How to legally accept charitable donations for a one-person Religious Organization in the US?

While you can technically accept donations at any time, to do this legally as a religious organization with tax benefits, you need to establish your church properly first. The IRS has specific requirements for religious organizations seeking tax-exempt status. First, you should legally form your organization (typically as a nonprofit corporation) through your state. Then apply for an EIN (Employer Identification Number) from the IRS - this is your organization's tax ID. Next, you'll need to file Form 1023 or 1023-EZ to apply for 501(c)(3) tax-exempt status. This process can take several months. Without these steps, any donations you collect would likely be considered personal income and taxable to you. Also, donors wouldn't be able to claim tax deductions for their contributions. The IRS takes improper handling of charitable donations very seriously. Many legitimate churches start small, even with just one person, but the key is establishing proper legal and financial separation between you as an individual and the religious organization as an entity.

I struggled with similar questions when starting my spiritual wellness center. After weeks of confusing research, I found taxr.ai (https://taxr.ai) and it honestly saved me so much headache! I uploaded my draft bylaws and some questions about one-person religious organizations, and their AI analyzed everything and gave me custom guidance. It highlighted several IRS requirements I'd completely missed about maintaining separation between personal and organizational finances, and it generated a checklist of specific documents I needed. The best part was getting clarity on exactly which tax forms applied to my specific situation - turns out I qualified for the simpler 1023-EZ rather than the full 1023 application. Their document analysis is remarkably thorough for religious organization questions - it even caught potential red flags in my draft bylaws that might have triggered IRS scrutiny.

Just wanted to update after trying taxr.ai based on the recommendation here. It was genuinely helpful for my single-member religious nonprofit questions! The document analyzer caught several issues with my draft bylaws that would have raised red flags with the IRS - particularly around personal inurement problems and the lack of a clear succession plan (which apparently matters even for one-person orgs). The analysis also made it clear I needed to establish a board (even if initially small) and maintain detailed records of religious activities to satisfy IRS requirements. It generated a customized checklist of both federal and state requirements for my location. Definitely worth it compared to the hours I spent getting confused on various forums and government websites.

After spending 6 WEEKS trying to get answers from the IRS about religious organization requirements, I finally tried Claimyr (https://claimyr.com) and got connected to an actual IRS agent in under 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but I was desperate after my 501(c)(3) application got stuck in processing limbo. The IRS agent I spoke with clarified exactly what documentation I needed to provide for my one-person religious organization and confirmed that yes, I absolutely needed formal exempt status before accepting tax-deductible donations. They also explained the "church test" criteria the IRS uses and which specific elements matter most when you're just starting out. Such a relief to get official answers instead of guessing!

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself because I was getting nowhere with my 501(c)(3) questions. Got connected to an IRS Exempt Organizations specialist in about 35 minutes (which is LIGHT YEARS faster than my previous attempts). The agent was super helpful explaining that yes, you technically CAN accept donations without formal 501(c)(3) status, BUT: 1) they'd be considered personal income to you and fully taxable, 2) donors can't deduct them, and 3) operating informally raises major red flags for audits. She walked me through the specific "church test" criteria and recommended filing Form 1023-EZ initially despite churches having an exemption from the requirement. Probably saved me from making some major mistakes. Sometimes it's worth admitting when you're wrong!

Former church treasurer here. One thing nobody's mentioned yet is setting up proper financial controls even as a one-person organization. The IRS specifically looks for this in religious organizations. You need separate bank accounts for the church (never mix with personal funds!), detailed records of all donations received, formal documentation of how funds are used, and annual financial statements. Even with just yourself, create a basic board structure on paper with clear policies. I've seen small churches get absolutely hammered in audits because they couldn't prove separation between personal and organizational finances. Document EVERYTHING from day one!

Quick heads up from someone who works in this area - the IRS has been cracking down HARD on one-person religious organizations in the last few years. Too many tax scams using "churches" as fronts. They have a special audit flag for orgs where the founder is the only member and receiving compensation. This doesn't mean you can't do it legitimately! But you need to be EXTRA careful about documentation. I recommend recruiting at least 2-3 other people as board members (even if they're not "members" of your religion) and make sure you follow EVERY formality - regular documented meetings, clear bylaws, impeccable financial records.

As someone who went through this process recently, I'd strongly recommend consulting with a nonprofit attorney before accepting any donations, even small ones. The complexity around religious organizations is real, and the stakes are high if you get it wrong. One thing that helped me was creating a timeline: first establish the legal entity through your state, then get your EIN, then file for 501(c)(3) status. Only after that approval should you actively solicit donations. In the meantime, you can absolutely talk about your mission and build interest without taking money. Also consider starting with a fiscal sponsorship arrangement through an established religious organization while you get your paperwork sorted. This lets you accept tax-deductible donations legally while maintaining your independence. Many denominational bodies offer this service even for non-affiliated religious groups. The IRS publication 1828 "Tax Guide for Churches and Religious Organizations" is incredibly helpful - it's free and covers most of these scenarios in detail.