501c3 part 1 501c3 part 2 501c3 part 3 501c3 part 4

***Disclaimer: I’m not a lawyer.  This post doesn’t constitute legal advice our counsel.  I’m simply sharing with you my past experience.  It is always advisable to consult a lawyer when working on legal paperwork for a church.

If you’ve made it this far, you are just about home free.  Hang in there.  Schedule A is specifically for churches.  All remaining schedules you can ignore.  Here are some tips for answering questions on Schedule A.

Question 1

Most churches will answer yes for both parts of the question.  Be sure to include your descriptions on the continuation sheets.  Remember that you can be formal in your descriptions and use church words.  In fact that’s preferable because the IRS is not likely to understand your modern language.  Use traditional language like sacraments, worship service, liturgy, etc.

Question 2

Part a refers to any law or rules that govern behavior.  So, if you have a membership covenant that specifically states that members must follow a set of rules, you would include it here.

Part b includes the story of your establishment and major events in your past.  If you are a new church, you can answer no.  You don’t really have a history yet.  If you’ve been established for a while, it is best to answer “yes” and give a description on the continuation sheets.

Part c Your literature refers to any writings about your beliefs, rules or history.  Again, if you are a new church you will most likely answer no.

Question 4

Part a If you answer no to this question, you aren’t a church in the eyes of the IRS.  You should indicate the regular days and times of your services.  Describe the order of  service and explain how the activities conducted as part of your services further your religious purposes.  Also include sample copies of church bulletins, pamphlets, or flyers.  If you currently aren’t holding services in a rented facility (haven’t launched yet), but are holding regular services with your launch team, go ahead and mark yes.

Part b For new churches, this can be tricky.  If you are not holding regular services with the launch team yet, then you aren’t ready to file.  If you are, I usually wait until there are 20 -30 on the launch team before sending in form 1023.  This insures that you look like a church and not an individual incorporating a church and trying to get tax exemption through a shell.  Be honest and if you aren’t at 20 yet, I advise waiting to submit the form.

Question 5

Part a The question says if you answer “yes” to refer to the instructions.  The instructions tell you to answer part b.  If you answer “no” you must describe where you hold regularly scheduled religious services.

Question 10

A school for the religious instruction of the young refers to any regularly scheduled religious, educational activities for youth, such as a “Sunday school.”  If you have children’s classes, these qualify even if you don’t call them Sunday school.

Question 11

Part b This does not refer to denominational schools but only if the church itself has started a school for ordained pastors.  Likely your answer will be “no”.

Next week: Final Touches.