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R C Cafe » House Church » Legal & Monetary Matters » Legal Structure for Tax Exempt Donations
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Author Legal Structure for Tax Exempt Donations
ElroyJetsonNY
      Lansing, MI


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My wife and I are currently involved in a house church in Lansing, MI. We plan to move to New York City to start cellular churches there. (More info at www.nymarshill.org)

We envision a network of cell churches. Because of the cost of living in NYC, we recognize that there are tax advantages to charitable contribution write-offs. Consequently, we are thinking through a quandary: how do we create an agile legal entity that enables contributors to declare contributions as tax-deductible without creating an organization that behaves like a denomination.

I have thought of creating a 501(c)3 organization that any cell church could funnel funds through.

The problems are several:

1. How much overhead would be reasonable for administration costs?
2. How to overcome the delay between identifying a need to meet and actually receive funds from the tax-exempt organization?
3. How to track the balances of individuals/cells so that only collected funds are distributed?
4. How do we avoid the baggage of "acceptable use," where the tax-exempt organization makes requirements for how the funds can be used?

Anyone with ideas on this?

------------------
As far as signatures go, this one could be worse.


Bruce Woodford
      Norwich, Ontario, Canada


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Dear Elroy,
From personal experience over a period of years, I can testify that we have gained and not lost by obeying scripture relative to giving. By this I mean that when one purposes to give in secret (not letting the left hand know what the right hand does), and therefore relinquishes any supposed "tax advantages for charitable contribution write-offs", God is no man's debtor and the blessings and liberties of such giving far surpass any supposed benefits of such write offs.

I think you know quite well the kinds of bondage that 501(c)3 organizations must comply with!

Furthermore you cannot "create" such an organization! A 501(c)3 organization is actually "created" by the government agency that approves a group's application or registration. Thus, as "creator", they have every right to regulate their "creatures"! With this in mind, you would be wise to remember the words of the Lord Jesus: Matthew 6:24 No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

If Christians and Christian ministries simply looked to the Lord for the supply of their needs rather than attempting to "market their services", "appeal for funds", "raise funds" etc there would be no need whatsoever to ever have to give account to anybody but the Lord for how funds were spent which
were received in answer to prayer !

In new covenant ministry there is no need to pay salaries of a "ministerial class or workers" for we are all priests, minsters, servants of the Lord etc! Nor is there any need to build or maintain physical buildings as "temples" for we ARE the temple of God. All of our giving may then be invested in eternal commodities which are the only ones which render eternal dividends! People are eternal and the Word of God is eternal. So if we invest in getting people into the Word of God and the Word of God into people, we will have inestments we can never lose. BUt if we invest in anything else, we will lose it all!

If it is truly the Lord's WILL for you to move to NYC, it is the Lord's BILL to sustain you there without any scheming on your part. His faithfulness is just as dependable in NYC as it is in the jungles of Irian Jaya. And his principles of giving and receiving are just as valid in the one place as they are in the other! If saints in other places, other times could function in harmony with all the Word of God apart from 501(c)3 organizational status, and believers in our day and age and culture cannot function as 501(c)3 organizations in perfect harmony with all the Word of God, then it is my conviction that we ought to be true to God and His Word, be willing to forego the recognition or status and BONDAGE that is part and parcel of the 501(c)3 package and trust God to bless far more than we could ever hope to benefit by 501(c)3 registration!

One scripture which has been repeatedly brought to my attention by the Lord in this regard is Psalm 123:2 "Behold, as the eyes of servants look unto the hand of their masters, and as the eyes of a maiden unto the hand of her mistress; so our eyes wait upon the LORD our God, until that he have mercy upon us."

Servants look to the hand of their masters for two reasons: (1) to get direction for their service. They get their ASSIGNMENTS from His hand. (2)to get their provision for the work which He assigns as well as provison for their personal needs. They get their SUPPLY from His hand.


Admittedly, this is my opinion! Others may have a different perspective and you will need to seek and
to heed the wisdom of God. (James 1:5 and John 7:17)

Your servant for Jesus' sake,
Bruce


   

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