Brother Ron Barnes
Founder and Pastor
Statement of Faith
About Brother Ron
Ask Brother Ron
Brother Ron answers your questions about religion, spirituality and ministry
A ministry to ministries. We want to help you become a more effective servant of our Father and your community.
Equipping people to be positive, productive members of the community.
Prayers and prayer resources for Baha'i, Buddhists, Christians, Hindus, Jews, Muslims, Native Americans, New Age, Pagans and other faiths.
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Resources to expand your knowledge and understanding of the world's major religions
Ron's original gospel songs and links to Christian music web sites.
Where to find help for medical problems, abuse, finances and other issues.
How to identify the right career, locate potential employers and get the job you want.
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May the Lord continue to bless and preserve you.
Dear Brother Ron
I just formed a corporation for my ministry and now want to get your opinion about the IRS nonprofit forms. Should I complete the application for 501(c)3 status?
Unless you intend to apply for government grants or funding from a foundation, you don't need 501(c)(3) status. Filing Form 1023 is a royal pain in the neck. It will cost you $500 to file it and the IRS will take at least six months to review your application. You had better have a tax attorney on your Board of Directors.
You can do most of the things you want to do as a church by simply claiming an exemption under Section 508(a)(1) of the Internal Revenue Code. You should still register as a non- profit with your state Secretary of State. The cost is very reasonable and their paperwork is a lot easier and less intrusive. This will establish you as a legal entity within your state. You will be assigned a state tax ID which you will use to report sales tax and other state taxes.
Please be aware that the only income which is non-taxable under section 508(a)(1) is donations to your church. Any income you receive for services such as weddings and funerals is taxable as personal income. The same is true for income received from church businesses such as day care or thrift stores. Of course if these businesses donate all their profits to your church, there is no profit to tax. Like I said, you should seek advice from a qualified tax professional. There is a big difference between tax avoidance, which is merely avoiding paying more taxes than the law requires, and tax evasion, which is a federal crime.
Hope this helps.