Tax Status and Exemptions
Churches and religious organizations have certain benefits and responsibilities under the federal tax system. There are many issues that affect churches and religious organizations and this page addresses some of the more common issues they face daily.
The IRS recognizes the Evangelical Lutheran Church in America is a 501(c)(3) organization, which means that it is exempt from federal income tax.
For general information on taxes for religious organizations from the IRS:
- IRS Tax information for Churches and Religious Organizations
- IRS Tax Guide for Churches and Religious Organizations
The Internal Revenue Service (IRS) has a procedure by which a parent organization (in this case the Evangelical Lutheran Church in America) can establish for its subordinate organizations (such as congregations, social ministry organizations, campus ministries, schools, etc) group ruling tax exempt status for federal income tax purposes. To learn more on how to be part of the ELCA’s group ruling or if you are already part of the group ruling and need documentation, click here.
Additional resources on tax matters:
- Information on exemptions from state sales tax and local real estate tax
- Taxation on income from renting church property
- How political activity can affect a congregation’s tax status
- Does my congregation have to file a Form 990 with the IRS?
- Concerns about endorsing 3rd party products and tax status
- Employment tax: the difference between an independent contractor and an employee
- Information about tax exemptions for donors
- Tax information for clergy
- Information on the ELCA’s group ruling tax exemption
Legal Disclaimer
Information on this document does not constitute legal advice to anyone. In addition, the use of this document, and the sending or receipt of information through elca.org does not create attorney-client relationship of any sort. Visitors to elca.org should be aware that communication in this manner may not be considered as privileged or confidential. Individuals requiring legal assistance should engage a qualified attorney, licensed to practice law in the particular state or jurisdiction where the legal issues have arisen. Members of the ELCA, pastors, congregations, synods, and others affiliated with this church should always consult their own attorneys, accountants, or similar professionals whenever legal issues or problems arise. Neither the churchwide organization nor the general counsel is responsible for any loss, injury, liability, or damage related to your use of this document, whether from errors or omissions in the content of this document or any linked sites, from the site being down, or from any other use.
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