Hey guys. I have a soon to be nonprofit church struggling because they already started services (collecting offerings too against my advice) before things were set with an EIN and they gave an event already planned out and are trying to find a way to spend and collect before the things are in order.
They want to know if one of their small business owners can expense and collect then consider it a donation. Is this possible? Any advice or loopholes that are Legal and will avoid issues later on?

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Posting as :
works at
You are currently posting as works at

I’m a CPA. Are you saying that the IRS nonprofit status approval letter hasn’t been received yet? Sounds like you are just talking about an EIN, which comes before the application, and the application may not even be on your radar.

The EIN application is online and you get it instantly. You should have been asked what type of entity this is (LLC?) and what the business start date is. Next step is to apply for nonprofits status for the year.

So the church prob didn’t have a bank account I’m guessing, if it didn’t have an EIN. That’s not good. Whose bank account did everything go to? Need to understand the details.

They can and should open a bank account and use that bank account. Do not let someone else pay for it. Don’t mix the funds with other people; that will make it worse.

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