Industry Guide
Tax guidance for churches and nonprofits.
501(c)(3) organizations, churches, and ministries — compliance, payroll for clergy, and Form 990 basics.
Who this is for
Built for churches & nonprofits
For nonprofit boards, executive directors, treasurers, and church administrators managing tax-exempt entities.
Common income sources
- Contributions and offerings
- Grant income
- Program service revenue
- Fundraising and events
Commonly considered expense categories
- Program and mission expenses
- Salaries and benefits (including clergy)
- Facility and utilities
- Fundraising costs
May be deductible if eligible and properly documented. Rules vary — verify with a professional.
Recordkeeping
Recordkeeping checklist
- Contribution records and acknowledgment letters
- Board minutes
- Payroll and W-2/1099 reporting
- Prior 990 or 990-EZ filings
Watch outs
Common mistakes to avoid
- Missing donor acknowledgment for $250+ single gifts
- Confusing clergy housing allowance treatment
- Late 990 filing risking automatic revocation after 3 years
- Unrelated Business Income (UBI) reporting gaps
FAQ
Frequently asked questions
Industry guides are general educational information for churches & nonprofits and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
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