Understanding Our Tax-Exempt Status


Crosspoint Church operates as a tax-exempt organization under IRS 501(c)(3) guidelines. This status provides significant financial and legal benefits, but it also requires strict compliance with specific rules and limitations.


Why This Matters


Maintaining tax-exempt status allows the church to:

  • Avoid federal income tax on qualifying activities
  • Receive tax-deductible donations
  • Preserve eligibility for certain exemptions at the state and local level 


Failure to comply with IRS requirements could result in penalties or loss of tax-exempt status.


Key Guidelines


1. Use of Facilities

  • Church-owned property must primarily be used for ministry purposes.
  • Outside groups using facilities must be reviewed by Director of Operations and approved to ensure alignment with IRS guidelines.
  • Excessive commercial use of facilities can jeopardize tax-exempt status. 


2. Private Benefit & Inurement

  • Church resources (funds, assets, or property) may not be used for personal benefit.
  • Staff and leaders cannot receive unreasonable compensation or perks. 


3. Political Activity

  • Crosspoint Church may not endorse or oppose political candidates (questions talk to Director of Operations)
  • Limited issue-based advocacy is allowed but must not become a primary activity. 


4. Unrelated Business Income

  • Income generated from activities not directly tied to the church’s mission may be taxable.
  • Ongoing or large-scale commercial activities should be reviewed in advance. 


Operational Considerations

  • All agreements involving facility use, rentals, or partnerships should be reviewed by the Director of Operations.
  • Any new revenue-generating activity will be evaluated for compliance by the Director of Operations.
  • Ministries should avoid informal or undocumented arrangements involving church property or funds. 


When to Contact the Operations Team


Reach out before proceeding if:

  • An outside group wants to use church property that is new 
  • You are planning a revenue-generating activity
  • There are questions about donations, sponsorships, or partnerships
  • You are unsure whether an activity aligns with tax-exempt guidelines 


Bottom Line

Every ministry and department plays a role in protecting Crosspoint Church’s tax-exempt status. When in doubt, ask before acting—early review prevents risk and ensures we remain compliant while advancing the mission.