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The term is frequently used to describe the different Christian churches ( Orthodox, Catholic and the many varieties of Protestantism); it is also used to describe the three main branches of Judaism ( Orthodox Judaism, Conservative Judaism and Reform Judaism), and (less often, though it would not be inappropriate) to describe the two main branches of Islam ( Sunni and Shia).

Denominations usually have a significant degree of authority over their member congregations, although the term is also used to describe religious groups when the congregations have authority over the 'denomination', such as the numerous Baptist associations or the Unitarian Universalist Association.

Denominations often form slowly over time for many reasons; due to historical accidents of geography, culture, and influence between different groups, members of a given religion slowly begin to diverge in their views. Over time members of a religion may find that they have developed significantly different views on theology, philosophy, religious pluralismReligious pluralism is the belief that one can overcome religious differences between different religions, and denominational conflicts within the same religion. For most religious traditions, religious pluralism is essentially based on a non-literal view, ethicsEthics is a general term for what is often described as the " science of morality". In philosophy, ethical behavior is that which is " good". The Western tradition of ethics is sometimes called moral philosophy . This is one of the three major branches of and religious practices and rituals. As such, in any of a myriad of ways, different denominations eventually form. In other cases, denominations form very rapidly, either as a result from a split or schism in an existing denomination, or as people from many different denominations share an experience of spiritual revival or spiritual awakeningA spiritual awakening is an eventual or even sudden realization that one has a connection with an entity or entities beyond the immediate and physical world which our five senses detect. Typically, such an entity is considered a "God" or other likeness to, and choose to form a new denomination based on that new experience or understanding.

An example within Christianity is the MennoniteThe Mennonites are a group of Christian Anabaptist denominations based on the teachings and tradition of Menno Simons. They are one of the peace churches which hold to a doctrine of non-violence, non-resistance and pacifism. They are the modern denominati and the Church of the BrethrenThe Church of the Brethren was organized by Alexander Mack, a miller, in Schwarzenau, Germany, in 1708. The first church was established in America in 1723. These churches became commonly known as German Baptist Brethren''. It is a Protestant, Anabaptist denominations. Both denominations are similar in their beliefs, yet they are unique because they were started by a different person, ( Menno SimonsMenno Simons ( 1496- 1561) was an Anabaptist religious leader from the province of Fryslan (today Netherlands and Germany). His followers became known as Mennonites. Menno Simonszoon (Simon's son) was born in Witmarsum, Fryslan, to a man named Simon. and Alexander Mack respectively). Their division is administrative, and there is much communication and interaction between the two. Since its founding, the Mennonite denomination has split into a number of smaller Mennonite denominations, because of both geography and social and theological differences.

Another example is the Roman Catholic ChurchThe Roman Catholic Church (often called simply the Catholic Church, but see Catholicism for other meanings of the term "Catholic Church") is a worldwide body of Christians in full communion with the Pope, the Bishop of Rome, and subscribing to the beliefs and various Protestant churches such as the Lutheran ChurchThe Lutheran movement is a group of denominations of Protestant Christianity by the original definition. See Protestantism for further discussion. History of Lutheranism Early history Lutheranism as a movement traces its origin to the work of Martin Luthe. When Martin Luther founded the Lutheran Church, he and his followers were persecuted and sometimes killed as heretics. The early Lutherans in turn persecuted and sometimes killed the Anabaptists as heretics. Even today there are major ideological differences between them, even though there is no physical hostility.