Outline

There are several tax structures that might be applicable to derivative ministries. Here are a few options to consider:

• 501(c)(1)(a) Free Church: This tax-exempt status is designed for religious organizations that choose to rely on their members’ voluntary donations rather than seeking public funding. It provides exemption from federal income tax and allows donors to deduct their contributions.

• 501(c)(3) Tax-Exempt Organization: This is the most common tax-exempt status for nonprofit organizations. It provides exemption from federal income tax and allows donors to deduct their contributions. However, it may involve more regulatory requirements and limitations on political activities.

• 501(d) Monastic Order: This special tax status is designed for monastic orders or communities. It allows members to pool their income and expenses, reducing the tax burden on individual members. It comes with specific rules and qualifications that need to be met.

• Other Tax-Exempt Options: There may be other tax-exempt options available depending on the specific nature and activities of the particular derivative ministry. These could include options such as 501(c)(4) Social Welfare Organizations, 501(c)(7) Social Clubs, or other relevant tax structures.

It’s important to consult with a qualified tax professional or attorney to determine the most suitable tax structure for the ministry based on its specific circumstances, goals, and activities.