The Bible States: Money Answers All Things
Ecclesiastes 10:19
MOST COMMONLY ASKED QUESTIONS
1. Q. Are churches and ministries automatically tax exempt?
A. Churches are automatically tax exempt, and do not need to file taxes nor report to the Internal Revenue Service. Churches must establish a separate 501 (c) (3) called a Public Benefit 501 (c) (3) in order to be eligible for 100% of grants.
(Source:IRS Publication 557 and 1828, Tax Guuide For Churches and Religious Organizations
2. Q. How many tax exempt organizations are there?
A. There are 28 plus 501(c) tax exempt organizations including 501(c) (3).
3. Q. Are churches eligible for grants?
A. Without the Public Benefit 501(c) (3), veteran organizations and churches are eligible for 2% of grants.
4. Q. Can I receive a grant without a 501(c) (3) from the private sector or governmental agencies?
A. In the majority of cases, an organization must have a 501(c) (3) public benefit corporation to become eligible for governmental grants. This is also needed to obtain tax exemption, contributions and private grants.
5. Q. Are there more than one type of non-profit corporation?
A. There are three (3) types of non-profit benefit corporations: a) Religious, b) Mutual, and c) Public Benefits.
6. Q. What is a Corporation?
A. A corporation is a person or legal entity who is incorporated in the state and who is authorized to transact business in the state. No one else may have its name. It can borrow, sue and file bankruptcy.
7. Q. What are Board of Directors?
A. The Board of Directors are the policy makers for the corporation. They cannot be sued, indicted, arrested or sentenced for any illegal act of the corporation.
8. Q. What does 501(c) (3) mean?
A. 501(c) (3) means: 1. Exempt from federal income taxes; and you can 2. Receive contributions and grants; 3. You are exempt from state, county, city, business license, and other taxes to aid those in need.
9. Q. What are grants and what percentages can a corporation normally give to tax-exempt organizations?
A. Grants (free money): All corporations can give 5% of its net assets to Public Benefit corporation.
10. Q. How many dollars are available for Faith Based and Non-Profit Organizations?
A. There are more than one trillion dollars in grants available to the Public Benefit corporations with a 501(c) (3). Only 2% of those dollars are available to the Religious Benefit 501(c) (3) and veteran organizations.
11. Q. Is Government supportive of Faith Based and Non-Profit organizations?
A. The Government, and the public and private sectors are all pro-religious organization (s) with the Public Benefit 501 (c) (3) in giving out grants.
12. Q. What percentage of grants are available for Faith Based and Non-Profit Organizations?
A. 501(c) (3) Public Benefit tax exempt organizations can utilize 100% of all grants available.
13. Q. What percentage of grants is derived from the private sector?
A. 85% of all grants are derived from private sector.
14. Q. What is the average income of a CEO of a tax exempt organization?
A. The average income of a CEO of a tax exempt organization is more than $200,000.00 annually. Ex: Universities, Salvation Army, United Way, NFL, Blue Cross Blue Shield, Government Officials, Red Cross, Hospitals,etc...
15. Q. Are there limits as to the amount of grants a Public Benefit corporation may
receive?
A. There is no limit to the amount of grants that a Public Benefit corporation may receive.
16. Q. What are the benefits of receiving grants?
A. With grants there are fewer liabilities than with loans.
- Grants can provide much needed services to our communities through faith based and non- profit organizations by utilizing Public Benefit tax exempt status, without having to tax our church members.
