RIVEROS CORP NETWORK | Apostille de la Haya · Notary Public Center · Compliance Officers · USJurisdiction
RIVEROS CORP NETWORK | Apostille de la Haya · Notary Public Center · Compliance Officers · USJurisdiction
Bylaws, internal policies, minutes and records of actions, accounting records and the Form 1023 package. The records that back up a church or ministry when someone asks for them: a bank, a major donor, a denomination or the IRS itself.
The IRS guide for churches and religious organizations is explicit, and the parenthetical is what matters: all exempt organizations, including churches, “regardless of whether tax-exempt status has been officially recognized by the IRS,” are required to maintain books of account and the other records needed to justify their claim for exemption in the event of an audit.
In other words, a church that has never applied to the IRS for anything, and isn’t required to, still has to be able to show why it’s exempt. That’s exactly the file we prepare.
The congregation runs and decisions get made, but there are no minutes and no bylaws. It all lives in the memory of two or three people.
Signed bylaws, minutes appointing the signers, a resolution to open the account. Nobody warned you that you’d need them.
Almost always because the organizing document didn’t include the exempt-purpose and dedication-of-assets provisions.
And all you have is an old PDF from years ago that no longer reflects who governs the organization today.
Politics, the pastor’s salary, use of property: these are the three areas where an exempt organization puts its exemption at risk.
Nobody knows, so either everything gets thrown out or nothing does. Neither is a good option.
The IRS guide doesn’t require any particular format (“there is no specific format for keeping records”), but it does list the types of records usually required. This package is built on that list.
The Articles of Incorporation under §617.0202, with the religious purpose stated and the exempt-purpose and dissolution-of-assets provisions included under §617.0202(2)(b). If the entity already exists without them, we prepare the amendment.
The internal rules: governing bodies, how directors are elected, meeting notices, quorum, voting majorities, officers and authorized signers. It’s the document banks ask for most, and the one most often missing.
Written, approved operating rules covering compensation for people who provide services, use of the organization’s property, expenses and reimbursements, and limits on political and legislative activity.
The record of the governing body’s actions, with a meeting notice template, standard minutes and the most common resolutions: opening a bank account, appointing officers, approving the bylaws.
The employer identification number. According to the IRS guide, every exempt organization, including a church, should have one even if it has no employees: it’s needed for the bank account, for a group ruling and to file returns.
For organizations that must request recognition (or churches that choose to), the complete package, with the narrative and financial attachments that go with the application.
The books the guide lists: general ledger, cash receipts and disbursements journals, bank records, invoices, payroll records and property records.
How long to keep each item and when the clock starts, so you can keep records deliberately instead of hoarding everything out of fear.
The law doesn’t set a single retention period. What the IRS guide offers are criteria for when records may be relevant to administering a federal tax law. There are two, and in both the clock starts not on the date the document was issued but on the filing of the return it relates to, which is exactly where everyone gets it wrong.
Hardly anyone writes internal policies for fun. They’re written because these four areas are regulated, and once a specific case comes up, it’s too late to set the rule.
The organization’s earnings or assets may not end up benefiting people who have a personal interest in it: the minister, board members, officers and, in certain cases, employees. The guide gives as examples paying dividends, unreasonable compensation and transferring property for less than fair market value. The prohibition is absolute: any amount can be grounds for losing the exemption.
This is different from the previous one: here the person who benefits doesn’t have to be an insider, but the private benefit must be substantial to put the exemption at risk.
No organization, including a church, can keep its 501(c)(3) status if a substantial part of its activities consists of trying to influence legislation. Some activity is allowed; too much is not.
Intervening in political campaigns for or against a candidate for public office is prohibited outright. It’s the clearest of the four lines, and the one that causes the most trouble.
When requesting recognition under section 501(c)(3), churches and some religious organizations must use Form 1023. Smaller religious organizations may be eligible for Form 1023-EZ, the streamlined version.
As a general rule, it must file its application within 27 months after the end of the month in which it was formed if it wants to be treated as exempt—and eligible to receive deductible contributions—from its date of formation.
A church can obtain recognition effective from the date it was formed as a church, even if that date is more than 27 months before the end of the month in which it files the application.
The IRS is required to charge a non-refundable user fee to every organization that requests an exemption determination. It’s an official fee, separate from professional fees: we give you the full quote in writing before we start.
This page sells document preparation, and you should know exactly where the line is before you hire anyone.
We work from standard templates and complete them with your organization’s actual information, governing bodies and operations. We prepare and file the paperwork, put together the file and explain in English or Spanish what each document says and what it’s for.
We don’t draft custom documents or advise you on what terms to agree on, how to structure the entity’s governance or how it should be taxed. That’s legal or tax advice, and it belongs to a licensed attorney or CPA. If your case needs it, we’ll tell you.
We look at what already exists: organizing document, bylaws, minutes, accounts. There’s almost always more than people think; it’s just disorganized.
We compare what you have with what you should have and send you a written list of gaps, in order of urgency.
We complete the templates with the organization’s actual information and governance. If the organizing document needs to be amended, we prepare the amendment.
Your governing body approves the documents and records the approval in the minutes. We prepare the meeting notice and the standard minutes.
We deliver the organized file and the retention schedule, so your records stay in order from then on.
Yes, and it’s one of the most important points on this page. The IRS guide requires all exempt organizations, including churches, “regardless of whether tax-exempt status has been officially recognized by the IRS,” to maintain books of account and the other records needed to justify their claim for exemption in the event of an audit.
The guide doesn’t require a format, but it lists the types of records that are usually required: organizing documents (charter, constitution or Articles of Incorporation) and bylaws, minute books, property records, general ledger, cash receipts and disbursements journals, payroll records, bank records and invoices.
The law doesn’t set a single period. The guide’s criteria are two: revenue and expense records, including payroll, at least four years after filing the return they relate to; and records of the acquisition and disposition of property, at least four years after filing the return for the year in which the disposition occurs.
The most common cause is that the organizing document didn’t include, from the start, the provisions the IRS requires: the exempt purpose and the dedication of assets upon dissolution. §617.0202(2)(b) allows them to be included at formation; if that wasn’t done, you have to amend before refiling.
Churches and some religious organizations must use Form 1023. Smaller religious organizations may be eligible for Form 1023-EZ, the streamlined version.
As a general rule, a religious organization must file it within 27 months after the end of the month in which it was formed if it wants to be treated as exempt from its date of formation. A church, on the other hand, can obtain recognition effective from the date it was formed, even if that date falls before that window.
The inurement prohibition doesn’t rule out reasonable payments for services rendered, payments that further exempt purposes, or payments for the fair market value of goods or services. What is prohibited is unreasonable compensation, the payment of dividends and transferring property to insiders for less than its fair market value. That’s why the compensation policy should be approved and documented in advance, not after the fact.
There are two different limits, and it’s important not to confuse them. Activity aimed at influencing legislation is allowed to some extent, but it can’t be a substantial part of the organization’s activities. Intervening in a political campaign for or against a candidate for public office is prohibited outright.
It’s the organized record of the governing body’s actions. It shows who made each decision and when: the appointment of officers, the approval of the bylaws, the opening of a bank account or the approval of the accounts. It’s the first thing anyone asks for when they want to confirm the organization truly functions.
We work from standard templates and complete them with your organization’s actual information, governing bodies and operations. What we don’t do is custom drafting or advising you on what terms to agree on: that is legal advice and belongs to a licensed attorney.
Often yes, as a starting point. We begin with the inventory: we review what exists, what still reflects the organization’s reality and what’s missing, and we send you the written list of gaps before preparing anything.
It’s a good idea. According to the IRS guide, every exempt organization, including a church, should have an employer identification number whether or not it has employees: it’s needed to open a bank account, to be listed as a subordinate in a group ruling and to file returns.
It depends on where you’re starting from and on whether the entity needs to be formed or amended. We always separate two items: official fees, which are non-refundable and not set by us, and our professional fees. We give you the full quote in writing before starting anything.
Tell us what documents you have today and which ones you’ve been asked for. We start with the inventory and send you the written list of gaps.
or call us at +1 (305) 647-3000 · Monday through Friday
175 SW 7th St, Suite 1905 · Miami, Florida 33130
Forming the entity under Florida Chapter 617.
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Foundations and charities without a religious purpose.
EIN, registered agent, bank account and Annual Report.
