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» From: Spokane, WA Dear TaxMama, I recently founded a Christian ministry. As I understand the IRS guidelines for a 501-C organization, we cannot be paid a salary. As we wish to make this a full time endeavor, we must be, at least, able to obtain a meager salary to support our families. Not fully understanding, I started a for profit corporation to meet this need. however we have since learned that there are many grants, and funding available for religious organization which file under a 501-C. My question is ... how do we as a for profit corp. handle charitable contributions if we receive them?...and also, can we still file for a 501-C status? .. Any help would be appreciated, Thank you. Marlan Dear Marlan, As far as I know, there is no reason why a non-profit organization cannot pay salaries. How many churches do you know of that don't pay their ministers, staff, etc.? Do you think Jesse Jackson works for free? Please re-read the materials and do a little more research. Setting up the non-profits does take quite a bit of work since it requires submitting, what are essentially, business plans for the organization. You need to provide projected Profit and Loss Statements, copies of flyers and brochures you're going to use, information about your fund-raising campaigns, etc. You really should hire a competent, experienced tax professional to help you do this. No doubt, you can hire someone locally. Expect the cost to be $2,000 - $5,000 for this service. We usually charge a _minimum_ of $2000 for this service, paid in advance. Firm. (We have noticed that if we don't get paid in advance, folks whom we've helped set up non-profits have a tendency to expect us to donate the balance. And it is not pleasant or politically appealing to have to sue non-profit orgs. When you do set up the organization, you will have to divulge the salaries you expect to pay yourself and your family members, as well as other people. But, there is no reason you can't have wages. Best wishes Eva Rosenberg Your TaxMama  |
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