Does a religious organization have to form a special nonprofit organization in order to receive Federal funding?
Religious organizations do not have to form a special nonprofit organization in order to receive Rural Development grants. Across the government, the general rule is no they do not. There is no general Federal requirement that an organization incorporate or operate as a nonprofit or obtain tax-exempt status under section 501(c)(3) of the Internal Revenue Code in order to receive Federal funds. However, some Federal programs may impose such a requirement. This is not to say that some faith-based organization might not decide that it is in their interest to establish a separate nonprofit organization to use the government funds it receives. Taking this step can make it easier for a faith-based organization to keep track of the public funds that it receives and spends. It will also be easier for the government to monitor the group’s use of grant funds without intruding on the group’s internal affairs, in the event that an audit is conducted.
Religious organizations do not have to form special nonprofit organizations to receive Foreign Agricultural Service grants. Across the Federal government, there is no general rule requiring an organization to incorporate or operate as a nonprofit or obtain tax-exempt status under section 501(c)(3) of the Internal Revenue Code to be eligible for Federal funds. However, some Federal programs may impose such a requirement. This is not to say that some faith-based organization might not decide that it is in their interest to establish a separate nonprofit organization to use the government funds it receives. Taking this step can make it easier for a faith-based organization to keep track of the public funds that it receives and spends. It will also be easier for the government to monitor the group’s use of grant funds without intruding on the group’s internal affairs, in the event that an audit is conducted.
Related Questions
- If our faith-based organization receives Federal funding, will it have to discontinue its religious practice of considering the religion of applicants when hiring employees?
- Does our religious organization have to form a special nonprofit organization in order to receive Federal funding?
- Does a religious organization have to form a special nonprofit organization in order to receive Federal funding?
