How to Get a 501(c)(3) for a Church: Form 1023 and Deadlines

To get 501(c)(3) recognition for a church, you incorporate the church under state law, adopt Articles of Incorporation and Bylaws containing the specific purpose and dissolution language the IRS requires, obtain an Employer Identification Number, and file the full Form 1023 electronically through Pay.gov with a $600 user fee. Churches are automatically treated as tax-exempt under federal law, so the application is technically optional, but the IRS determination letter you receive at the end is what donors, banks, grantmakers, and state tax offices actually ask to see.

Why Apply If Churches Are Already Exempt

Under 26 U.S.C. ยง 508(c)(1)(A), churches, their integrated auxiliaries, and conventions or associations of churches are treated as 501(c)(3) organizations without filing anything.1Office of the Law Revision Counsel. 26 USC 508 – Special Rules With Respect to Section 501(c)(3) Organizations Donations are deductible, and the church owes no federal income tax on its exempt-purpose revenue.2Internal Revenue Service. Exemption Requirements – 501(c)(3) Organizations

The practical world is less accommodating than the statute. Without a determination letter, the church carries the burden of proving it qualifies whenever anyone questions it. A donor whose deduction is challenged on audit may lose it if the church can’t produce a letter. Banks, grant-making foundations, and state agencies that handle property and sales tax exemptions routinely require the letter before opening accounts, releasing funds, or processing exemptions. The letter resolves ambiguity in a way that pointing at a statute does not.

What the IRS Counts as a Church

Before spending time on the application, confirm the organization looks like a church in the way the IRS uses that word. The agency evaluates a set of characteristics drawn from case law and internal guidance, sometimes called the “14-point test,” though the IRS itself notes the word “test” is misleading. No minimum number of factors must be met, and no single factor controls.3IRS. Defining Church – The Concept of a Congregation

Characteristics the IRS weighs include:

  • A distinct legal existence
  • A recognized creed and form of worship
  • A definite and distinct ecclesiastical government
  • A formal code of doctrine and discipline
  • A distinct religious history
  • A membership not associated with another church or denomination
  • Ordained ministers who completed prescribed courses of study
  • A literature of its own
  • Established places of worship
  • Regular congregations and religious services
  • Sunday schools or similar religious instruction for the young
  • Schools for the preparation of ministers

The IRS also considers “any other facts and circumstances” bearing on whether the group genuinely functions as a church.3IRS. Defining Church – The Concept of a Congregation A newer congregation that meets some but not all of these can still qualify.

Step 1: Incorporate the Church Under State Law

Before touching any IRS form, the church has to exist as a legal entity. That means filing Articles of Incorporation, sometimes called a Certificate of Incorporation or Charter, with your state’s secretary of state or equivalent office.

The IRS warns organizations not to apply for an Employer Identification Number until the organization is legally formed, because the three-year clock for automatic revocation of exempt status starts running at that point.4Internal Revenue Service. Obtaining an Employer Identification Number for an Exempt Organization State filing fees for nonprofit incorporation vary widely, typically ranging from under $50 to over $100, and some states add county-level fees. Many states also require a periodic annual report.

Step 2: Draft Governing Documents With the Required Language

Your Articles of Incorporation have to contain two clauses the IRS will look for. Miss either and the application gets rejected.

The purpose clause must limit the church’s activities to purposes described in section 501(c)(3). You don’t have to recite the entire statute, but the language should make clear the organization exists exclusively for religious, charitable, or educational purposes and will not carry on activities that aren’t permitted under 501(c)(3).2Internal Revenue Service. Exemption Requirements – 501(c)(3) Organizations

The dissolution clause must state that if the church ever dissolves, its remaining assets will go to another 501(c)(3) purpose or to a federal, state, or local government for a public purpose. The IRS publishes suggested language: “Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose.”5Internal Revenue Service. Suggested Language for Corporations and Associations Without it, nothing prevents church assets from going to private individuals at dissolution, and the IRS will not approve the application.

You should also draft Bylaws describing how the church governs itself: board structure, member voting, officer selection and removal, meeting procedures. The IRS does not dictate the contents, but the bylaws travel with your application. A written conflict of interest policy is not required to obtain exempt status, but the IRS provides a sample in Appendix A of the Form 1023 instructions and asks whether you have adopted one.6Internal Revenue Service. Instructions for Form 1023 Adopting one signals that leadership takes governance seriously.

Step 3: Get an Employer Identification Number

Every church needs an EIN whether or not it has employees. You can apply online, by fax, or by mail; the online application is fastest and returns the EIN immediately.7Internal Revenue Service. Employer Identification Number The nine-digit number identifies the church on federal filings, bank accounts, and official documents from here on.

Step 4: File Form 1023 Through Pay.gov

Churches cannot use the streamlined Form 1023-EZ. The 1023-EZ eligibility worksheet asks whether the applicant is a church, and answering yes disqualifies you.8Internal Revenue Service. Instructions for Form 1023-EZ You file the full Form 1023, which is longer but gives the IRS enough information to review the church thoroughly.9Internal Revenue Service. About Form 1023 – Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

The application is filed electronically through Pay.gov.10Internal Revenue Service. Applying for Tax Exempt Status To submit it:

  • Create an account on Pay.gov.
  • Search for “1023” in the site’s search box and select the form.
  • Combine all supporting documents into a single PDF. That means Articles of Incorporation, Bylaws, conflict of interest policy if you have one, and any other attachments the form calls for.
  • Complete the form online and upload the PDF.
  • Pay the $600 user fee during the final submission step.11Internal Revenue Service. Form 1023 and 1023-EZ – Amount of User Fee

The form asks for a detailed narrative of the church’s past, present, and planned activities. Don’t answer with one vague paragraph. Describe worship services, outreach programs, educational activities, and anything else that shows how the church carries out its religious mission. You also submit financial data covering three years of actual or projected revenues and expenses, including tithes and offerings on the income side and things like staff compensation and facility upkeep on the expense side.

The 27-Month Filing Deadline

To have your exemption recognized retroactively to the date the church was legally formed, file Form 1023 within 27 months from the end of the month in which the church was incorporated.12Internal Revenue Service. Form 1023 – Purpose of Questions About Organization Applying More Than 27 Months After Date of Formation Miss the window and the IRS may only recognize exemption from the filing date forward, which can affect whether donations received in the gap period are deductible. Exceptions exist, but the clean path is to file inside the 27 months.

Processing Times and the Determination Letter

After submission, the IRS assigns your file to a specialist. As of early 2026, the IRS reports that 80% of Form 1023 applications receive a determination within 191 days.13Internal Revenue Service. Where’s My Application for Tax-Exempt Status Complex applications and busy periods run longer. If the reviewer needs more information, you’ll get a written request by mail; answer thoroughly and by the deadline in the letter, because incomplete or late responses can produce an adverse determination.

When the IRS approves the application, it issues a determination letter confirming the church’s 501(c)(3) status. The letter states the effective date of exemption, which typically reaches back to the date the church was legally formed if you filed within the 27-month window. Keep the letter permanently. Donors, banks, state tax agencies, and foundations will ask for it.

Expedited Processing

In limited circumstances you can ask the IRS to prioritize the application. The request has to be in writing and included in your single PDF attachment. Reasons the IRS has treated as compelling include a pending grant that will be forfeited without a determination letter, a newly formed organization providing disaster relief, and IRS errors causing unusual delays.14Internal Revenue Service. Frequently Asked Questions About Form 1023 If the basis is a pending grant, include the grantor’s name, the grant amount, the forfeiture deadline, and the operational impact. Expedited handling is discretionary, so don’t build the plan around it.

Group Exemption Through a Denomination

If the church belongs to a larger denomination or association, you may not need to file Form 1023 at all. Under Revenue Procedure 2026-8, a central organization such as a national denomination can hold a group exemption letter covering its affiliated local churches. Being included in the group relieves each local congregation from filing its own application.15Internal Revenue Service. Group Exemption Rulings and Group Returns

The central organization must already hold its own tax-exempt recognition, have at least five subordinate organizations, and show that each local church is affiliated with and subject to its general supervision or control. Each subordinate must share the same type of exempt purpose and carry a uniform purpose statement in its governing documents.15Internal Revenue Service. Group Exemption Rulings and Group Returns Before filing a standalone application, ask your denominational office whether the church is already covered.

What You Have to Do to Keep the Status

The determination letter is not the finish. A few operating rules matter enough to know before you apply, because signing Form 1023 commits the church to following them.

No part of the church’s net earnings may benefit any private individual, including pastors, board members, or their families. Pastors can be paid; compensation just has to be reasonable for the services rendered. Church resources cannot be diverted for personal enrichment.16Internal Revenue Service. Inurement/Private Benefit – Charitable Organizations

All 501(c)(3) organizations, including churches, are prohibited from participating in or intervening in any political campaign for or against a candidate for public office. That reaches endorsements, campaign literature, contributions, and opposing candidates from the pulpit.2Internal Revenue Service. Exemption Requirements – 501(c)(3) Organizations A July 2025 consent decree introduced a limited safe harbor for houses of worship to address candidates during religious services under specific conditions, such as statements made in customary channels like sermons and grounded in religious context. The details and long-term enforceability of that safe harbor remain unsettled, and it does not extend to religious charities or educational institutions. Treat the campaign prohibition as firmly in place until clearer guidance arrives.

Churches can lobby, but only as an insubstantial part of overall activities. Unlike other 501(c)(3) organizations, churches cannot elect into the section 501(h) expenditure test, which provides defined spending thresholds.17Internal Revenue Service. Measuring Lobbying Activity – Expenditure Test Churches are evaluated under the “substantial part” test, which weighs whether lobbying is a substantial portion of total activities, volunteer time included. Case law suggests lobbying at roughly 5% or less of total activities is unlikely to be substantial, but there is no bright line.

One boundary worth naming: the federal determination letter handles federal income tax only. Property tax and sales tax exemptions are state matters. Some states grant them automatically once you show the IRS letter; others require a separate application, and a few offer no general sales tax exemption for nonprofits at all. After the determination letter arrives, check with your county assessor and your state’s department of revenue to see what additional filings are needed.