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Applying for Exemption/Misc. Determination: Sample Questions

Church Affiliate (Integrated Auxiliary)

Applications for exemption and miscellaneous determination requests are assigned to Exempt Organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic.

1. Section 1.6033-2(h) of the Treasury Regulations describes an integrated auxiliary of a church as an organization that is: (i) described in both Sections 501(c)(3) and 509(a)(1), (2), or (3) of the Internal Revenue Code (Code); (ii) affiliated with a church or a convention or association of churches; and (3) internally supported.

Please provide the following information to help us determine whether you meet the requirements for an integrated auxiliary of a church. You may, but are not required to, include any documents (such as bylaws or other organizational documents) that you believe may assist us in making our determination.

a. Are you described in Section 501(c)(3) of the Code? If yes, please discuss how your 
    organization is described in Section 501(c)(3). If you have already been recognized by 
    the IRS as an organization described in Section 501(c)(3), please attach a copy of the 
    determination letter.

b. Are you described in Section 509(a)(1), (2), or (3) of the Code? If yes, please discuss 
    how your organization is described in Section 509(a)(1), (2), or (3). If you have already 
    been recognized by the IRS as an organization described in Section 509(a)(1), (2), or 
    (3), please attach a copy of the determination letter.

 c. If you have already provided information about how you are described in 
    Section 501(c)(3) and/or 509(a)(1), (2), or (3) on Form 1023 (Application for 
    Recognition of Exemption under Section 501(c)(3)), please attach a copy of the 
    Narrative Description of Activities from that form and any other relevant information 
    that was submitted with the Form 1023.

2. Are you affiliated with a church or convention or association of churches? If yes, describe how you demonstrate affiliation with a church or convention or association of churches, and discuss whether one or more of the following three indicators of affiliation apply:

  • You are covered by a group exemption letter issued under an applicable administrative procedure (such as Rev. Proc. 80-27, 1980-1 C.B. 677) to a church or a convention or association of churches. If so, please provide us with the corporate name of the church or convention or association of churches; or
  • You are operated, supervised, or controlled by or in connection with (as defined in Section 1.509(a)-4 of the Treasury Regulations) a church or a convention or association of churches. If so, please discuss how your organization is operated, supervised, or controlled by or in connection with a church or a convention or association of churches within the meaning of Section 1.509(a)-4 of the Treasury Regulations. If you have already provided information about how you are operated, supervised, or controlled by or in connection with a church or convention or association of churches on Form 1023, please provide any relevant information that you submitted with Form 1023; or
  • Relevant facts and circumstances show that you are affiliated with a church or convention or association of churches. Facts and circumstances include, but are not limited to, the following:

a. Your enabling instrument (corporate charter, trust instrument, articles of association, 
    constitution or similar document) or by-laws affirm that you share common religious 
    doctrines, principles, disciplines, or practices with a church or a convention or 
    association of churches.

b. A church or convention or association of churches has the authority to appoint or 
    remove, or to control the appointment or removal of, at least one of your officers 
    or directors.

c. Your corporate name indicates an institutional relationship with a church or a 
    convention or association of churches.

d. You report at least annually on your financial and general operations to a church 
    or a convention or association of churches.

e. There is an institutional relationship between you and a church or a convention or 
    association of churches that is affirmed by the church or convention or association 
    of churches, or a designee thereof.

f. In the event of dissolution, your assets are required to be distributed to a church or 
   a convention or association of churches, or to an affiliate thereof within the meaning 
   of Section 1.6033-2(h) of the Treasury Regulations.

Please describe how any of the factors listed in a-f above apply to you. If none of these factors describe your affiliation, describe any other relevant facts and circumstances that demonstrate you are affiliated with a church or convention or association of churches. Submit a copy of any document that supports a determination that the relevant facts and circumstances show you are affiliated with a church or convention or association of churches

3. Section 1.6033-2(h) of the Treasury Regulations provides that an organization must also be internally supported in order to be an integrated auxiliary. Section 1.6033-2(h)(4) of the Treasury Regulations provides that an organization is internally supported unless both of the following are true:

a. You offer admissions, goods, services or facilities for sale, other than on an 
     incidental basis, to the general public (except goods, services, or facilities sold 
     at a nominal charge or for an insubstantial portion of the cost); and

b. You normally receive more than 50% of your support from a combination of 
    governmental sources, public solicitation of contributions, and receipts from the sale 
    of admissions, goods, performance of services, or furnishing of facilities in activities 
    that are not unrelated trades or businesses.

Please discuss how you meet the test for being internally supported as provided under Section 1.6033-2(h)(4) of the Treasury Regulations. You may, but are not required to, submit any financial information showing the sources of your revenues (for example, grants or contributions from the public).

 

More information:

See the complete list of Applying for Exemption/Miscellaneous Determination Sample Questions by topic.

Page Last Reviewed or Updated: 11-Dec-2014