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The Advantages of Being a Faith-Based Organization

In recent years, faith-based aid organizations (FBOs) have been positively thriving. Many of these religiously affiliated groups have benefited from donations and volunteers. Furthermore, a recent study showed that, based on participation, FBOs are the most popular organizations in attracting volunteers. By combining increased funding with an ever-growing pool of human help, there’s no doubt that FBOs have greatly increased their influence and importance.

Besides their importance and influence, there are other advantages for FBOs. For one, they often can draw upon lager, similarly minded congregations for volunteers. FBOs have also been relatively immune to large decreases in funds during the recent recession and have not been prone to the fluctuations that many secular organizations have experienced. This allows them to better and more accurately plan future endeavors. Perhaps an FBO’s greatest benefit, though, lies in its effectiveness on the local level of giving aid and promoting development. Faith-based aid groups have an easier time connecting with and gaining the trust of local religious groups who are often at the core of a developing community. They can, therefore, hand over some responsibilities to people in an already established infrastructure which can lead to lasting success.

 

Money

By becoming a faith-based organization (FBO), some financial advantages may apply to the business. A variety of businesses can be affiliated or associated with religious congregations and purposes, and by doing so, there are some primary considerations to be made in terms of donors, stakeholders, funders, and more. A faith-based organization in the US usually does not pay taxes and are protected so that the Internal Revenue Service (IRS) in the US does not audit them.

For example, churches that meet the requirements of the Internal Revenue Code can claim tax-exemption without a determination from the IRS. Churches have the option of applying for an exemption or not. Even when they don't apply, they are automatically considered to be exempt for tax purposes.

Churches and other FBOs enjoy special protections that limit how and when the IRS may audit them. Also, certain religious organizations, including churches, are exempt from filing IRS forms and may be exempt from filing state information returns and charitable solicitation registrations.

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