Advantages of a 508(c)(1)(a)

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The Faith Based Organization (FBO) was once a strong influence in our nation and can be again.  Every FBO should be free to worship and preach without restriction by government.  Something can’t be true and false.  Either the FBO has the right to free speech, or it does not. Take time to review the law, and court cases related, to better understand the rights and benefits of the 508(c)(1)(a) FBO.

 

The advantages of being 508(c)(1)(a) FBO include rights guaranteed under Federal Law 26 U.S.C. § 6033(a)(3(a):

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1. Tax Exempt, and can give tax deductible receipts for donations.

2. Freedom of Speech, including, but not limited to, politics, referendums, initiatives, and candidates.

3. Mandatory Excepted from reporting (does not file a tax return),

4. Mandatory Excepted from “rendering under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary (IRS) may from time to time prescribe”.

5. Created in 1954 through Johnson Amendment

6. Apply using form 1023

7. If approved from IRS

8. Determination letter issued

9. Tax exempt

10. Reporting using form 990

11. Donations tax deductible

12. All IRS docs open to public

13. Restricted speech • Identified in 1986 IRS code

14. No application to IRS required

15. No determination letter issued

16. Non reporting

17. Tax exempt

18. Donations tax deductible

19. Free speech

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• What is a 508(c)(1)(a)? 

• Advantages of a 508(c)(1)(a)

• Disadvantages of a 501(c)(3)

• When to use a 501(c)(3)?