This is the time of year that the people in local churches responsible for the books are busy working closing out 2019. Believe me, we have a lot to get done here, but that’s not what I’m writing about today. Maybe later if some readers would like, I’ll share a bit more about my process and how our team has been able to get year-end done efficiently without a lot of disruption to the other activities we have going on.
Today I want to share a very good way to help save your church money year after year. I’m not talking about something that only larger churches can do either! Nope, this one is for churches of just about any size, assuming you have computers in use in your church. I’m talking about computer software.
Computer Software Discount Programs
Did you know many software companies offer their products at a discount, or even free, to qualifying nonprofit organizations? If you didn’t, you’re not alone! It is kind of rare for me to find folks who are aware of these programs and taking advantage of them. Microsoft Office costs hundreds of dollars for the software to purchase outright (depending on which version you buy) and the subscription service (what they’d really prefer you do) will be over $100/per year per user for each person who needs to use the software on their computer.
Another example of this is software used by graphic artists. Software like Adobe’s suite of products (think Photo Shop) are expensive and require a monthly subscription. Increasingly, churches are seeing the need to have someone with specific skills to assist with creating and editing graphics for sermons, the church website, social media channels, etc. Having the person able to support those needs also means giving them the tools necessary to do the job!
That’s where software discount programs come in. Microsoft offers their suite of Office software free to qualifying organizations. Adobe offers discounted software too (50% off if my memory is correct). Not using products from those vendors? What about QuickBooks or Google for Nonprofits? You get the point…there are a lot of companies offering these kinds of discounts on their products!
Nonprofit Organizations
Just what is a nonprofit organization? Simply put, a nonprofit organization is an institution that conducts its affairs for the purpose of assisting individuals, groups, or even causes rather than engaging in activities that generate profits for itself. So, organizations that operate exclusively as charitable, religious, scientific, literary, educational, and more can qualify for these kinds of programs. That means our churches!
This is a good time to mention that IRS Publication 1828 states that churches that meet the requirements of IRC 501 (c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS. The reason I point this out will become evident in a moment as you read on.
What Do You Need to Do?
The steps to take advantage of these programs vary by company but all of require to verify that you qualify. That will require you to do a little research depending on the software you are using or would like to have access to. A simple internet search suing keywords such as “Microsoft nonprofit program” or something similar will work.
Regardless of the company you’re contacting, you’ll need to be able to verify that your church is a church. How you might ask? Our church chose to incorporate many years ago and here in Georgia corporations must reregister periodically with the Georgia Secretary of State’s office (and pay their fee of course). We do so via their website and in the process receive a certificate stating that we are a “Domestic Nonprofit Corporation” to use the language the state uses.
I have also been requested to provide a copy of our Exemption determination letter or a copy of our Affirmation letter from the Internal Revenue Service which is issued stating that we are a charitable nonprofit religious organization under section 501(c)(3) of the United States tax code. I highly recommend having a copy of this available. If you do not, you will need to send a request to IRS for one which requires you to complete Form 4506A. It takes about 60 days for them to get it back to you. If you’re a part of a denomination, you may be covered by a group exemption like Georgia Baptist churches are so double-check with your denominational folks before reaching out to IRS (trust me, this might save you a lot of time!).
Software companies probably aren’t going to call you and ask if you’d like free or discounted software! We had to do some homework and then go through their process to obtain it. And yes, the process can be cumbersome. It is also totally worth it! Our church saves a lot of money on computer software. We benefit by having access to the tools that help our team get things done and also frees up funds to use in other aspects of our ministry.
What are you doing to save your church money in this new year? I’d love to hear what others are doing to save money so there is more for ministry. Leave a comment and let’s have a conversation!
Blessings,
Chris