Organize the Church

Churches benefit from legal and organizational structure. These steps will help you in formalizing your church.

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IN OTHER WORDS: 

Please check your local and state laws to ensure that any legal documents you file or adopt, are legal and appropriate for your church in your state.  This webpage is just a starting point.  

The first step is to identify the initial board members and roles.

Three initial steps to organize the local church 

a. Form a Board of Directors

b. Form a church Board of Administration including secretary, treasurer 

c. Create official letterhead to record and communicate all official business 

The first step is to ensure that the name of the church is not being used by another organization.

Search your STATE database

https://www.irs.gov/businesses/small-businesses-self-employed/state-government-websites

Search the FEDERAL database [ Tax-Exempt Organization Search (TEOS) ]

https://www.irs.gov/charities-and-nonprofits

Once you confirm that the name is available, the next step is to obtain a Federal EIN

https://www.irs.gov/charities-and-nonprofits [ select: Employer Identification Number (EIN) ]

a. or go directly to https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

b. Select the option for “Church Organization” 

c. Fill out the required information.

Read an overview of the process here:
https://www.irs.gov/charities-non-profits/application-for-recognition-of-exemption

The form you (most likely) need is 1023-ez:
https://www.irs.gov/forms-pubs/about-form-1023-ez

To submit Form 1023-EZ, you must register for an account on Pay.gov.

Go to pay.gov homepage:
https://www.pay.gov/public/home

Click Apply for IRS 1023 EZ button (it says “Apply Right Here”)
https://www.pay.gov/public/form/start/62759871

Click “continue to form” button:
https://www.pay.gov/public/form/entry/102/62759871/

Form 1023-ez: https://www.irs.gov/forms-pubs/about-form-1023-ez

(note, if you anticipate receiving more than fifty thousand dollars in yearly donations in any of the next 3 years, you cannot file the EZ form, but must file the regular 1023 Form)

a. Make an appointment with a local bank.

b. Bring relevant documentation and cash for initial deposit 

i. Church EIN and documentation 
ii. Signed list of church Directors on official church letterhead 
iii. Church Resolution stating who can sign checks and make deposits 
iv. Photo ID’s for account signers 
v. Initial Cash or Check for deposit 
vi. In some cases the Bylaws were needed 
vii. In some cases a notarized statement of 501(c)(3) status is needed 

If the church is associated with a denomination, the new church plant can be covered under the umbrella insurance policy. Check with your overseers.
Another option is to contact a firm like Church Mutual or Brotherhood Mutual to walk you through the process.

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