How to Start A Ministry: A Step-By-Step Guide
By Brandon Williams, VP of Marketing
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How to Start a Ministry: A Step-by-Step Guide
When the Lord places the call on your heart to begin a ministry, it’s natural to start thinking about the spiritual vision and logistical needs—such as who will be involved, where you will begin, and how you will sustain the work financially.
But one of the most important (and often overlooked) areas is the legal foundation of your ministry. Without a solid legal structure, your ministry could face challenges that hinder its ability to grow, receive donations, or remain in compliance.
Below are the five essential steps to legally starting a ministry (note: these steps are geared toward non-church ministries).
Step 1: Incorporate Your Ministry
The first step is to legally incorporate your ministry with your state (or county, where applicable).
Incorporation creates a legal entity that is separate and distinct from its founders, protecting you and your board members from personal liability—a protection known as the corporate veil.
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Choose a name: Select a unique name that reflects your mission.
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Form a board: Most states require at least two additional board members to serve alongside you.
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File Articles of Incorporation: This document legally establishes your ministry with the state.
Example: Hannah founded a ministry to provide meals for single-parent families. When an accident occurred while using the ministry’s van, the ministry was sued—but Hannah’s personal assets were protected because her ministry was incorporated.
Step 2: Create Bylaws for Your Ministry
Bylaws are your ministry’s governing documents. They establish structure, clarify decision-making processes, and help ensure compliance with IRS requirements.
Well-drafted bylaws should:
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Define your ministry’s mission and purpose
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Outline board responsibilities and limitations
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Provide succession planning and financial guidelines
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Distinguish the theocratic governance of your ministry
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Ensure compliance with nonprofit law and IRS regulations
Bylaws are more than just a legal requirement—they keep your ministry focused, consistent, and prepared for the future.
Step 3: Decide if Your Ministry Will Ordain Ministers
Not every ministry chooses to ordain ministers, but if yours will, it must be established legally.
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Spiritual ordination is different from legal ordination.
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Legal ordination allows ministers to receive important benefits, such as housing allowance and self-employment tax exemption.
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If your ministry plans to ordain, be sure this authority is clearly stated in both your Articles of Incorporation and your bylaws.
Step 4: Apply for 501(c)(3) Tax-Exempt Status
Unlike churches, most ministries are not automatically considered tax-exempt. If your ministry’s annual gross receipts are $5,000 or more, you must apply for 501(c)(3) status with the IRS.
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File Form 1023 (the IRS application for tax-exemption).
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If approved, you will receive a Federal Determination Letter, officially recognizing your ministry as a 501(c)(3) organization.
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Benefits include exemption from federal income tax and the ability for donors to give tax-deductible contributions.
⏳ Note: Ministries must apply within 27 months of incorporation to have tax-exempt status recognized retroactively.
Step 5: Understand Your Responsibility to File Form 990
Non-church ministries recognized as 501(c)(3) organizations are required to file Form 990 annually.
The IRS uses Form 990 to ensure tax-exempt organizations remain compliant. Which version you file depends on your ministry’s size:
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Form 990-N: For very small organizations
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Form 990-EZ: For mid-sized organizations
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Form 990 (Long Form): For larger organizations
Failure to file—or filing late—can result in penalties or even loss of tax-exempt status.
Are You Ready to Start Your Ministry?
Starting a ministry is a God-given calling, but it also requires practical steps to build a foundation that will stand the test of time. While these five steps provide a clear starting point, the process can still feel intimidating.
That’s why StartCHURCH exists—to help pastors and leaders like you establish ministries with confidence. From incorporation* and bylaws* to tax-exempt approval, our specialists walk with you through each step.
Call us today at 770-638-3444 to learn how we can help you start your ministry the right way.
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