Can Jail Ministries Qualify as Church Plans?

Q. A jail ministry that serves 33 jails in the state of Michigan got their IRS determination letter in 1966 that listed it as ‘Charitable and Religious.’ Their chaplains visit the jails, and they hold services and devotions there. The ministry exists on donations; however, not all are from churches.  Would they be eligible for a NQCCO church plan?  And if so, could the employer make contributions without putting them at risk of running afoul of ERISA?

A. This indicates that the determination letter indicates that the ministry is a nonprofit under Internal Revenue Code Section 501(c)(3) and a religious organization. It very well could be a non-QCCO, but the employer needs to make that determination. The IRS has some very helpful lists to help them identify which they are—see IRS Publication 1828 at https://www.irs.gov/pub/irs-pdf/p1828.pdf

Since the letter was issued a while ago, the ministry could request another one and inquire as to whether it is a nonQCCO, a QCCO, or a church.