IRS affirms Fellowship Southwest’s nonprofit status; gifts are tax-deductible

Fellowship Southwest received great news last week—from the Internal Revenue Service.

“We’re pleased to tell you we determined you’re exempt from federal income tax under Internal Revenue Code Section 501(c)(3),” the IRS said in a letter sent to FSW Coordinator Marv Knox.

“Donors can deduct contributions they make to you …,” the letter added. “You’re also qualified to receive tax-deductible bequests, devises, transfers or gifts.” 

Fellowship Southwest started as a regional division of the Georgia-based Cooperative Baptist Fellowship in 2017, operating alongside CBF Oklahoma, CBF Texas and CBF West. Its region covers Arizona, New Mexico, Northern Mexico, Oklahoma, Southern California and Texas.

CBF asked Fellowship Southwest to expand the global organization’s racial, cultural and ecumenical relationships throughout the vast region. 

The FSW steering committee—an advisory group assigned to help Knox set priorities and implement strategies for the organization’s ministry—determined its ecumenical mandate could only be achieved by standing on its own.

With the blessing of CBF Executive Coordinator Paul Baxley and CBF leadership, Knox incorporated Fellowship Southwest as a Texas nonprofit organization last October. The steering committee then became the FSW board of directors, with legal authority to direct the organization. 

After incorporation, Fellowship Southwest applied for tax-exempt status with both state and federal governments. Texas responded affirmatively this spring.

The IRS “determination letter” fully affirms Fellowship Southwest’s legitimate status as a nonprofit. It confirms donors may designate gifts made to the organization as tax-exempt charitable contributions. The IRS validates all gifts from Oct. 6, 2020, the date of incorporation in Texas. 

“The IRS affirmation of Fellowship Southwest as a tax-exempt charitable organization is an answer to prayer,” Knox said. “We have been charting a course toward sustainability and vitality, and this is a major step toward that goal.”

“Receiving this determination letter is critical for any nonprofit, including Fellowship Southwest,” FSW Executive Director Stephen Reeves said. “I’m grateful for the good work of Marv Knox, who has once again helped to position us well for the future.”

The FSW board elected Reeves as Knox’s successor in February, and he took his position March 15. They are sharing leadership until Knox’s retirement late this year.

If you would like to support Fellowship Southwest’s ministry, click here.