I am about to apply for a 501c3. My question is how long does this process take and at what point do we become tax exempt and what do we do in the interim process about fundraising? We have several people and churches who want to donate but want the write off. What do we do?
Thanks

Hello gah:

This is really a question for your CPA, however I have an opinion. Of course, I have an opinion on everything.

You ARE exempt because you fit the criteria, therefore, in my opinion, your status as exempt starts when you first fit the criteria - not when the government approves your application.

In fact, I suggest an even more radical solution. If you're a church, you're exempt automatically. It's just so. You don't need the governments permission to be that way, so why ask in the first place? I would not “apply” for 501c3 status, if I were you.

I would carry it even further than that, too. I would not incorporate my church. Corporations are creations of the state. Being a creation of the state, the state thinks it should have access to your books and documents.

Indeed, neither the state nor the federal government has any need to know that you even exist. I would create an unincorporated association for your church. That'll work just fine.

Of course, I AM an exconvict. Please, ask your CPA.

excon

I have to disagree with excon here. You are filing for 501(c)(3) status so that the people that want to give you money can claim the deduction. Its not about your taxes. I think he misunderstood that you were a church not that you have churches wanting to give money to you.

I do agree that you should have soemone preparing the filing and that someone is the best person to ask about the process.

No we are not a church more like a mission agency. We will be seeking donations from churches and individuals seeking a tax write off.