In recent days, our attorneys have fielded several questions about IRS Publication 78. Many churches wonder if there is a legal requirement for their organization to appear on that list. Publication 78 is a formal list of organizations that have formally filed with the IRS and have received a determination letter which states they are, indeed, tax-exempt organizations.
There is no legal requirement for churches to formally register for 501(c)(3) status. If they never do so, they have not broken any law or missed any mandatory requirement. On the other hand, there are sometimes advantages to appearing in Publication 78. Some donors feel more comfortable financially supporting a church that has received a determination letter. And if your church has any interest in seeking foundation grants or participating in some kind of matching fund program offered by some corporations, these organizations almost always limit their scope of activity to churches that appear on Publication 78.