{"id":922,"date":"2023-05-06T21:16:48","date_gmt":"2023-05-06T21:16:48","guid":{"rendered":"https:\/\/malachianempire.world\/marketplace\/?post_type=product&p=922"},"modified":"2023-06-11T03:16:48","modified_gmt":"2023-06-11T03:16:48","slug":"508-faith-based-religious-assembly-2","status":"publish","type":"product","link":"https:\/\/malachianempire.world\/marketplace\/product\/508-faith-based-religious-assembly-2\/","title":{"rendered":"508 FAITH BASED RELIGIOUS ASSEMBLY"},"content":{"rendered":"

The<\/span> 508(c)(1)(a) Faith Based Organization (FBO) is a religious,<\/span> non-<\/span>
profit,<\/span> tax exempt organization. The 508(c)(1)(a) FBO is separate<\/span> and<\/span>
distinct<\/span> from a 501(c)(3) charity and unincorporated FBO\u2019s.<\/span>
An<\/span> unincorporated FBO by definition is a First Amendment<\/span>
Church\/Organization.<\/span>
The<\/span> 508(c)(1)(a) is recognized by the Federal Government, by all<\/span> 50<\/span>
states<\/span> and recognized internationally under the Hague Convention<\/span> of<\/span>
the<\/span> United Nations Charter.<\/span>
Since<\/span> its inception in 1954 with the Johnson Amendment, the 501(c)(3)<\/span>
has<\/span> been<\/span> promoted and advertised by many as the only option to<\/span>
organizing a FBO. This is incorrect. Federal law, IRS publications,<\/span>
and<\/span> court cases all confirm and establish the rights and protection<\/span>
of<\/span> the<\/span> 508(c)(1)(a) FBO.<\/span>
The<\/span> 508(c)(1)(a) FBO enjoys a \u201cmandatory exemption\u201d from all the<\/span>
restrictions a 501(c)(3) FBO has including free speech restrictions,<\/span>
IRS<\/span> reporting requirements, rules and regulations that the IRS may<\/span>
from<\/span> time to time prescribe and providing testimony under oath.<\/span>
With<\/span> that being said, a 508c1a is a registered state entity just<\/span> as<\/span> a<\/span>
501c3<\/span> is<\/span> a State and Federal sanctioned entity. Keep this in mind<\/span> as<\/span>
we<\/span> proceed further in this document.<\/span> A 508c1a is a 501c3 with special<\/span>
exemptions.<\/span>
A<\/span> 508c1a<\/span> Faith Based Organization is a not-for-profit in the same<\/span>
context<\/span> as a 501c3. The general context of operation for this form<\/span> of<\/span>
organization is as follows:<\/span>
1.<\/span> The 508c1a is registered at the<\/span> state level only<\/span>. It is<\/span>
exempt from all Federal filing requirements of the 501c3,<\/span>
including tax returns for the church itself. This is United<\/span>
States Code 26 508 and<\/span> United States Code 26 6033.<\/span><\/p>\n

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<\/div>\n<\/div>\n
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<\/div>\n<\/div>\n

2.<\/span> The 508c1a FBO enjoys a \u201c<\/span>mandatory exception<\/span>\u201d from all the<\/span>
restrictions a 501c3 FBO has including free speech restrictions,<\/span>
IRS<\/span> reporting requirements, rules and regulations that the IRS<\/span>
may<\/span> from time to time prescribe and providing testimony under<\/span>
oath.<\/span>
3.<\/span> The 508c1a is registered as a not-for-profit with the state,<\/span>
and<\/span> hence provides for<\/span> limited liability. While not perfect,<\/span> and<\/span>
no<\/span> law is, you do have<\/span> some private asset protection. Under<\/span>
Federal law a 508c1a is automatically tax exempt at the Federal<\/span>
level.<\/span>
4.<\/span> Can give tax deductible receipts for donations.<\/span>
4.<\/span> Freedom of Speech, as indicated in item 2 above, including,<\/span>
but<\/span> not limited to, politics, referendums, initiatives, and<\/span>
candidates.<\/span>
6.<\/span> Can ordain and license it\u2019s own leaders.<\/span>
7.<\/span> With proper filing with the state, it may receive a sales<\/span> tax<\/span>
exemption certificate.<\/span> NOTE: Not all states will allow a 508<\/span> to<\/span>
be<\/span> sales tax exempt. Contact your Dept. of Revenue for details.<\/span>
8.<\/span> Providing the state<\/span> certificate of organization and state<\/span>
exemption of sales tax<\/span> can be proof of exemption from property<\/span>
tax<\/span> on a church related structure. This is true for only a<\/span>
single property.<\/span>
9.<\/span> The 508c1a operating as a church, may or may not have paid<\/span>
employees or clergy.<\/span> Best case is to not have payed employees.<\/span>
It<\/span> is best case to have clergy who have a secular job to secure<\/span>
their private income.<\/span> (exception is listed in Note 9a)<\/span>
Note 9a: T<\/span>here is<\/span> an exception to having clergy or<\/span> persons<\/span>
in the capacity of paid employees.<\/span> It is possible to have<\/span>
clergy or employees as \u201cprivate contractors\u201d. The benefit<\/span>
is they are not employees, and the only paperwork required<\/span>
of the church is to file a 1099 Misc Income Statement.<\/span> This<\/span>
will still require filing for an Employer Identification<\/span>
Number (EIN). This is the recommended way to distribute<\/span>
compensation.<\/span><\/p>\n

\n
<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n

In<\/span> the case where there is a need for a<\/span> paid employee<\/span>, the<\/span> rules<\/span>
of<\/span> Employment Tax in IRS publication 1828 must be met (starting<\/span>
on<\/span> page 21)(<\/span>https:\/\/www.irs.gov\/pub\/irs-pdf\/p1828.pdf<\/span>). This is not the<\/span>
recommended procedure,<\/span> see Note 9a.<\/span>
In<\/span> the instance of a paid clergy, the Special Rules for<\/span>
Ministers must be met (starting on page 22)(<\/span>https:\/\/www.irs.gov\/pub\/irs-<\/span>
pdf\/p1828.pdf<\/span>). This is not the recommended procedure, see Note<\/span> 9a.<\/span>
In<\/span> either case, this would REQUIRE the 508c1a church to file<\/span> the<\/span>
SS4<\/span> Federal form to obtain an Employer Identification Number<\/span>
(EIN). This is a free filing and can be done online.<\/span>
10.<\/span> It is highly recommended that all who wish to form a 508c1a<\/span>
church and have paid staff or priest (rather than private<\/span>
contractors) that they<\/span> should read IRS Publication 1828 in it\u2019s<\/span>
entirety.<\/span>
11.<\/span> It is highly recommended that the clergy, if they perform<\/span>
any<\/span> counseling or confession tasks, to take it upon themselves<\/span>
to<\/span> obtain personal liability insurance. This is not overly<\/span>
expensive, and is simply good practice. None the less, it is<\/span> a<\/span>
personal decision.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The<\/span> 508(c)(1)(a) Faith Based Organization (FBO) is a religious,<\/span> non-<\/span>
profit,<\/span> tax exempt organization. The 508(c)(1)(a) FBO is separate<\/span> and<\/span>
distinct<\/span> from a 501(c)(3) charity and unincorporated FBO\u2019s.<\/span><\/p>\n","protected":false},"featured_media":535,"comment_status":"open","ping_status":"closed","template":"","meta":[],"product_brand":[],"product_cat":[110],"product_tag":[148,166,149],"class_list":["post-922","product","type-product","status-publish","has-post-thumbnail","product_cat-business","product_tag-148","product_tag-mes","product_tag-ministries","first","instock","shipping-taxable","product-type-simple"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/product\/922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/types\/product"}],"replies":[{"embeddable":true,"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/comments?post=922"}],"wp:attachment":[{"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/media?parent=922"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/product_brand?post=922"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/product_cat?post=922"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/malachianempire.world\/marketplace\/wp-json\/wp\/v2\/product_tag?post=922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}