Legal Question in Tax Law in Alabama

Re: Church Law

From what you've said, it sounds like the church has incorporated, most likely as a non-profit corporation, and has applied for 501(c)3 status with the IRS. What this means for you if that is the case is that the church leadership is making efforts to qualify as a charitable organization before the IRS so that all donations made to the church will qualify as charitable deductions for the donors. If the church is putting some new programs in place that will require some significant donations or that might qualify for outside grant funding, that may be why they did it.

In most churches, the church leadership will be happy to entertain questions from the members regarding the management of the church. Before you try to arrange an outside audit, consider talking to the church treasurer or some of the church leaders. If you don't get any satisfactory answers that way, then you might consider taking your questions to an outside body, for example, the Alabama Baptist Association if the church in question is a Baptist church. Good luck!