How to Incorporate a Ministry in Michigan
Incorporation of a ministry in Michigan requires the founder to satisfy federal rules, then operate the ministry under the state's rules. The government views a ministry as a religious nonprofit organization. Typically, the founders of new ministries incorporate under the 501(c)(3) tax code, which signifies the ministry as a nonprofit entity. The ministry structure must be set up before filing the 501(c)(3) articles of incorporation.
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Instructions
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Interview at least two people who you feel would be able to help you in governing your nonprofit Michigan ministry. Under Michigan laws, a board of directors of three or more is required before a nonprofit can operate within the state.
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Draft a set of bylaws for your ministry. The bylaws outline how your ministry will be operated, including how frequently you will have board meetings to discuss and vote on important operations, rules for the directors and the members, and how the ministry's finances will be regulated (who will sign checks and be the treasurer, how the funds will be accounted for and how the money is budgeted).
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Set a date for an initial meeting with your directors to determine who is going to perform the duties of the specific offices. There should be, at a minimum, a president, vice president and treasurer before filing the 501(c)(3) articles of incorporation. All of the meeting's activities and agreements should be recorded and transcribed into the "Matters of Business."
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Set up a recordkeeping structure for your ministry. Both federal and Michigan state laws require nonprofit ministries to maintain records of bylaws, minutes of every meeting, financial statements, tax-filing documents, receipts, earnings reports, monetary expenditures and any other document that is produced through the operations of the ministry.
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Hire or appoint an accountant for your ministry, and always keep a double-entry bookkeeping system for all incoming and outgoing funds for your organization.
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Read and understand IRS Publication 557, which explains your obligations when filling out your 501(c)(3) application form. Then fill out IRS Form 1023 according to the guidelines in Publication 557. File the documents with your local IRS office.
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After receiving your 501(c)(3) status from the IRS, fill out IRS Form SS-4 to obtain a federal Employer Identification Number. This is required even if you don't intend to have any employees for your ministry.
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Conduct at least one annual meeting of the board of directors, as this is required by the IRS and Michigan nonprofit laws. Keep a copy of the minutes produced during the meeting, because your nonprofit ministry may be subject to an unannounced audit by the IRS or Michigan at any time.
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Register your IRS-approved 501(c)(3) ministry with Michigan through your local state tax office.
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Tips & Warnings
When establishing your ministry, any member of the public is permitted by law to request your operations documentation at any time for any reason, and you may not deny the public access to the documents. An incorporated nonprofit ministry must be transparent to the public.
The IRS prohibits a nonprofit ministry from engaging in political endorsements or financing any political candidate, or to otherwise influence the direction of a political campaign in any way. You can lose your nonprofit status and your incorporation for failing to follow this rule.
References
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