Planting Churches Among the City's Poor - Volume 2

P ART II: C HURCH P LANTING T OOLKIT • 361

3. Leadership structure (pastors, elders, deacons, ordination) 4. How decisions are made 5. How finances are managed 6. How discipline is handled 7. Membership requirements IX. What is a 501(c)(3) and what purpose does it have? A. This is the federal government’s description of a tax exempt organization. It is not necessary for a church to receive 501(c)(3) recognition (determination letter) in order to receive tax deductible gifts or exemption from federal income. B. The church cannot get a bulk mail permit without a 501(c)(3) determination letter (see example). C. Ministers who want exemption from social security must be employed by tax-exempt 501(c)(3) organizations. D. 501(c)(3) organizations are listed in an official publication issued by the IRS, making them publicly known (some donors are more comfortable with this official listing). X. How does a church get 501(c)(3) recognition? A. Incorporate with the state (State governments have their own form to be submitted. For example, in California, it is Form 3500). B. File IRS form 1023 and pay the fee. XI. What steps should be taken to limit liability with respect to employees and volunteers? A. Formulate a waiver of liability for all volunteers to sign (see attached example). B. Have all employees sign a conciliation agreement (see attached example). XII. Where can we go if we want detailed assistance in these matters? A. A local Christian attorney B. Sending organization or denomination C. Administrative Assistance , 8419 Vista del Cajon Pl., Lakeside, CA 92040; Don and Barbara Buckel (they work mainly with larger churches but have useful materials for reasonable fees)