Regardless of what one has been told or believes, an honest examination of the evidence proves that churches are not automatically tax exempt. See the essay below, and other resources linked to below, for proof of this conclusion. However, “Churches that meet the requirements of § 501(c)(3) are automatically considered tax exempt [under § 508(c)(1)(A)] and are not required to apply for and obtain recognition of tax-exempt status from the IRS.” This quote is from IRS publications and is the correct position. If a church does not meet the requirements of 501(c)(3) that church is not “tax exempt.”
Furthermore, according to principles in the Word of God, church tax exempt status is spiritual fornication since she has submitted herself to man’s law, become a temporal legal – as opposed to spiritual eternal only – entity, and chosen to submit to an authority other than the Lord Jesus Christ as to many church matters. A church can choice is to remain under Christ only as a eternal spiritual organism as opposed to a temporal earthy organizaion. In America, the First Amendment and corresponding state constitutional provisions protect this choice from persecution. This essay, and the other essays and articles on this website explain these matters more comprehensively.
A church, because of the First Amendment, can choose either to be automatically non-taxable without any civil government control; or it can choose to be 501(c)(3) or 508(c)(1)(A) tax exempt organizations if … (explained below). No if can come with automatic status. Automatically means: “(with reference to a device or process) by itself with no human control.” According to that definition, churches definitely are not “automatically tax exempt.” Both 501(c)(3) and 508(c)(1)(A) tax exempt status come with IRS rules and regulations. See, The Rules and Regulations that Come with Church IRS Code Sections 501(c)(3) and 508(c)(1)(A) Tax-Exempt Status. Please let me explain.
“(a) New organizations must notify Secretary that they are applying for recognition of section 501(c)(3) status
“(1) Mandatory exceptions Subsections (a) and (b) shall not apply to
“(A) churches, their integrated auxiliaries, and conventions or associations of churches….”
508(c)(1)(A) does not state that churches are “automatically exempt.” Clearly, 508(c)(1)(A) states that churches are mandatory exceptions to the requirement for for filing for Internal Revenue Code § (501)(c)(3) tax exempt status. “Churches, their integrated auxiliaries, and conventions or associations of churches” (not other types of other organizations) may claim tax exempt status without filing for it. To claim tax exempt status under 508(c)(1)(A) instead of submitting IRS Form 1023 for tax exempt status under 501(c)(3), a church must make clear to the public and to its members that the church is tax exempt (that givers may deduct their gifts on their income tax returns); and, like a 501(c)(3) church, give IRS Acknowledgements to givers.
Rules and regulations come with both 501(c)(3) and 508(c)(1(A) tax exempt status. One cannot separate the status from attributes, rules, and regulations that go with it. The attributes, rules, and regulations of the status define the status. According to 508(c)(1)(A), a church may claim the status without filing for it. Contrary to unlearned “Christian” propaganda, churches who do so are to comply with the IRS rules and regulations that come with the status. The requirements of 501(c)(3) and 508(c)(1)(A) status are given in The Rules and Regulations that Come with Church IRS Code Sections 501(c)(3) and 508(c)(1)(A) Tax-Exempt Status.
The IRS, and correctly so, understands this simple truth. Page 3 of IRS Publication 1828 states, 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 italicized emphasis added.].
By placing a church under a civil government law, either 501(c)(3) or IRC § 508(c)(1)(A), a church rejects her First Amendment non-taxable status and accepts the federal government offer for tax exempt status. Offer and acceptance are necessary fot the agreement, the contract, to be completed. The First Amendment makes clear that a church may choose to retain religious freedom without persecution. IRS §§ 501(c)(3) and 508(c)(1)(A) give churches an alternative: giver up First Amendment status as a non-legal entity in favor of Fourteenth Amendment status as a legal entity.
Most churches who obtain either 501(c)(3) or 508(c)(1)(A) status have already given up much of their their First Amendment protection and status by submitting themselves to state non-profit incorporation law, unincorporated association law, charitable trust law, etc. Churches who are corporations, Internal Revenue Code Section 501(c)(3) or 508(c)(1)(A) tax exempt, or legal entities of any kind have forsaken higher law by submitting to authorities other than the Lord Jesus Christ.
With 508(c)(1)(A) the government declared in law that they trusted churches and “Christians,” of all people, to understand their actions and to honor their agreements. The government made it more convenient for churches, and for no other type of organization, to obtain tax exempt status. They falsely believed that Christians and churches were bound by a higher law and could be trusted to diligently honor their word.
As mentioned above, one requirement for 501(c)(3) or 508(c)(1)(A) tax exempt status is that the church give donors IRS Acknowledgements for tithes, offerings, and gifts. Should the IRS audit a donor who claimed a deduction for gifts to a church, the IRS will want the IRS Acknowledgment; and proof that the giver of the Acknowledgement was a church. If the church has 501(c)(3) status, the proof is on the IRS list of tax exempt churches. If the church has 508(c)(1)(A) status, the IRS may require the person claiming the exemption to prove that the gift was to a “church” even though they should have a copy of the IRS Acknowledgement for the gift.
To reject the offer of the federal government for “tax exempt” status, all a church must do is to reject all offers of state and/or federal government for combination with civil government (incorporation, charitable trust status, unincorporated association status, tax exempt status under 501(c)(3) or 508(c)(1)(A), or union with the state in any other way); refuse to give IRS Acknowledgements for tithes, offerings, and gifts; and make it known that the church is a First Amendment church solely under the authority of the Lord Jesus Christ.
Some Christians argue that they don’t care what the government requires in order for granting them the “benefits” of tax-exempt status. They know that their authority, the IRS, probably will not catch them since they do not have the resources to monitor churches and pastors. These Christians and churches take God out of the equation. The Lord knows all and does not honor such behavior by believers and churches. He expects his children to honor their word and their agreements which they voluntarily enter into. They are dishonoring God and man, and ignorance will not excuse their misdeeds:
“According as his divine power hath given unto us all things that pertain unto life and godliness, through the knowledge of him that hath called us to glory and virtue: Whereby are given unto us exceeding great and precious promises: that by these ye might be partakers of the divine nature, having escaped the corruption that is in the world through lust. And beside this, giving all diligence, add to your faith virtue; and to virtue knowledge; And to knowledge temperance; and to temperance patience; and to patience godliness; And to godliness brotherly kindness; and to brotherly kindness charity. For if these things be in you, and abound, they make you that ye shall neither be barren nor unfruitful in the knowledge of our Lord Jesus Christ. But he that lacketh these things is blind, and cannot see afar off, and hath forgotten that he was purged from his old sins. Wherefore the rather, brethren, give diligence to make your calling and election sure: for if ye do these things, ye shall never fall” (2 Peter 1:1-10).
See Church Internal Revenue Code § 508(c)(1)(A) Tax Exempt Status for full explanation of church 508(c)(1)(A) status. That article explains why 508(c)(1)(A) status puts a church under the same rules and regulations that come with 501(c)(3) and the authority of the Internal Revenue Service regardless of whether the IRS has the resources to enforce the rules and regulations that come with the status. This short article is very basic.
Some churches rely on this law rather than another law, § 501(c)(3) of the Internal Revenue Code, to establish tax exempt status.
“§ 508(c)(1)(A). 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) churches are subject to the same rules which 501c3 churches are subject to. En1, En2; En3 (full explantion of church 508(c)(1)(A) status)
Note. This is a modified version of Section VI, Chapter 4 of God Betrayed: Separation of Church and State/The Biblical Principles and the American Application; Chapter 4 of Separation of Church and State/God’s Churches: Spiritual or Legal Entities
A 501(c)(3) church agrees to abide by the rules that come with the status. A 501(c)(3) church also has many regulations which it is required to honor. See article below for full explanation of those rules and links to the IRS regulations. See Publication 4221: Compliance Guide for Tax Exempt Organizations(“Federal tax law provides tax benefits to nonprofit organizations recognized as exempt from federal income tax under section 501(a) of the Internal Revenue Code (the Code). The Code requires that tax-exempt organizations comply with federal tax law to maintain tax-exempt status and avoid penalties….”).
In the twentieth century, the federal government added more cheese to the trap—26 U.S.C. or Internal Revenue Code (“IRC”) § 501(c)(3) (“501(c)(3)” or “501c3”) tax exemption. The Internal Revenue Service (“IRS”) exerts a certain amount of control over an incorporated 501(c)(3) “church.” Scripture makes clear that God wants no one else—especially the unregenerate—controlling, defining, and restricting His bride from totally following His precepts. IRC terms set limits on and control the activities of the corporate 501(c)(3) religious organization. Definition of terms used in the IRC by IRS personnel who do not have the expertise to define biblical terms further results in the operation of a corporate 501(c)(3) organization in ways inconsistent with biblical principles.
501(c)(3) invites churches to seek a tax exemption from civil government, even though the First Amendment already has erected a “high and impregnable wall” of separation between church and state which forbids civil government from making any law, including any taxing law, respecting a New Testament church. A New Testament church, which is a non-legal entity, is also a First Amendment church. 501(a),(c)(3),(h) reads in relevant part:
“§ 501. Exemption from tax on corporations, certain trusts, etc.:
“(a) Exemption from taxation. An organization described in subsection (c) … shall be exempt from taxation under this subtitle [26 USCS §§ 1 et seq.] unless such exemption is denied under section 502 or 503 [26 USCS § 502 or 503]….
“(c)(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….
“(h) Expenditures by public charities to influence legislation. (1) General rule. In the case of an organization to which this subsection applies, exemption from taxation under subsection (a) shall be denied because a substantial part of the activities of such organization consists of carrying on propaganda, or otherwise attempting, to influence legislation…” (26 U.S.C. § 501(c)(3) (2007) in relevant part).
Notice, in the above law, that churches are not mentioned in 501(c)(3). It does mention, among other things, “[c]orporations … organized and operated exclusively for religious … purposes.” Even the federal government thereby recognizes that the basic character of a church who seeks and obtains 501(c)(3) status has changed and that church has become a “religious organization.” That happens when a church incorporates under state law. When a church incorporates, it becomes a corporation organized exclusively for religious purposes.
The state controls, defines, and instructs a corporate 501(c)(3) religious organization to a large degree. Control and definition go hand in hand. The federal government, not God, defines “religious purposes” as to an incorporated church. What if an incorporated 501(c)(3) religious organization considers an activity to be God-ordained and spiritual, but the civil government disagrees? The civil government with authority over that issue controls.
Under the IRS interpretation of 501(c)(3), to qualify for tax exempt status under 501(c)(3) religious organizations must meet the following requirements, i.e. abide by the following rules:
“1. must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes, “2. net earnings must not inure to the benefit of any private individual or shareholder, “3. no substantial part of its activity may be attempting to influence legislation, “4. the organization may not intervene in political activity,
“5. the organization’s purposes and activities may not be illegal or violate fundamental public policy” (IRS Publication 1828 (2007), pp. 3, 5. This and all IRS publications referred to may be accessed at irs.gov. IRS details on proscription #3 are on pp. 5-6 of IRS Pub. 1828. Just mentioning a candidate may violate proscription #4. Detailed guidelines with consequences of violation of proscription #4 are on pp. 7-11 of Pub. 1828. As to proscription #5, public policy is determined by the courts.).
Notice that the last requirement—“may not violate fundamental public policy”—is not from law; that is, it is not listed as a requirement in § 501(c)(3). This requirement was made law by the Supreme Court of the United States in Bob Jones University, 461 U.S. 574, 578, 579, 580, 581, 582-583, 586-588, 588, 591 fn. 10, 595-596, 602 fn 28, 603, 604, fn. 29 at 604 (1983):
“On January 12, 1970, a three-judge District Court for the District of Columbia issued a preliminary injunction prohibiting the IRS from according tax-exempt status to private schools in Mississippi that discriminated as to admissions on the basis of race…. Thereafter, in July 1970, the IRS concluded that it could ‘no longer legally justify allowing tax-exempt status [under § 501(c)(3)] to private schools which practice racial discrimination.’ IRS News Release, July 7, 1970, reprinted in App. in No. 81-3, p. A235. At the same time, the IRS announced that it could not ‘treat gifts to such schools as charitable deductions for income tax purposes [under § 170].’ Ibid. By letter dated November 30, 1970, the IRS formally notified private schools, including those involved in this litigation, of this change in policy, ‘applicable to all private schools in the United States at all levels of education.’ …
“The court permanently enjoined the Commissioner of Internal Revenue from approving tax-exempt status for any school in Mississippi that did not publicly maintain a policy of nondiscrimination….
“Bob Jones University [was] a nonprofit corporation located in Greenville, S. C. Its purpose is ‘to conduct an institution of learning …, giving special emphasis to the Christian religion and the ethics revealed in the Holy Scriptures.’ Certificate of Incorporation, Bob Jones University, Inc. [Bob Jones University had a policy that] Students who date outside of their own race will be expelled…. After failing to obtain an assurance of tax exemption through administrative means, the University instituted an action in 1971 seeking to enjoin the IRS from revoking the school’s tax-exempt status.
“The United States District Court for the District of South Carolina held that revocation of the University’s tax-exempt status exceeded the delegated powers of the IRS, was improper under the IRS rulings and procedures, and violated the University’s rights under the Religion Clauses of the First Amendment…. The District Court found, on the basis of a full evidentiary record, that the challenged practices of petitioner Bob Jones University were based on a genuine belief that the Bible forbids interracial dating and marriage.
“The Court of Appeals for the Fourth Circuit, in a divided opinion, reversed…. The Court of Appeals concluded that § 501(c)(3) must be read against the background of charitable trust law. To be eligible for an exemption under that section, an institution must be ‘charitable’ in the common-law sense, and therefore must not be contrary to public policy. In the court’s view, Bob Jones University did not meet this requirement, since its ‘racial policies violated the clearly defined public policy, rooted in our Constitution, condemning racial discrimination and, more specifically, the government policy against subsidizing racial discrimination in education, public or private.’ … The court held that the IRS acted within its statutory authority in revoking the University’s tax-exempt status. Finally, the Court of Appeals rejected petitioner’s arguments that the revocation of the tax exemption violated the Free Exercise and Establishment Clauses of the First Amendment.
“[Included in the case was Goldsboro Christian Schools, a nonprofit corporation located in Goldsboro, N. C., a private Christian school which prohibited interracial dating based upon sincerely held religious beliefs.]
“[The Supreme Court reasoned in adding the ‘public policy’ requirement to the [IRC]:]
‘The general words used in the clause …, taken by themselves, and literally construed, without regard to the object in view, would seem to sanction the claim of the plaintiff. But this mode of expounding a statute has never been adopted by any enlightened tribunal — because it is evident that in many cases it would defeat the object which the Legislature intended to accomplish. And it is well settled that, in interpreting a statute, the court will not look merely to a particular clause in which general words may be used, but will take in connection with it the whole statute… and the objects and policy of the law….’ … (emphasis added by the Court).
‘Section 501(c)(3) therefore must be analyzed and construed within the framework of the Internal Revenue Code and against the background of the congressional purposes. Such an examination reveals unmistakable evidence that, underlying all relevant parts of the Code, is the intent that entitlement to tax exemption depends on meeting certain common-law standards of charity — namely, that an institution seeking tax-exempt status must serve a public purpose and not be contrary to established public policy.
‘This ‘charitable’ concept appears explicitly in § 170 of the Code. That section contains a list of organizations virtually identical to that contained in § 501(c)(3). It is apparent that Congress intended that list to have the same meaning in both sections. In § 170, Congress used the list of organizations in defining the term ‘charitable contributions.’ On its face, therefore, § 170 reveals that Congress’ intention was to provide tax benefits to organizations serving charitable purposes. The form of § 170 simply makes plain what common sense and history tell us: in enacting both § 170 and § 501(c)(3), Congress sought to provide tax benefits to charitable organizations, to encourage the development of private institutions that serve a useful public purpose or supplement or take the place of public institutions of the same kind.
‘The predecessor of § 170 originally was enacted in 1917, as part of the War Revenue Act of 1917, ch. 63, § 1201(2), 40 Stat. 330, whereas the predecessor of § 501(c)(3) dates back to the income tax law of 1894, Act of Aug. 27, 1894, ch. 349, 28 Stat. 509, infra. There are minor differences between the lists of organizations in the two sections, see generally Liles & Blum, Development of the Federal Tax Treatment of Charities, 39 Law & Contemp. Prob. 6, 24-25 (No. 4, 1975) (hereinafter Liles & Blum). Nevertheless, the two sections are closely related; both seek to achieve the same basic goal of encouraging the development of certain organizations through the grant of tax benefits. The language of the two sections is in most respects identical, and the Commissioner and the courts consistently have applied many of the same standards in interpreting those sections. See 5 J. Mertens, Law of Federal Income Taxation § 31.12 (1980); 6 id., §§ 34.01-34.13 (1975); B. Bittker & L. Stone, Federal Income Taxation 220-222 (5th ed. 1980). To the extent that § 170 ‘aids in ascertaining the meaning’ of § 501(c)(3), therefore, it is ‘entitled to great weigh.’ … [the Court analyses ‘charitable trusts’]….
“Act of Aug. 27, 1894, ch. 349, § 32, 28 Stat. 556-557. The income tax system contained in the 1894 Act was declared unconstitutional, Pollock v. Farmers’ Loan & Trust Co., 158 U.S. 601 (1895), for reasons unrelated to the charitable exemption provision. The terms of that exemption were in substance included in the corporate income tax contained in the Payne-Aldrich Tariff Act of 1909, ch. 6, § 38, 36 Stat. 112. A similar exemption has been included in every income tax Act since the adoption of the Sixteenth Amendment, beginning with the Revenue Act of 1913, ch. 16, § II(G), 38 Stat. 172. See generally Reiling, Federal Taxation: What Is a Charitable Organization?, 44 A. B. A. J. 525 (1958); Liles & Blum….
‘The exemption from taxation of money or property devoted to charitable and other purposes is based upon the theory that the Government is compensated for the loss of revenue by its relief from financial burdens which would otherwise have to be met by appropriations from other public funds, and by the benefits resulting from the promotion of the general welfare.” H. R. Rep. No. 1860, 75th Cong., 3d Sess., 19 (1938).
‘A corollary to the public benefit principle is the requirement, long recognized in the law of trusts, that the purpose of a charitable trust may not be illegal or violate established public policy. In 1861, this Court stated that a public charitable use must be ‘consistent with local laws and public policy,’ Perin v. Carey, 24 How., at 501. Modern commentators and courts have echoed that view. See, e. g., Restatement (Second) of Trusts § 377, Comment c (1959); 4 Scott § 377, and cases cited therein; Bogert § 378, at 191-192….
‘[The Court then explained why racial discrimination now violates clearly defined public policy.]
“[The Court concluded:]
‘Racially discriminatory educational institutions cannot be viewed as conferring a public benefit within the ‘charitable’ concept discussed earlier, or within the congressional intent underlying § 170 and § 501(c)(3)…. ‘This Court has long held the Free Exercise Clause of the First Amendment to be an absolute prohibition against governmental regulation of religious beliefs, Wisconsin v. Yoder, 406 U.S. 205, 219 (1972); Sherbert v. Verner, 374 U.S. 398, 402 (1963); Cantwell v. Connecticut, 310 U.S. 296, 303 (1940). As interpreted by this Court, moreover, the Free Exercise Clause provides substantial protection for lawful conduct grounded in religious belief, see Wisconsin v. Yoder, supra, at 220; Thomas v. Review Board of Indiana Employment Security Div., 450 U.S. 707 (1981); Sherbert v. Verner, supra, at 402-403. However, ‘[not] all burdens on religion are unconstitutional…. The state may justify a limitation on religious liberty by showing that it is essential to accomplish an overriding governmental interest.’
‘On occasion this Court has found certain governmental interests so compelling as to allow even regulations prohibiting religiously based conduct. The governmental interest at stake here is compelling.
“[The Court noted:] We deal here only with religious schools — not with churches or other purely religious institutions; here, the governmental interest is in denying public support to racial discrimination in education.
[The Court also stated:] “The IRS policy at issue here is founded on a ‘neutral, secular basis,’ Gillette v. United States, 401 U.S. 437, 452 (1971), and does not violate the Establishment Clause.”
Although Bob Jones University was limited to religious schools in that a church was not being attacked in that specific case, the same rationale that supported the Court’s conclusions can also be applied to 501(c)(3) religious organizations, although more hurdles will have to be jumped. It is common knowledge that the IRS regularly attacks such organizations for infractions of requirements of IRS regulation. The outcome of such a case against a church hinges upon the liberal-conservative makeup to the Court. Liberal dominated courts have no problem clearing whatever logical, legal, and/or spiritual hurdles they encounter.
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 and read, e.g.,
The Truth About Frivolous Tax Arguments – Section II; Termination 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. …)
God wants members of His body, the church, to decide what is spiritual and what is not. If His body messes up, He will take care of it. The IRS rules and regulations require instruction, definition, and control by the federal government. The IRS determines, subject to costly and time consuming court challenge, whether a restriction has been breached by a 501(c)(3) religious organization. These restrictions subject a religious organization to suit in the courts for violating a federal government law.
Especially notice the last 501(c)(3) rule, fundamental public policy. Fundamental public policy is above biblical principle if the two conflict. Certain public policies can, do, and will conflict with biblical principles. It is the responsibility of the church, not the state, to determine biblical principle as to the doctrines of the church. A nineteenth century Supreme Court wisely observed:
“The question, what is the public policy of a state, and what is contrary to it, if inquired into beyond these limits, will be found to be one of great vagueness and uncertainty, and to involve discussions which scarcely come within the range of judicial duty and functions, and upon which men may and will complexionally differ; above all, when that topic is connected with religious polity, in a country composed of such a variety of religious sects as our country, it is impossible not to feel that it would be attended with almost insuperable difficulties, and involve differences of opinion almost endless in their variety. We disclaim any right to enter upon such examinations, beyond what the state constitutions, and laws, and decisions necessarily bring before us” (Vidal v. Gerard’s Executors, 43 U.S. 127, 198; 11 L. Ed. 205; 1844 U.S. LEXIS 323; 2 HOW 127 (1844)).
New Testament churches under God are non-taxable. 501(c)(3) and IRC § 508 religious organizations are tax exempt. IRC § 508 (the codification of Public Law 91-172 ratified in 1969) provides in relevant part:
“§ 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. [Emphasis mine.] “(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 (2007)). [Emphasis mine.]
Note. A church applies for 501(c)(3) recognition by filling out and filing IRS Form 1023.
§ 508(a),(c) says churches are excepted from obtaining § 501(c)(3) tax exempt status. § 508(c)(1(A) churches are an exception to the civil government requirement that certain organizations file for 501(c)(3) tax exempt status.
However, 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. This principle is fully explained in Sections I-III and the history of how the blood of millions of Martyrs led to the adoption of the First Amendment is explained in Section IV of God Betrayed (PDF OF God Betrayed, online version of God Betrayed,Order Information for God Betrayed and other books by Jerald Finney). 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 only on the biblical principle.
Second, to rely on § 508(c)(1)(A) contradicts the First Amendment. 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.”
Obviously, § 508(c)(1)(A) is a law made by Congress which regards an establishment of religion. § 508(c)(1)(A) does not state that the First Amendment forbids Congress from making any law in violation of the First Amendment and, therefore, a church is non-taxable. § 508(c)(1)(A) states that Congress is declaring an exemption for churches. Hence, an adversary in a court proceeding can argue that a church has submitted herself to Internal Revenue Code § 501(c)(3) regulation and ignored her First Amendment status by relying on a law instead of the First Amendment. The Internal Revenue Service Publication 1828 states, that “churches which meet the requirements of § 501(c)(3) are automatically tax exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS.” However, the New Testament (First Amendment) church will not be in court anyway for several reasons: the church is not a legal entity; is not a business; has no income; has no employees or staff; claims no § 508 status; 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.
Third, a New Testament church (a church organized according to the principles of the New Testament), among other things, receives no income, has no employees or staff, and runs no businesses (daycare, “Christian” schools, cafes, etc.). Church members 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. Even a business which makes no profit pays no taxes. A church which does have net income should be taxed since she is operating as a business and not as a New Testament church.
If a church does not apply for § 501(c)(3) tax exempt status or claim § 508 tax exempt status, and if it 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. No matter what the civil government claims, that church cannot be taxed anyway because they have no income.
If a church successfully applies for § 501(c)(3) or claims § 508(c)(1)(A) exempt status, the government is granted some jurisdiction over the church since the civil government now declares and grants an exemption.
“EXEMPT, a. Free from any service, charge, burden, tax, duty, evil or requisition, to which others are subject; not subject; not liable to; as, to be exempt from military duty, or from a poll tax; to be exempt from pain or fear. Peers in G. Britain are exempt from serving on inquests.
“2. Free by privilege; as exempt from the jurisdiction of a lord or of a court. “3. Free; clear; not included. “4. Cut off from. [Not used.] Shak.” (AMERICAN DICTIONARY OF THE ENGLISH LANGUAGE, NOAH WEBSTER (1828)).
“exempt … 2: free or released from some liability or requirement to which others are subject” (WEBSTER’S COLLEGIATE DICTIONARY 406 (10th ed. 1995)).
“PRIV’ALEGE, n. …
“1.A particular and peculiar benefit or advantage enjoyed by a person, company or society, beyond the common advantages of other citizens. A privilege may be a particular right granted by law or held by custom, or it may be an exemption from some burden to which others are subject.“2. Any peculiar benefit or advantage, right or immunity, not common to others of the human race. Thus we speak of national privileges, and civil and religious privileges secured to us by our constitutions of government…. “3. Advantage, favor, benefit” (Ibid.).
In spite of the fact that biblically sound churches are non-taxable, many, if not most, churches line up to incorporate and to become 501(c)(3) religious organizations. Why do churches apply? The IRS knows the answer:
“IRS concurrence that a religious organization is indeed a church is the best protection for a donor that his or her contribution to the church is tax-deductible and will not be challenged in an audit. This knowledge makes a church’s fundraising efforts much easier” (Peter Kershaw, Hushmoney (Branson, Missouri: Heal Our Land Ministries), p. 30, citing Michael Chitwood, Protect Your Contributions (referring to statement of IRS on p. 3 of IRS Publication 1828)).
God had reasons for denying jurisdiction to the state over spiritual matters and restricting state authority to earthly matters. One reason has to do with qualification for determining the meanings of words. The interpretation of laws and regulations requires the defining of words. Employees of civil government are not qualified to determine the meanings of spiritual terms; but, by dealing with spiritual matters, such people are called upon to determine the meanings of spiritual terms. They must determine the meaning of “religion,” “religious,” “church,” and many other words. Since these employees are operating outside their realm of expertise, the outcome of their decisions on these matters will conflict with the biblical meanings of those words. In defining words, therefore, civil government officials intrude upon the jurisdiction of the church—the church is subjected to the state.
For example, what does the word “religion” mean? The word “religion” is used only five times, in the Bible, and only once in a good sense:
“Which knew me from the beginning, if they would testify, that after the most straitest sect of our religion I lived a Pharisee” (Ac. 26.5). [Bold emphasis mine]. “For ye have heard of my conversation in time past in the Jews’ religion, how that beyond measure I persecuted the church of God, and wasted it: And profited in the Jews’ religion above many my equals in mine own nation, being more exceedingly zealous of the traditions of my fathers” (Ga. 1.13, 14). [Bold emphasis mine]. “If any man among you seem to be religious, and bridleth not his tongue, but deceiveth his own heart, this man’s religion is vain. Pure religion and undefiled before God and the Father is this, To visit the fatherless and widows in their affliction, and to keep himself unspotted from the world” (Ja. 1.26-27). [Bold emphasis mine].
Thus, from a biblical perspective, religion in the good sense may be defined as:
“2. Religion, as distinct from theology, is godliness or real piety in practice, consisting in the performance of all known duties to God and our fellow men, in obedience to divine command, or from love to God and his law. James i. “3. Religion, as distinct from virtue, or morality, consists in the performance of the duties we owe directly to God, from a principle of obedience to his will. Hence we often speak of religion and virtue, as different branches of one system, or the duties of the first and second tables of the law. “Let us with caution indulge the supposition, that morality can be maintained without religion. Washington” (AMERICAN DICTIONARY OF THE ENGLISH LANGUAGE, NOAH WEBSTER (1828), definition of “RELIGION”).
Since the Bible also teaches that there is only one true God, there can only be one religion in the good and true sense. This means that all other religions are bad and false. All other “gods” are actually no gods at all:
“As concerning therefore the eating of those things that are offered in sacrifice unto idols, we know that an idol is nothing in the world, and that there is none other God but one. For though there be that are called gods, whether in heaven or in earth, (as there be gods many, and lords many,) But to us there is but one God, the Father, of whom are all things, and we in him; and one Lord Jesus Christ, by whom are all things, and we by him” (1 Co. 8.4-6).
“What say I then? that the idol is any thing, or that which is offered in sacrifice to idols is any thing? But I say, that the things which the Gentiles sacrifice, they sacrifice to devils, and not to God: and I would not that ye should have fellowship with devils. Ye cannot drink the cup of the Lord, and the cup of devils: ye cannot be partakers of the Lord’s table, and of the table of devils” (1 Co. 10.19-21).
Since there is only one true God, there is only one religion with power from God. Before one can know that one true God, one must know Jesus Christ, God the Son: “Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me. If ye had known me, ye should have known my Father also: and from henceforth ye know him, and have seen him” (Jn. 14.6-7).
The Bible, as pointed out above, recognized the Jewish religion. Members of the Jewish religion (and any other religion) who do not recognize the Lord Jesus Christ as sovereign God are false religions and have no piety or power from God. “And Jesus came and spake unto them, saying, All power is given unto me in heaven and in earth” (Mt. 28.18). Unconverted Jews deny that Jesus Christ is God the Son. The Jewish religion, like all other religions except true biblical religion, is therefore a false religion. The IRS and the federal government to a great extent, however, have concluded that all religions are equal and have created a pluralistic code and a pluralistic nation.
Civil government officials are required by § 501(c)(3) to define “church.” By providing that churches can become legal entities by incorporating and obtaining 501(c)(3) status, the civil government assured that the IRS and the courts would have to define “church” because, first, a lot of churches would seek to incorporate and get government declared tax exempt status, thereby voluntarily taking themselves out from under First Amendment or New Testament status; and second, many religious organizations would claim to be churches so as to obtain the benefits offered by civil government. As one court noted,
“We hasten to emphasize that by its use of the term ‘church,’ Congress must have intended a more narrow classification than that embodied by a term such as ‘religious organization.’ Despite the lack of guidance from Congress, and in the absence of a more explicit regulatory definition of the term ‘church,’ we will continue our efforts to give a distinct meaning to this statutory classification” (Foundation of Human Understanding v. Commissioner of Internal Revenue, 88 T.C. 1341, 1361; 1987 U.S. Tax Ct. LEXIS 75; 88 T.C. No. 75 (1987)).
In attempting to define “church,” the IRS has “given certain characteristics [14 criteria] which are generally attributed to churches” (IRS Publication 1828 (2007), p. 23). The court has recognized that 14-part test in determining whether a religious organization was a church. The 14 criteria are:
“(1) a distinct legal existence; “(2) a recognized creed and form of worship; “(3) a definite and distinct ecclesiastical government; “(4) a formal code of doctrine and discipline; “(5) a distinct religious history; “(6) a membership not associated with any other church or denomination; “(7) an organization of ordained ministers; “(8) ordained ministers selected after completing prescribed studies; “(9) a literature of its own; “(10) established places of worship; “(11) regular congregations; “(12) regular religious services; “(13) Sunday schools for religious instruction of the young; “(14) schools for the preparation of its ministers.” (American Guidance Foundation, Inc. v. United States, 490 F. Supp. 304 (D.D.C. 1980)).
“In addition to the 14 criteria enumerated above, the IRS will consider ‘[a]ny other facts and circumstances which may bear upon the organization’s claim for church status.’ Internal Revenue Manual 7(10)69, Exempt Organizations Examination Guidelines Handbook 321.3(3) (Apr. 5, 1982)” (88 T.C. at 1358).
The most glaring inaccuracy in the IRS criteria used to decide whether something is a church is the omission of God’s principles from the characteristics. When the natural man defines a church, he leaves God out; or, should he include God, he must have an incorrect conception and definition of God, since he does not know God. That is the most apparent problem with the IRS conception of a church. The natural man, as exemplified by the IRS characteristics of a church, overlooks the fact that Jesus is the one who builds and is the chief cornerstone of the church. If Jesus, and Jesus alone, is not the builder, there can be no church. Paul wrote, speaking to the church:
“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 growth unto an holy temple in the Lord: In whom ye also are builded together for an habitation of God through the Spirit” (Ep. 2.19-22).
The results of the attempts of the courts and IRS to define “church” are twofold: First, some of those “religious organizations” which are not “churches,” but have sought to be recognized by the civil government as “churches,” have been declared to be “churches” by the civil government; and second, New Testament churches which have sought and obtained incorporation and/or “tax exemption” have become legal entities and lost their status as New Testament churches solely under God.
The state and federal provisions and actions derived and resulting from those provisions which allow incorporation and declaration of tax exempt status of churches and religious organizations demonstrate:
(1) the wisdom embodied in the First Amendment which recognized that the civil government is not qualified to “make [any] law regarding an establishment of religion, or [to prevent] the free exercise thereof.”
(2) the undesirable consequences of deviation from the biblical principles that the church is a spiritual entity, the only spiritual institution ordained by God; the state is an earthly entity ordained by God to operate only within its God-given earthly jurisdiction; and that neither the church nor state should be over the other, but God should be over both.
(3) that the federal government (and the states since the incorporation of the First Amendment by the Fourteenth Amendment) violates the First Amendment when civil government provides for incorporation and tax-exempt status for churches or any other religious organization.
(4) most importantly, that most churches have abdicated their responsibility to honor their husband, the Lord Jesus Christ.
Just one illustration of what can happen when the civil government determines if an organization is a church, when IRS officials determine what constitutes a church within the meaning of IRC § 170(b)(1)(A)(i), follows. The threshold question in determining whether an organization is a church described in § 170(b)(1)(A)(i) is whether the organization qualifies as a religious organization described in § 501(c)(3). Using the 14-part IRS test to determine whether a religious organization was a church, IRS officials held that an organization with the following purpose as stated in its articles of incorporation and bylaws was a church: “[T]o establish an ecumenical church to help people learn to pay attention, wake up, and discover what both Christ and Buddha referred to as one’s true self” (Internal Revenue Service Private Letter Ruling 8833001, 1988 PRL LEXIS 1594). The ruling stated:
“The organization was established to develop an ecumenical form of religious practice, place greater significance on the modes of religious expression that would unify western and eastern modes of religious practice, place greater significance on the mystical or interior experience of religious truth than that of most western church denominations, and be more spiritually satisfying to members than other existing church organizations” (Ibid.).
In other words, the IRS determined that an organization whose purpose was directly contrary to the principles for a church laid down by the Lord in His Word was a church.
The lost and most believers have no clue as to the true meaning of “New Testament (First Amendment) church,” and America is not a nation under God. The civil governments in the United States, following Satan’s principles, have constructed a code that undermines incorporated 501(c)(3) and 508(c)(1)(A) religious organizations. Yet most American “Christians” are fearful and more concerned with pleasing civil government than they are in pleasing the Lord, more concerned with allowing their members to claim a tax deduction than with pleasing their Husband, the Lord Jesus Christ. The Savior grieves.
“Authority, The Greatest Thing In The Universe,” Dr. Greg Dixon 2005. This sermon explains the importance of authority and power and correct doctrine. It explains how great men of God can proceed according to some false doctrine and the consequences. For example, John and Charles Wesleys’ teachings led to the tongues movement and all its modern derivatives and adnerents such as TD Jakes, Joycd Meyers, Kenneth Hagan, etc.
“For as many as have sinned without law shall also perish without law: and as many as have sinned in the law shall be judged by the law; … In the day when God shall judge the secrets of men by Jesus Christ according to my gospel” (Romans 2.12, 16).
By intentionally preaching on politics before the upcoming election in defiance of the rule in Internal Revenue Code §501(c)(3) (“501c3”)(click the link to go directly to the law and read it for yourself), 1000 pastors plan to challenge the constitutionality of that provision. This article analyses their actions and intentions based upon a look at 501c3 in light of American civil law and Biblical principle and teaching.
American law says that hierarchal governance shall be in the following order: The constitution of the United States, those federal statutes that control states under the supremacy clause, the state constitution, state statute, and county and city ordinances. Thus, for example, when a person is charged with a crime for violating a city ordinance which forbids speech in the public forum (i.e., government owned property such as sidewalks and parks which have been traditional forums for free speech), one can move to quash the action based upon his United States and state constitutional rights to free speech. Of course, one’s constitutional right to free speech in a public forum does not apply to certain criminal activity such as obstructing the sidewalk by rendering the sidewalk impassable or rendering passage unreasonably inconvenient or hazardous after disobeying a reasonable request or order to move by a peace officer, fireman, or person with authority to control the use of the premises.
American hierarchal law is adequate to deal with a legal issue like the one presented in the preceding paragraph. However, in spite of its sufficiency in dealing with most temporal matters, it is incorrect and also inadequate. American hierarchal law does not recognize the highest law, God’s law as given in the Bible. God’s law is above man’s law whether man recognizes it or not. Civil governments, like individuals and churches, have a choice to make. God temporarily gives man free will because He wants man’s love. That which is forced can never be love. Thus, God allows civil governments to refuse to know and/or recognize that He is God. Nations who choose not to recognize God and operate within their God-ordained jurisdictions will ultimately be cursed according to their choice. Those who operate according to His principles will be blessed. No nation, individual or church can complain because reality, when looked at in the light provided by the Bible, gives man all he needs to know to make the right choice. Light ignored or rejected halts positive progress and brings ultimate undesirable consequences.
The author would note that God’s law teaches that civil government under God establishes separation of church and state and freedom of religion (which can also be called freedom of conscience or soul liberty) while at the same time recognizing His Supremacy, because, as stated in the last paragraph, God wants every man to have a choice (See “Is Separation of Church and State Found in the Constitution?“). Thus a nation under God will separate church and state and will guarantee religious freedom while at the same time recognizing God and keeping its own authority within the jurisdictional boundaries which God has established in His Word. Just because America does not recognize the highest law does not mean that God’s law is not in effect: Although the First Amendment to the United States Constitution still forbids and corresponding state constitutional provisions protect against religious establishment (union of church and state) and freedom of religion, due to her successful attempts to remove God from practically all civil government matters, America is beginning to suffer the inevitable consequences and is now a moral cesspool in which wickedness is the rule of the day.
Sadly, most of those who claim to know God and His law have accepted the American hierarchy of law as opposed to the Biblical hierarchy of law. Even the vast majority of pastors, men who should know better, claim that the Bible teaches that believers should obey every ordinance of man; and they cite Romans 13:1 or 1 Peter 2:13, out of context to support their position. (All these matters are dealt with on the “Separation of Church and State Law” website and also in books written by this author. Go to Render Unto God the Things that Are His: A Systematic Study of Romans 13 an Related Verses for an online version of the book which explains the true meaning of Romans 13:1, 1 Peter 2:13, and other related verses. Go to the Sermons page of “Separation of Church and State Law Website” to hear sermons on Romans 13, 1 Peter 2:13 and other relevant matters. See also, Endnote. Note. All Jerald Finney’s teachings can be accessed on his websites at no cost whatsoever.). They even go so far as to say that churches should incorporate and apply for 501c3 status, even though there is no ordinance of man in America requiring churches to do so. In fact, the laws of incorporation and 501c3 violate the First Amendment to the United States Constitution. (See infra).
A few years ago, the Alliance Defense Fund (“ADF”) had a pulpit initiative in which 100 pastors preached on politics in defiance of one of the several the rules they agreed to when they asked for and were granted 501c3 status. The ADF informed the Internal Revenue Service and widely advertised the date of their upcoming activity. After the date of their activity, the Internal Revenue Service simply ignored it. No action against the pastors and churches involved was taken.
Now, more than 1,000 pastors of churches who asked for and were granted 501c3 status are again planning to challenge the IRS next month by deliberately preaching politics ahead of the presidential election despite the law which forbids 501c3 churches and pastors from preaching on politics. (Go directly to “Pastors pledge to defy IRS, preach politics from pulpit ahead of election” by clicking link. The article is also reproduced in En2 below.). Their position is that prohibiting preachers from preaching on politics is unconstitutional; that the law violates the First Amendment to the United States Constitution. 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.”
A cursory examination of the law and the position of the 1,000 pastors quickly reveals the folly of their action. Is not the entirety of Internal Revenue Code §501(c)(3) unconstitutional as to its application to churches? Is not it a law respecting an establishment of religion and a law which prohibits the free exercise thereof? If so, and if the 1,000 pastors truly honor the Constitution, then why did they seek 501c3 status in the first place? Why did they and untold thousands of other pastors not cancel their 501c3 status in its entirety and legally attack the entire law as being unconstitutional as applied to churches? Of course they and this author know the reason. They incorrectly perceived that such status would be of benefit to them and the churches they pastor as they proceed with their attempts to build their mini-kingdoms on earth as well as to establish the Kingdom of Heaven on earth; attempts guided by humanistic and/or heretical, not Biblical concepts.
A non-501c3 church which is careful to operate as a spiritual entity only, not a legal entity, is protected by God and by the First Amendment. It is a First Amendment Church; it is, as to its organization, a New Testament church. The federal government and the Internal Revenue Service understand this. The author has thoroughly explained all these matters in some detail in his books and websites. He quotes directly from the Internal Revenue Code, Internal Revenue Service Regulations, and from various other legal sources. See En1. The First Amendment is a statement of the Biblical principles of separation of church and state and protects any church who does not become a legal entity such as a corporation, unincorporated association, or charitable trust and who does not obtain 501c3 or 508 status.
First Amendment churches have many benefits which a 501c3 or a 508 church does not have. First Amendment churches are free to preach whatever God leads them to preach without persecution. They please God in their manner of organization since they submit themselves to no head other than their Bridegroom and Husband, the Lord Jesus Christ. The members of First Amendment churches have greater protection against criminal and civil actions and liability than do members of corporate 501c3 churches. First Amendment churches, unlike 501c3 churches, can have the power of God if they also honor other Biblical precepts. Again, all these matters are explained in detail in Jerald Finney’s books and websites. Many churches in America are now operating without legal entity status and without 501c3 status.
These 1,000 pastors, according to the Bible, are proceeding without Biblical knowledge. They want their cake and to eat it too. They want the part of the unconstitutional law that they like, and they want to discard the part of the unconstitutional law they do not like, based upon a constitutional argument that only the part of the law which they do not like is unconstitutional. God is not going to honor their efforts, no matter the outcome of their actions. These pastors simply do not seem to possess the wisdom necessary to understand that God wishes His churches to be under Him only, that He is sufficient without the help of their other “lover,” and that he in fact is jealous of His churches. They do not realize that First Amendment churches in America can do much more for the Lord than can 501c3 churches since non-501c3 churches can have something that they can never have – the power of God. They miss the main point of it all: legal entity status for a church violates the Biblical principles of separation of church and state and the right to free exercise of religion. They should readily understand all this since they are seeking a resolution to the problem from their 501c3 authority, the federal government and her court system, to decide the issue; and they will be required, as 501c3 churches which have submitted themselves to the federal government, to honor the decision of their sovereign. They want the Internal Revenue Service to challenge their political preaching so they can challenge the IRS by going to federal court, the designated agent of their sovereign.
It is obvious to the Bible believer that God is very displeased with what they are doing. They do not understand that they gave up their First Amendment rights (their God-given freedoms) and placed themselves under the Fourteenth Amendment as to many matters when they intentionally became legal entities and/or asked for and received 501c3status. They do not and maybe cannot understand American law, God’s law, and the true hierarchy of law. They do not understand the truth of what the Bible teaches about church, government, and separation of church and state. They are not and will not be free until they believe, understand, and act according to God’s word. “Then said Jesus to those Jews which believed on him, If ye continue in my word, then are ye my disciples indeed; And ye shall know the truth, and the truth shall make you free” (John 8.31-32).
More than 1,000 pastors are planning to challenge the IRS next month by deliberately preaching politics ahead of the presidential election despite a federal ban on endorsements from the pulpit.
The defiant move, they hope, will prompt the IRS to enforce a 1954 tax code amendment that prohibits tax-exempt organizations, such as churches, from making political endorsements. Alliance Defending Freedom, which is holding the October summit, said it wants the IRS to press the matter so it can be decided in court. The group believes the law violates the First Amendment by “muzzling” preachers.
“The purpose is to make sure that the pastor — and not the IRS — decides what is said from the pulpit.”
– Erik Stanley, Alliance Defending Freedom
“The purpose is to make sure that the pastor — and not the IRS — decides what is said from the pulpit,” Erik Stanley, senior legal counsel for the group, told FoxNews.com. “It is a head-on constitutional challenge.”
Stanley said pastors attending the Oct. 7 “Pulpit Freedom Sunday” will “preach sermons that will talk about the candidates running for office” and then “make a specific recommendation.” The sermons will be recorded and sent to the IRS.
“We’re hoping the IRS will respond by doing what they have threatened,” he said. “We have to wait for it to be applied to a particular church or pastor so that we can challenge it in court. We don’t think it’s going to take long for a judge to strike this down as unconstitutional.”
An amendment was made to the IRS tax code in 1954, stating that tax-exempt organizations are “absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”
“Violation of this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise tax,” the IRS says in its online guide for churches and religious organizations seeking tax exemption.
Stanley and others, like San Diego pastor Jim Garlow, say the IRS regularly threatens churches that they will lose their tax-exempt status if they preach politics. But Stanley and Garlow claim the government never acts on the threat because it wants to avoid a court battle.
“It is blatantly unconstitutional,” said Stanley. “They just prefer to put out these vague statements and regulations and enforce it through a system of intimidation … Pastors are afraid to address anything political from the pulpit.”
“The IRS will send out notices from time to time and say you crossed the line,” added Garlow, a senior pastor of Skyline Wesleyan Church in San Diego. “But when it’s time to go to court, they close the case.”
A spokeswoman for the IRS did not comment on the matter and instead referred all inquiries to the government’s onlinehandbook.
Garlow and other pastors say their concerns over the code extend well beyond the law.
“I’m very concerned about the spiritual side of this,” Garlow told FoxNews.com. “There’s a phenomenon occurring in America and that’s a loss of religious liberty.”
“If I would have said 50 years that ‘Tearing up a baby in the womb is a bad thing,’ people would have said ‘Of course it is,’” Garlow said. “But If I said that today, people would say ‘Pastor, you’re being too political.”
Does the Word of God teach that churches in America should get Internal Revenue Code Section 501(c)(3) (“501c3”) status? What about civil law? Does American law purportedly require that churches get 501c3 status? This article will answer those questions.
Since you will probably want to know something about Jerald Finney before you give any consideration to his positions, this article will begin by providing you with a brief profile of Finney. At the end of the article are links to important Internal Revenue Code laws concerning churches as well as an important note.
The author is a Christian first and a lawyer second. He has no motive to mislead you. In fact, his motivation is to tell you the truth about this matter, and he guards himself against temptation on this and other issues by doing all he does at no charge. He does not seek riches. His motivation is his love for God first and for others second. His goal is the Glory of God. Jerald Finney has been saved since 1982. God called him to go to law school for His Glory. In obedience, Finney entered the University of Texas School of Law in 1990, was licensed and began to practice law, for the Glory of God, in November of 1993. To learn more about the author click the following link: About Jerald Finney.
The Bible makes clear that God desires that Christians love Him and He tells them what it means to love God. The relationship between God and his children is very important to Him. Likewise, the love relationship between God and His churches is preeminent to Him. After all, “Christ loved the church and gave himself for it” (Ep. 5:25). Do you understand God’s definition of love? Jerald Finney has covered this subject in the booklet, The Most Important Thing: Loving God and/or Winning Souls? which is available on the Order Information on Books by Jerald Finney page of this website, and also free on this website at The Most Important Thing: Loving God and/or Winning Soulsin online form as well as inPDFform. Of course, if one loves God, he will win souls.
The author realizes that there are different interpretations of Scripture on any given subject—there are false interpretations and one true interpretation. Christians, including the author, should do everything possible to make sure they correctly divide Scripture since the Bible commands them to do so. In fact, the biblical way for a Christian to make sure that he is right about an issue was given to Timothy and to all Christians by Paul: “Study to shew thyself approved unto God, a workman that needeth not to be ashamed, rightly dividing the word of truth” (2 Ti. 2.15). Most Christians rely totally or heavily upon their pastors for leadership in instruction in spiritual matters. Sometimes, as is the case with the author, they rely upon their pastors and others, and are also called themselves to deal specifically with an issue.
To totally understand all the issues and sub-issues involved with the 501c3, one must not only have extensive knowledge of biblical principles, but he must also have an understanding of history and law. You see, the issue of the relationship between church and state is very important to God and His Word completely explains His desired relationship. Historically, true Christians understood the importance of this relationship, and they stood up for their relationship even though they suffered greatly for their stand on this issue—they were imprisoned, drowned, beheaded, burned at the stake, hung, tortured, etc. because they loved their Savior and were willing to do all that He asked them to do.
With that said, let us now go to the issues—first the issue of the truth about civil government requirement that churches get 501c3 status. The unabashed truth is that civil government does not require churches in America to get 501c3 status. They do so completely voluntarily, just as they incorporate on a voluntary basis. Since there is absolutely no law that requires a church to get 501c3 status, no attorney, pastor, or anyone else can show you such a law.
In fact, there is a law that clearly states that you do not have to get 501c3 status: The First Amendment to the United States Constitution. The First Amendmentto the United States Constitution prohibits the making of any lawrespecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering with the right to peaceably assemble or prohibiting the petitioning for a governmental redress of grievances. It was adopted on December 15, 1791, as one of the ten amendments that constitute the Bill of Rights. The First Amendment 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.“
When I first wrote this article, I stated thatInternal Revenue Code § 508 (“508”) is a law that protects churches and states that churches are an exception to getting 501c3 status. That law explicitly states that churches are an exception to the requirement that certain organizations get 501c3 status. However, after years of study, I am convinced that a church should never claim 508 status. A church should rely on the First Amendment to the United States Constitution, not on 508.
508 is a law made by the federal government that regards and establishment of religion and prevents the free exercise thereof. Therefore, a church that agrees to 508 status has agreed to place herself under a law which is unconstitutional as applied to churches (a law which violates the First Amendment when applied to churches) thereby waiving First Amendment status and also weakening the First Amendment. The federal government can also argue that churches who claim 508 status have agreed to the rules of 501c3, since the state may argue that the federal government is granting the exemption under 508 and the church chose to depend upon 508 instead of the First Amendment. The Internal Revenue Service completely understands the First Amendment implications as to churches. The Internal Revenue Service states in Internal Revenue Code Publication 1828: “Unlike churches, religious organizations that wish to be tax exempt generally must apply to the IRS for tax-exempt status unless their gross receipts do not normally exceed $5,000 annually.” One may argue that this interpretation of 508 is too explicit, but the devil is in the details, and the legal system is expert in arguing the details. See, for more thorough explanation, Church Internal Revenue Code § 508 Tax Exempt Status.
A 501c3 church also has many regulations which it is required to honor. See Publication 4221: Compliance Guide for Tax Exempt Organizations(“Federal tax law provides tax benefits to nonprofit organizations recognized as exempt from federal income tax under section 501(a) of the Internal Revenue Code (the Code). The Code requires that tax-exempt organizations comply with federal tax law to maintain tax-exempt status and avoid penalties….”).
In spite of the irrefutable fact that churches are not required to get 501c3, many Christians will tell you that Romans 13 requires that churches get 501c3 status. Of course, that is a ridiculous statement, since American law clearly gives each church a choice in the matter. No “ordinance of man” requires churches to get 501c3; therefore, churches cannot violate an ordinance which does not exist. To repeat, does God require that a church get 501c3? Of course not, and no “ordinance of man” purportedly requires man to get 501c3.
Another important question, although not at all relevant (as we have seen) to the issue of whether churches in America are required to get 501c3, is this: “If God is against a church obeying a certain civil law, even if the civil law purportedly requires churches to obey that law, is man to obey the civil law?” When one does an honest and systematic biblical study of the issues involved, the answer becomes very clear. The author has done such a study and has written and taught on this very issue. He has written four books that cover the biblical principles as well as history and law. Again, those books are available free on this website in online form as well as in PDF form or may be ordered in paperback. See Order information, free PDF, and free online version page for books by Jerald Finney.
This article will just mention a few Biblical principles and teachings. Clearly, when a man-made law conflicts with God’s law, Christians are instructed by God to obey God’s law. All the apostles, except John, were martyred for adhering to this principle. Likewise, as mentioned above, Christians down through the ages in and since the primitive church have stood on this principle.
The Bible teaches that God is sovereign over all, and that He ordained all powers that be. Thus, God established or ordained civil government. He gave civil government the responsibility for ruling over men, under Him. He also gave man free will. Since civil government is run by a man, or by men, civil government, like man, is free, under God to honor or dishonor Him and His principles. Of course, God desires that civil government honor Him, but sadly, civil governments rarely do so, and they never permanently do so in this age. This is the clear teaching of history.
To interpret Romans 13 and other verses to mean that Christians are to obey all civil laws which contradict God’s law would mean that Romans 13 is inconsistent in both the immediate and overall context of Scripture. Many Old Testament characters, the apostles, God, God’s own angels, and Christians throughout the last 2000 years who have refused to honor laws of men which require God’s children to submit to man rather than to proceed under God only in certain matters, violated the modern American interpretation of Romans 13. The author goes into all the details on this matter in Render unto God the Things that Are His: A Systematic Study of Romans 13 and Related Verses and in God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (The book is in online form atRender unto God the Things that Are His: A Systematic Study of Romans 13 and Related Verses. Also, click the following links for other articles which teach on this matter: Separation of Church and God, American Abuse of Romans 13:1-2, An Abridged History of the First Amendment.
In conclusion, churches who get 501c3 dishonor the Lord and His principles concerning His desired relationship between church and state. Christians are responsible to God to study His Word and make the practical application of His Word to real life. The relationship between Christ and His churches is very important to Him: “Husbands, love your wives, even as Christ also loved the church, and gave himself for it; 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” (Ep. 5.25-27).
That relationship has been so important to Christians since the beginning of the Church that they have been willing to die rather than to dishonor it. How important is that relationship to you and your church?
You can read the following Internal Revenue Code laws online by clicking the following links:
1.§ 501(c)(3). Exemption from tax on corporations, certain trusts, etc. 2.§ 508. Special rules with respect to section 501(c)(3) organizations 3.§ 7611. Restrictions on church tax inquiries and examinations 4.§ 1402. [Dealing with taxes on income of pastors] 5.§ 107. Rental value of parsonages 6.§ 102. Gifts and inheritances (According to Internal Revenue Code § 102tithes and offerings are gifts and, therefore, , not income) 7.§ 2503. Taxable gifts 8.§ 170. Charitable, etc., contributions and gifts
Note. Should you desire to know how your church can organize according to both biblical principles and also within the parameters of American law contact Jerald Finney, a licensed lawyer. Click here for contact information for Jerald Finney.
All conclusions in this article are opinions of the author. Please do not attempt to act in the legal system if you are not a lawyer, even if you are a born-again Christian. Many questions and finer points of the law and the interpretation of the law cannot be properly understood by a simple facial reading of a civil law. For a born-again Christian to understand American law, litigation, and the legal system as well as spiritual matters within the legal system requires years of study and practice of law as well as years of study of Biblical principles, including study of the Biblical doctrines of government, church, and separation of church and state. You can always find a lawyer or Christian who will agree with the position that an American church should become incorporated and get 501(c)(3) status. Jerald Finney will discuss the matter, as time avails, with any such person, with confidence that his position is supported by God’s Word, history, and law. He is always willing, free of charge and with love, to support his belief that for a church to submit herself to civil government in any manner grieves our Lord and ultimately results in undesirable consequences. He does not have unlimited time to talk to individuals. However, he will teach or debate groups, and will point individuals to resources which fully explain his positions.
Jerald Finney, a Christian Lawyer, having received this ministry in the Lord, explains how a church in America can remain under the Lord Jesus Christ and Him only. "As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God. If any man speak, let him speak as the oracles of God; if any man minister, let him do it as of the ability which God giveth: that God in all things may be glorified through Jesus Christ, to whom be praise and dominion for ever and ever. Amen" (1 Peter 4:10-11; See also, Ephesians 4::1-16 and 1 Corinthians 12:1-25). "Take heed to the ministry which thou hast received in the Lord, that thou fulfil it" (Colossians 4:17). "And hath put all things under his feet, and gave him to be the head over all things to the church" (Ephesians 1.22; See also, e.g. Colossians 1:18).