Tag Archives: 508(c)(1)(A)

A Biblical and Legal Analysis of “How to Start a Church” by Helping Hands Outreach

Other relevant essays and articles:

  1. Church Internal Revenue Code Sections 508(c)(1)(A) Tax Exempt Status (042814)
  2. Federal government control of churches through IRS Code Sections 501(c)(3) and 508(c)(1)(A) tax exemption (121012)
  3. The church incorporation-501(c)(3) control scheme (121021)
  4.  The Rules and Regulations that Come with Church IRS Code Sections 501(c)(3) and 508(c)(1)(A) Tax-Exempt Status (031722)
  5. Are Churches Automatically Tax Exempt? (040822)
  6. A Biblical and Legal Analysis of the Helping Hand Outreach Publication, “WHY ALL CHURCHES SHOULD BE A 508(c)(1)(a).”
  7. Legal answer to Pastor’s inquiry concerning whether a potential donor of substantial gift an claim a tax deduction under IRC Section 508 even though the church will not give an IRS acknowledgement (123118)

1 John 2:5: “But whoso keepeth his word, in him verily is the love of God perfected: hereby know we that we are in him.”

John 14:23: “Jesus answered and said unto him, If a man love me, he will keep my words: and my Father will love him, and we will come unto him, and make our abode with him.”

Please feel free to call me at any time to discuss church organization. If you get a voicemail, please leave a message and I will return your call at any time, as does Helping Hand Outreach. This is a  ministry and does not charge for ministry services or time. God bless.

Jerald Finney
Copyright © April 24, 2022

This article, and the resources linked to herein, explains why  Helping Hand Outreach is devoid of both Biblical and legal understanding. The Bible–not mysticism, man’s reasoning, man’s philosophies, or man’s law–is to be the sole foundation for all matters of faith and practice. The word of God gives the principles which every Christian and church should seek to honor when considering church order. According to Bible church doctrine, “NO CHURCH SHOULD BE 508(c)(1)(A)” or a legal entity of any kind.

Helping Hand Outreach and its website were pointed out to me by a pastor who took the time to seek out the matter of proper church organization. He examined what they had to say. He stated the charges for their services are considerable and continuing. Then he found the Churches under Christ Ministry website, studied materials on the website, and contacted the ministry. He is now organizing the church he is head elder of according to New Testament principles. This article reveals that Helping Hand Outreach – like StartCHURCH, other similar organizations and many “Christian” lawyers and law firms – are worldly organizations that help churches grieve our Lord and dishonor their His Word, the Bible, by violating New Testament church doctrine. They do so  by entangling churches with the state and federal governments. These organizations prey upon the ignorance of pastors, church leaders, and churches. They lead the unlearned into darkness.

Of course, Helping Hand Outreach adds a new twist. The website states:  “We are the leader in starting Faith Based Organizations as 508(c)(1)a)’s. We have been performing for 12 years and our FBO’s are operating in 48 out of 50 states.” They state that all churches should be “508(c)(1)(A).” The truth is that no church should be 508(c)(1)(A), 501(c)(3), or a legal entity of any kind.

When I went to the  website and clicked the “get started” button and filled in the requested information, they sent me an email which read, in part:

  • Thank you for expressing interest in starting a 508(c)(1)(a) Ministry. How your ministry if formed is crucial to what it can and cannot do. Nonprofit organizations are not all the same; some have rights and benefits that others do not.
  • Please complete one of the following options. 1) Fill out the order and pay online through our secure shopping cart at https://www.helpinghandoutreach.com/product/508/ or, 2) Fill out the attached PDF “508 Application” and return with payment of a check or payment made by credit card over the phone.
  • The filing includes the 1) articles of incorporation, 2) certificate of incorporation, 3) certificate of good standing, 4) SS4 with TEIN from the IRS, 5) the charities registration exemption letter, 6) draft bylaws, and 7) sample first minutes of the board meeting. This is a Washington State filing. The 508 is good in all 50 states and recognized in all foreign countries that have signed the Hague Convention. It is common for ministries to be formed in one state but operate in other states. We serve as the registered agent for your organization.
  • The total fees includes recording, all recording fees and the first year of registered agent services is $2500. We do accept pay plans and do not charge any interest on balances. The ministry filing is completed within 20 days.
  • In addition we can acquire an apostille if your ministry will be doing international work. An “apostille” is a form of authentication issued to documents for use in countries that participate in the Hague Convention of 1961. A list of countries that accept apostilles is provided by the U.S. State Department. The fee for an apostille is an additional $30.
  • After formation, once a year the 508(c)(1)(a) Ministry needs to be renewed. The renewal fee, including the state fee, is $110. Please let us know if you have additional questions.
  • Jerald, we look forward to helping you be a light to the world!

See the Endnote for the entire email.

Let me explain, uniquivocally, why “NO CHURCH SHOULD BE 508(c)(1)(A)” and no church should be a legal entity of any kind.

A church dishonors God when she recognizes any authority other than the Lord Jesus Christ. Our Lord loved the church and gave Himself for it (Ep, 5:25). He purchased the church with His own blood (Acts 20:28). Our Lord wishes churches to choose to keep Christ the head (authority) over all things to the church (See, e.g., Ephesians 1:22, Colossians 1:18).

A church under Christ alone is a spiritual non-taxable entity only protected by the First Amendment to the United States Constitution and outside the jurisdiction of man’s law. The pastor of such a church, as well as the church, has all the protections of the First Amendment. He can preach as the Lord, not the federal government, leads.

A church who becomes a legal entity of any kind has chosen another authority, civil government, for many purposes. A legal entity is a temporal earthly entity which can contract, sue, be sued, be charged with a crime, or act legally in any other ways. A church can only become a legal entity through man’s law: through non-profit corporation law, unincorporated association law, charitable trust law, business trust law, Internal Revenue Code § 501(c)(3) or 508(c)(1)(A) tax exemption law, etc. For thorough Biblical and legal explanation see God Betrayed/Separation of Church and State: The Biblical Principles and the American Application. See also, Short Answers to Some Important Questions for shorter quicker answers to some important matters. A church who chooses to become a legal entity has voluntarily placed herself, as a legal person, under the Fourteenth Amendment to the United States Constitution for many purposes.

Of course, the Helping Hand Outreach publication has a small amount of truth mixed with a lot of lies. For example, as Helping Hand Outreach states,  there is considerable confusion about what pastors can and cannot say from the pulpit. Their article does not address the cause of the confusion. The cause of the confusion is a lack of knowledge, understanding, and wisdom of God’s word and the application thereof. Pastors and members of churches who choose to remain under Christ and Christ alone have not been confused. They have always, even under penalty of death, preached what the Lord leads them to preach. They have always exercised their God-given freedoms and principles regardless of the laws of civil government. They have always honored civil government as long as civil government law did not require them to disobey God.

America, by making the First Amendment part of the highest law of the land, became the second civil government, with any lasting influence, to protect religious freedom and soul liberty. Originally, the First Amendment applied only to federal jurisdiction. However, in 1833, Massachusetts became the last state to abolish the requirement for church establishment (church incorporation) on the state level. Church legal entity status is a choice, but not a requirement, on the state level. However, most American churches have betrayed God and chosen to become corporations or other types of legal entities on the state level and/or either to apply for 501(c)(3) tax exempt status or claim 508(c)(1)(A) tax exempt status on the federal level. The Lord Jesus Christ as sole authority over the church is not sufficient for them. See, The History and Meaning of the First Amendment.

Click here to see what President James Madison, the man who had led the fight for the adoption of the First Amendment in 1791, wrote on February 21, 1811 in vetoing with a bill which would have incorporated a church in Washington D.C.

Because of the First Amendment and corresponding state constitutional provisions, churches can choose, without persecution, to do things God’s way which is explained in the New Testament. The First Amendment provides for religious freedom and soul liberty. The First Amendment protects those churches who choose to remain under Christ alone.

Sections 501(c)(3) and 508(c)(1)(A) tax exempt status, not Form 1023 as stated in the Helping Hand Outreach publication, violate the First Amendment. Form 1023 is merely an application form, not a law. The tax exempt law, 501(c)(3) and 508(c)(1)(A), violates the First Amendment as to churches. Both 501(c)(3) and 508(c)(1)(A) are laws passed by Congress and signed into law by the President. The First Amendment says:

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

Thus, by voluntarily submitting to a law such as 501(c)(3) or 508(c)(1)(A), a church has taken herself from under the founding law of the land, the highest law regarding religion, speech, association, and press while submitting to a legislative law which on its face is unconstitutional for churches. Churches choose to do this because of ignorance of God’s will and for perceived “benefits.”

For a complete analysis of church 508(c)(1)(A) status, see Church Internal Revenue Code § 508(c)(1)(A) Tax Exempt Status. That essay explains in some detail matters such as the difference between church 501(c(3) and 508(c(1)(A) tax exempt status, and church First Amendment non-taxable status.

Even a business which does not make a profit will pay no taxes. Is a church to be an earthly temporal organization whose gifts to the corporation operates under man-made law, rules, and regulations? Or is a church to be a spiritual eternal body ordered according to the principles of God and which uses money given to God according to the will of God? The real reason for federal tax-exempt status, whether through 501(c)(3) or 508(c)(1)(A), is to assure donors that the IRS will approve tax deductions for gifts. In the event of audit, the donor must show an IRS Acknowledgment from the 501(c)(3) or 508(c)(1)(A) church. The IRS may require the giver to the 508(c)(1)(A) church to prove that it was a church he gave to. Of course, 501(c)(3) churches are on the IRS list of approved tax exempt organizations.

By giving IRS Acknowledgments, the 508(c)(1)(A) church claims tax exempt status without having filed Form 1023. She has put herself in the same position, by claiming the same status, as the 501(c)(3) church. She has taken herself from under the First Amendment and put herself under a law, a law which the First Amendment forbids, as to churches.

Of course, churches do not have to worry too much anyway. The IRS, to this point in time, does not have the resources and personnel to keep an eye on churches. Besides, cannot churches and pastors can be trusted to proceed with honesty, integrity, knowledge, understanding and wisdom? Or can they? Those who feel that the 508(c)(1)(A) tax exempt church is not under the same rules and regulations as other tax exempt churches certainly cannot.

For analysis of 501(c)(3) see: Federal government control of churches through 501(c)(3) and 508(c)(1)(A) tax exemption and The church incorporation-501(c)(3) control scheme .

The Helping Hand Outreach teaching, WHY ALL CHURCHES SHOULD BE 501(c)(1)(A), mentions only one rule that comes with 501(c)(3), the Johnson Amendment. The truth is that Sections 501(c)(3) and 508(c)(1)(A) tax exempt status for churches come with five rules and a host of regulations. Note Rule 5, “Shall not violate fundamental public policy,” has not “yet” been applied to churches. See, The Rules and Regulations that Come with Church IRS Code Sections 501(c)(3) and 508(c)(1)(A) Tax-Exempt Status.

No Christian or church should go to Helping Hand Outreach for help with the matter of church organization.

For an examination of many false reasons churches give for legal entity status, see Analysis of False Reasons of Christians and Lawyers for Church Corporate, 501(c)(3), 508(c)(1)(A) tax exempt status or Legal Status of Any Kind.


Endnote

508(c)(1)(a) Application
Yahoo/Inbox
  • Dan Peterson <info@helpinghandoutreach.org>Unsubscribe
    To:Jerald
    Tue, Apr 26 at 7:03 PM
    508(c)(1)(a) Application
    Hello Jerald,
    Thank you for expressing interest in starting a 508(c)(1)(a) Ministry. How your ministry if formed is crucial to what it can and cannot do. Nonprofit organizations are not all the same; some have rights and benefits that others do not.
    Please complete one of the following options. 1) Fill out the order and pay online through our secure shopping cart at https://www.helpinghandoutreach.com/product/508/ or, 2) Fill out the attached PDF “508 Application” and return with payment of a check or payment made by credit card over the phone.
    The filing includes the 1) articles of incorporation, 2) certificate of incorporation, 3) certificate of good standing, 4) SS4 with TEIN from the IRS, 5) the charities registration exemption letter, 6) draft bylaws, and 7) sample first minutes of the board meeting. This is a Washington State filing. The 508 is good in all 50 states and recognized in all foreign countries that have signed the Hague Convention. It is common for ministries to be formed in one state but operate in other states. We serve as the registered agent for your organization.
    The total fees includes recording, all recording fees and the first year of registered agent services is $2500. We do accept pay plans and do not charge any interest on balances. The ministry filing is completed within 20 days.
    In addition we can acquire an apostille if your ministry will be doing international work. An “apostille” is a form of authentication issued to documents for use in countries that participate in the Hague Convention of 1961. A list of countries that accept apostilles is provided by the U.S. State Department. The fee for an apostille is an additional $30.
    After formation, once a year the 508(c)(1)(a) Ministry needs to be renewed. The renewal fee, including the state fee, is $110. Please let us know if you have additional questions.
    Jerald, we look forward to helping you be a light to the world!
    May the Lord Bless you and keep you,
    Dan Peterson
    253-459-9553
    Why All Churches Should Be A 508(c)(1)(a)
    Many professionals have been asking for more detailed information on Section 508(c)(1)(a). We have prepared a legal analysis about the legislative history, intent, and court rulings concerning Faith Based Organizations organizing and operating under Section 508(c)(1)(a) and Section 501(c)(3). If you value freedom of speech and freedom to express religion, please click on the link below to our website for this important information.
    Like Twitter
    3501 S 38th St #109, Tacoma, WA 98409, United States
    You may unsubscribe or change your contact details at any time.

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Did President Trump do away with 501(c)(3) requirements?


A Publication of Churches Under Christ Ministry


Click here to go to All Written Course Segments
Click here to go to General Questions Answered
Click here To Go to Links to All 5 Minute Youtube Course Segments


Jerald Finney
Copyright © December 2, 2017


Speech by President Trump: We are giving our churches their voices back


President Trump, desiring to help churches and “Christians,” and according to the advice of those “Christians”  who surround him, pledged to eliminate the Johnson Amendment which limits all nonprofits from endorsing and opposing political candidates. See Endnote 1 for links to articles on this matter. I believe he is sincerely trying to help churches. Accordingly, he signed an executive order easing restrictions on political activity by non-profits. Of course, he cannot unilaterally change the law; but he did all he could do to help – ease but not eliminate one of the five restrictions which come with 501(c)(3) status. Just as non-profit corporation status puts the state of incorporation over a church for many matters, 501(c)(3), a man made law, still puts the federal government and the IRS agency over churches with respect to certain rules and a multitude of regulations that come with the chosen 501(c)(3) status. See Endnote 2 for list of some of the regulations that come with 501(c)(3) and links to resources which explain 501(c)(3) and 508(c)(1)(A) tax exempt status in some detail.

Does this action by the President correct the problem with 501(c)(3)? No. I explain why in this article.

Click the above to go to the article, “Is Separation of Church and State Found in the Constitution?

One should be aware that the highest man made law in America, the First Amendment to the United States Constitution, and corresponding state constitutional provisions make clear that churches have a choice – remain under Christ only or submit to the state and federal governments through corporate 501(c)(3) status.

Keep in mind, for example:

  • Matthew 16:18 “And I say also unto thee, That thou art Peter, and upon this rock I will build my church; and the gates of hell shall not prevail against it.” Is a church built partially or wholly by man (man’s law) a church of Christ? Is such a church His church?
  • Ephesians 1:22 “And hath put all things under his feet, and gave him to be the head over all things to the church.” Is Christ the head over all things to an incorporated 501(c)(3) or 508 church? The simple to comprehend answer is an emphatic, “No!”
  • Colossians 1:18 “And he is the head of the body, the church: who is the beginning, the firstborn from the dead; that in all things he might have the preeminence.”

Let us first briefly examine or look at what church 501(c)(3) status really is. This will highlight the real issue. We will have to touch on incorporation since the two are intertwined.

Most churches choose to apply for both corporate and 501(c)(3) or 508(c)(1)(A) tax exempt status even though a choice not to do so is protected by the First Amendment and corresponding state constitutional provisions. 508(c)(1)(A) status puts a church in the same position as 501(c)(3) status. See, Church Internal Revenue Code § 508 Tax Exempt Status. Churches who incorporate and/or get 501(c)(3) or 508(c)(1)(A) status are established churches. They combine with civil government under man-made law. They get some perceived “benefits” and powers from civil government. In return, they agree to abide by the non-profit corporation laws of the state of incorporation and the commandments which come with the federal 501(c)(3) law they sought and agreed to. They also agree that, in the event they have issue with a commandment imposed by the law, the authority who will decide the issue is the government through its court systems. Their authority for many matters is the civil government, not the Lord Jesus Christ. One might call those churches who constantly defy and complain about the rules or commandments they agreed to “hypocrites.”

Churches who seek and obtain 501(c)(3) agree to abide by the rules and regulations that come with 501(c)(3), and also to any future rules added by the federal government though legislation, or by the Internal Revenue Service and upheld by the courts. Maybe some do not realize what they are doing when they get such status; some may proceed without knowledge, understanding, and wisdom. Nonetheless, when they get the status, they agree to the rules and commandments which come with the status and they agree that, in the event their authority who will decide the issue is the first the agency process with appeal to federal court available to the losing side, not the Word of God. Corporate 501(c)(3) churches proudly proclaim victory when their authority rules in favor of their position and moan and groan when their authority decides against them. They cannot understand that they lost no matter what their authority decides because they have put themselves under the wrong authority, according to the Word of God; and even their so-called victories are riddled with compromise.

Originally, a church who chose 501(c)(3) status agreed to 4 commandments or rules, added by legislative law. The IRS added a fifth. Prior to Bob Jones University v. United States, 461 U.S. 574 (1983), there were four rules. Bob Jones University upheld the IRS “shall not violate fundamental public policy” rule. Now there are five commandments. The fifth one has not yet been applied, as far as I know, to a church. However, many pastors do not preach of certain matters because they fear that they will be in violation of that rule—they do not wish to offend their master, their authority, by preaching certain matters covered by the Word of God. Many pastors openly preach on prohibited matters knowing that the state may exercise their authority and command them to comply or lose their status and suffer other penalty imposed by their master. The only authority to which a church can appeal, should the IRS agency rule against them, is the civil court system. By the way, the court will not allow such a church to make Bible based arguments.

As one can see, corporate 501(c)(3) status comes with the loss of many of the church’s First Amendment rights. A corporate 501(c)(3) church is a “legal entity,” an artificial person who has placed herself under the Fourteenth Amendment for many purposes thereby giving up much of her First Amendment protection. A First Amendment church cannot be sued for violation of the rules that come with 501(c)(3) or 508(c)(1)(A) because such a church has not submitted herself to the Internal Revenue Code Section 501(c)(3) or Section 508(c)(1)(A). She cannot be forced to get such status because the First Amendment religion clause says, “Congress shall make no law respecting the establishment of religion or prohibiting the free exercise thereof.”

A 501(c)(3) church also agrees to many regulations. See Endnote 2 for list of some of the regulations that come with 501(c)(3) and links to resources which explain 501(c)(3) and 508(c)(1)(A) tax exempt status in some detail.

One who does just a little study can easily understand that the governments of the state of incorporation and the federal government are the authorities, for many purposes, of a corporate 501(c)(3) church. The Lord Jesus Christ is, at most, only one of their authorities or heads. For many churches, Christ is completely eliminated from the equation and their sole authority is civil government. Churches grieve our Lord by submitting to another head. Christ is not over “over all things to” those churches.  According to the Bible, this raises a very important question, “Are corporate 501(c)(3) churches churches of Christ, built by Christ and Him alone?” They are churches, but are they Christ’s churches? The answer is obvious.

So the main issue is one of authority. Looking beyond that, only the legislature, not the President, can eliminate the Johnson Amendment or any other rule that comes with 501(c)(3) status. It is a law, passed by Congress and signed by the President. The President, of course, is the law enforcer. Like any law enforcer, he can choose to ease or relax his efforts to enforce what he deems to be an unjust law, you might say. He cannot do away with the fact that the authority of the 501(c)(3) church, as to the rules that come with it, is the federal government through its agent, the IRS. The courts, not the President, decide unresolved clashes between 501(c)(3) churches and the IRS. Only the legislature, not the President, can repeal a law subject to his signature of approval. The legislature has taken no action to overrule the Johnson Amendment in the many months since President Trump filed his executive order nor has President Trump encouraged the legislature to do away with either 501(c)(3) status or any of the other rules that come with 501(c)(3).

Even should the Johnson Amendment be eliminated by legislative law signed by the President, there would still be four other rules that churches agreed to comply with when they chose to apply for 501(c)(3) tax exemption. It is no secret that churches and so called “Christian” lawyers have also been worried about rule number five, the fundamental public policy rule, for at least 15 or 20 years. Their advice: “pray about it.” I would like to hear one of their prayers. I do not think they will pray, “Lord, forgive us for dishonoring you and causing you much grief by prostituting your churches. We repent. Help us to honorably withdraw from our unholy alliances.”

I have touched on the main issue. Let me restate some of the above points and list some other matters. President Trump’s speeches and his executive order reflect Christian revisionist history. They:

  1. ignore the fact that churches are required to give up some of their First Amendment protections when they choose to become 501(c)(3) organizations who submit to the federal government as to certain matters;
  2. ignore the fact that churches voluntarily put themselves under 501(c)(3) with all the rules and regulations that accompany their choice ;
  3. ignore the fact that churches voluntarily give up much of their First Amendment protection when they place themselves under a law which commands them not to do certain things;
  4. ignore the fact that churches who incorporate and get 501(c)(3) status put themselves, for many purposes, under the Fourteenth Amendment;
  5. do not take into account that 501(c)(3) was a law implemented in 1954, 164 plus years after the adoption of the First Amendment;
  6. ignore the question of whether 501(c)(3) is even constitutional since the First Amendment religion clause says, “Congress shall make no law respecting an establishment of religion or preventing the free exercise thereof;”
  7. reflect a lack of understanding of the true history of the First Amendment;
  8. reflect the “Christian” revised history of the First Amendment;
  9. misrepresent what church/state establishment meant when the Constitution and First Amendment were adopted;
  10. misrepresent what Thomas Jefferson, for example, stood for (He stood for a secular state with complete separation of church and state); (See, Endnote 3 for links to an unrevised history of the First Amendment)
  11. disregard and go contrary to Bible principles concerning church, state, and the relationship God desires between church and state;
  12. ignorantly work for the end-time one world union of church and state under the beast;
  13. etc.

I wish to make one other point: I believe that freeing 501(c)(3) non-profit organizations to become active in politics will unleash liberal 501(c(3) organizations–atheist, secular, and religious–who will fight for liberal candidates, and that those organizations substantially outnumber and have much more money and power than the conservative churches who constantly attack the rule. Those liberal organizations include Planned Parenthood, Inc. (an organization that gets a lot of government money), the Church of Wicca,  Inc. and many many other incorporated 501(c)(3) organizations and churches who will support liberal candidates.

In conclusion, I believe that President Trump is sincerely trying to help the cause of religious liberty. But he is being misled by certain “Christian” persons and organizations who will use any means necessary to achieve their goals. Their false Biblical interpretations and goals hasten fulfillment of end time prophecies—religion and government will unify and bring in a 3 ½ year of peace followed by 3 ½ year period of great tribulation, and finally the appearance of our Lord who will crush the world powers who are coming against Israel and then establish His 1000 year reign on the earth.


Endnotes

Endnote 1: Links to some articles: Trump Vow: ‘Totally Destroy’ 501(c)(3) Political Activity Ban, February 3, 2017.  President Trump vowed to He signed an executive order easing restrictions on religious participation in politics. See Trump signs executive order to ease restrictions on religious participation in politics, May 4, 2017. TRUMP RELAXES 501(C)(3) POLITICAL ACTIVITY RULES, May 5, 2017.

Endnote 2: 501(c)(3) and 508(c)(1)(A) tax exempt status not only come with five government imposed rules, such status also invokes a myriad of regulations. See, e.g., Publication 557 (01/2019), Tax-Exempt Status for Your OrganizationApplication for Recognition of ExemptionExempt Organizations Treasury RegulationsCharities and Nonprofits A-Z Site Index (F-J)Exempt Organization Revenue RulingsPub. 1828, Tax Guide for Churches and Religious Organizations (PDF)Common Tax Law Restrictions on Activities of Exempt OrganizationsExempt Organizations – Ruling and Determinations LettersrExempt Organizations – Private Letter Rulings and Determination LettersExempt Organizations AnnouncementsAnnual Filing Requirements for Supporting OrganizationsExempt Organizations NoticesPublic Disclosure and Availability of Exempt Organizations Returns: Copies of Exempt Organizations Tax DocumentsExempt Organization Revenue ProceduresExempt Organizations UpdateExempt Organizations – Employment TaxesThe Truth About Frivolous Tax Arguments – Section IITermination of Exempt Organization (“… Internal Revenue Code Section 6043(b) and Treasury Regulations Section 1.6043-3 establish rules for when a tax-exempt organization must notify the IRS that it has undergone a liquidation, dissolution, termination, or substantial contraction. Generally, most organizations must notify the IRS when they terminate. Among other things, notice to the IRS of a termination will close the organization’s account in IRS records. …).

See also, for analysis of 501(c)(3) and 508(c)(1)(A): (1) Questionnaire 2, I. Elementary Questions for Those Who Wish to Organize a Church under Christ Alone as opposed to either a Church under Man or a Church under Christ and Man, (2) Federal government control of churches through 501(c)(3) tax exemption; (3)  The church incorporation-501(c)(3) control scheme.

Endnote 3: The History of the First Amendment; An Abridged History of the First Amendment; List of Scholarly Resources Which Explain and Comprehensively Document the True History of Religious Freedom in America.

Church Internal Revenue Code § 508(c)(1)(A) Tax Exempt Status

See also,

  1. Federal government control of churches through IRS Code Sections 501(c)(3) and 508(c)(1)(A) tax exemption (121012)
  2. The church incorporation-501(c)(3) control scheme (121021)
  3.  The Rules and Regulations that Come with Church IRS Code Sections 501(c)(3) and 508(c)(1)(A) Tax-Exempt Status (031722)
  4. Are Churches Automatically Tax Exempt? (040822)
  5. A Biblical and Legal Analysis of the Helping Hand Outreach Publication, “WHY ALL CHURCHES SHOULD BE A 508(c)(1)(a).”
  6. Legal answer to Pastor’s inquiry concerning whether a potential donor of substantial gift an claim a tax deduction under IRC Section 508 even though the church will not give an IRS acknowledgement (123118)

Jerald Finney
Copyright © April 28, 2014

Click the above to go to online version of God Betrayed.
Click the above to go to online version of God Betrayed.

In the book God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (“God Betrayed”) as well as in other books and writings, I originally taught that a New Testament church could depend upon Internal Revenue Code (“IRC”) § 508(c)(1)(A) for her non-taxable status (See Endnote 1 for links to the two free versions of God Betrayed or for ordering information should you desire a softback copy as well as information on other books and resources by Jerald Finney.). I was wrong. After years of study, I have learned that a New Testament church cannot depend upon 508(c)(1)(A) for her non-taxable status because, in so doing, the church gives up her New Testament and First Amendment status; the church becomes tax exempt as opposed to non-taxable. However, I am more certain than ever of the correctness of my original biblically based conclusions that a church grieves the Lord when they intentionally, knowingly, recklessly, or negligently attain church corporate and/or 501(c)(3)/508(c)(1)(A) status or legal entity status (See Endnote 1) of any kind. I ask those who have followed my teachings to forgive me for misleading them concerning church 508 status. This brief article explains church 508 status and its effect.

A New Testament Church is also a First Amendment Church. This is because the First Amendment is a law which corresponds with biblical principles to include freedom of religion and conscience (separation of church and state), freedom of speech, freedom of press, and freedom of association. The First Amendment is a part of the second highest law of the land, the United States Constitution. The highest law of every nation is God’s law, whether a nation recognizes it or not. The Lord, for the time being, allows individuals, families, churches, and nations free will to honor His precepts or not. The choices determine the ultimate consequences. Click here to listen to Jerald Finney’s lecture “Hierarchy of Law” (CD of speech at a church in Tennessee given on the Sunday the church formally adopted the Declaration of Trust). The following article “First Amendment Protection of New Testament Churches/Federal Laws Protecting State Churches (Religious Organizationsalso explains hierarchy of law.

The First Amendment says:

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

Notice especially that the First Amendment says, “… no law ….”

Are not those words very clear? No law means “no law.” What is IRC § 508(c)(1)(A)(“508“)? It, like IRC  501(c)(3), is a law made by Congress and signed by the President. According to the clear meaning of the First Amendment, IRC § 508(c)(1)(A) and IRC  501(c)(3) are, when applied to churches, laws “respecting an establishment of religion and preventing the free exercise thereof.”

Why would a church take themselves from First Amendment status and protection to either IRC § 508(c)(1)(A) or IRC § 501(c)(3)? One reason is lack of knowledge, wisdom, and understanding. When a church claims either 508(c)(1)(A) or 501(c)(3) status, she has rejected her First Amendment non-taxable status and freely accepted the offer of the federal government to enter into an agreement (contract) for tax exempt status as provided by a law. See God Betrayed for teaching which explains this.

Let me repeat: First Amendment churches under God are non-taxable. 501(c)(3) and 508(c)(1)(A) religious organizations are tax exempt. IRC § 508 (the codification of Public Law 91-172 ratified in 1969) provides in relevant part:

A portion of Internal Revenue Code § 508. Click to the above to go to § 508.
A portion of Internal Revenue Code § 508. Click the above to go to § 508.

§ 508. Special rules with respect to section 501(c)(3) organizations. “(a) New organizations must notify secretary that they are applying for recognition of section 501(c)(3) status. “(c) Exceptions. “(1) Mandatory exceptions. Subsections (a) and (b) shall not apply to— “(A) churches, their integrated auxiliaries, and conventions or associations of churches” (26 U.S.C. § 508). [Emphasis mine.]

§ 508(c)(1)(A) says churches are excepted from applying for IRC § 501(c)(3) tax exempt status (See Endnote 2 for links to articles which fully explain church IRC § 501(c)(3)) status). 508 churches are an exception to the civil government requirement that certain organizations file for 501(c)(3) tax exempt status.

A church should rely on the First Amendment to the United States Constitution, not on 508(c)(1)(A) status for three reasons. First, the First Amendment is a statement of the biblical principle of separation of church and state (See, for a short explanation with links to more in depth studies, Is Separation of Church and State Found in the Constitution?). When a church relies on the First Amendment, they are relying on a biblical principle. Should the biblical principle be abused or ignored by the civil government, so be it—a church should then rely and act only on the biblical principle. Endnote 3.

A law of man which enacts some biblical principles.
A law of man which enacts some biblical principles.

Second, to rely on 508(c)(1)(A) contradicts the First Amendment. To repeat, the First Amendment religion clause states:

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

IRS Publication 1828. Click the above to go directly to IRS Pub. 1828.
IRS Publication 1828. Click the above to go directly to IRS Pub. 1828.

Obviously, 508(C)(1)(A) is a law made by Congress which regards an establishment of religion; 508(C)(1)(A) also prevents the free exercise of religion because a church which claims 508(C)(1)(A) status thereby submits themselves to some control by the federal government in that the church becomes subject to the rules that come with IRC 501(c)(3) status. 508(C)(1)(A) does not state that the First Amendment forbids Congress from making any law in violation of the First Amendment; and that, therefore, a church is non-taxable. 508(C)(1)(A) is a law made by Congress which states that Congress, by law, is declaring an exemption for churches. Thus, by a clear reading of the First Amendment, 508(C)(1)(A) is clearly unconstitutional. Most churches and pastors could care less about this technicality.

From IRS Publication 1828

The correct position which is held by the Internal Revenue Service (“IRS”) is that a church has submitted herself to IRC § 501(c)(3) regulation and ignored her First Amendment status by relying on 508(C)(1) (a law passed by Congress) instead of the First Amendment. The IRS makes this position clear. Page 3 of IRS Publication 1828 states that “churches that meet the requirements of § 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS” [Bold red emphasis mine]. The IRS repeats this on page 24 of IRS Publication 557, “Tax –Exempt Status for Your Organization.” Under Organizations Not Required To File Form 1023 churches are listed. The following sentence is included: “These organizations are exempt automatically if they meet the requirements of section 501(c)(3).” [Bold red emphasis added.]

IRS Publication 557, p. 24. Click the image to go directly to the publication.
IRS Publication 557, p. 24. Click the image to go directly to the publication.

One should also understand that the New Testament (First Amendment) church will not be involved with the IRS for several reasons: the church claims no 501(c)(3) or 508(c)(1)(A) status; is not a legal entity such as a corporation aggregate or sole, an unincorporated association, or a charitable trust; is not a business; has no income; has no employees or staff; has no constitution or by-laws; and, no matter what the particular civil government does, honors the biblical principle of separation of church and state which is reflected in the First Amendment in America.

The New Testament (First Amendment) church who loves the Lord will be prepared for the eventuality that the Internal Revenue Service, some other Federal agency, the President (recent presidential actions and orders as well as the actions of many prior presidents demonstrate what a tyrannical president can and will do), and/or the Supreme Court of the United States may someday misinterpret and apply the First Amendment; and a New Testament church, who loves the Lord and is committed to pleasing Him, will remain submitted to the higher authority. God Betrayed (see above for free links to the book) explains all this and also shows how churches are operating in America without becoming legal entities such as incorporated 501(c)(3) religious organizations thereby retaining their First Amendment and biblical status. For specifics on how to organize a church under the Bible principle of separation of church and state, one can also go to: The CUCM Bible Trust.

Third, a New Testament church (a church organized according to the principles of the New Testament), among other things, receives no income, is not a 501(c)(3) or 508 religious organization, has no constitution or by-laws,  has no employees or staff, and runs no businesses (daycare controlled or licensed by the state, “Christian” schools, “Bible” colleges, seminaries, cafes, etc.). Church members of a New Testament Church give their tithes and offerings to God, not to a religious organization, for use in ways consistent with New Testament teaching. All monies given to God are disbursed in accordance to the guidelines of the New Testament, and no money is left over. Let us use our common sense, if not our biblical sense: Even a business which makes no profit pays no taxes. A church which has no income cannot be taxed. A church which does have net income should be taxed since (1) she is operating as a business and not as a New Testament church; and (2) (if she is a legal entity such as a non-profit corporation (includes corporation sole – see Critique of “Church Freedom and the Corporation Sole” Website), or unincorporated association she is set up as a non-profit religious organization and therefore violates not only biblical principles for the organization of a church but also her non-profit agreements with the state of incorporation by making a profit.

Uncle Sam Wants God's Churches
Uncle Sam Wants God’s Churches

If a church does not apply for 501(c)(3) tax exempt status or claim 508(c)(1)(A) tax exempt status, and if she is organized as a New Testament church, according to the First Amendment which agrees with the biblical principle of separation of church and state, the non-taxable status of that church must be honored. A church claims 508(c)(1)(A) status by giving IRS acknowledgements for tithes, offerings, and gifts. No matter what the civil government claims, a church who has no income cannot be taxed; she gives her tithes, offerings, and gifts to God, not to a government created religious organization. Said another way, the church (the members) give to God, not to the church, inc. or the church (an unincorporated association).

Always keep in mind matters which I cover in detail in other writings and teachings: a church who incorporates (non-profit corporation or corporation sole), or becomes a charitable trust, unincorporated association or some other type legal entity has voluntarily given up her exclusive First Amendment status in favor of partial and substantial Fourteenth Amendment status since she has become a legal entity.

There are other ways a church may violate biblical principles concerning the doctrine of the church thereby becoming some type church other than a New Testament church. Understanding these matters requires a believer to grow in knowledge, understanding, and wisdom through dedicated Bible study.

If a church successfully applies for 501(c)(3) status or claims 508(c)(1)(A) exempt status, the government is granted some jurisdiction over the church since the civil government now, by law, declares and grants an exemption.

Please, God’s dear churches, do not lose your New Testament status by becoming a legal entity of any kind. Please learn to love the Lord as he loves you and gave Himself for you;

“That he might sanctify and cleanse it with the washing of water by the word. That he might present it to himself a glorious church, not having spot or wrinkle, or any such thing; but that it should be holy and without blemish” (Ephesians 5.25-27).

Please, dear believer, learn to think Biblically (spiritually), not practically from the human perspective (fleshly). Please become more Christian than American, more heavenly than earthly. God made clear that Christ in heaven is to be the only authority (power or head) “over all things to” His churches. Put another way, a church, the body whose feet walk and work on earth, is to be connected to only one head, Christ in heaven. A church with two heads (authorities or powers) is a monstrosity.

  • “And what is the exceeding greatness of his power to us-ward who believe, according to the working of his mighty power, Which he wrought in Christ, when he raised him from the dead, and set him at his own right hand in the heavenly places, Far above all principality, and power, and might, and dominion, and every name that is named, not only in this world, but also in that which is to come: And hath put all things under his feet, and gave him to be the head over all things to the church, Which is his body, the fulness of him that filleth all in all” (Ep. 1.19-23).
  • “Now therefore ye are no more strangers and foreigners, but fellowcitizens with the saints, and of the household of God; And are built upon the foundation of the apostles and prophets, Jesus Christ himself being the chief corner stone; In whom all the building fitly framed together groweth unto an holy temple in the Lord: In whom ye also are builded together for an habitation of God through the Spirit” (Ep. 2.19-23).
  • “And he is the head of the body, the church: who is the beginning, the firstborn from the dead; that in all things he might have the preeminence” (Col. 1.18).

From the above verses, and many more that could be quoted, one sees that God desires his churches to be spiritual entities or bodies (See also, e.g., Ep. 4 and the whole book of Ep., Col., and 1 Co. 12 for more on churches as spiritual bodies) connected to their only God ordained Head, the Lord Jesus Christ in heaven, while walking as spiritual entities only here on the earth. Churches are to be “builded together for an habitation of God through the Spirit,” not built together as a corporate 501(c)(3) or 508 organization according to man’s earthly, legal laws.

Please repent and turn from the deceits of the god of this world to the precepts of God. Please prepare for the day when believers and churches will have to choose either to lay it all down for God and for eternal reward or to lay it all up for Satan for a perceived earthly security. That day has not yet arrived for believers and churches in America, but that day appears to be fast approaching.

Endnotes

1. For the definition of and more information on “legal entity” see the index of God Betrayed/Separation of Church and State:The Biblical Principles and the American Application which is available free in PDF, in online form (no index), or which may be ordered by clicking Order information for books by Jerald Finney.”

All books, except An Abridged History of the First Amendment, by Jerald Finney are available free in both PDF and online form. One may go to Order information for books by Jerald Finney should he desire to order any of the books which are in print.

God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (Link to preview of God Betrayed)(PDF; online form) may be ordered from Amazon by clicking the following link: God Betrayed on Amazon.com or from Barnes and Nobel by clicking the following link: God Betrayed on Barnes and Noble. All books by Jerald Finney as well as many of the books he has referenced and read may also be ordered by left clicking Order Information for Books by Jerald Finney or directly from Amazon by going to the following links:

  1. Render Unto God the Things that Are His: A Systematic Study of Romans 13 and Related Verses (Kindle only)(PDF; online form);
  2. The Most Important Thing: Loving God and/or Winning Souls (Kindle only from Amazon.com; see Order information for books by Jerald Finney to order directly from Kerygma Publishing Co.)(PDF; online form) ;
  3. Separation of Church and State/God’s Churches: Spiritual or Legal Entities? (Link to preview of Separation of Church and State/God’s Churches: Spiritual or Legal Entities?) which can also be ordered by clicking the following Barnes and Noble link: Separation of Church and State on Barnes and Noble (PDF; online form)
  4. An Abridged History of the First Amendment is available in PDF only.
  5. Tract on the legality of street preaching is available in PDF only.
  6. “Quick Reference Guide for Churches Seeking to Organize According to the Principles of the New Testament” is available in PDF only.
  7. Miscellaneous articles by Jerald Finney.
  8. Links to some of Jerald Finney’s writings on legal issues.

Click here to see for updated list of Finney’s books. This Endnote is complete up to August 1, 2014.

Companion website:Church and State Law

When Did the Church Become a Business?” a beautiful song by Jason Bellard

2.Federal government control of churches through 501(c)(3) tax exemption” and “The incorporation-501(c)(3) control scheme.”

3. To understand the hierarchy of law, one may read the article “Laws Protecting New Testament Churches in the United States: Read Them for Yourself” or listen to the lecture “Hierarchy of Law.”

When Did the Church Become a Business?” a beautiful song by Jason Bellard

Click here to go to the article
Click here to go to the article “Is Separation of Church and State Found in the Constitution?”

A biblical and historical Baptist principle is that God desires separation of church and state, not separation of God and church or separation of God and state. Study Jerald Finney’s writings and/or audio teachings to discover the truth about and how to apply the principle. Finney’s teachings prove that the revisionist view of Separation of Church and State accepted without examination by most American “Christians” is false and has done great damage to the cause of Christ and to America.

Jerald Finney
Copyright © April 28, 2014

Click the above to go to online version of God Betrayed.
Click the above to go to online version of God Betrayed.

In the book God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (“God Betrayed”) as well as in other books and writings, I originally taught that a New Testament church could depend upon Internal Revenue Code (“IRC”) § 508(c)(1)(A) for her non-taxable status (See Endnote 1 for links to the two free versions of God Betrayed or for ordering information should you desire a softback copy as well as information on other books and resources by Jerald Finney.). I was wrong. After years of study, I have learned that a New Testament church cannot depend upon 508(c)(1)(A) for her non-taxable status because, in so doing, the church gives up her New Testament and First Amendment status; the church becomes tax exempt as opposed to non-taxable. However, I am more certain than ever of the correctness of my original biblically based conclusions that a church grieves the Lord when they intentionally, knowingly, recklessly, or negligently attain church corporate and/or 501(c)(3)/508(c)(1)(A) status or legal entity status (See Endnote 1) of any kind. I ask those who have followed my teachings to forgive me for misleading them concerning church 508 status. This brief article explains church 508 status and its effect.

A New Testament Church is also a First Amendment Church. This is because the First Amendment is a law which corresponds with biblical principles to include freedom of religion and conscience (separation of church and state), freedom of speech, freedom of press, and freedom of association. The First Amendment is a part of the second highest law of the land, the United States Constitution. The highest law of every nation is God’s law, whether a nation recognizes it or not. The Lord, for the time being, allows individuals, families, churches, and nations free will to honor His precepts or not. The choices determine the ultimate consequences. Click here to listen to Jerald Finney’s lecture “Hierarchy of Law” (CD of speech at a church in Tennessee given on the Sunday the church formally adopted the Declaration of Trust). The following article “First Amendment Protection of New Testament Churches/Federal Laws Protecting State Churches (Religious Organizationsalso explains hierarchy of law.

The First Amendment says:

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

Notice especially that the First Amendment says, “… no law ….”

Are not those words very clear? No law means “no law.” What is IRC § 508(c)(1)(A)(“508“)? It, like IRC  501(c)(3), is a law made by Congress and signed by the President. According to the clear meaning of the First Amendment, IRC § 508(c)(1)(A) and IRC  501(c)(3) are, when applied to churches, laws “respecting an establishment of religion and preventing the free exercise thereof.”

Why would a church take themselves from First Amendment status and protection to either IRC § 508(c)(1)(A) or IRC § 501(c)(3)? One reason is lack of knowledge, wisdom, and understanding. When a church claims either 508(c)(1)(A) or 501(c)(3) status, she has rejected her First Amendment non-taxable status and freely accepted the offer of the federal government to enter into an agreement (contract) for tax exempt status as provided by a law. See God Betrayed for teaching which explains this.

Let me repeat: First Amendment churches under God are non-taxable. 501(c)(3) and 508(c)(1)(A) religious organizations are tax exempt. IRC § 508 (the codification of Public Law 91-172 ratified in 1969) provides in relevant part:

A portion of Internal Revenue Code § 508. Click to the above to go to § 508.
A portion of Internal Revenue Code § 508. Click the above to go to § 508.

§ 508. Special rules with respect to section 501(c)(3) organizations. “(a) New organizations must notify secretary that they are applying for recognition of section 501(c)(3) status. “(c) Exceptions. “(1) Mandatory exceptions. Subsections (a) and (b) shall not apply to— “(A) churches, their integrated auxiliaries, and conventions or associations of churches” (26 U.S.C. § 508). [Emphasis mine.]

§ 508(c)(1)(A) says churches are excepted from applying for IRC § 501(c)(3) tax exempt status (See Endnote 2 for links to articles which fully explain church IRC § 501(c)(3)) status). 508 churches are an exception to the civil government requirement that certain organizations file for 501(c)(3) tax exempt status.

A church should rely on the First Amendment to the United States Constitution, not on 508(c)(1)(A) status for three reasons. First, the First Amendment is a statement of the biblical principle of separation of church and state (See, for a short explanation with links to more in depth studies, Is Separation of Church and State Found in the Constitution?). When a church relies on the First Amendment, they are relying on a biblical principle. Should the biblical principle be abused or ignored by the civil government, so be it—a church should then rely and act only on the biblical principle. Endnote 3.

A law of man which enacts some biblical principles.
A law of man which enacts some biblical principles.

Second, to rely on 508(c)(1)(A) contradicts the First Amendment. To repeat, the First Amendment religion clause states:

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

IRS Publication 1828. Click the above to go directly to IRS Pub. 1828.
IRS Publication 1828. Click the above to go directly to IRS Pub. 1828.

Obviously, 508(C)(1)(A) is a law made by Congress which regards an establishment of religion; 508(C)(1)(A) also prevents the free exercise of religion because a church which claims 508(C)(1)(A) status thereby submits themselves to some control by the federal government in that the church becomes subject to the rules that come with IRC 501(c)(3) status. 508(C)(1)(A) does not state that the First Amendment forbids Congress from making any law in violation of the First Amendment; and that, therefore, a church is non-taxable. 508(C)(1)(A) is a law made by Congress which states that Congress, by law, is declaring an exemption for churches. Thus, by a clear reading of the First Amendment, 508(C)(1)(A) is clearly unconstitutional. Most churches and pastors could care less about this technicality.

From IRS Publication 1828

The correct position which is held by the Internal Revenue Service (“IRS”) is that a church has submitted herself to IRC § 501(c)(3) regulation and ignored her First Amendment status by relying on 508(C)(1) (a law passed by Congress) instead of the First Amendment. The IRS makes this position clear. Page 3 of IRS Publication 1828 states that “churches that meet the requirements of § 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS” [Bold red emphasis mine]. The IRS repeats this on page 24 of IRS Publication 557, “Tax –Exempt Status for Your Organization.” Under Organizations Not Required To File Form 1023 churches are listed. The following sentence is included: “These organizations are exempt automatically if they meet the requirements of section 501(c)(3).” [Bold red emphasis added.]

IRS Publication 557, p. 24. Click the image to go directly to the publication.
IRS Publication 557, p. 24. Click the image to go directly to the publication.

One should also understand that the New Testament (First Amendment) church will not be involved with the IRS for several reasons: the church claims no 501(c)(3) or 508(c)(1)(A) status; is not a legal entity such as a corporation aggregate or sole, an unincorporated association, or a charitable trust; is not a business; has no income; has no employees or staff; has no constitution or by-laws; and, no matter what the particular civil government does, honors the biblical principle of separation of church and state which is reflected in the First Amendment in America.

The New Testament (First Amendment) church who loves the Lord will be prepared for the eventuality that the Internal Revenue Service, some other Federal agency, the President (recent presidential actions and orders as well as the actions of many prior presidents demonstrate what a tyrannical president can and will do), and/or the Supreme Court of the United States may someday misinterpret and apply the First Amendment; and a New Testament church, who loves the Lord and is committed to pleasing Him, will remain submitted to the higher authority. God Betrayed (see above for free links to the book) explains all this and also shows how churches are operating in America without becoming legal entities such as incorporated 501(c)(3) religious organizations thereby retaining their First Amendment and biblical status. For specifics on how to organize a church under the Bible principle of separation of church and state, one can also go to: The CUCM Bible Trust.

Third, a New Testament church (a church organized according to the principles of the New Testament), among other things, receives no income, is not a 501(c)(3) or 508 religious organization, has no constitution or by-laws,  has no employees or staff, and runs no businesses (daycare controlled or licensed by the state, “Christian” schools, “Bible” colleges, seminaries, cafes, etc.). Church members of a New Testament Church give their tithes and offerings to God, not to a religious organization, for use in ways consistent with New Testament teaching. All monies given to God are disbursed in accordance to the guidelines of the New Testament, and no money is left over. Let us use our common sense, if not our biblical sense: Even a business which makes no profit pays no taxes. A church which has no income cannot be taxed. A church which does have net income should be taxed since (1) she is operating as a business and not as a New Testament church; and (2) (if she is a legal entity such as a non-profit corporation (includes corporation sole – see Critique of “Church Freedom and the Corporation Sole” Website), or unincorporated association she is set up as a non-profit religious organization and therefore violates not only biblical principles for the organization of a church but also her non-profit agreements with the state of incorporation by making a profit.

Uncle Sam Wants God's Churches
Uncle Sam Wants God’s Churches

If a church does not apply for 501(c)(3) tax exempt status or claim 508(c)(1)(A) tax exempt status, and if she is organized as a New Testament church, according to the First Amendment which agrees with the biblical principle of separation of church and state, the non-taxable status of that church must be honored. A church claims 508(c)(1)(A) status by giving IRS acknowledgements for tithes, offerings, and gifts. No matter what the civil government claims, a church who has no income cannot be taxed; she gives her tithes, offerings, and gifts to God, not to a government created religious organization. Said another way, the church (the members) give to God, not to the church, inc. or the church (an unincorporated association).

Always keep in mind matters which I cover in detail in other writings and teachings: a church who incorporates (non-profit corporation or corporation sole), or becomes a charitable trust, unincorporated association or some other type legal entity has voluntarily given up her exclusive First Amendment status in favor of partial and substantial Fourteenth Amendment status since she has become a legal entity.

There are other ways a church may violate biblical principles concerning the doctrine of the church thereby becoming some type church other than a New Testament church. Understanding these matters requires a believer to grow in knowledge, understanding, and wisdom through dedicated Bible study.

If a church successfully applies for 501(c)(3) status or claims 508(c)(1)(A) exempt status, the government is granted some jurisdiction over the church since the civil government now, by law, declares and grants an exemption.

Please, God’s dear churches, do not lose your New Testament status by becoming a legal entity of any kind. Please learn to love the Lord as he loves you and gave Himself for you;

“That he might sanctify and cleanse it with the washing of water by the word. That he might present it to himself a glorious church, not having spot or wrinkle, or any such thing; but that it should be holy and without blemish” (Ephesians 5.25-27).

Please, dear believer, learn to think Biblically (spiritually), not practically from the human perspective (fleshly). Please become more Christian than American, more heavenly than earthly. God made clear that Christ in heaven is to be the only authority (power or head) “over all things to” His churches. Put another way, a church, the body whose feet walk and work on earth, is to be connected to only one head, Christ in heaven. A church with two heads (authorities or powers) is a monstrosity.

  • “And what is the exceeding greatness of his power to us-ward who believe, according to the working of his mighty power, Which he wrought in Christ, when he raised him from the dead, and set him at his own right hand in the heavenly places, Far above all principality, and power, and might, and dominion, and every name that is named, not only in this world, but also in that which is to come: And hath put all things under his feet, and gave him to be the head over all things to the church, Which is his body, the fulness of him that filleth all in all” (Ep. 1.19-23).
  • “Now therefore ye are no more strangers and foreigners, but fellowcitizens with the saints, and of the household of God; And are built upon the foundation of the apostles and prophets, Jesus Christ himself being the chief corner stone; In whom all the building fitly framed together groweth unto an holy temple in the Lord: In whom ye also are builded together for an habitation of God through the Spirit” (Ep. 2.19-23).
  • “And he is the head of the body, the church: who is the beginning, the firstborn from the dead; that in all things he might have the preeminence” (Col. 1.18).

From the above verses, and many more that could be quoted, one sees that God desires his churches to be spiritual entities or bodies (See also, e.g., Ep. 4 and the whole book of Ep., Col., and 1 Co. 12 for more on churches as spiritual bodies) connected to their only God ordained Head, the Lord Jesus Christ in heaven, while walking as spiritual entities only here on the earth. Churches are to be “builded together for an habitation of God through the Spirit,” not built together as a corporate 501(c)(3) or 508 organization according to man’s earthly, legal laws.

Please repent and turn from the deceits of the god of this world to the precepts of God. Please prepare for the day when believers and churches will have to choose either to lay it all down for God and for eternal reward or to lay it all up for Satan for a perceived earthly security. That day has not yet arrived for believers and churches in America, but that day appears to be fast approaching.

Endnotes

1. For the definition of and more information on “legal entity” see the index of God Betrayed/Separation of Church and State:The Biblical Principles and the American Application which is available free in PDF, in online form (no index), or which may be ordered by clicking Order information for books by Jerald Finney.”

All books, except An Abridged History of the First Amendment, by Jerald Finney are available free in both PDF and online form. One may go to Order information for books by Jerald Finney should he desire to order any of the books which are in print.

God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (Link to preview of God Betrayed)(PDF; online form) may be ordered from Amazon by clicking the following link: God Betrayed on Amazon.com or from Barnes and Nobel by clicking the following link: God Betrayed on Barnes and Noble. All books by Jerald Finney as well as many of the books he has referenced and read may also be ordered by left clicking Order Information for Books by Jerald Finney or directly from Amazon by going to the following links:

  1. Render Unto God the Things that Are His: A Systematic Study of Romans 13 and Related Verses (Kindle only)(PDF; online form);
  2. The Most Important Thing: Loving God and/or Winning Souls (Kindle only from Amazon.com; see Order information for books by Jerald Finney to order directly from Kerygma Publishing Co.)(PDF; online form) ;
  3. Separation of Church and State/God’s Churches: Spiritual or Legal Entities? (Link to preview of Separation of Church and State/God’s Churches: Spiritual or Legal Entities?) which can also be ordered by clicking the following Barnes and Noble link: Separation of Church and State on Barnes and Noble (PDF; online form)
  4. An Abridged History of the First Amendment is available in PDF only.
  5. Tract on the legality of street preaching is available in PDF only.
  6. “Quick Reference Guide for Churches Seeking to Organize According to the Principles of the New Testament” is available in PDF only.
  7. Miscellaneous articles by Jerald Finney.
  8. Links to some of Jerald Finney’s writings on legal issues.

Click here to see for updated list of Finney’s books. This Endnote is complete up to August 1, 2014.

Companion website:Church and State Law

When Did the Church Become a Business?” a beautiful song by Jason Bellard

2.Federal government control of churches through 501(c)(3) tax exemption” and “The incorporation-501(c)(3) control scheme.”

3. To understand the hierarchy of law, one may read the article “Laws Protecting New Testament Churches in the United States: Read Them for Yourself” or listen to the lecture “Hierarchy of Law.”

When Did the Church Become a Business?” a beautiful song by Jason Bellard

Click here to go to the article
Click here to go to the article “Is Separation of Church and State Found in the Constitution?”

A biblical and historical Baptist principle is that God desires separation of church and state, not separation of God and church or separation of God and state. Study Jerald Finney’s writings and/or audio teachings to discover the truth about and how to apply the principle. Finney’s teachings prove that the revisionist view of Separation of Church and State accepted without examination by most American “Christians” is false and has done great damage to the cause of Christ and to America.