In order to be recognized as a 501(c)(3) charity (which allows givers a tax deduction for gifts to the church) and as a legal entity in the states of Maryland or Delaware, the church should complete (Steps 1–4). Step 5 is for the benefit of churches in Maryland and allows them to avoid paying sales tax. However, Steps 1-4 must be completed to complete Step 5.
Step 1: Corporate Charter (Incorporation)
This legal document must be prepared and filed with the appropriate State agency in the state the church is located. Information on document preparation as well as a blank form may be attained below:
State Incorporation Documents
Having problems downloading? Right Click on the link and select "Save target as" and press OK. Once the file is downloaded, select the option to open the file.
Step 2: Corporate Charter Approval Letter along with Certified Copy of the Charter
This is issued by the appropriate state agency in response to #1 above. Upon receipt, this letter should be kept with other legal papers.
Step 3: Federal Employer Identification Number (EIN)
This is secured by filing Form SS-4 with the District Director of Internal Revenue (800-829-4933). The form can also be downloaded from the IRS Web site at www.irs.gov. The completed form can be handled in one of two ways:
Send to IRS, Philadelphia, PA 19255 (takes four to five weeks to receive the EIN number).
Phone IRS in Philadelphia at (215) 516-6999. They will ask you for the completed information from the form and you will receive your EIN immediately.
Step 4: Federal Tax Exemption Number (Group Exemption Number)
This is secured by contacting Margot Painter at the Baptist Convention of Maryland/ Delaware, 10255 Old Columbia Road, Columbia, MD 21046-1716, telephone (800) 466-5290, extension 204, or mpainter@bcmd.org. EIN must be submitted to the Convention.
Step 5: State of Maryland Tax Exemption Number
This is secured from the State of Maryland, Sales Tax Division, (410) 767-1300. File Form "Combined Registration Application". Send to State of Maryland, Sales Tax Division, 301 West Preston Street, Baltimore, MD 21201. Any legal documents should be kept in a safe and secure place.
This information is not offered as legal advice, but is for general information only.