An Explanation of the 501 (c) (3) Requirements for Organizations Participating with a Food Bank

What is a 501 (c) (3)?
This is your non-profit letter from the IRS stating the applying organization is tax exempt under the section 501 (c) (3). No other sections may apply.

Denominational churches may use a letter from their bishop, executive presbytery, district superintendent, or regional executive stating, on the denomination’s letterhead, that the church is a member of that denomination. A denominational church may also use the denomination’s directory; however this must be updated as the directory goes out of date.

Why must a 501 (c) (3) be attached?
In order for the Food Bank to be in compliance with America’s Second Harvest guidelines, appropriate documentation of a participating organization’s non-profit status, 501 (c) (3) or appropriate documentation of church status, must be received.

These materials protect the Food Bank and its member groups in making certain that Food Bank products are used for the proper purposes and people and are in accordance with the laws that permit the donors of food to take the tax deductions allowed. They also protect the organizations and the Food Bank in maintaining their nonprofit, charitable designations.

FOOD ASSISTANCE ORGANIZATIONS (INCLUDING CHURCHES)
The Internal Revenue Service has set the following guidelines regarding agency eligibility:

• The agency receiving product must be a non-profit tax-exempt organization described in section 501 (c) (3) of the IRS code.

• The agency must use Food Bank product to serve the ill, the needy or infants.

• The use of product must relate to the reason why the agency is tax-exempt.

• The agency must not sell product or charge for meals.

• The Food Bank must be able to prove to the IRS that the agencies to which it distributed food fulfill the above requirements.

CHURCHES
Food Bank product is NOT for general church functions; therefore to be eligible for Food Bank partnership, churches must be providing assistance to infants, the ill or needy.

Where can you get more information? Please talk to your church treasurer or your local tax agency.