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Church Plant Fundraising: Holding Accounts

When going through the Personal Assessment Process, a lot of planters ask me about fundraising. Everyone wants to start fundraising and creating an income line as soon as they can, because they know it takes a huge amount of money to get a church started. However, there are some legal issues at play that can prevent you from fundraising.

  • Typically, people would like to receive a giving receipt for tax purposes when they give to a church. However, if you are still in the planting pre-processes, you likely do not have Articles of Incorporation / 501(c)3 tax exempt status.
  • Without these, you cannot accept funds and legally issue giving receipts.

Some districts and organizations have a system set-up for candidate planters to have a holding account. For others, they ask that planters wait until receiving approval before beginning their fundraising. You need to talk with your leaders about their preference, and also the healthiest route forward for you and your plant.

For many of our planters, we felt they’d do well in the process, and it would be helpful to allow those who wanted to start giving monthly to go ahead and do so. For these cases, we would create a Holding Account for income towards the future church plant. If you have a parent church or sister church willing to do this, BE SURE you have a signed agreement that everyone understands. It’s a great win-win for everyone, and with the proper safeguards, can be a huge asset in your planting process.

Holding AccountHere’s a holding account agreement I created in the past that you’re free to use!

 

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