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1 [1] (June 29, 2026)

handle is hein.crs/goveuqj0001 and id is 1 raw text is: Congressional Research Service Informing the IegisI9tive debate since 1914 June 29, 2026 Connecting Faith-Based and Religious Organizations with Federal Grants and Other Assistance Faith-based or religious organizations and houses of eligible worship (e.g., churches, synagogues, mosques) frequently agencie seek out federal and other assistance for various community Federal services and projects. This In Focus provides congressional offices with an overview of selected grantseeking Tax St considerations and resources for these organizations. Religio In the past few decades, executive orders established conduct multiple federal faith-based initiatives and offices to Revenu support religious organizations in delivering various social and Ret and community services. For example, see select executive 501(c) orders under Presidents George W. Bush (2001), Barack Organiz Obama (2010), Joe Biden (2021), and Donald Trump (2025). Existing federal regulations also enable faith-based The ten organizations to compete for federal funding and participate that can in federal programs on equal footing with other similar Undert nongovernment organizations (for example, see the church multiagency federal rule Partnerships with Faith-Based tax-exe and Neighborhood Organizations). generall Terms of Funding, E b ty, and informa Non profit Status treatmel Rules on Federal Funding and Reigous Activity auxiliari Under federal law, faith-based organizations are generally a Chu eligible for funding on the same terms as other entities. At IF1250 the same time, federal statutes, regulations, or constitutional TaxIss limitations might prevent government funds from being Organi used for certain religious activities. For instance, certain statutes prevent specific federal funds from being used for A deter religious worship or instruction (e.g., 20 U.S.C. §101lk(c); offciall 34 U.S.C. §12161(b)(B)(iv); 42 U.S.C. §9920(c)). For an exempt example of how one agency approaches this issue, see worship What Are the Rules on Funding Religious Activity with status u federal Money? potentia Interested organizations can check eligibility criteria and this lett terms and conditions for federal or other funding exempt program(s) before applying or entering into official grant obtaine agreements. (Terms and conditions might include require nondiscrimination requirements or oversight obligations.) ofinter Additionally, since 2025, President Trump has issued obtaini multiple executive orders that may impact federal grants Nonpro and other assistance to nonprofit organizations, including Religio faith-based organizations. may va Funding Mechanisms officiall Many nonprofit organizations, including houses of worship nonprof or other faith-based organizations, might be subrecipients of federal funds (i.e., they may not have grant agreements directly with federal agencies but rather withprime recipients ofpass-through funds, such as state-level agencies). In other cases, faith-based nonprofits might be for federal funds administered directly from federal s. See CRS In Focus IF12910, Searchingfor Grants: An Overview ofResources. atus Considerations ius organizations may consider the impact of their tax filing status on their ability to effectively seek grants or other fundraising activities. See the Internal e Service (IRS) page Tax Information for Churches igious Organizations and IRS Publication 1828, (3) Tax Guide for Churches and Religious ations. m church has a specific meaning for tax purposes include entities such as mosques and synagogues. he federal tax system, organizations that qualify as es receive more favorable tax treatment than other mpt organizations do. Churches, for example, are y subject to fewer filing obligations and receive special procedural protections during audits. For in-depth tion on federal tax benefits for churches, and the tax nt of related charitable organizations (such as conventions and associations of churches, and integrated ies of a church), see CRS In Focus IF12520, WhatIs rch for Federal Tax Purposes?; CRS In Focus 9, Church Tax Benefits; and CRS Report R48789, ues Relating to Charitable Contributions and zations. mination letter is a document from the IRS that y recognizes a nonprofit organization as a tax- organization. While faith-based nonprofit houses of can generally qualify for 501(c)(3) tax-exempt tnder IRS rules even without official documentation, l vendors, donors, and funders (including many government and nongovernment grantmakers) may require er as proof that the organization is a legitimate, tax- organization. Houses of worship that have not id this letter may wish to review the specific ments imposed by funders or the funding program(s) est. For guidance on incorporating as a nonprofit and ng an IRS determination letter, see How to Start a rfit and What Are the Legal Requirements for ius Nonprofit Organizations? State requirements ry. (For example, not all states provide automatic nonprofit status to churches, and a church may need to y file an application.) State-level associations for its may also be of some assistance.