The current understanding of not for profit organizations is, for the most part, limited to IRC Sec. 501. Little known is the law for religious organizations under Sec 508. These entities may be referred to herein as Faith Based Organizations (FBO). There is little written about the availability of this law as it applies to religious entities. The purpose of this summary is to provide a brief introduction to Sec 508, in lay terms, for leaders of religious organizations who are not tax professionals.
 Sec. 508 was codified in the Internal Revenue Code (IRC) in order to formally establish the doctrine of freedom of religion which had been a tacit standard upon which America was founded and governed since before it gained its independence in 1776.
 An FBO is, by the very nature of its creation, a religious, non-profit, tax-exempt organization.
 Throughout this summary you will find links to further information, including technical references for your professional advisor to research and for you to refer to as needed. We wish to educate both religious leaders and tax professionals on this widely underutilized tax law. It is generally unknown to tax practitioners simply because law schools and accounting schools do not teach it....