Why Should a Church Apply for 501c3 Status?

The IRS automatically recognizes churches as 501c3 charitable organizations, therefore, there is no need for churches to seek formal recognition from the IRS. However, applying for 501c3 tax-exempt status can offer many advantages for your church. 

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Benefits of having an Active 501c3 Status:

  • Tax deductions
  • Grants and corporate funding
  • Property taxes are exempt
  • Sales taxes are exempt
  • Low postage rates
  • Housing allowance for minister
  • Tax-exempt from Employer taxes
  • Ministerial visas (subject to other requirements)


Your church may need to report it’s annual income with Form 990.

In order to be able to report Form 990, you need to have an accounting system in place that helps you generate all the financial reports needed to file your annual reports.  Accounting for churches can be very different from commercial accounting, so DAT Firm is here to help. We will make sure that your church accounting is done properly to meet the IRS Tax Laws.

  • Church Bookkeeping
  • Income Reporting- Form 990
  • Minister Payroll & Housing Allowance


Do you have an administrative team helping with your church’s finances? 

It is important that your team is aware of all the Tax Laws that the church needs to comply with. This is even more important if your church has an active 501c3 status. The administrative team can be trained in the following areas:

  • Rules, Protocols and Procedures
  • Church Incorporation Process (State Registration, By Laws, EIN, 501c3)
  • Directive Board and Minutes
  • Records Retention and Compliance Checklist
  • How to Manage Tithes & Offerings Internally
  • Bank Account Procedures and Who Should Be the Signees
  • Minister Salary, Housing Allowance and Medical Insurance
  • Payroll- Employees and Contractors
  • Financial Reports, Inventory and Annual Reporting (Form 990)
  • Unrelated Business Income Tax (UBIT)


We offer different Training Packages and you can choose the one that is more suitable or affordable to you. With each training package there is a 30 day consultation period at no extra charge.  Get a Quote today and let us give you peace of mind so that you can focus on growing your church

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