If a church is incorporated, but does not have a 501c3 status can donations be counted off on income tax. Would we be able to give a receipt for their income tax?

Hello ELA:

That's a bigger question than can be answered here. There are law books and even more books dealing with tax exemption. You really need the services of a good attorney and CPA.

Having said that, if you have NOT applied for a charitable organization status, which is what 501c3 is, then NO. "Donations" to the church, weren't donated to a charity and can't be deducted by the donor. Furthermore, the church owes income tax on the "donations", because they're really just ordinary income to an ordinary corporation.

The problem is the church never should have incorporated in the first place. A church does not have to ask permission from the government to be a church. A corporation, on the other hand, is a creation of the state. Once the church “asks” the state to create a corporation on its behalf, the church is pretty much at the mercy of the government.

excon