» WHY SWITCH TO 508(C)(1)(A) READ MORE... The 508(c)(1)(a) Faith Based Organization (FBO) is a religious, non-profit, tax exempt organization. The 508(c)(1)(a) FBO is separate and distinct from a 501(c)(3) charity and unincorporated FBO’s. The 508(c)(1)(a) is applicable in all 50 states and recognized internationally under the Hague Convention of the United Nations Charter.
Since its inception in 1954 with the Johnson Amendment, the 501(c)(3) has been promoted and advertised by many as the only option to organizing a FBO. This is fatally incorrect. Federal law, IRS publications, and court cases all confirm and establish the rights and protection of the 508(c)(1)(a) FBO. (Please see legal information.)
The 508(c)(1)(a) FBO enjoys a “mandatory exception” from all the restrictions a 501(c)(3) FBO has including free speech restrictions, IRS reporting requirements, rules and regulations that the IRS may from time to time prescribe and providing testimony under oath.
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