For purposes of U.S. tax law, churches are considered to be public charities, also known as 501(c)(3) organizations. As such, they are generally exempt from federal, state, and local income and property taxes. However, churches and nonprofit organizations may risk their tax exemption with certain conduct. Nicholson Law Firm will help you navigate these risks to maintain your tax exemption privileges.
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities, and it may not participate in any campaign activity for or against political candidates.
Generally, tax-exempt organizations must file an annual information return Form 990 (PDF) or Form 990-EZ (PDF). Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less can satisfy their annual reporting requirement by electronically submitting Form 990-N if they choose not to file Form 990 or Form 990-EZ. Churches, some church-affiliated organizations and certain other types of organizations are excepted from filing.
Nicholson Law Firm has provided church and nonprofit law services to many organizations in need of general counsel, mediation and arbitration, formation and incorporation, governance and bylaws, insurance, land use, legal audits, and tax exemption. These services have been provided to churches, religious camps, para-religious nonprofits, private independent schools, and nonprofits focused on youth, veterans, and those in need of food, clothing and shelter. Our law firm provides church, faith-based organization and nonprofit law services in New Hampshire, Massachusetts and Vermont.
Use the form below or call us at 603-856-8441 today and let us develop a strategy for your legal needs.