The process of starting a nonprofit organization can be daunting, but it doesn't have to be.
In this blog post, we'll walk you through the steps of incorporating your organization as a 508c1a nonprofit. We'll also dispel some common myths about 501c3 status and explain why being a 508c1a can actually be advantageous for your church ministry.
Why Incorporate as a 508c1a?
There are two main types of nonprofits in the United States: 501c3 nonprofits and 508c1a nonprofits. The vast majority of nonprofits are 501c3s, but there are actually many benefits to incorporating as a 508c1a.
First and foremost, incorporating as a 508c1a allows your organization to keep its religious identity while still maintaining its tax-exempt status. In other words, a 508c1a is a church or religious organization that is exempt from federal income tax.
Another significant advantage of incorporating as a 508c1a is that you are not required to file Form 990, which all 501c3s must do every year. Form 990 is a public document that discloses information about your organization's finances, mission, programs, and more. Some churches choose to file Form 990 anyway, but it is not required.
The final reason to consider incorporating as a 508c1a rather than a 501c3 is that it allows your church more freedom when it comes to political activity. Churches that are 501c3s are prohibited from engaging in any kind of political activity, but 508c1as are not subject to this restriction.
Incorporating your church as a 508C1A has many advantages, including allowing your church to maintain its religious identity and exempting it from having to file Form 990 every year. Ultimately, the decision of whether or not to incorporate as a 508C1A or 501C3 depends on the needs and priorities of your particular church ministry.
People want to start nonprofit ministries, but they don't know how or where to start.
It can be difficult to figure out the legal and financial paperwork required to start a nonprofit ministry.
Destiny 508 Nonprofit Services provides the support people need to get their nonprofit ministry off the ground. We help with everything from filing your paperwork to educating board members and overcoming common challenges. Let us help you make a difference in your community.
For more information, read our blog and get the free 508 ebook from Destiny508.com.