Church’s and the Attorney General
California’s Attorney General has real oversight power over religious nonprofits. Learn when your church needs AG approval for a merger, sale, or major transfer of assets.
Tag Archives: IRS
Must a Church Apply for Tax-Exempt Status?
Does your church need to apply for tax-exempt status? While churches qualify automatically under IRS Section 501(c)(3), California requires a separate application to the Franchise Tax Board. Without state recognition, your church remains a taxable entity under the Revenue and Taxation Code.
Group Tax Exemptions
While often used interchangeably, “nonprofit,” “tax-exempt,” and “501(c)(3)” have distinct meanings under the law and different legal obligations. Nonprofit organizations are created under state law but are not automatically tax-exempt from state sales and income taxes without filing for such an exemption through the Franchise Tax Board. Additionally, organizations are given tax-exempt status from federal income tax under federal law, through the Internal Revenue Service. Group Exemption:A group exemption affords the opportunity for a nonprofit organization to share the tax-exemption of another 501(c)(3) without the need for each entity to […]