Is there a difference in status between a 501(c)(3) church and a 501(c)(3) community organization? I heard that there are more grant monies available if an organization is a community organization rather than a church. It doesn't make sense to me.
There is a distinct difference that can make a big difference in the availability of grants, based in large part on the U.S. Constitution. A 501(c)(3) church is, by definition, a religious worship organization (See Ready Reference Page: “What Constitutes ‘Church’ Eligible for Exemption”), and government grants are generally not available to churches because of the First Amendment prohibition on “establishing” religion. Some private foundations also refuse to make grants to churches for their own policy reasons.
Faith-related community development or social service organizations that are not engaged in worship activities usually qualify for grants from government and the same private foundations, which means that there is a lot more grant money available to organizations that are not churches.
State Charitable Solicitation Statutes: Everything You Wanted to Know But Were Afraid to Ask
Charities that seek contributions nationally must typically register in 39 states and the District of Columbia before starting to solicit. Furthermore, for-profit fundraisers are also required to register and file their contracts and other documentation with many states. Since many states are increasing their enforcement efforts to ensure that charities and fundraisers are complying with initial and annual registration requirements, it's important that charities and fundraisers abide by these statutes.
Program materials include an extensive review of the statutes and their provisions, plus a copy of the Uniform Registration Statement for multi-state filings. Purchasers will receive an e-mail receipt that includes a link that will take them to the product download. The download is a pdf file. Learn More
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