Is your church thinking about a new way to bring in income, or wondering how your activities might affect your tax status? RootedGood’s free guide, What About Taxes?!, can help.
More and more churches are looking at ways to generate revenue beyond the offering plate. This might mean renting rooms to a community partner, starting a social enterprise like a grocery co-op, building affordable housing, or anything else that earns income. These activities hold a lot of promise. Many churches can not only bring in money but also engage in new and meaningful expressions of ministry that serve vital needs in their community. But earning income brings lots of questions about taxes and tax-exempt status.
When a congregation begins to explore income from social enterprise or renting property, there is often anxiety about tax status. Don’t ignore the tax implications, but also don’t let that anxiety stop you from trying something new!
What About Taxes?!: A Guide for Churches Starting to Generate Revenue was developed in partnership with legal and accounting experts. It will help you ask the right questions about taxes and income-earning activities. It is designed to increase your confidence, build your understanding of the tax implications, and help you align money and mission.
Using this tool, you will work through a decision tree that highlights what to look out for with IRS tax-exempt status, federal income tax, state income tax, sales tax, and property tax, depending on the nature and structure of the activity you are considering.
You can get What About Taxes?! for free by filling out the form below.
What About Taxes?! is part of a series of RootedGood tools that help churches navigate their economic future. For more help with questions about taxes, watch our free training video on churches and taxation.
Note: This tool is NOT legal or tax advice. Consult an attorney or tax advisor on all decisions before acting.
About RootedGood: Buildings into gathering places. Land into homes. Ideas into ventures that serve and sustain. RootedGood helps churches put their money and mission to work for the good of their neighbors.