Planting Churches Among the City's Poor - Volume 2

P ART II: C HURCH P LANTING T OOLKIT • 357

E. Legal Form of Organization: World Impact church plants will operate as unincorporated nonprofit associations. 1. No paperwork is required to be filed with federal or state governments to operate under this status. 2. The church leadership writes a constitution (governing document) describing the nature of the church, its purpose and the rules by which it will be governed. 3. IRS form SS-4, Application for Employer Identification Number, will be filed in order to acquire a federal tax identification number. (The National Office can supply you with a copy of this form.) 4. The federal tax identification number and minutes from a meeting of the governing body, resolving to open a checking account, will allow the church plant to open an account at a local bank. A. Incorporation: When the church plant reaches the point where it is close to forming leadership independent from World Impact missionaries, its leadership and members will need to consider incorporation. Churches are not required to be incorporated; however, doing so will limit the liability of the pastor and other church leadership in the case the church is sued. B. 501(c)(3) Status: Federal tax laws define churches as non-profits, and therefore, they are not required to file for formal classification as a non-profit (i.e, request for determination/tax exempt letter). However, if they choose to do so, churches can file and get a determination letter. Most large churches file in order to provide their members with assurance that their large gifts are indeed tax deductible. As the time for forming independent leadership from World Impact approaches, the leadership will need to consider filing form 1023 with the IRS to receive a determination letter for 501(c)(3) status. Note that similar forms will need to be filed at the state level.

II. Additional information