So what is a 508(c)(1)(a)?

A 508(c)(1)(a) is a type of Faith-Based Organization (FBO) or Non-Profit Church (NPC) that derives its non-profit status from the United States Constitution. It asserts its rights rather than seeking IRS-granted privileges.

Well if you are interested in starting a religious non-profit entity, then understanding what a 508(c)(1)(a) is could be of greater importance than you could ever realize.  Most churches are under the impression that they must gain permission from the IRS to get tax-exempt benefits.  That the IRS may grant the privilege of having 501(c)(3) tax-exempt status.   This is just not true!     

Unlike conventional non-profits or unincorporated FBOs, the 508(c)(1)(a) FBO stands as a distinct entity, offering unique advantages in the realm of faith-based initiatives.

Since its inception alongside the Johnson Amendment in 1954, the 501(c)(3) label has been extensively promoted as the go-to option for organizing an FBO. However, it’s essential to recognize the viable alternative presented by the 508(c)(1)(a) status.

Federal law, IRS publications, and legal precedents underscore the rights and safeguards extended to 508(c)(1)(a) FBOs. Embrace the “mandatory exception” provided by the 508(c)(1)(a) status, liberating your FBO from the constraints faced by 501(c)(3) organizations. This exemption encompasses freedom of speech, alleviation from stringent IRS reporting requirements, and immunity from various regulatory directives.

Just as there are diverse paths to forming businesses, there exist multiple avenues for establishing churches, integrated auxiliaries, and associations of churches under the 508(c)(1)(a) umbrella. With over two decades of experience in facilitating the setup of churches and church ministries, South Beach Missions is committed to providing our services to those seeking to establish their ministry on a firm footing. Harness the power of 508(c)(1)(a) status for your Faith Based Organization today and embark on a journey of purpose and impact, and let South Beach Missions be your guide on this journey towards true religious freedom.

Ready to take the next step? Contact us for more information and we will be happy to talk with you to discuss what we can do for you!