
So you're a charity grounded in religious values. Does that make you a church in the eyes of the IRS? Meghan and I dig into a listener question that had me doing a genuine double take. A religious nonprofit submitted the 1023-EZ short form and got rejected because the IRS decided they were a church. What gives?! Real Listener Question: "The IRS rejected our 1023-EZ because they think we are a church, which would require the full 1023 form. But we are not a church. We are a religious organization. How do I fix the application to get them to accept our 1023-EZ?" Meghan and I break down the key difference between a church and a religious nonprofit, why the IRS treats them differently, and what this listener may have done wrong on their application. Plus you'll get a classic Jess Birken rant about why the IRS doesn't make any sense! What You'll Learn: How the IRS defines a church versus a religious nonprofit organization How churches file (or don't file) for their tax-exempt status How religious charities are treated differently than churches, mosques, temples, etc. The most common mistakes people make on the 1023-EZ that trigger a rejection How one wrong checkbox or one poorly worded sentence can get your application flagged How to fix your application and get it into the right bucket Bottom line: The IRS puts churches and religious nonprofits in different buckets. Knowing which one you are and how to say it on your application makes all the difference. Resources from this Episode See the eligibility worksheet for Form 1023-EZ: https://www.irs.gov/pub/irs-pdf/i1023ez.pdf File using our Do-It-Yourself 1023-EZ Tool: https://birkenlaw.com/diy-1023-ez Watch the Righteous Gemstones: https://www.hbomax.com/shows/righteous-gemstones/c3bd0a34-c4ce-4ca5-bd6c-820df7340671 Previous Episode: Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder? https://birkenlaw.com/charity-therapy-podcast/ct162-nonprofit-startup-costs Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT163_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/ <s
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162: No, Not the Tomatoes! | Are Nonprofit Startup Costs Tax-Deductible Donations for the Founder?

161: A Rinky-Dink Outfit | Why Recording In-Kind Donations Matters For Your Nonprofit

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