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by Darrell Mims
There are several benefits and responsibilities that ministries receive based on the provisions in the Internal Revenue Code (IRC). Ministries that meet the requirements of the IRC section 501 (C) (3) are automatically considered tax exempt and are not required to apply for tax-exempt status with the Internal Revenue Service (IRS). Ministries may need to apply under state law to legally operate. Such legal entities may be unincorporated associations, non-profit corporations or charitable trusts.
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by Darrell Mims
The good news is that Churches and religious organizations can produce income from sources that are unrelated to their tax-exempt purposes. This income must not be a substantial part of the overall organization’s activities. The bad news is that your ministry will have to pay taxes on that unrelated business income. Churches and other exempt organization that receive income from an unrelated trade or businesses are required to file Internal Revenue Service Form 990-T, Exempt Organization Business Income Tax Return. This form is required if the income is $1,000 or more in the taxable year. If your church has a separate Employer Identification Number (EIN), then Form 990-T is due the 15th day of the 5th month following the end of the church’s tax year.
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by Crown Financial Ministries
“Let the church keep the pastor poor and God can keep him humble.” How often has this statement been the point around which congregations rally when the issue of paying the pastor has been addressed?
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