Why Some Churches Have Multiple 501(c)(3)s—And Why Yours Might Need One Too
By Raul Rivera
Having multiple 501(c)(3)s is not a new concept, but it’s rarely talked about in the way I want to share with you today.
When your church receives 501(c)(3) status, it becomes more than just tax-exempt. It becomes a platform—an engine that can power outreach, education, and life-changing programs. But what happens when God gives you vision beyond your church's current structure? What if there’s a ministry you’ve already created a separate checking account for? Or what if there’s a dream that could take off with the right funding?
That’s when it might be time to consider launching a second 501(c)(3)—a Community Development Corporation (CDC)—with your church as the patron member.
One Church, Two Missions—Still One Vision
Churches across the country are discovering the strength of having more than one nonprofit. It’s not about dividing the church—it’s about building a stronger foundation for the work you're already doing.
Here are just a few examples of the types of programs churches are housing under their CDCs:
- Christian outreach and discipleship efforts
- Secular service programs, such as job training, housing help, or food distribution—run by believers, but designed for the general public
- Private schools and educational services
- Nonprofit daycares
These programs may not always be a perfect fit under your primary 501(c)(3), especially if you're pursuing grant funding. Many grantors—government and private—won’t fund overtly religious organizations. But they will fund a CDC that’s structured correctly.
Keeping the Church in Control
So how do you grow without letting go?
The answer is in the patron member structure. When your church launches a CDC, you include language in the bylaws that names the church as the patron member. That’s the legal foundation that keeps the new organization aligned with your church's vision.
Here’s what that means in practice:
- Your church appoints and removes the CDC’s board of directors
- The CDC stays aligned with your beliefs and values
- Even though it’s a separate legal entity, your church retains control
This structure protects the integrity of the mission while giving your CDC the flexibility it needs to engage with the broader public and pursue outside funding.
How to Know It’s Time
Let me ask you something: Do you already have a program in your church that has any of the following?
- Its own checking account?
- A budget?
- Dedicated staff or volunteers?
If any or all of the above apply to you, then you’re already treating that program like a separate organization. It’s time to make it official.
Starting a CDC gives that program legal standing, limits liability exposure, and opens the door to funding opportunities you may not have considered before.
The Benefits of a Patron-Member CDC
- The church maintains control
- Program liabilities are kept separate
- You become eligible for a wider range of grants
- Your finances and leadership structure stay clean and clear
At StartCHURCH, we help churches like yours set up their CDCs the right way. From writing bylaws to creating the proper IRS filings, we’ll walk with you step by step.
The vision is already in you. Let us help you get the structure—and the provision—to move it forward.
Learn more about our CDC service here: https://www.startchurch.com/services/community-development-corporation
Or give us a call at 770-638-3444 and ask about starting your own Patron-Member CDC today.
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