The 508(c)(1)(a) Initiative Workshop

I. Introduction
The 508(c)(1)(a) Faith-Based Organization
Does The Church Need to Be 501(c)(3) Approved?
The 508(c)(1)(a) Faith Based Organization (FBO) is a religious, nonprofit, tax exempt
organization. The 508(c)(1)(a) FBO is separate and distinct from a 501(c)(3) charity and
unincorporated FBO’s. An unincorporated FBO by definition is a First Amendment
Church/Organization.
The 508(c)(1)(a) is recognized by the Federal Government, by all 50 states and
recognized internationally under the Hague Convention of the United Nations Charter.
Since its inception in 1954 with the Johnson Amendment, the 501(c)(3) has been
promoted and advertised by many as the only option to organizing a FBO. This is
incorrect. Federal law, IRS publications, and court cases all confirm and establish the
rights and protection of the 508(c)(1)(a) FBO.
The 508(c)(1)(a) FBO enjoys a “mandatory exemption” from all the restrictions a
501(c)(3) FBO has including free speech restrictions, IRS reporting requirements,
rules and regulations that the IRS may from time to time prescribe and providing
testimony under oath.
With that being said, a 508(c)(1)(a) is a registered state entity just as a 501(c)(3) is a
State and Federal sanctioned entity. Keep this in mind as we proceed further in this
document. A 508(c)(1)(a) is a 501(c)(3) with special exemptions:
A 508(c)(1)(a) Faith Based Organization is a not-for-profit in the same context as a
501(c)(3). The general context of operation for this form of organization is as follows:
1. The 508(c)(1)(a) is registered at the state level only. It is exempt from all Federal
filing requirements of the 501(c)(3), including tax returns for the church itself. This
is United States Code 26 508 and United States Code 26 6033.
2. The 508(c)(1)(a) FBO enjoys a “mandatory exception” from all the restrictions a
501(c)(3) FBO has including free speech restrictions, IRS reporting
requirements, rules and regulations that the IRS may from time to time
prescribe and providing testimony under oath.
3. The 508(c)(1)(a) is registered as a not-for-profit with the state, and hence
provides for limited liability. While not perfect, and no law is, you do have some
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