.  In other words, is it incorporated under the Nonprofit Public Benefit Corporation Law or the California Religious Corporation law? After you give me that information I will reply further. Harvey Mechanic, Attorney at Law - [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.    

---------- FOLLOW-UP ----------

Hello Harvey,

In reply to your question, my nonprofit is incorporated in CA, and it is incorporated under the Nonprofit Public Benefit Corporation Law for public and charitable purposes(per Articles of Incorporation).

FYI, just yesterday, my new church was officially approved by the secretary of state of CA, as they just approved my church Articles of Incorporation.  

Looking forward to your reply and leadership.  Thank you in advance for your assistance!  God bless you.  Terry
Alao
 
Posts: 34
Joined: Sun Feb 02, 2014 4:06 am

Adding Church To 501c3 Non-profit Charity

Postby Glendale » Mon Dec 12, 2016 4:23 am

If the church was not incorporated then it would be easier to have the church come under the existing 501(c)(3) organization's status.  But now, as they are separate entities, they must each have their own EIN(Employer Identification Number, also known as the taxpayer identification number).

When you have two entities you are referring to what the IRS calls  "group exemption". Group Exemption is discussed starting on the bottom of the first column on page  7 of IRS Publication 557 at www.irs.gov/pub/irs-pdf/p557.pdf

The IRS exemption organization fee page for 2012 has, for the 4th

item, that the fee is $3000 for an organization to apply for the

group exemption determination so that they could then have

subordinate organizations as exempt without the subordinates filing

with the IRS.

www.irs.gov/charities/article/0,,id=232771,00.html Note, however, that churches do not need to apply to the IRS to be considered exempt under section 501(c)(3).  See the IRS Publication 557 "Tax Exempt Status for Your Organization" at  www.irs.gov/pub/irs-pdf/p557.pdf in the right column on page 25 under "Organizations Not

Required to File Form 1023" Harvey Mechanic, Attorney at Law - [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  
Glendale
 
Posts: 50
Joined: Thu Mar 13, 2014 4:14 am

Adding Church To 501c3 Non-profit Charity

Postby drury46 » Tue Dec 13, 2016 8:59 am

Dear Harvey,

I have been the president of my 501c3 non-profit charity located in CA.  The charity is a community outreach ministry of prayer, evangelism, clothes, food and bibles to the needy.  My 501c3 has a banking account, ministers, board of directors, active and in good status.  Because we are successful, the public is asking of me to start a weekly church, to hear preaching.  I do not have a building and the church service will be only one day per week.  

My questions are the following:

1.  Can I add a new church to my current 501c3 nonprofit charity, even if the two will have two separate names?  If so, is this a good idea and what forms will I need without having to reapply for 501c3 status, since we have little funds?

2.  Can I add my new church to my current 501c3 banking account, even though they are under two different names. If I can, how should I proceed?

A church under my current 501c3 would be ideal as I do not want to go through the process of incorporating the church, opening up a new bank account and going through all the hassles of 501c3 procedures.  Thank you in advance for your direction.  God Bless you!  Terry

ANSWER: Before I could answer well, I would need to know whether your present nonprofit is incorporated in California and, if so, under which part of the law.  In other words, is it incorporated under the Nonprofit Public Benefit Corporation Law or the California Religious Corporation law? After you give me that information I will reply further. Harvey Mechanic, Attorney at Law - [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.    

---------- FOLLOW-UP ----------

Hello Harvey,

In reply to your question, my nonprofit is incorporated in CA, and it is incorporated under the Nonprofit Public Benefit Corporation Law for public and charitable purposes(per Articles of Incorporation).

FYI, just yesterday, my new church was officially approved by the secretary of state of CA, as they just approved my church Articles of Incorporation.  

Looking forward to your reply and leadership.  Thank you in advance for your assistance!  God bless you.  Terry
drury46
 
Posts: 47
Joined: Thu Feb 14, 2013 10:14 am


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