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

3. A formal code of doctrine and discipline - Does your church have a set of
doctrines and beliefs that your congregants are expected to follow?
4. Established places of worship - Do your worship services take place in a
stable location, preferably a public facility instead of one’s home?
5. Regular congregations - Do your worship services contain more than 20
people? Are multiple families represented?
6. Regular religious services - Does your church have regularly scheduled
worship services?
Now, there is no set number of “points” that must be met. However, the more points you
are able to meet of the 14/15 Point Test, the better chances you have of your
organization being classified as a church for federal income tax purposes.
3 benefits of incorporating your church now
Perhaps you are only in the beginning stages of starting your church, or maybe you
have not held any official meetings or gatherings, and the idea of taking any official legal
steps has yet to cross your mind.
You are thinking to yourself, “We will get incorporated once our church is more
established.”
To that, I want to give you some benefits of being proactive and establishing your
church corporation sooner rather than later.
Benefit #1: Forming a corporation at the state level establishes a corporate veil that
separates the actions of the corporation from the actions of you and your church
members. Without the corporate veil, members’ personal assets may be at risk in the
instance of a lawsuit.
Benefit #2: Once incorporated, your church can adopt important governing documents
like bylaws, written doctrines, and policies. Likewise, your church’s governing body can
legally ordain ministers and begin functioning in an ecclesiastical manner.
Benefit #3: Once incorporated, you will be able to open a bank account in the church’s
name. This important step will allow you to properly deposit donations and monitor
income and expenses of your church. Keep in mind that most banks will ask for both the
approved articles of incorporation and the FEIN. That number, also known as a Tax ID
Number, can be obtained online from the IRS.
________
Certain characteristics are generally attributed to churches. These attributes of a
church have been developed by the IRS and by court decisions. They include:
Page 29 of 183