Copyright © July 29, 2014
Some define corporation to mean “a human being with no soul;” of course this statement makes an important point even though it is not literally true. A corporation is not a human being, but it is an “artificial person” (a legal fiction) who acts legally, by, for example, entering into contracts, buying and selling property, suing and being sued. And, as an “artificial person” with no soul, the corporation, whether profit or not for profit, will act accordingly. Human beings with souls in a corporation act within an unnatural, soulless, Godless, state-created fiction; because of the contracts created by their act of incorporation, all disputes can be taken to secular courts where only man’s law and rules will be tolerated; do not try to argue God’s law in that environment. The “church” non-profit corporation will be polluted to some degree, greater or lesser, by the immoral, soulless part of the two-headed monster.
Many secularists understand the nature of incorporation. The statements in a recent article on corporations “Corporations had been viewed as artificial persons for millennia” (click the blue title to go to the article) gives some of the characteristics of incorporation. I urge the interested reader to read that article. The article concerns business corporations; but, although some of what the article says cannot be applied to church incorporation, much of what the article says is applicable to non-profit church corporations. I have explained the intricacies of church incorporation in the Section VI of God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (PDF, Online Version, Ordering Information) and in Separation of Church and State (PDF, Online Version, Ordering Information). Those resources thoroughly analyze church incorporation for the believer who has an open mind, some degree of intellect, and some Bible knowledge and wisdom about the principles of church, state, and separation of church and state—those requirements eliminate most believers and pastors, especially fundamental Baptist pastors.
Some of the assertions in the article are applicable to non-profit corporations but some are not. The following are applicable to church incorporation (Quotes from the article are in parentheses. The bold material in brackets  below are my notes, comments, and additions.):
- “Corporations had been viewed as artificial persons for millennia, the debate over whether they should be afforded the same rights as humans had been raging long before the United States created, or the 14th Amendment was adopted. The degree of permissible government interference in corporate affairs was controversial from the earliest days of the nation.”
- “Corporations as legal entities have always been able to perform commercial activities, similar to a person acting as a sole proprietor, such as entering into a contract or owning property. Therefore corporations have always had a ‘legal personality’ for the purposes of conducting business while shielding individual shareholders from personal liability (i.e., protecting personal assets which were not invested in the corporation).”
[I cover “limited liability” for church corporation members in the article “Spurious rationale for church incorporation: limited liability/Incorporation increases liability of church members.”].
- “Corporate personhood is the legal concept that a corporation may be recognized as an individual in the eyes of the law. This doctrine forms the basis for legal recognition that corporations, as groups of people, may hold and exercise certain rights under the common law and the U.S. Constitution. The doctrine does not grant to corporations all of the rights of citizens.”
- “As a matter of interpretation of the word ‘person’ in the Fourteenth Amendment, U.S. courts have extended certain constitutional protections to corporations. Opponents of corporate personhood seek to amend the U.S. Constitution to limit these rights to those provided by state law and state constitutions.”
[I explain how a church, by incorporating, gives up her First Amendment status and places herself to a large degree under the Fourteenth Amendment in the God Betrayed and Separation of Church and State. Non-incorporated churches (and churches which do not become legal entities in some other manner other than incorporation) are protected by the religion clause of the First Amendment, whereas, of course, the First Amendment religion clause gives no protection to a business. The religion clause is a statement of biblical principles (separation of church and state (the establishment clause) and soul liberty or freedom of conscious (the free exercise clause).]
- “The basis for allowing corporations to assert protection under the U.S. Constitution is that they are organizations of people, and the people should not be deprived of their constitutional rights when they act collectively. In this view, treating corporations as “persons” is a convenient legal fiction which allows corporations to sue and to be sued, provides a single entity for easier taxation…, simplifies complex transactions which would otherwise involve, in the case of large corporations, thousands of people, and protects the individual rights of the shareholders as well as the right of association.”
[Churches which do not become legal entities, unlike businesses, are protected by the First Amendment religion clause. I explain why First Amendment protection for churches is biblical and much preferable to Fourteenth Amendment protection in God Betrayed/Separation of Church and State: The Biblical Principles and the American Application and in the much more concise book Separation of Church and State/God’s Chruches: Spiritual or Legal Entities. In fact, seeking Fourteenth Amendment protection places a church under Satanic rules and regulations; the creator of the corporation is the state and state incorporation law gives the manner of organization, the officers, etc. that the law of incorporation requires. Therefore, incorporation completely changes the nature of a church. In addition to the books linked to above, some more concise articles on this matter are “Christians Who Call Evil Good and Good Evil,” “Is Separation of Church and State Found in the Constitution” and “Laws Protecting New Testament Church in the United States: Read Them for Yourselves.”]
- “Generally, corporations are not able to claim constitutional protections which would not otherwise be available to persons acting as a group. For example, the Supreme Court has not recognized a Fifth Amendment right against self-incrimination for a corporation, since the right can be exercised only on an individual basis.”
[A New Testament (First Amendment) church can claim First Amendment religion clause protection whereas a corporation cannot. Since a New Testament church, unlike a corporation, is a not a legal entity, she cannot sue, be sued, or act legally. Churches which become incorporated begin to act like corporate businesses in may ways.]
- “Corporations are NOT people.While it is true that what guides them is the human activity of their executives, boards of directors, managers and employees, all the human emotional factors of the people in the corporation pass through a “filter” created by the two basic rules: (a) Maximize profit (b) Do whatever is necessary to continue the business.”(Rule a should be modified when it conflicts with rule b).”
[In a church corporation, the officers of the corporation operate an entity whose organization, goals, structure, morality, piety, and officers are mandated by state law in direct contradiction to the organization, goals, structure, morality, piety, and officers given by God’s Holy Bible in the New Testament.]
- “It is a slippery road to give personal rights to corporations. The corporation is an amoral entity, i.e., not governed by human moral values. It lacks guilt for what it does, or empathy for those it harms. What’s worse, this “sociopathic” entity is given the rights of a human being, but not similar responsibilities. A corporation is particularly dangerous because of its great concentration of money, power, and political influence–which it uses freely to reach its goals.”
[These realities are clearly seen in the Catholic “church” (not incorporated), and also in incorporated Fundamental Baptist Churches. A prime example of the latter is First Baptist Church of Hammond, Indiana. See the article “Jack Schaap, First Baptist of Hammond, Heresy and Apostasy.” One can also do a google search to see the reactions of the church lawyer (David Gibbs) and the church members of First Baptist of Hammond for more confirmation. This scenario has played out on a smaller scale in many other Fundamental Baptist Churches, including the offspring, followers, and worshipers of First Baptist of Hammond and her pastors.]
Other parts of the article (the parts dealing with rights of corporations to make political expenditures under the First Amendment free speech clause, the role corporate money plays and should play in democratic politics, the dangers of giving too much power to corporations to allow corporations to participate directly on political campaigns as a threat to democracy) apply to some degree to church corporations. All one has to do is look at the operations of, for example, the average “fundamental church and her pastor, the average seminary or Bible college and what they teach, and the words and activities of the lawyers involved with those institutions to see the application of those matters. That is all the author will say about that in this brief article.
Fundamental Baptist tradition perceives the truth to be that churches are to incorporate and get 28 U.S.C. Section 501(c)(3) status. At the same time, that tradition preaches that the Bible is to be the sole source of truth. The reality is that the biblical doctrines of church, state, and separation of church and state disprove the first mentioned Baptist tradition. But after all, it is the perception of the truth, not the truth, that matters.