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GMCI Headquarters
P O BOX 2557
Phoenix, AZ 85311
602-277-1953

gmci4u@AOL.com

ANNUAL CONFERENCE
Mark your calendar now and be a part of our
Annual Meeting
October 10,11,12, 2019
Phoenix, AZ

An inspiring time in the 
presence of God
Additional information will be posted

Ames International School of Ministry
vrizzo@amesbible.org 

Tax Exemption and Fellowship
For Churches & Para Church ministries

All churches in the United States are automatically tax exempt if they meet the criteria of the Internal Revenue Service. However, it is important to understand that to protect those that donate to the ministry, be it financial, personal property, land, buildings, etc., it is highly recommended that a church or para-church ministry have tax exemption status under section 501(c)(3) of the IRS Code. A para-church ministry (church controlled) such as a outreach  ministry, must have tax exemption status before it can legally consider its income as tax exempt and to issue contribution receipts to donors. There are two ways to obtain such status.

  • By applying directly to the IRS using their form 1023. You will be required to submit a nonrefundable application fee will be approximately $800. You will also be required to submit a 2/4 year projected budget along with other originating and operating instruments. You may also find it necessary to use the services of an attorney, as the procedure can get a little complicated. The attorney fees vary. It is not uncommon to pay $3,000 to $4,000.
  • A simpler way is to associate with an organization, such as GMCI, that has group exemption status with the IRS. Coming under our umbrella, so to speak, allows your church  to remain sovereign within itself, but have exemption under section 501(c)(3). This also provides spiritual covering and opportunities for networking with other churches and ministries. Churches affiliation  is by application only.

Does the fellowship/organization you are considering to join have GROUP exemption status?

Though it may be tax exempt itself, not all fellowships/organizations have group exemption status. This could cause members many problems, including the rejection of their contributors personal income tax deduction. If a fellowship/organization has not been issued a four digit group exemption number by the IRS, they DO NOT have group exemption status.

Tax Exemption Numbers

It is important to understand that there is NO SUCH THING as a TAX EXEMPTION NUMBER. Many times, this is confused with an Employer Identification Number (EIN). What confirms tax exemption status is a Letter of Determination from the IRS. One must have an EIN in order to get a Letter of Determination, but the EIN by itself does not give exemption. Most banking institutions will require an EIN prior to opening a checking account.

Other Purposes for 501(c)(3)

There are several benefits to 501(c)(3) tax exemption status. It is necessary in order to get a non-profit bulk mailing permit. Using such a permit can save hundred of dollars a year in postage.

Most food banks also require 501(c)(3) status in order to be a recipient of goods.

In some states, but not all, you may receive an exemption from sales tax if you are a 501(c)(3) entity.

There are several charities and corporations that require a recipient to be a 501 organization before they will donate to that organization.

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    GOSPEL MINISTERS & CHURCHES
    I  N  T  E  R  N  A  T  I  O  N  A  L

    Mailing Address
    Post Office Box 2557
    Glendale, Arizona
    602-277-1953

     

    GMCI provides both apostolic spiritual covering and tax exemption status to those churches and evangelistic organizations that qualify. In addition GMCI provides a fellowship for both the seasoned minister and that one just beginning their calling in God. GMCI is a full gospel organization for independent ministers providing Ordination, General License, Commissioned Minister and Exhorter/Christian Workers License. Mentoring, prayer support, missions projects, short term mission trips, networking and opportunities for fellowship are available.

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