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VOLUNTARY REGISTRATION AND INCORPORATION WITH THE STATE

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In the United States,  churches and church based ministries are not taxable and are automatically tax exempt. By the Constitution and law they do not have to incorporate, register, or report their activities to any federal, state or local government.  Donations to churches and church based ministries are fully tax deductible whether they have chosen to  incorporate and register under  501(c)(3) or not. This is not the case for the vast majority of charitable non profit organizations who by law  must file a form 1023 with the IRS., and under government regulation, be granted tax exemption and deductibility.  

 

IRS publication 557 page 26 under the heading Religious Organizations...Churches states: 
Churches. Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantages to obtain recognition of exemption.  Form 1023 is the application for tax exempt recognition by the I.R.S. under 501(c)(3) of the internal revenue code. 

Furthermore on page 26 still under the heading of Religious Organizations....Churches it states:
Special rule: Men's and woman's organizations, seminaries, mission societies, and youth groups that satisfy (1) and (2) above are integrated auxiliaries of a church even if they are not internally supported. 

This link takes you to publication 557 on the IRS web site, go to pages 25-26:  June 2008 revision of Publication 557  
This link takes to to form 1023 on the IRS website the application for tax exempt recognition: Form 1023 

 

Daniel Martinovich Ministries of which Wordservice.org is a part of has chosen to not incorporate nor to seek IRS recognition of its standing as a church based ministry. (A ministry that is part of a church or a group of churches.) The main reason for this decision is simply that there is no law requiring it, (the IRS documents reflecting that fact.)  In an even greater capacity the Constitution of the United States forbids Congress from enacting laws that would give official recognition to some churches and their ministries (via the IRS) and withhold official recognition from others.  If the IRS has the power to grant some churches and their ministries official recognition or federal approval,  then by default it has the power to not recognize or withhold federal approval from others. This is the main reason behind the quotes from the IRS publications above, and why churches and their ministries have this "special" standing to not have to register, seek "official" approval or incorporate. 

The 1st amendment says: Amendment I of the Bill of Rights

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

For the IRS to have the power to grant "official recognition," i.e. federal approval, would mean that Congress was establishing what is and is not federally approved or disapproved religion and religion based practice. This is tantamount official state religion, which thank God we do not. This does not mean that the IRS has no authority to recognize and prosecute fraud in the guise of "church." 

 

Daniel Martinovich Ministries has pledged itself to the highest standards possible for the ministry; to "go the extra mile." We will provide yearly public reports (on the internet) of all financial activities including compensation, and the recipients of that compensation.  When the size and scope of the ministries warrant, audited reports by independent auditors will be provided. As the ministry grows church oversight will grow with it. Of course receipts will be  provided for tax deductible purposes. We will fully comply with the federal and state laws concerning income as they apply to churches. We will not knowingly do anything that would warrant the watchful eye of the IRS or endanger the tax deductible nature of your donations. 

 

It is understood that perhaps some people may fear to, or may not support this ministry because of its refusal to seek IRS approval for its status. (Even though the IRS acknowledges that there is no need to seek their approval for it.)  I guess that is the price that has to be paid to keep just a little bit more of that freedom accorded to us by our creator.  We all have to do what God tells us to do in faith.  Just because it has recently become a  cultural norm for churches and their ministries to seek something from the government that the government does not require them to have. That does not mean there is anything wrong or radical in breaking with a cultural norm. In fact in this case it could even be looked on as virtuous and the right thing to do. Before the Lord, your donations could be looked on as virtuous also, in light of the pressures of cultural norms.

© 2002-2009 Daniel Martinovich