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Start a Church or Home Fellowship

Leave the process of forming your church or home fellowship under Section 508(c)(1)(A) to us

We actually prepare your filing and documents, including your bylaws, and file for you with simple pricing, which includes filing fees. When you get started with us, you’ll receive an email within minutes with a link to schedule your initial consultation with a 508 Compliance Specialist. Our goal is to have your nonprofit filing completed within 21 days.

About The 508 Company

We help churches and religious organizations establish their nonprofits under Section 508(c)(1)(A) — the right way.

Forming a nonprofit entity that qualifies to operate under Section 508(c)(1)(A) can be complex. The 508 Company makes it easy.

Fast-track your success with our 508 nonprofit formation services. Your 508 Specialist manages the entire process, eliminating hours spent researching and preparing documents, writing your own bylaws, and other time-consuming tasks. You simply review and approve the documents your Specialist prepares. We handle the rest!

What's the difference between operating under Section 508(c)(1)(A) versus 501(c)(3)?

In a nutshell, nonprofits that operate under the banner of 508(c)(1)(A) enjoy the benefit of federal tax-exempt status without having to obtain official recognition from the IRS or file annual tax returns. While these organizations still technically derive their tax-exempt status from Section 501(c)(3), Section 508 exempts them from the filing requirements that apply to all other 501(c)(3) nonprofits. Thus, a 508(c)(1)(A) nonprofit is a special type of 501(c)(3) tax-exempt organization that does not have to report its income or activities to the IRS by filing annual tax returns.

Unbeknownst to most people today, Section 508(c)(1)(A) was specifically added to the Internal Revenue Code to protect the First Amendment rights of churches, including home fellowships, when Congress began requiring official IRS recognition of a nonprofit’s tax-exempt status. The statute continues the historical American tradition of exempting these organizations from rigorous oversight by the federal government, particularly on the issue of taxation and tax liability.

“Congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof” – First Amendment of the United States Constitution, Religion Clause, 1789

Benefits of Nonprofits Established Under Section 508(c)(1)(A)

Working With The 508 Company

Get Started

Once you complete our Membership Application, you’ll receive an email within minutes with a link to schedule your initial consultation with a 508 Compliance Specialist. This initial consultation is a crucial step to your Specialist getting a better understanding of your mission and ask any questions they may have as they prepare your nonprofit filing and documents. We know exactly what is required for your filing and will submit the documents that meet those standards. Our goal is to have your nonprofit filing completed within 21 days.

Get Compliant

Once your nonprofit filing is complete, we will work with you through multiple Group Training and Support Sessions to create the first draft of your bylaws within 30 days of filing. Your organization’s bylaws are considered a legal document that dictates how your religious organization must be governed and should be finalized and approved by your board within 6 months of your completed filing. For your peace-of-mind, every aspect of your completed formation documents and policies, including bylaws, have been reviewed by an attorney. Our process saves you hours of time and gives you peace-of-mind knowing that all of your compliance documents, including bylaws, have been carefully and thoroughly reviewed for final approval.

Get Going!

As soon as your board ratifies your bylaws, you’ll be ready to confidently operate as a qualified 508(c)(1)(A) nonprofit organization. Godspeed.

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Dedicated Support

Your 508 Compliance Specialist is available to answer your questions and provide responsive support to your organization.

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Save Hours of Time

Your 508 Compliance Specialist prepares your filing and documents for you and keeps you informed along the way. No need to use various templates to create your own bylaws or other compliance documents and policies.

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Experienced & Knowledgeable

Your 508 Compliance Specialist knows how to help you form and operate your nonprofit organization and will provide you with the knowledge and expertise you need to start and remain 508 compliant.

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Guiding You to Success

As a seasoned nonprofit leader, your 508 Compliance Specialist will have a wealth of practical knowledge about launching and developing a successful nonprofit under Section 508(c)(1)(A).

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Fast Processing

When you get started with us, you’ll receive an email within minutes with a link to schedule your initial consultation with a 508 Compliance Specialist.

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Attorney-Reviewed

For your peace-of-mind, every aspect of your organization’s formation documents and policies, including bylaws, have been reviewed by an attorney to ensure compliance with Section 508.

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Group Training & Support

We know starting a new organization, especially a nonprofit, can be daunting and may be outside your area of expertise. That’s why we provide Group Training and Support Sessions to you at no additional cost.

What's Included?

Frequently Asked Questions

26 U.S. Code § 508 – Special rules with respect to section 501(c)(3) organizations

(a) New organizations must notify Secretary that they are applying for recognition of section 501(c)(3) status

Except as provided in subsection (c), an organization organized after October 9, 1969, shall not be treated as an organization described in section 501(c)(3)—

(1) unless it has given notice to the Secretary in such manner as the Secretary may by regulations prescribe, that it is applying for recognition of such status, or
(2) for any period before the giving of such notice, if such notice is given after the time prescribed by the Secretary by regulations for giving notice under this subsection.

(b) Presumption that organizations are private foundations

Except as provided in subsection (c), any organization (including an organization in existence on October 9, 1969) which is described in section 501(c)(3) and which does not notify the Secretary, at such time and in such manner as the Secretary may by regulations prescribe, that it is not a private foundation shall be presumed to be a private foundation.

(c) Exceptions

(1) Mandatory exceptions

Subsections (a) and (b) shall not apply to—

(A) churches, their integrated auxiliaries, and conventions or associations of churches, or
(B) any organization which is not a private foundation (as defined in section 509(a)) and the gross receipts of which in each taxable year are normally not more than $5,000.

We do the heavy lifting. We actually prepare your documents for you, including your bylaws. Our process saves you hours of time and gives you peace-of-mind knowing that all of your compliance documents, including bylaws, have been carefully and thoroughly reviewed for final approval.

We pair you with a 508 Compliance Specialist. A real person! Your Specialist discusses your mission with you and collects the basic information needed to get started. From there, your specialist actually prepares your documents and sends them to you for you to review. Take advantage of their wealth of experience in setting up churches and religious organizations to operate under Section 508(c)(1)(A).

Once you sign up, you can expect to hear from your 508 Specialist within one business day to schedule your initial consultation.

Most of our competitors charge $2,500 to $2,900 to simply incorporate your nonprofit organization in the state of Washington, something you can do on your own for less than $100. Unless you operate your ministry in Washington, forming your 508 in Washington has no benefits for you and will likely cause problems for your ministry as you operate in your state. They usually provide you with a Bylaws template you have to complete yourself without any guidance from a 508 specialist.

With simple pricing, The 508 Company not only prepare your Articles of Incorporation and submit your state filing, we also create your legal documents, including Bylaws and over 30 organizational documents. Our goal is to have your nonprofit filing and all documents completed within 21 days. Our process saves you hours of time and gives you peace-of-mind knowing that all of your organizational documents have been carefully and thoroughly crafted based on years of experience and current 508 clients.

Once you sign up for a 508 Account, you’ll receive an email within minutes with a link to schedule your consultation with your 508 Compliance Specialist. This initial consultation is a crucial step to your Specialist getting a better understanding of your mission and ask any questions they may have as they prepare your nonprofit filing and documents. We know exactly what is required for your filing and will submit the documents that meet those standards.

All Formation Pricing includes at least the following:

  1. Full 508 Formation Services, including Articles of Incorporation filing
  2. Attorney-Reviewed Bylaws Created
  3. Over 30 Customizable & Attorney-Reviewed Organizational Documents including Conflict of Interest Policy, Donation Receipt, Board Meeting Minutes, Ordination Documents, and Much More.
  4. Multiple One-on-One Consultations with a 508 Compliance Specialist.

As little as 3 to 4 weeks!

Our process saves you hours of time and gives you peace-of-mind knowing that all of your compliance documents, including bylaws, have been carefully and thoroughly crafted based on years of experience and current 508 clients. For your peace-of-mind, every aspect of our formation process and organizational documents and policies, including bylaws, has been reviewed by an attorney.
Get Started
Once you complete your 508 Application, you’ll receive an email within minutes with a link to schedule your Next Steps Consultation with a 508 Compliance Specialist. This initial consultation is a crucial step to your Specialist getting a better understanding of your mission and ask any questions they may have as they prepare to submit your nonprofit filing and prepare your documents. We know exactly what is required for your filing and will create the documents that meet those standards. Our goal is to have your nonprofit filing and documents completed within 21 days.

Get Compliant

Once your nonprofit filing and documents are complete, we will work with you through multiple Group Training and Support Sessions to help you better understand how to operate a compliant 508.

Get Going!
As soon as your board ratifies your bylaws, you’ll be ready to confidently operate as a qualified 508(c)(1)(A) nonprofit organization. Godspeed.

 

 

 

Yes, we do! We ask for a little bit of information from you when you complete your 508 Application such as your contact information, organization name, brief mission details, board information, etc. Your 508 Compliance Specialist reviews that information and discusses the details with you. We will then prepare all your required formation documents and complete your filing.

Your 508 Specialist manages the entire process, eliminating hours spent researching and preparing documents, writing your own bylaws, and other time-consuming tasks.

 

 

 

 

 

Yes. Religious organizations that qualify to operate under Section 508(c)(1)(A) are a special kind of 501(c)(3) nonprofit that enjoy tax-exempt status without obtaining official recognition from the IRS.

Congress has enacted special tax laws that apply to churches, religious organizations, and ministers in recognition of their unique status in American society and of their rights guaranteed by the First Amendment of the Constitution of the United States. Churches and religious organizations are generally exempt from income tax and receive other favorable treatment under the tax law; however, certain income of a church or religious organization may be subject to tax, such as income from an unrelated business.

The term church is found, but not specifically defined, in the Internal Revenue Code (IRC). However, the use of the term church also includes conventions and associations of churches as well as integrated auxiliaries of a church. According to the IRS, they use term church in its generic sense as a place of worship. Therefore, when The 508 Company refers to churches, we are also referring to home fellowships, synagogues, mosques, temples, and other houses of worship.

In analyzing whether a religious organization may properly be characterized as a church for purposes of Section 508(c)(1)(A), the IRS considers whether the organization has at least some of the following characteristics. These attributes of a church have been developed by the IRS and by court decisions. They include:

  1. a distinct legal existence,
  2. a recognized creed and form of worship,
  3. a definite and distinct ecclesiastical government,
  4. a formal code of doctrine and discipline,
  5. a distinct religious history,
  6. a membership not associated with any other church or denomination,
  7. an organization of ordained ministers,
  8. ordained ministers selected after completing prescribed studies,
  9. a literature of its own,
  10. established places of worship,
  11. regular congregations,
  12. regular religious services,
  13. schools for religious instruction of the young,
  14. schools for the preparation of its ministers, and
  15. any other facts and circumstances that may bear upon the organization’s claim for church status.

The IRS makes no attempt to evaluate the content of whatever doctrine a particular organization claims is religious, provided the particular beliefs of the organization are truly and sincerely held by those professing them and the practices and rites associated with the organization’s belief or creed are not illegal or contrary to clearly defined public policy.

The 508 Company will work with you during the formation process to ensure your religious organization possesses enough of the above characteristics, thereby ensuring your organization qualifies for operation under Section 508.

 

The term integrated auxiliary of a church refers to a class of organizations that are related to a church or convention or association of churches, but are not such organizations themselves. In general, the IRS will treat an organization that meets the following three requirements as an integrated auxiliary of a church. The organization must:

  • Be described both as an Internal Revenue Code section 501(c)(3) organization and be a public charity under Code section 509(a)(1), (2), or (3),
  • Be affiliated with a church or convention or association of churches, and
  • Receive financial support primarily from internal church sources as opposed to public or governmental sources.

Men’s and women’s organizations, seminaries, mission societies, and youth groups, etc that satisfy the first two requirements above are considered integrated auxiliaries whether or not they meet the internal support requirement.

We work with clients who are in a variety of stages of planning. To get started, complete our 508 Application then schedule your Next Steps Meeting with a 508 Compliance Specialist.

  • If you’re not currently operational, we will complete your state’s filing in California (or the state of your choice) and have all of your 20+ 508 documents completed and emailed to you within 21 days.
  • If you’re currently operational, we will get your 20+ 508 documents completed and emailed to you within 14 days.

In either case, you will have all the documentation you need before the end of this month. Documents like Bylaws that Protect Founding Individual(s) from being removed, Formal Code of Doctrine and Discipline Policy, Conflict of Interest Policy, Guiding Principles, Compensation Request and Resolution, Meeting Minutes, Membership Agreements, Reimbursement Request Form, Volunteer Liability Waiver and Agreement, and more.

Feel free to take our free 508 Compliance Test™ which helps us get on the same page and provides you with the peace-of-mind knowing that you’ll be operating a compliant 508. 

 

If you have questions about our services or how to form a religious nonprofit that falls under 508(c)(1)(A), please contact us to speak with a representative.

“The I.R.S. examined 1.4 million individual income tax returns in 2010, about 1 percent of the total number filed. In 2018, the latest year with available data when Republicans started making these claims, audits decreased to 370,000, or about 0.2 percent… The budget office estimated increasing I.R.S. funding would return enforcement to its 2010 levels. Doing so would result in about 1.2 million more audits; of those, 583,000 would target people making less than $75,000.”

The New York Times, “Fact-Checking the Misleading Claim About 87,000 Tax Agents”, November 6, 2022

“…For example, you educate believers on national issues that are central to their belief in the Bible as the inerrant Word of God. Specifically, you educate Christians on what the bible says in areas where they can be instrumental including the areas of sanctity of life, the definition of marriage, biblical justice, freedom of speech, defense, and borders and immigration, U.S. and Israel relations. The bible teachings are typically affiliated with the Republican party and candidates. This disqualifies you from exemption under IRC Section 501(c)(3).”

Stephen A. Martin, IRS Director, Exempt Organizations, Rulings and Agreements

How Much Would You Like to Contribute?

Your contribution helps a church or religious organizations take back their First Amendment religious rights, operate according to their Biblical faith, and protect the privacy of their donors.