IRS Group Exemption · Since the 1970s

Church Charter & 501(c)(3) Group Exemption.

Charter your church as a 501(c)(3) under AEGA's IRS group exemption. Under 30 days. No Form 1023. No $600 filing fee. Federally recognized tax-exempt status the day your charter is approved — with drafted bylaws and articles of incorporation included.

<30 days

Average Charter Time

$0

IRS Filing Fee

1970s

Group Exemption On File

50

States Supported

Federally recognized 501(c)(3) status — without Form 1023.

AEGA provides the ecclesiastical covering and the IRS umbrella; the chartered church operates as a sovereign local congregation. Our group exemption letter has been on file with the IRS since the 1970s — chartered churches inherit tax-exempt status under our federal determination letter, not by promise.

A church charter is the document by which an established religious body — AEGA — formally recognizes a local congregation as a member church under its ecclesiastical authority and IRS group exemption. The chartered church gains federally recognized 501(c)(3) tax-exempt status without filing IRS Form 1023, becomes eligible to receive tax-deductible donations on day one, and operates with the legal protections afforded to recognized religious organizations. The church keeps its own governance, its own bank account, its own pastoral leadership, and its own ministry direction.

Why churches charter with AEGA instead of filing alone.

Filing Form 1023 directly with the IRS works — eventually. The realistic timeline is six to nine months, often longer, plus filing fees and attorney costs that typically total $2,100 to $5,600 by the time the determination letter arrives. AEGA's group exemption does the same thing federally, faster, and at a fraction of the cost.

Item AEGA Group Exemption File Form 1023 Yourself
Time to tax-exempt status Under 30 days 6–9 months (often 12+)
IRS filing fee None $600 (Form 1023) or $275 (1023-EZ if eligible)
Required forms AEGA charter application Form 1023, schedules A–H, attachments
Bylaws drafting Included in charter package Self-drafted or attorney-drafted ($1,500–$5,000)
Articles of incorporation Included; state filing handled Self-filed with state
Annual IRS return Form 990-N (postcard) Form 990-N, 990-EZ, or 990 (depending on revenue)
Ecclesiastical covering Yes — AEGA fellowship None

What's Included

The full charter package.

Everything you'd hire an attorney to draft, included with the charter — plus the IRS group-exemption umbrella and ongoing ecclesiastical covering through AEGA's fellowship.

Articles of incorporation.

Drafted by AEGA, filed with your state's Secretary of State (state filing fee paid separately to the state, typically $50–$150).

Drafted by AEGA, customized to your church's structure — single pastor, multi-elder, board-governed — reviewed by your team before adoption.

Customized church bylaws.

Letter and supporting documentation confirming your church operates under AEGA's group exemption number — the document donors and grantmakers verify.

501(c)(3) determination evidence.

Guidance on applying for your federal Employer Identification Number with the IRS. Required for opening the church's bank account.

EIN application support.

Your church remains a chartered AEGA congregation as long as your charter is current. Streamlined annual renewal keeps you in good standing.

Ongoing ecclesiastical covering.

Instructions for filing your state-level sales-tax exemption application using your group-exemption status.

State tax-exemption pathway.

Five steps from request to tax-exempt status.

01

Submit the charter request

Church name, location, pastoral leadership, doctrinal position, and governance structure.

02

AEGA reviews and approves

The charter committee reviews the application and credentialing of the lead pastor. Approval typically takes one to two weeks.

03

Charter package issued

Articles of incorporation, bylaws, group-exemption documentation, and EIN guidance delivered.

04

State and federal filings

The church files articles of incorporation with the state and applies for EIN with the IRS.

05

Begin receiving donations

Open the church bank account. Issue tax-deductible contribution statements from day one.

Start a church. Draft bylaws. Plant a ministry.

Deeper guides for church planters, drafters, and ministers operating under AEGA's group exemption.

How to start a church

The full guide for church planters — from formation through chartering through launch. Long-form walkthrough.

State incorporation

What changes by state when filing articles of incorporation for a church. State filing fees, naming rules, and timing.

Group exemption explained

How AEGA's IRS group exemption letter works, who the IRS recognizes, and why subordinates carry the same standing as a Form 1023 filer.

Church bylaws

What AEGA's bylaws template covers, why each section matters, and how to customize for your church's governance structure.

Church charter, answered.

Is a 501(c)(3) church charter the same as filing Form 1023?

Functionally, yes — both result in IRS-recognized 501(c)(3) tax-exempt status. The difference is the pathway: Form 1023 is a direct application to the IRS that takes six to nine months and costs $600 in IRS filing fees alone. AEGA's group exemption is faster (under 30 days), carries no IRS filing fee, and provides additional ecclesiastical covering and ongoing support.

Does the church keep its own governance?

Yes. The IRS publishes group-exemption subordinates as recognized 501(c)(3) organizations. Donors who research before giving can verify the church's status through AEGA's group-exemption number. Donor advised funds, foundations, and major donors regularly fund group-exemption subordinate churches.

What does the charter cost?

AEGA's charter fee is a fraction of the cost of filing Form 1023 with attorney-drafted bylaws (which typically runs $2,100–$5,600 between IRS fees and legal work). Current charter pricing is listed on the application page.

Can an existing church charter under AEGA?

Yes. Existing churches — including churches that have been operating informally without 501(c)(3) status, and churches transitioning out of another denominational umbrella — can charter with AEGA. Existing financial records, donor history, and ministry operations remain with the local church.

Will donors accept that my church is tax-exempt under a group exemption?

Yes. Chartered AEGA churches retain full local governance — their own elders or board, their own bylaws, their own bank account, their own pastoral decisions, their own ministry direction. AEGA provides ecclesiastical covering and IRS group exemption; AEGA does not run your church.