How to Start a Christian Charity Organization

When a person's ministry grows to the point where more people must become involved to do it well, it is time to consider forming a charitable, or non-profit, organization. Not only does this structure provide a separate identity for financial, legal and tax purposes, but it also allows the organization to engage in fund-raising. When the organization has been designated a tax-exempt 501(c)(3) organization by the Internal Revenue Service, your donors are allowed to deduct what they give from their taxes.

Things You'll Need

• Application for incorporation as a nonprofit Organization in your state
• IRS Form 1023

Instructions

1. Choose three to five trusted Christians who share the passion and priorities you have for your organization to be on the board of directors. This group of people will be legally responsible for the organization's fiscal oversight, governance and fund-raising so they should be people who have influence in your community, are affluent and have an expertise that will be valuable to the organization as it grows. The choice of your board members also indicates whether your organization will embrace Christians from across an ecumenical spectrum or if it is more sectarian in nature. This is important because prospective donors may be attracted according to their own affiliations and beliefs.

2. Name your organization. Check on your state's secretary of state department website where you will find a way to search your name to make sure that no one else already has it. Then write a mission statement for your organization. Decide whether your purpose is more religious or evangelistic in nature or more charitable. Both purposes are acceptable from a legal standpoint but you must select one on your application for incorporation.

3. Decide whether your Christian charitable organization should operate independently or whether it will be under the umbrella of a church or denomination. If you will come under the covering of another organization, it will need to register their organization as "doing business as" your organization. This allows you to set up bank accounts and operate. However, the board of the parent organization will have the ultimate say in what your organization does.

4. Submit the application for incorporation as a nonprofit organization to your state's state department if you decided to operate as an independent organization. Your board members will need to sign the application which asks for your mission and purpose. Christian organizations can make advancement of religion their stated purpose or they can select a different focus for which they will offer a faith-based solution and organizational culture. Operating a coffee house, publishing a newsletter, doing geneological research for religious purposes, providing missionary housing, being a church and doing charitable humanitarian work are all activities that are legally considered appropriate for a Christian charity. In addition to stating the mission and purpose for your organization on your application for incorporation, since each state's application is slightly different, make sure that you fulfill all of the requirements for yours. Add the fee.

5. Apply for tax-exempt status from the Internal Revenue Service using IRS Form 1023. You must include the Articles of Incorporation from your state, your bylaws and a preliminary budget for the first three years. Based on the size of your predicted budget, a fee will be charged. It takes between six and 12 months to receive approval as a 501(c)(3) tax exempt organization. While obtaining tax-exempt status is not mandatory for Christian charity organizations, it does help with fund-raising due to the tax benefits of a donation to the charity. And, if you apply to foundations for grant funding, it is usually a prerequisite.

Resources

• Review resources for nonprofit organizations