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Churches Need Not Apply for 501c3

kirkguardian

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Most churches in America have organized as "incorporated 501c3 tax-exempt religious organizations." This is a fairly recent trend that has only been going on for about fifty years. Churches were only added to section 501c3 of the tax code in 1954. We can thank Sen. Lyndon B. Johnson for that. Johnson was no ally of the church. As part of his political agenda, Johnson had it in mind to silence the church and eliminate the significant influence the church had always had on shaping "public policy."

Although Johnson proffered this as a "favor" to churches, the favor also came with strings attached (more like shackles). One need not look far to see the devastating effects 501c3 acceptance has had to the church, and the consequent restrictions placed upon any 501c3 church. 501c3 churches are prohibited from addressing, in any tangible way, the vital issues of the day. The 501c3 has had a "chilling effect" upon the free speech rights of the church.

Did the church ever need to seek permission from the government to be exempt from taxes? Were churches prior to 1954 taxable? No, churches have never been taxable. To be taxable one would first need to be under the jurisdiction and therefore under the taxing authority of the government. The First Amendment clearly places the church outside the jurisdiction of the civil government: "Congress shall make NO LAW respecting an establishment of religion, nor prohibiting the free exercise thereof."

Religion cannot be free if you have to pay the government, through taxation, to exercise it. Since churches aren't taxable in the first place, why do so many of them go to the IRS and seek permission to be tax-exempt? It's illogical.

Most churches also incorporate. At law a corporation is "a creature of the State," and "the State is sovereign over all corporations." Not only are there immense legal ramifications, there are also huge theological ramifications to any church incorporating. By definition an incorporated church is a State-Church. Is that what Christ came to earth to establish?

Christians and non-Christians alike talk about a "separation of church and state." Both sides have their opinions, but in many respects, both sides are wrong. Non-Christians are often wrong because they don't understand the original intent of the Founding Fathers. However, Christians often err as well, because they fail to appreciate what the church has become. Most churches today aren't acting like they're separate from the state at all. They act like they're subordinate to the state. They act like they need the permission of the state to function.

Surely this cannot be deliberate, but must be based upon gross ignorance of the law. It also seems to be based upon, "Everyone else is incorporating and getting their 501c3. Guess we'd better do it too." Just because everyone else is doing it, does that make it right?

What is the tax law regarding churches? According to the IRS, "churches are automatically tax-exempt and tax-deductible" without ever having to apply for 501c3 status.

Not only is 501c3 status unnecessary for any church, when a church becomes a 501c3 they place themselves under the regulatory control of the IRS, and all the potential threat and intimidation that comes along with it. Why would any thinking pastor want that, when it's not at all necessary? It just doesn't make sense.

Thankfully, there's a remedy. Churches can stop "rendering unto Caesar" those things which belong exclusively to Jesus Christ. For some insight on the issue you might want to check out: http://hushmoney.org

I've found the information there to be very helpful.
 

Eusebios

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Thanks for the link. I have long felt that tax-amapt status was more "costly" in the long run than simply paying taxes. I tend to agree that it shckles, rather than frees the gospel.
I'll check out the link soon and give some additional feedback.
Thanks again,
His unworthy servant,
Eusebios.
 
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kirkguardian

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Eusebios said:
Thanks for the link. I have long felt that tax-amapt status was more "costly" in the long run than simply paying taxes.
One of the points I was making is that churches do not need to ever apply for 501c3 status in order to be tax-exempt because, in point of fact no church can be taxed by the government. A church is outside the taxing authority (jurisdiction) of the government.

So for a church, it's not a question of:
A). Apply for 501c3 status so you don't have to pay taxes, or
B). Don't be 501c3 and pay taxes.

Both of these are nothing more than assumptions, and both are false.
 
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Eusebios

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Thanks for setting the record straight. I guess what I meant to say was that getting oneself (or more rightly ones church) caught up in the whole 501c3 thing is indeed stifling to the Gospel and as you rightly point out, unnecessary. Hope more folks take a look at this.
His unworthy servant,
Eusebios.
 
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Sec. 501. Exemption from tax on corporations, certain trusts, etc. (c) List of exempt organizations

(3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.

I found the above on a different web site.

I'm afraid I'm having a very hard time seeing how this verbiage in the IRS code "muzzles" my ability to proclaim the word of God, in season or out, fully. But if it did, I'd proclaim the word anyway. The only problem is I cannot find any, not even one area in the word of God that says I should endorse political candidates, promote a political agenda, or attempt to influence the laws of the land (or the leadership of the land) EXCEPT BY PRAYER. So this provision of the IRS code hasn't muzzled me. Now if the govt. should ever feel I am "out of line" they are welcome to arrest me, imprison me, strip the tax status or whatever they choose. It won't stop me from remaining obedient to His word.

But I do think it foolish of Dr Kennedy to put condemnation on those who incorporate under the law, or who do file for 501c3. Those things do not of necessity muzzle or inhibit the church, nor are they contrary in principle or deed to the word of God. The only thing that muzzles or inhibits the church in such a setting is when the pastors heart becomes fixed on mammon, not on the Lord. This can be the case with or without tax exemptions and state articles of incorporation.

For me, I'll keep serving the Lord and remain devoted to His purpose. Those with other interests and more time on their hands can carry on the arduous task of deciding which part of the tax code renders their felow laborers to be ineffective.
 
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Mea Culpa

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Thanks so much for what you wrote.

I have been going through a real battle here with those things. I live in Canada (hence the flag and we have a similar law here.

It is basically the giving power to the government over the church. This is so wrong. Render to Ceasar that which is Ceasars, and to God what is God's.

I know people who have been kicked out of church for that realization.

I believe the time is coming when we will have to make a stand. Prosecution is all around us, but it has yet to hit north america. The time is coming when it will. I believe that these things are the start. It will only get worse.

Thanks again for what you wrote, it is good to know there are others who realize this.
 
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pastorjc

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It is not necessary, except when you start dealing with private corporations who do n't understand the IRS tax law regarding non-profits. We have people at our church who work for major corp in the area and they match the employees gifts to the church. If you dont have your "official status" your church or other organiztion won't get the matching gifts.
 
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kirkguardian

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It saddens me to see how the church of today has so eagerly embraced William James' religion of pragmatism. How easily we compromise because donors "don't understand the IRS tax law regarding non-profits." How will they ever begin to understand if they aren't even told?

pastorjc, let me suggest that the first thing that needs to be done is for you to begin to understand the facts yourself. You can't understand if you won't even study the issue for yourself. A church is not a "non-profit." A church is a church. That's a hard concept to grasp, for some, but it isn't a hard concept for the IRS. They understand, and they acknowledge it in their publications.

Why don't you just furnish those publications to your donors to help them understand?

I can too readily anticipate the response (I've heard it so many times before). "That's too much effort. It would take too much time. We've got more important things to do. Everyone else is a 501c3. Why shouldn't we be a government-registered non-profit organization just like everyone else is?"

Pragmatism. The religion of the apathetic.
 
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BibleJunky

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This is all true.

But there is another TAX exempt status, that many don't know about, 501 D which is a "Common Law Church" and the Fed's hands are tied when it comes to tell them what to speak...

and the Church staff is APPOINTED like in acts 6, not elected. the way it SHOULD BE!

-BibleJunky
 
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