Glossary
Nonprofit Specific

Faith‑Based Organization

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A faith-based organization is a nonprofit tied to a religious or spiritual group, serving charitable or community purposes.
A faith-based organization (FBO) is a nonprofit entity affiliated with a religious group, spiritual belief, or church, and operates for charitable, educational, or social purposes. These organizations may provide direct services like food banks, shelters, or educational programs, or engage in advocacy and community development. While rooted in religious values, FBOs often serve diverse populations regardless of faith, and must comply with nonprofit regulations. FBOs are eligible for tax-exempt status under IRS guidelines, provided their activities further charitable purposes and do not primarily benefit private interests or political campaigns.

Key Takeaways

  • FBOs are nonprofits affiliated with religious or spiritual groups.
  • They provide a range of community and social services.
  • Eligible for tax-exempt status if compliant with IRS rules.
  • Often serve diverse populations, regardless of faith.

Why It Matters

Faith-based organizations play a vital role in community support and social services.

Real World Example

An example of a faith-based organization is a local church that operates a food pantry and after-school tutoring program for children in underserved neighborhoods. While the church is rooted in Christian beliefs, its outreach programs are open to anyone in the community, regardless of religious affiliation. The organization relies on donations and volunteers from its congregation but also receives grants from other nonprofits and government sources. By maintaining transparent accounting practices and tracking designated funds for each program, the church ensures compliance with nonprofit regulations and demonstrates accountability to donors and the public.

How Aplos Helps

Aplos provides specialized accounting, donation tracking, and reporting tools designed to meet the unique needs of faith-based organizations. With Aplos, FBOs can easily manage funds, track designated gifts, and generate reports required for both compliance and transparency, making it easier to fulfill their mission.
launch trading trade finance startup icon

Try it yourself. Start your 15 day free trial

No commitment or credit card required.

Try it For Free

Frequently Asked Questions

What is a faith-based organization?

A faith-based organization is a nonprofit affiliated with a religious or spiritual group, providing charitable or community services.

Can faith-based organizations serve people of different faiths?

Yes, most FBOs serve all community members regardless of religious affiliation, focusing on charitable or social missions.

Are faith-based organizations eligible for tax-exempt status?

Yes, FBOs can qualify for IRS 501(c)(3) status if their activities meet the requirements for charitable organizations.

Related Terms

Variance Analysis
Reconciliation
OMB Circular A‑133
Statement of Activities
Whistleblower Policy
Budget‑to‑Actual Report

Aplos has everything you need in one place for streamlined nonprofit and church management.

Start A Free Trial

Copyright © 2025 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Aplos

Our StoryTeam AplosCareersReviewsContact UsSecurity

Resources

AcademyAPIPartnershipsReferral PartnersAplos StatusAplos Glossary

Products & Features

Nonprofit SoftwareChurch SoftwareNonprofit AccountingChurch AccountingDonor ManagementNonprofit CRMOnline DonationsFundraising SoftwareText to GiveBill PayPayrollPrepaid Cards

For Customers

Support CenterTraining CenterFind An Aplos Advisor

Compare Us

Compare Quickbooks® For NonprofitsCompare Quickbooks® For ChurchesCompare Sage Intacct For Nonprofits

Services

Nonprofit Bookkeeping ServicesChurch Bookkeeping ServicesImplementation Services
Start A Free Trial

Copyright © 2024 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Legal StuffPrivacy Policy
California Consumer Privacy Act NoticeDo Not Share My Personal Information