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If you are overseeing an audit for your congregation or organization, or if you need information pertaining to your organization’s taxes, the resources on this page should be helpful.

Resources

Annual Audit

Canon 39 of the Diocesan Canons and Canon 7 of The Episcopal Church require an annual audit for all entities, including discretionary funds. Audit guidelines have been established by The Episcopal Church and are included in its publication “The Manual of Business Methods in Church Affairs”.

For more information about Audit Guidelines, please view the Audit Guide for Churches.

Download a list of audit committees and auditors.

Sales Tax Exemption

The Sales Tax Exemption for the Diocese was recently updated. Please download the new Diocesan Illinois Sales Tax exemption certificate certificate for your parish records. 

The Diocese of Chicago and its entities are considered a 501(c)3 organization, a designation of not-for-profit status. Agencies held or housed by a Diocese of Chicago church may need to apply for their own 501(c)3 designation. However, all entities of the Diocese may use the Diocesan Illinois Sales Tax exemption certificate when visiting retail establishments.

Most purchases made by an entity of the Diocese of Chicago are exempt from sales tax. The sales tax exemption is appropriate for the purchase of consumable items that will be used at church or church functions and for the purchase of furniture and equipment that will be owned by the church and used for church purposes.

It is important to present the Diocesan Illinois Sales Tax exemption certificate to all retail vendors. This certificate is valid until September 1, 2028. Please note: The phone number associated with this certificate is 312-751-4200

Home Depot Sales Tax Exemption

Home Depot has updated their sales tax exemption system, and is allowing a single sales tax exemption ID per State of Illinois number, which all congregations in the Diocese share. If you would like to purchase items for the use of your congregation from Home Depot, please use the following ID to do so exempt from sales tax: 9127950428. If you shop in-person you can present this form with a QR code for a faster process. If you have any questions, please contact Rebecca Elfring-Roberts.

Self Employment Tax

The SE Tax rate is 7.65% (one-half of the total 15.3%).

Annual Certification for Church-Based Schools, Preschools

Every organization that claims exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code and that operates, supervises, or controls a private school(s) must file a certification of racial nondiscrimination (IRS Form 5578: Certification of Racial Nondiscrimination). If an organization is required to file Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, either as a separate return or as part of a group return, the certification must be made on Schedule E (Form 990 or 990-EZ), Schools, rather than on this form.

A school is an educational organization that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. The term includes primary, secondary, preparatory, or high schools and colleges and universities, whether operated as a separate legal entity or as an activity of a church or other organization described in section 501(c)(3). The term also includes preschools and any other organization that is a school as defined in section 170(b)(1)(A)(ii).

For more information, please contact Rebecca Elfring-Roberts, comptroller, at 312-751-6726.