I don’t see anyone else answering your question so I’ll take a stab at it. If you look above at the original post and refer to the second bullet, it says:

“Net earnings must not inure to the benefit of any private individual or shareholder. ”

This really hits at the heart of what it means to be a “non-profit.” Basically, non-profit organizations are allowed to make money. However, they do not distribute earnings to owners/shareholders/partners/etc. This is the essence of being not-for-profit. The earnings basically sit in the non-profit’s hands are are subsequently used for whatever needs arise rather than being of any kind of individual benefit to a person or shareholder.

Make sense?

Andrew

Here is our opinion…

Churches that meet the requirements for the IRC section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS.

Although there is no requirement to do so, many churches seek recognition of tax-exempt status from the IRS because such recognition assures church leaders, members, and contributors that the church is recognized as exempt and qualifies for related tax benefits. For example, contributors to a church that has been recognized as tax exempt would know that their contributions generally are tax-deductible. Again, churches are not required to file Form 1023. If they decide to file Form 1023, they are not required to file Form 990. In fact, we don’t necessarily recommend filing either.

So, every tax-exempt organization, including a church, “should” have an employer identification number (EIN), whether or not the organization has any employees. There are many instances in which an EIN is necessary. For example, a church needs an EIN when it opens a bank account, in order to be listed as a subordinate in a group filing, or if it files returns with the IRS (e.g., Forms W-2, 1099, 990-T, etc.).

I hope this helps answer your question. Please, feel free to contact us should you have ANY further questions.