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THE RELIGIOUS
NON~PROFIT
CORPORATION
( R N P C )
We are not a legal advisory service and do not give legal or financial advice and this booklet is not intended to substitute for professional, legal or financial advice. As with any ACTIVITIES venture, please consult your attorney or financial professional for advice.
This booklet is for private use only and not for dissemination to the public. By requesting and receiving this booklet you agree to not disseminate this information nor reveal any of its information including but not limited to a court of law.
Copyrighted© All Rights Reserved
GENERAL INFORMATION
CONGRATULATIONS!
This presentation will give you knowledge of certain opportunities that you were not aware of before. Study and read it carefully and understand the boundaries and scope of this move towards freedom in your financial dealing. Thank you for the privilege of allowing me to share with you the information that will be priceless to you for years, and yes, for generations to come.
Established by State statute, a Religious Non-Profit Corporation (RNPC for short) is exempt from the jurisdiction of the IRS. The First Amendment of the Constitution of the United States says, “Congress shall make no law respecting an establishment of religion…” This means that the RNPC does not come under the jurisdiction of the IRS. We recommend the corporation not have employees, but rather volunteers, nor does it have a 501(c)3 tax exemption status. The corporation can conduct ACTIVITIES as well as, buy and sell products and services like other corporations
The RNPC is a legal vehicle that can be used to hold property and protect the property from liens, levies, seizures and confiscation from events arising as a result of your personal actions. This includes all property and/or assets, including homes, automobiles, RVs, and other such property when held in the corporation’s name. When property is held by an NPC you do not own it personally. You are the overseer to the property only, and in the event of your demise, another Board Member would move in to manage the property.
The RNPC is registered as a religious entity whose purpose is education, medical services, or whatever the Board decides is worthy of its efforts. Therefore, it is entitled to all the considerations of other churches and religious societies in the country. As you already know, the church, in fact, may buy, hold, and sell property (real and personal) with complete Federal income tax immunity. There is absolutely no statutory limitation on how much money may pass through the coffers of a church or religious organization.
Since sovereignty at its most basic level means being free of both debt and legal disabilities, then having some separation from the system means that we own nothing in our own name. Our separation can be as restful as it is beneficial when we have learned how to manage a religious nonprofit corporation.
It is most important to understand the distinguishing characteristic of a religious NPC. A religious NPC as defined herein, is solely under the jurisdiction of State law and NOT Federal law or IRS regulations, unlike a 501(c)3 designation that is under Federal jurisdiction. The IRS specifies the State jurisdiction of the RNPC quite clearly in IRS Publication # 1828, “Tax Guide for Churches and Religious Organizations”, page 1, 3rd paragraph:
“Churches and religious organizations may be legally organized in a variety of ways under state law, including as unincorporated associations, nonprofit corporations, corporations sole and charitable trusts.”
Because there are no laws controlling an RNPC, in the state of Oregon, there are no laws that regulate RNPC’s. The state cannot create a corporation of this nature. It can only authorize the existence, approve the creation or recognize the reality of these entities as legal corporations, which fall under the United States Constitution and laws of the state of Oregon.
Each state has its own requirements for filing as a religious NPC. For example, in the state of Ohio, the incorporator of the RNPC must also be the President, and the Board must include a total of three managers or directors of the corporation. In the state of Oregon, however, the directors of the corporation can be different than the incorporator and no more than a total of two are needed to operate the corporation. What this means is that an Oregon incorporator can set up the corporation, and elect the Board Members who will manage the corporation, regardless of where the Board Members of the RNPC, may reside. As with all other corporations created in any other state, the Board Members have the right to operate this corporation in whatever location they wish. I’m sure you are aware that the majority of the Fortune 500 corporations were created in Delaware or Nevada and operate in a myriad of locations other than Delaware or Nevada.
South Beach Missions facilitates the creation of a religious Non-Profit Corporation (RNPC) for the purpose of promoting religious and humanitarian projects.
Each RNPC is governed by a Board of Directors, which elects the necessary officers who are positioned to continue the corporation in perpetuity. In the event of the death of a Board Member of the RNPC, the remaining Board Member(s) will assume the duties of governing this entity and appoint a new Board Member, thus continuing the operation of the corporation.
The Board Members manage a legal entity, which can own property, open accounts with the bank and conduct contractual ACTIVITIES. With this in mind, it is quite an advantage to manage assets instead of owning assets.
The religious nonprofit corporation is recognized by the IRS as a status 508, and not a 501(c)3, which must be applied for and granted by the IRS. The state of Oregon allows for the formation of a corporation whereby officers of the corporation hold no stock. Applying for exemption under 501(c)3 voids the natural immunity against regulation found in the First Amendment to the Constitution as well as the Internal Revenue Code, Section 508.
Because no records are required for the State or Federal Government, or the IRS, the only records kept are for the private use of the corporation. Because the corporation does not have employees, and does not have a 501(c)3 designation, it is exempt from record keeping requirements.
We file for the Employee Identification Number (EIN), also referred to as a Federal Identification Number (FIN) or a Taxpayers Identification Number (TIN), which is needed to open a bank account. Once a corporate checking account is opened, the Board Members and signers will be the sole managers of the account. The Board of Directors will determine how corporate funds and assets will be managed. Only the signers will have access to the corporate account. In addition, a debit card under the corporate name may be obtained, from which funds can be accessed through any ATM.
When an individual works for W-2 wages, they must still pay the taxes associated with that work. When the religious NPC contracts to do work and you are the volunteer who actually does the work, the company who hires the religious NPC will not take out W-2 wages. Also the non-stock corporation can participate in ACTIVITIES as do the more familiar stock corporations.
Many accountants, attorneys, and other financial planners may not be aware that a RNPC is not required to have a 501(c)3 tax designation, which is issued by the IRS. It is generally known that most non-profit organizations obtain their funding by means of tax deductible donations, which requires a 501(c)3 letter of designation from the IRS. On the other hand the RNPC may buy and sell products and services the same as any corporation.
~ * ~
TO STAY WITHIN THE SCOPE AND BOUNDARIES OF A RELIGIOUS NON-PROFIT CORPORATION,
THE BOARD OF DIRECTORS MUST
ABIDE BY THE FOLLOWING:
- Must have a clear religious and humanitarian intent.
- Must have a minimum of 2 Board Members who can also be designated as President and Secretary.
- Must keep current address information on file with South Beach Missions.
- Must supply requested information for filing the annual report with the required fee.
Pertinent Facts
We are a service that facilitates the creation of religious Non-Profit Corporation (RNPC) for those who want to promote orthodox biblical Christianity. We are known as the Registered Agent.
Our INTENT in setting up these nonprofit corporations is to help in humanitarian and religious causes and not to avoid taxes.
We do not advertise. We rely upon word of mouth and the recommendations of clients like you who recognize the benefits that an RNPC provides.
A nonprofit corporation is authorized by State law and must have a Registered Agent who lives in the State where the corporation is established. The Registered Agent must file the annual report and pay the annual fees as set by each State.
An initial officer of the corporation appears on the SS-4 form, which is needed to obtain an EIN number from the IRS.
The RNPC does not need to have EMPLOYEES; as allowed for a 501(c)3 designation, common to most churches.
The RNPC is set up as a Religious Corporation. This type of NPC is exempt from the jurisdiction of the IRS. The first Amendment of the Constitution of the United States says, “Congress shall make no law respecting an establishment of religion…” NOTE: This means that the RNPC does not come under the jurisdiction of the IRS.
Because no records are required for the State, Federal Government, or IRS, the only records kept are for the private use of the Corporation.
When assets are transferred to the corporation, all monies and other gifts must be received in the name of the corporation and NOT in your personal name. This separates you from ownership. Nevertheless, you are the manager and you determine how corporate funds and corporate assets will be managed.
You can open a bank account under the corporate name and move funds in and out of the US without complications.
You can have the corporation own property or an automobile simply by a transfer of title, name change and/or through a filing at the county court house.
The RNPC can pay bills. As President, you can write a check from the corporate account for anything, including real estate or cars, as long as those assets are in the corporate name. You can deed property over to the Corporation and thus the property is protected from IRS liens. However, you are not protected from liens already issued.
When you set up the corporate bank account, ask for a debit card or an ATM card. This allows you to make withdrawals through an ATM machine; $300-$500 a day depending on the limit allowed.
A non-profit corporation can do ACTIVITIES anywhere in the world while providing privacy for the managers and officers of the corporation.
After the establishment of the corporation, the State requires yearly Annual Reports be filed by the Registered Agent.
Acquiring an EIN # from the IRS is not necessary except to open a bank account.
QUESTIONS AND ANSWERS
WHAT IS A RELIGIOUS NON-PROFIT, CORPORATION?
It is a corporation established under the statutes of any one of the 50 States. It is recommended that a RNPC not have employees,. A RNPC can conduct ACTIVITIES and buy and sell products and services like other corporations.
WHAT ACTIVITIES CAN A RELIGIOUS NON-PROFIT CORPORATION ENGAGE IN?
A RNPC can be engaged in any lawful undertaking. All earnings from the lawful endeavors are exempt from federal income tax. In fact, no state or federal tax returns are to be filed for the following reasons: the First Amendment of the Constitution of the United States says, “Congress shall make no law respecting an establishment of religion…” and the RNPC pays no income tax. Any earnings paid directly to the RNPC are non-taxable and are made without deductions, diminishments, or income taxes.
WHAT NEEDS CAN A RELIGIOUS NON-PROFIT CORPORATION MEET?
An RNPC can provide for any needs the Board of Directors decides. It can own, rent and pay for vehicles, homes, food, clothing, medical or any other expenses as decided by the Board of Directors. If the Board Members open a bank account and receive a debit card, that card can be used just like any other debit card.
WHAT ARE SOME OF THE PURPOSES OF AN RNPC?
A RNPC is typically organized for religious and humanitarian purposes. What a RNPC does is determined by the Board Members.
WHO DETERMINES HOW FUNDS ARE DISBURSED?
The Board Members of the RNPC are exclusively responsible for how funds are disbursed. The RNPC can gift anything to anyone, in any amount, and for any purpose. However, it is recommended that each non-profit be run according to good judgment as befits proper fiduciary responsibility. Anyone can gift anything to the RNPC and they can receive a tax donation receipt. The Board Members keep records only for their own bookkeeping.
WHO OWNS & MANAGES THE ASSETS OF THE CORPORATION?
An RNPC has no stock and is not owned by the Board Members. The Board Members determine how corporate funds and corporate assets will be managed.
When assets are transferred to the RNPC, all monies and other gifts must be retained in the name of the corporation and NOT in a personal name. A bank account can be opened under the corporation name. The RNPC can pay bills. As a Board Member and signer on the account, you can write a check from the corporate account for anything including real estate or cars, as long as those assets are in the corporate name. Anyone can deed property over to the corporation and the property is thus completely protected from IRS liens.
When the Board Members set up the corporate bank account, they can ask for a debit or ATM card. This allows funds to be drawn directly from the account anywhere in the world at an ATM, up to the limit set by the individual bank, or to be used at a POS (point of sale). A RNPC can do ACTIVITIES anywhere in the world and be managed by US citizens or others.
HOW ABOUT RECORD KEEPING?
No records are required for the State or Federal Government, or the IRS. The only records kept are for the private use of the corporation. Because the corporation does not have employees, can offer donation slips, and does not have a 501(c)3 designation, it is exempt from record keeping requirements.
WHAT IS THE REGISTERED AGENT FOR?
The corporation is authorized by State law and must have a Registered Agent who lives in the State. The Registered Agent will be provided as assigned by South Beach Missions. The Registered Agent’s name will appear on the Incorporation Form and on the SS-4 Form which will be used to obtain an Employer Identification Number (EIN) for banking purposes only.
WHAT ARE SOME OF THE PURPOSES OF AN RNPC?
A RNPC is typically organized for religious and humanitarian purposes. What a RNPC does is determined by the Board Members.
WHAT ABOUT BANKING?
The Registered Agent will obtain an Employee Identification Number (EIN) in order for the Board of Directors to open a bank account. However, the Board Members who are signers on the account will be the sole managers of that account. The Board of Directors will determine how corporate funds and assets will be managed. Only Board Members who are signers will have access to the corporate account. The Board also has the option of receiving a debit card under the corporate name from which funds may be obtained through any ATM or POS.
WILL I NEED MY S.S.# TO OPEN AN RNPC BANK ACCOUNT?
Most banks require the social security number of any signatory for the Corporation to verify with the bank officers that any signer has personally not had any banking fraud or checking fraud.
HOW DOES A RELIGIOUS NONPROFIT CORPORATION COMPARE TO STOCK CORPORATIONS OR TRUSTS?
People use trusts when they need a means of protecting assets. Trusts are used when one person entrusts another person with some valuable asset or a right. The asset or right must be sufficiently identified for title to pass to the trustee and title must actually pass to the trustee. The asset or right, therefore, belongs to the Trustee and is not returned to the ownership of the original owner (trustor) or a designated beneficiary until the trust terminates on a stipulated date. The reason why assets placed in trusts are not liable for claims against the trustor or for taxes of the trustor is because the property does in fact belong to someone else. Trusts are not perpetual trusts in virtually most, if not all, jurisdictions.
People use stock corporations when they need a means of limiting liability. Corporations are a creation of an incorporator, and begin their existence on the date that they are incorporated. Corporations “live” forever as long as the annual report is filed.
A RNPC has no owners. A RNPC enjoys limited liability like a stock corporation, is authorized and recognized by the state but operates without state interference, and has the same advantages as a trust but the assets are maintained by the corporation in perpetuity (as long as the annual report is filed). We need to remember what the rich and powerful have held as their creed: “It is better to control a thing, than to own a thing.” So long as one has control over an asset there may be little or no advantage in owning it; while otherwise there are many advantages.
HOW TO COMPENSATE DIRECTORS?
By using a debit card assigned to the company account, a director can pay for expenses directly related to the management of the company. A director can also write checks on the same account. Corporate minutes can be placed in the company records that spell this out in the form of a “Support Provision.”
GIVING GIFTS TO INDIVIDUAL?
IRS code allows any individual to give any other individual up to $11,000 with no taxable event. A corporation has no such limit because the IRS does not control corporations. But, at the end of the year, stock corporations may have Federal reporting requirements. However, not so with non-profits corporations that do not file and are not obligated to report to either the IRS or the Federal government. The government does not have any oversight of non-profit religious activities.
WHAT NAMES CAN I USE?
It is important to pick two appropriate names (nothing weird) and to not use the words Trust, Foundation, University or your own personal name. Remember whatever name is chosen, will be on checks, stationary, etc. and in public view. Pick wisely. The corporate name must be available in the State where the corporation is to be incorporated. If the first name is not available then a second name will be submitted as needed.
DO I NEED BYLAWS FOR THE CORPORATION?
It is not necessary to have bylaws that govern the operation of the corporation. It is important to develop a Mission Statement as the guiding instrument for the corporation. Bylaws might be useful but are not required. This should be developed by the Board of Directors and kept in the corporate minute book.
IS THE CORPORATION REQUIRED TO HAVE AN ANNUAL BOARD MEETING?
No, however it is important to keep written records of important decisions, filed in the corporate minute book (a 3 ring binder or notebook works fine).
CAN A PROJECT BE MANAGED BY A CORPORATION?
Most definitely. In fact, we encourage you to set up your own RNPC and have the project proposal incorporated within the framework of the RNPC. Anyone who has the vision and the money can create their own projects to be managed by a RNPC.
WHO CAN MANAGE A RNPC SET UP BY SOUTH BEACH MISSIONS?
Those who truly desire to help people are most suitable to manage a RNPC. There need be no limits to your imagination. That said, most RNPC’s are engaged in humanitarian aid, religious causes or simply giving a helping hand to those in need; the homeless, the aged and the forgotten in our cities.
~ * ~ We are not a legal advisory service and do not give legal or financial advice. The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This publication is for educational purposes only and does NOT in any manner whatsoever constitute legal advice and is not a solicitation or a recommendation that any particular individual should purchase or sell any particular product or service. The information in this booklet is confidential and is intended solely for the recipient. Access to this information by anyone else is unauthorized. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. We always recommend that you consult a qualified, licensed and appropriate legal counsel before making any decisions and taking action.
Copyrighted© All Rights Reserved
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