20 Key Benefits of a Self-Supported Ministry (SSM)

1. Bank Account Privacy

A Self-Supported Ministry checking account can be established without associating a Social Security number with the account itself. While banks may verify your Social Security number for personal identification purposes, the account exists independently of personal identification numbers. Banks should be able to open these accounts without requiring “Doing Business As” (DBA) registration since an SSM is not considered a commercial business entity.

2. Operational Privacy

Since a Self-Supported Ministry is not incorporated, it functions as a private, lawful entity that operates as an “exception” rather than being “exempt” from regulations that govern entities controlled by the government (including 501(c)(3) corporations). This distinction allows for lawful operation with significant privacy protections.

3. Tax Filing Exemption

The SSM structure does not require filing tax returns, allowing funding and operational activities to remain private from government oversight. This creates a layer of separation between ministry activities and traditional tax reporting requirements.

4. Perpetual Existence

Unlike many other organizational structures, a Self-Supported Ministry does not have a predetermined termination date. There are no end-of-life reporting requirements because there are no reporting obligations in the first place. This provides continuity free from City, State, Federal, and IRS intrusion.

5. Asset Protection from Certain Taxes

Gifts and donations to your SSM are structured to be removed from Estate, Gift, and Capital Gains tax exposure. This arrangement keeps your ministry’s assets outside the purview of certain IRS interventions and potentially preserves more resources for ministry purposes.

6. Liability Protection

By placing assets into an SSM structure, you create a barrier that makes it difficult for attorneys to collect judgments against you personally. This separation between personal and ministry assets provides a layer of protection against certain types of legal claims.

7. Diverse Asset Acceptance

Your Self-Supported Ministry may accept donations of all types of assets including real property, stocks, vehicles, boats, aircraft, clothing, furniture, and monetary gifts. This flexibility allows for creative funding approaches beyond simple cash donations.

8. Deferred Gift Eligibility

The SSM can be designated to receive funds from wills, trusts, life insurance policies, or other deferred giving arrangements. This enables long-term support strategies and legacy giving opportunities for your ministry.

9. Tax Deduction Benefits for Donors

Donations made to your SSM—whether from yourself, friends, relatives, clients, patients, or fundraising events—may qualify as tax-deductible contributions for the donors as provided by applicable law. This can incentivize greater giving to support your ministry work.

10. Personal Tax Liability Reduction

By directing your income into your SSM, you may be able to reduce your personal tax liability. This can be accomplished through arrangements such as having employers make payroll checks payable to the SSM or wire funds directly to the SSM’s bank account.

11. Business Tax Liability Reduction

Making the SSM the lawful owner of business stock or ownership interests can potentially decrease business tax liability. This creates a tax-advantaged relationship between commercial activities and ministry purposes.

12. Global Banking Options

The SSM structure allows for opening bank accounts internationally without requiring offshore trusts or corporations. While establishing accounts in other countries may require physical presence and a local address, this provides global flexibility for ministry operations.

13. International Giving Framework

While U.S. taxpayers typically cannot deduct gifts to overseas charitable projects directly, the SSM structure provides a potential framework for international giving. This can expand the ministry’s reach and impact beyond domestic borders.

14. Personal Compensation Provisions

An SSM is permitted to provide payment to those who work for it, typically through a “Workers Contract” arrangement. Since Federal Reserve Notes (FRNs) are used as “payment” or “exchange,” these transactions may not be considered taxable events under certain interpretations of United States codes, as FRNs represent “Obligations of the United States.”

15. Ministry-Funded Expenses

All expenses required for the operation and growth of the SSM are permitted. This can include the SSM paying for transportation, clothing, food, and shelter for those serving the ministry, creating a comprehensive support structure for ministry work.

16. Direct Control

Unlike traditional organizational structures with trustees or presidents, the SSM allows you to be directly involved with all legal transactions regarding the ministry. This provides streamlined decision-making and implementation of ministry activities.

17. Non-Political Status

The SSM maintains a non-political status despite being created by contract within the United States. However, the ministry may still communicate truth or opinions regarding worldwide matters, preserving freedom of expression while maintaining appropriate separation from political entanglements.

18. Business Support Flexibility

As the name implies, a Self-Supported Ministry can be financially sustained through profitable activities. This can be accomplished by directing some or all of your “supporting business” profits directly into the SSM’s accounts. The ministry itself can and should develop self-supporting activities.

19. Reduced Government Regulation

Similar to certain religious communities like the Mennonites and Amish, SSMs may operate with reduced government oversight in certain contexts. This could potentially include building on property without traditional code enforcement or operating without conventional licensing requirements, though specific applications vary by jurisdiction.

20. Asset Protection for Elder Care

For older individuals, transferring assets to an SSM ahead of time may protect from asset depletion through healthcare costs or government levies. This arrangement allows individuals to lawfully state they don’t “own” anything directly while still being cared for through the SSM, which can be managed by them until a designated successor takes over.