Churches are, first and foremost, places of worship where people gather to honor and practice their faith. They also provide a welcoming space for people of all ages to connect, grow spiritually, and find support. From joyful celebrations to quiet moments of reflection, churches often become the backdrop for significant life events and lasting memories.
This blog presents step-by-step instructions on how to start a church. Discover expert tips about establishing a 501(3)(c) nonprofit church. Find best practices for legal compliance, effective planning, and community engagement tailored for faith-based organizations.
7 steps to starting a nonprofit church
- Decide on a name for the new church or ministry
- Recruit a board of directors/church council
- Determine the church’s organizational structure
- File corporate formation documents
- Hold an initial organizational meeting
- Apply for a Federal Employer Identification Number – EIN
- Apply for 501(c)(3) tax-exempt status with the IRS
How does the IRS define a church?
The Internal Revenue Service (IRS) defines “church” as synonymous with “denomination organization” or “sect.”
For an organization to be considered a "church," it must perform sacred rites and conduct religious worship. These rites must be in accordance with the beliefs and practices of a specific religious group.
Certain characteristics are attributed to churches, including:
- A distinct legal existence
- A recognized doctrine and form of worship
- A functioning clerical government
- A standard code of belief and discipline
- A distinguishable religious history
- An institution of ordained clericals and church leaders
- Ordained ministers and church elders appointed after completing religious studies
- A religious literature of its own
- Established places of worship
- Regular congregations
- Regular ministerial services
- Sunday schools for the religious education of the youth
- Academies for the training of its new members
Amongst these characteristics, having a regular congregation is a very important criterion. A congregation is a group of individuals who gather together regularly for religious worship.
The number of people that constitute a congregation isn’t set in stone. According to the IRS, activity is more important than the size of the group.
What is church planting?
A church startup, also known as church planting, is often confused with church revitalization, though they refer to different processes.
Church planting simply refers to building new churches from scratch. The process involves:
- Choosing the mission
- Identifying the leadership team
- Finding a location for worship
- Organizing community outreach programs
- Creating programs for the spiritual edification of the congregation
Church revitalization involves modifying the processes and protocols of a traditionally oriented religious organization. The purpose is to attract more members and restore ministry to an already existing church community.
What do you need to start a church?
Your belief statement, religious instruction, and church bylaws are just a few of the things you need to start your own church. You will also need to consider:
1. Location
Secure a location for worship services, which could be a rented space, a purchased property, or a home-based setting.
Factor in the following aspects:
- The population of the area
- The demographic within the area
- Adequate parking and accessibility for kids
- The size of the location
- Legal permits and licenses
- Safety and security
- Aesthetic appeal
- Proximity to schools, parks, and other community centers
- Internet connectivity
2. A clear vision and mission statement
Define the purpose, vision, and mission of your church. What is your long-term aspiration? What impact do you want to have on the community? What are your core beliefs?
For instance, your mission statement can be:
“Our mission is to glorify God by nurturing spiritual growth, improving fellowship, serving our neighbors, and sharing the Gospel of Jesus Christ with compassion and conviction. The church continues to commit to worship, discipleship, and outreach, with a firm purpose of helping our members live out their faith in everyday life.”
The official vision statement can be:
“To be a Christ-like congregation that reflects the love of Jesus Christ, transforms lives through faith, and positively impacts our community.”
3. A founding team
For a local church, choose a group of committed people who share your vision and values. These people will become the leadership structure of your new church.
Your team should consist of:
- A lead pastor or spiritual leader
- Church elders that oversee, provide accountability, and assist in decision-making
- A worship leader who organizes worship services and coordinates music
- An administrator or a small group of corporate officers who handles the church finances and ensures legal and regulatory compliance
- An outreach coordinator who develops strategies for evangelism and builds relationships with local organizations and community members
- A youth and children’s ministry leader who creates a safe and nurturing environment for children and youth
- A small discussion group that oversees Bible studies and promotes spiritual growth
- A volunteer manager who recruits, trains, and supports volunteers to raise money and receive donations
4. A legal structure
Churches have a nonprofit status, meaning they are exempted from paying federal income tax under section 501(c)(3) of the IRS. Despite this status, it is important to register with the appropriate government authorities.
The legal structure of a church includes:
- Articles of Incorporation to establish the church as a legal entity
- An Employer Identification Number (EIN) from the IRS
- A federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code
- Documents detailing the church’s mission, governance structure, membership requirements, and other operational methods
- Compliance with federal and state employment laws
- A church bank account
- A liability insurance to protect the church and its leaders from potential lawsuits
- A trademark for the church’s name and logo to distinguish it from other churches
- A document outlining the ownership or lease of property used for worship
5. Statement of faith
A statement of faith is a sentence or group of sentences and phrases that outline and explain your core beliefs. A statement of faith can be sectioned into verses.
For instance, the Church of Jesus Christ of Latter-Day Saints has 13 Articles of Faith that outline its core values, practices, and beliefs.
You can create a statement of faith using the following steps:
- Identify your core beliefs
Write out the fundamental doctrines and teachings that are central to your faith, such as the nature of God, Jesus Christ, the Holy Spirit, salvation, the Bible, the sacrament, and so on.
- Study existing statements
Look at statements of faith from other churches as references. Analyze how they structure their beliefs, what language they use, and which doctrines they emphasize.
- Include scriptural references
Support your statement of faith with relevant scriptural references. This grounds your beliefs in biblical text and allows members to further study the foundations of each point.
- Review and revise
Share the church bylaws draft with church leaders and the founding team for feedback. Encourage open discussion about the wording, content, and overall message.
You might need multiple revisions to ensure the statement accurately reflects your church's collective beliefs and values.
- Finalize and approve
Once they have reviewed the statement of faith, formally approve it through your church's governance process. This may involve a vote by the leadership board or congregation, depending on your church's structure.
- Publish and communicate
Make the statement of faith easily accessible to members by publishing it on your church’s website, including it in membership materials, and referencing it during Sunday school.
6. Funding
Starting a church requires developing a financial plan and budget. One way local churches acquire funding is through fundraising.
Other common financial practices include setting up a system for tithes and offerings, encouraging donations from your founding team and other church leaders, and requesting support from local businesses.
Here are a few things to keep in mind when developing a financial plan:
- Identify all initial expenses, such as legal fees, bank account details, incorporation costs, permits, and licenses
- Include costs for renting or purchasing a building, renovations, interior design, and equipment
- Plan for ongoing expenses like salaries to pay employees, insurance, office supplies, and maintenance
- Include costs for advertising, church website development, social media, and community outreach programs
- Include expenses for Sunday services, Bible studies, youth programs, and community events
7 steps to start a church
1. Decide on a name for the new church or ministry
The name you choose should be reflective of your church's mission and belief. It should create a strong first impression and a sense of identity for your new church.
Consider the following when you choose a name:
- The message you want to convey
- How the name will resonate with potential members of your church
- Avoid similarity with other local churches to avoid trademark issues
- The availability of the domain name for a church website
- The visual appeal of the name when printed in logos and other marketing materials
- Inclusion of biblical references to the name
There are several naming options to choose from. A few of these include:
- Biblical references
Examples include Grace Community Church, Living Water Church, New Covenant Church, Cornerstone Fellowship, and The Vine Church
- Mission-focused names
Examples include Hope Harbor Church, FaithWorks Church, Mission of Light Church, Service of Love Church, and Compassion Chapel
- Location-based names
Examples include Riverside Church, City Center Church, Hilltop Church, and Lakeside Worship Center
- Thematic names
Examples include New World Journey Church, Sanctuary Church, LightHouse Church, Unity Church, and Redemption Church
- Traditional names
Examples include First Baptist Church, and Holy Trinity Church
- Nature-inspired names
Examples include Evergreen Church, Rock of Ages Church, Oak Ridge Fellowship, River of Life Church, and Mountain View Church
- Cultural or community names
Examples include Unity in Diversity Church, Multicultural Christian Fellowship, Community of Faith Church, Neighborhood Hope Church, and Global Outreach Church
2. Recruit a board of directors/church council
A functioning church typically has a board of directors or council members and their responsibilities include:
- Developing a mission, vision, and belief statement
- Mapping out the operational objectives of the church
- Delegating these objectives to departmental heads within the church
- Overseeing the actions of the church head or church leader
- Maintaining the financial integrity of the church
- Disbursing funds and approving the church’s budget
- Approving salaries and regulating pay
- Supporting the church’s fundraising efforts
- Monitoring and resolving conflict
- Building and maintaining partnerships with other churches
- Regularly updating the congregation on the church’s financial status, programs, and activities
- Praying for major decisions and direction of the church
- Providing spiritual guidance and support to the church members
When recruiting your church council, consider:
- Looking out for specific skills and qualifications needed. These include financial expertise, leadership experience, legal knowledge, and so on
- Looking for individuals who are passionate about your church’s mission and vision
- Creating an inclusive environment for both staff and members
- Reaching out to respected leaders in your local community who share your values
- Conducting formal interviews with potential candidates
- Creating a succession plan to ensure a smooth transition of responsibilities
3. Select the church’s organizational structure
The organizational and spiritual structures of a church create a balance.
When choosing your church’s business structure, consider how your church interprets the biblical teachings on governance and leadership. Ensure that the structure you choose complies with local laws and regulations governing religious and nonprofit organizations.
There are two major models of a church’s organizational structure:
Episcopal model
A relatively common model, it refers to a hierarchical structure that explains the flow of authority from bishops or overseers down to clergy and congregations.
The purpose of this model is to outline a chain of command. It helps prevent the struggle for power among church leaders.
Congregational model
In this model, autonomous local churches govern themselves independently. The church’s founder selects a small group of people to govern the church.
This model allows members to have a direct say in major decisions, such as hiring pastors and approving budgets.
4. File corporate formation documents
Corporate formation documents are legal paperwork required to start any new business. These documents also act as the foundation for legally recognizing the church's existence.
Corporate formation documents include your statement of faith, as well as:
Articles of Incorporation (Certificate of Incorporation)
The Articles of Incorporation are the foundational documents that legally establish a church as a nonprofit organization.
Articles of incorporation include certain details such as the church's name, location, purpose (religious activities), and registered agent (person who receives legal documents). They also include the initial board of directors and members.
Bylaws
Bylaws are the internal rules and procedures governing the church's operation. They contain information regarding the church's mission and vision and the procedure for membership
The bylaws also detail the frequency of meetings for both members and the governing body, outline the roles and responsibilities of officers, specify voting processes, and describe all other decision-making processes.
The purpose of bylaws is to ensure transparency, accountability, and adherence to legal requirements.
Minutes of organizational meetings
Minutes of meetings are legally required for government audits and serve to maintain corporate records for legal purposes.
Minutes document the proceedings and decisions made during the church's organizational meetings. Key details to include in minutes are the names of all attendees, the resignation or appointment of new staff, and all other conversations that occur during board meetings.
Conflict of interest policy
A conflict of interest policy specifies all guidelines for board members, officers, and church employees regarding disputes.
The document ensures decisions are made in the best interests of the church and its mission.
Policy documents (optional)
Depending on the activities of your church, additional documents, such as a child protection policy, financial policies, and governance policies may be needed.
The purpose of these policy documents is to ensure ethical conduct, financial stewardship, accountability, and transparency.
State-specific requirements
All churches must comply with state-specific requirements for nonprofit organizations. Depending on the state's regulations, these requirements may include permits, licenses, or registrations.
5. Hold an initial organizational meeting
A major step to launching any successful organization is holding regular organizational meetings that help you make plans with the founding or launch team.
Conducting an initial organizational meeting involves:
- Preparing an agenda on the important items to be discussed
- Sending out invitations to all initial board members and key individuals who need to be present
- Opening the meeting with a prayer
- Welcoming all members to the meeting and making the necessary introductions
- Taking a roll call to ensure everyone is present
- Appointing a secretary to oversee the meeting and record the minutes
- Reviewing and adopting all pending documents, including bylaws, conflict of interest policy, and articles of incorporation
- Approving the opening of the church bank account
- Discussing and reviewing the initial budget and financial plans
- Addressing all miscellaneous matters
- Adjourning the meeting
6. Apply for a Federal Employer Identification Number – EIN
An EIN is a nine-digit number assigned to businesses operating within the United States. The IRS provides these unique numbers after the filing and processing of all necessary documents.
With an EIN, your church can open bank accounts and carry out financial transactions.
All online applications must be completed in a single session, which will automatically expire after 15 minutes of inactivity..
Upon completing the application, the system will validate your information. After complete validation, your EIN will be given to you immediately.
7. Apply for 501(c)(3) tax-exempt status with the IRS
The IRS considers churches to be eligible for tax exemption because they are classified as nonprofit organizations. As such, they automatically qualify for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
You can apply to claim tax exemption by using either Form 1023 or Form 1023-EZ.
- Form 1023: This is the long-form application that requires detailed information about your church's structure, governance, financials, and activities.
- Form 1023-EZ: This is a simpler, shorter form for smaller organizations that meet specific criteria. Check the eligibility requirements to see if your church qualifies.
Concluding thoughts on how to start a church
Starting a church can be challenging, yet it is a noble and fulfilling endeavor. Every new church has the potential to make a profound impact on the lives of its members and the surrounding community.
Whether you’re looking to create a space for worship, fellowship, or outreach, our guide will help you turn your vision into a thriving reality that serves as a cornerstone for spiritual and communal growth.
As you start this journey, it's important to consider all aspects of establishing your church, including the legal and financial steps. Incorporation is a crucial part of this process, and it's worth exploring options that can help you minimize costs while ensuring compliance with all necessary regulations.
Zeffy offers 100% free incorporation services for nonprofits. By using our platform, you can establish your nonprofit church without incurring additional costs, ensuring that every dollar raised goes directly into supporting your mission of starting a church.
