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.


Questions or more information

Contact the Director of Operations at ccate@crosspoint.church