Some define corporation to mean “a human being with no soul;” of course this statement makes an important point even though it is not literally true. A corporation is not a human being, but it is an “artificial person” (a legal fiction) who acts legally, by, for example, entering into contracts, buying and selling property, suing and being sued. And, as an “artificial person” with no soul, the corporation, whether profit or not for profit, will act accordingly. Human beings with souls in a corporation act within an unnatural, soulless, Godless, state-created fiction; because of the contracts created by their act of incorporation, all disputes can be taken to secular courts where only man’s law and rules will be tolerated; do not try to argue God’s law in that environment. The “church” non-profit corporation will be polluted to some degree, greater or lesser, by the immoral, soulless part of the two-headed monster.
Many secularists understand the nature of incorporation. The statements in a recent article on corporations “Corporations had been viewed as artificial persons for millennia” (click the blue title to go to the article) gives some of the characteristics of incorporation. I urge the interested reader to read that article. The article concerns business corporations; but, although some of what the article says cannot be applied to church incorporation, much of what the article says is applicable to non-profit church corporations. I have explained the intricacies of church incorporation in the Section VI of God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (PDF, Online Version, Ordering Information) and in Separation of Church and State (PDF, Online Version, Ordering Information). Those resources thoroughly analyze church incorporation for the believer who has an open mind, some degree of intellect, and some Bible knowledge and wisdom about the principles of church, state, and separation of church and state—those requirements eliminate most believers and pastors, especially fundamental Baptist pastors.
Some of the assertions in the article are applicable to non-profit corporations but some are not. The following are applicable to church incorporation (Quotes from the article are in parentheses. The bold material in brackets  below are my notes, comments, and additions.):
“Corporations had been viewed as artificial persons for millennia, the debate over whether they should be afforded the same rights as humans had been raging long before the United States created, or the 14th Amendment was adopted. The degree of permissible government interference in corporate affairs was controversial from the earliest days of the nation.”
“Corporations as legal entities have always been able to perform commercial activities, similar to a person acting as a sole proprietor, such as entering into a contract or owning property. Therefore corporations have always had a ‘legal personality’ for the purposes of conducting business while shielding individual shareholders from personal liability (i.e., protecting personal assets which were not invested in the corporation).”
“Corporate personhood is the legal concept that a corporation may be recognized as an individual in the eyes of the law. This doctrine forms the basis for legal recognition that corporations, as groups of people, may hold and exercise certain rights under the common law and the U.S. Constitution. The doctrine does not grant to corporations all of the rights of citizens.”
“As a matter of interpretation of the word ‘person’ in the Fourteenth Amendment, U.S. courts have extended certain constitutional protections to corporations. Opponents of corporate personhood seek to amend the U.S. Constitution to limit these rights to those provided by state law and state constitutions.”
[I explain how a church, by incorporating, gives up her First Amendment status and places herself to a large degree under the Fourteenth Amendment in the God Betrayed and Separation of Church and State. Non-incorporated churches (and churches which do not become legal entities in some other manner other than incorporation) are protected by the religion clause of the First Amendment, whereas, of course, the First Amendment religion clause gives no protection to a business. The religion clause is a statement of biblical principles (separation of church and state (the establishment clause) and soul liberty or freedom of conscious (the free exercise clause).]
“The basis for allowing corporations to assert protection under the U.S. Constitution is that they are organizations of people, and the people should not be deprived of their constitutional rights when they act collectively. In this view, treating corporations as “persons” is a convenient legal fiction which allows corporations to sue and to be sued, provides a single entity for easier taxation…, simplifies complex transactions which would otherwise involve, in the case of large corporations, thousands of people, and protects the individual rights of the shareholders as well as the right of association.”
“Generally, corporations are not able to claim constitutional protections which would not otherwise be available to persons acting as a group. For example, the Supreme Court has not recognized a Fifth Amendment right against self-incrimination for a corporation, since the right can be exercised only on an individual basis.”
[A New Testament (First Amendment) church can claim First Amendment religion clause protection whereas a corporation cannot. Since a New Testament church, unlike a corporation, is a not a legal entity, she cannot sue, be sued, or act legally. Churches which become incorporated begin to act like corporate businesses in may ways.]
“Corporations are NOT people.While it is true that what guides them is the human activity of their executives, boards of directors, managers and employees, all the human emotional factors of the people in the corporation pass through a “filter” created by the two basic rules: (a) Maximize profit (b) Do whatever is necessary to continue the business.”(Rule a should be modified when it conflicts with rule b).”
[In a church corporation, the officers of the corporation operate an entity whose organization, goals, structure, morality, piety, and officers are mandated by state law in direct contradiction to the organization, goals, structure, morality, piety, and officers given by God’s Holy Bible in the New Testament.]
“It is a slippery road to give personal rights to corporations. The corporation is an amoral entity, i.e., not governed by human moral values. It lacks guilt for what it does, or empathy for those it harms. What’s worse, this “sociopathic” entity is given the rights of a human being, but not similar responsibilities. A corporation is particularly dangerous because of its great concentration of money, power, and political influence–which it uses freely to reach its goals.”
[These realities are clearly seen in the Catholic “church” (not incorporated), and also in incorporated Fundamental Baptist Churches. A prime example of the latter is First Baptist Church of Hammond, Indiana. See the article “Jack Schaap, First Baptist of Hammond, Heresy and Apostasy.” One can also do a google search to see the reactions of the church lawyer (David Gibbs) and the church members of First Baptist of Hammond for more confirmation. This scenario has played out on a smaller scale in many other Fundamental Baptist Churches, including the offspring, followers, and worshipers of First Baptist of Hammond and her pastors.]
Other parts of the article (the parts dealing with rights of corporations to make political expenditures under the First Amendment free speech clause, the role corporate money plays and should play in democratic politics, the dangers of giving too much power to corporations to allow corporations to participate directly on political campaigns as a threat to democracy) apply to some degree to church corporations. All one has to do is look at the operations of, for example, the average “fundamental church and her pastor, the average seminary or Bible college and what they teach, and the words and activities of the lawyers involved with those institutions to see the application of those matters. That is all the author will say about that in this brief article.
Fundamental Baptist tradition perceives the truth to be that churches are to incorporate and get 28 U.S.C. Section 501(c)(3) status. At the same time, that tradition preaches that the Bible is to be the sole source of truth. The reality is that the biblical doctrines of church, state, and separation of church and state disprove the first mentioned Baptist tradition. But after all, it is the perception of the truth, not the truth, that matters.
“When the righteous are in authority, the people rejoice: but when the wicked beareth rule, the people mourn” (Pr. 29.2). “Evil men understand not judgment: but they that seek the LORD understand all things” (Pr. 28.5). “The wicked shall be turned into hell, and all the nations that forget God” (Ps. 9.17).
“The First Amendment has erected a wall between church and state. That wall must be kept high and impregnable. We could not approve the slightest breach” (Everson v. Board of Education, 330 U.S. 1 at 18, 91 L. Ed. 711, 67 S. Ct. 504, 168 A.L.R. 1392 (1947), reh’g denied 330 U.S. 855, 91 L. Ed. 1297, 67 S. Ct. 962, p. 18).
With Everson, “establishment of religion” became something entirely different from what it had been to that point. Eventually, the new rationale of the Court in Everson, all taken together, while honoring the historical First Amendment and biblical principle of separation of church and state, would lead to the removal, or the attempt to remove, any vestige of God from civil government affairs. Even when the Court would allow the mention of God, it was with the understanding that God was only historical and of no significance. God, the Ruler of the universe, the Ultimate Lawmaker, and the Judge of the Supreme Court of the universe, gave United States Supreme Court Justices freedom to rebel, albeit not without grave consequences.
Chapter 1 Introduction to “Religion Clause Jurisprudence”
Because of failure to understand, believe, and apply God’s principles, the “religious” jurisprudence in the United States has been on a slippery downhill slope of confusion and destruction since the ratification of the Constitution and the Bill of Rights. At first the slope was nonexistent or slight, but starting in the mid-twentieth century the grade increased. The United States Supreme Court added new meaning to “separation of church and state,” meaning which was used to remove all vestiges of God from public life and public view.
While upholding the original meaning of the First Amendment religion clause, the Supreme Court has supplemented the original meaning of that clause. The original meaning of the religion clause was to protect the church from state regulation and the state from church regulation.
“The constitutional inhibition of legislation on the subject of religion has a double aspect. On the one hand it forestalls compulsion by law of the acceptance of any creed or the practice of any form of worship…. On the other hand, it safeguards the free exercise of the chosen form of religion…. The interrelation of the ‘establishment’ and ‘free exercise’ clauses [according to the United States Supreme Court] has been well summarized as follows: ‘The structure of our government has, for the preservation of civil liberty, rescued the temporal institutions from religious interference. On the other hand, it has secured religious liberty from the invasion of the civil authority’” (Donald T. Kramer, J.D. Annotation: Supreme Court Cases Involving Establishment and Freedom of Religion Clauses of Federal Constitution, 37 L. Ed. 2d 1147 § 2 citing Everson).
The First Amendment was meant to prevent “the establishment of a religion” and to “protect the free exercise thereof.” In other words, religion, including churches, according to the First Amendment religion clause, are to work under, hand and hand with, or over the state. The Court still upholds the “high and impregnable” wall between church and state. A wall separates two sides each from the other. This concept of separation of church and state is the principle God established for Gentile nations.
However, the twentieth century Court has added an additional aspect to the First Amendment religion clause. The Supreme Court, while proclaiming that the First Amendment guarantee of biblical separation of church and state is still in effect, also supplemented the religion clause to require separation of God and state.
History is clear about the fact that the God of the Bible was honored by the people, and especially the great majority of leaders, of America at the time of the founding of the nation and for sometime thereafter (See, e.g., Jerald Finney, God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (Austin, TX: Kerygma Publishing Co., 2008), Section V and the many books cited therein). The people of America knew that the God of the Bible was the only true God.
The nineteenth century Supreme Court held a different view from the modern Court. The nineteenth century Court looked to historical facts to support its contention that this was a Christian nation. Although the Constitution established a nation upon a blend of enligntenment and biblical principles, the nineteenth century court selected partial facts without understanding and incorrectly contended that America was a “Christian” nation (Rector, Etc., of Holy Trinity Church v. United States, 143 U.S. 457, 12 S. Ct. 511 (1892)). When the unregenerate dominated the Court in the twentieth and twenty-first centuries, the Court looked to an incomplete version of historical facts and to a new twist on the First Amendment to remove God from all public affairs and to effectively declare that this is not a Christian nation. At the same time, the Court proclaimed that the original meaning of the First Amendment religion clause is still in effect.
The Supreme Court did two things which ultimately resulted in the assurance that God and His principles would not in any way be over the United States or any state therein. First, it gradually deconstructed the intent of the Fourteenth Amendment to the point where the Court began to apply the First Amendment to state, county, and city governments.
Second, the Supreme Court redefined separation of church and state in such a way that allowed the Court to begin to separate God and state on the national, state, county, and city government levels. The twentieth century Court operated in a nation where the state got into areas where it had no God-given and/or Constitutional jurisdiction—education of children, welfare, retirement (social security), childcare, income taxation, etc. In this new environment, the Court redefined “separation of church and state” in such a way that God and state were separated, thereby ensuring the degradation of the nation into gross immorality on a national scale and the ultimate judgment of God upon the nation. God was excluded from the public life of the nation and a pluralistic nation resulted. For the Supreme Court, the term “religion” became a way to categorize spiritual matters in any way connected to “church,” to “God,” or to “a god.” Even should the Court permit a vestige of God to remain, such permission was granted in a pejorative manner which dishonored God. An example is recent Ten Commandments jurisprudence which is discussed in the articles which follow in this section.
According to the modern Supreme Court, the civil government is to remain neutral as to “religion.” “The First Amendment reflects the philosophy that church and state should be separated. Yet it neither says nor requires that in every conceivable respect there must be a total separation of church and state. Thus, while laws giving direct aid to religion are not permitted, laws which incidentally benefit religion are not, for that reason alone, invalid…. All that is required is that the government stand neutral between one religion and another, and between religion and nonbelief, and not become excessively entangled in the affairs of religion…” (Kramer, § 2).
This neutrality toward “religion,” as defined and applied by the Court, was interpreted to be not only neutrality toward religion, but also hostility toward God. God, His authority, and His principles were deemed inapplicable to the affairs of the civil government. The Court made the decision for the nation: “God, you are out. You are at best equal to nonbelief and to the gods of all other ‘religions.’” Too bad for the nation that the nation is not the sovereign. God is the Sovereign who has allowed the nation to make its temporary and self-destructive choice.
At the same time, the original meaning of the religion clause is generally upheld by the Supreme Court. The Supreme Court still declares that the original meaning of the First Amendment, forbidding the state to interfere in the affairs of a church and vice-versa, is still in effect. The Court still declares the “wall of separation between church and state” to be “high and impregnable.” The original intent of the First Amendment establishment clause—that the state not be over the church nor the church over the state and that people be free to exercise their religious beliefs (as long as those beliefs do not run afoul of criminal law)—has consistently been proclaimed by the Supreme Court. See, The History of the First Amendment.
As is explained in Section VI of God Betrayed, the position of the Supreme Court which has upheld the separation of church and state has been skirted by the legislative and executive branches through laws which have lured most churches to place themselves under the civil government through legal entity status such as incorporation and 501(c)(3) and by presidential “faith based initiatives.” As far as the author has been able to ascertain, the courts have never been asked to rule on the constitutionality of such legislation and presidential actions.
Certainly many “Christian” and all secular authors have no knowledge or understanding of the Word of God. Therefore, their arguments are foolish. Many Christians and secularists correctly point out that the terms “separation of church and state,” “church,” “state,” and “separation” do not appear in the Constitution (See Leo Pfeffer, Church, State, and Freedom (Boston: The Beacon Press, 1953), p. 118 citing Edwin S. Corwin, Constitution of Powers in a Secular State, (Charlottesville, Virginia: Michie Co., 1951), p. 98). Christians use that fact to argue that church and state should work together, or that the church should be involved with the state. Admittedly, individual Christians, not churches, should, if God so directs, become involved in the civil government; and both New Testament churches and Christians should communicate their political beliefs including who to vote for based upon biblical standards applied to the beliefs of the candidates. Nonetheless, this is a poor argument for Christians to use because God wants separation of church and state in Gentile nations (See The Biblical Doctrine of Separation of Church and State) and because the Constitution provided for separation of church and state. The correct argument for the Christian is that the people and the leaders should place the Sovereign, that is, God over the state in the manner already explained in these studies and that God desires that every man have the religious liberty as guaranteed by the First Amendment which separates church and state.
Secularist arguments in support of a complete removal of God from all civil governmental affairs are equally invalid. For example, Leo Pfeffer, a constitutional scholar, asserted that “it was inevitable that some convenient term [‘separation of church and state’] should come into existence to verbalize a principle so clearly and widely held by the American people.” I question whether the overwhelming majority of Americans clearly and widely can or could intelligently discuss the subject now or when Pfeffer wrote. In support of this argument, he asked, “Who would deny that ‘religious liberty’ is a constitutional principle [even though] that phrase is not in the Constitution” (Pfeffer, p. 119)? His writings and advocacy as a lawyer, including his advocacy before the Supreme Court, make clear that his idea of religious liberty—to remove God from state affairs—was entirely different from the biblical principle. He had absolutely no spiritual understanding. He was used by the god of this world to advocate for a “Godless” civil government.
Thus, one reason for America’s rapid slide downhill has been the lack of knowledge and understanding of biblical principles—this can be related to the fact that the Constitution itself was a blend of biblical and enlightenment principles. Even though some biblical principles were inherent in the structure of the Constitution and the First Amendment provided for religious liberty and separation of church and state, the Constitution did not declare that the goal of the nation was the glory of God. The Constitution did not declare that God, and specifically the Lord Jesus Christ, was Sovereign over the nation. The nation was not, according to its highest statement of law, required to turn to the principles of the Bible in deciding its questions of law, to recognize God in its official prayers and organic utterances, or to point out that the God of the Bible, the Lord Jesus Christ, was the Sovereign over all institutions including individual, family, nation, and church. Since the body of the Constitution made no mention of God, and since certain enlightenment principles were embodied into the Constitution, the document itself is of little help to those who support biblical principles and argue that this nation as founded was a “Christian” nation, or a nation under God. This can be discerned from numerous Supreme Court opinions as exemplified infra in this section.
The Constitution, while separating church and state, also failed to declare that God was to be over the state. In the early history of the new nation, many referred to the need for religion, or even “God” to be involved in the state. The New York Methodist church in 1808 promoted the spread of the Gospel over the entire earth, and fought humanism with Scriptural truth and holy living. Christians used their vote to elect Christians who would uphold their Christian ideas.
“The Rev. John Mason preached that ‘the principles of the gospel are to regulate [people’s] political as well as their other conduct.’ He scoffed at the idea that ‘religion has nothing to do with politics!’ asking rhetorically, ‘Where did you learn this maxim?’ To the contrary, he offered, ‘the Bible is full of directions for your behavior as citizens,’ citing in example Col. 3:17 ‘And whatsoever ye do in word or deed, to do all in the name of the Lord Jesus.’ Other New York ministers expressed similar sentiments to their congregations, representing civil government as a ‘subsidiary’ to God’s grand design of preparing saints for the future and ‘the civil magistrate as God’s officer.’ … “[Thomas Jefferson stated ‘The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbors to say there are twenty gods or no god. It neither picks my pockets, nor breaks my leg.’]. Mason wrote: ‘This is nothing less than representing civil society as founded in Atheism. For there can be no religion without God. And if it does me or my neighbor no injury, to subvert the very foundation of religion, by denying the being of God, then religion is not one of the constituent principles of society, and consequently society is perfect without it’” (Mark Douglas McGarvie, One Nation Under Law: America’s Early National Struggles to Separate Church and State (DeKalb, Illinois: Northern Illinois University Press, 2005), pp. 124-125).
It is disputed whether Jefferson advocated public abstention in matters of religion, but many clergymen felt that he was atheistic.
“Public abstention amounted to the denial of a single religious truth; and once a government rejects the idea of one religious truth, it is rendered unable to act upon any religious doctrine in constricting the laws, values, and policy aims of that society. But the idea that any God could himself, or herself or itself, be relativistic is absurd—how can any true living God accept all suggestions of his, her, or its own existence as merely speculative or one of many unprovable theories? If God could not accept religious relativism, how could America? The advocacy of religious relativism is logically inconsistent with the acceptance of any true, living God. Accordingly, the ministers insisted that when a government assumed such a position, it rejected the existence of God as well as God’s role in governing” (Ibid.).
Generally speaking, the people of the United States, against an increasing current of liberalism, have determined the course of the nation. As long as the nation had a predominantly Christian population, God was honored to a degree in the public life of the nation, although Christian values, even in the early life of the new nation, were gradually being undermined by non-Christian principles in the legal arena. America, with all its faults, to an extent proceeded “under God” for over a hundred and fifty years even though the nation’s highest law, the Constitution, had, on its face, been about “the happiness of man” and not the “glory of God” from the beginning—this fact is apparent from a facial reading of the document as well as from a study of history before, during, and after ratification.
Great revivals occurred at the time the Constitution was ratified and for some time thereafter, and multitudes were saved. As a result, the nation was saturated with Christians, and the integrity of the nation was thereby preserved to an extent. On the other hand, the legal system began to apply enlightenment principles to redefine marriage, the family, the church, criminal law, and the law in general. Although an examination of this movement is beyond the scope of this book, it is important to have at least a rudimentary understanding of the context in which future First Amendment jurisprudence unfolded.
Because the population was predominantly Christian, or at least honored the Bible and God to an extent, American civil government, to a great degree, initially operated under God. Many Supreme Court justices and the majority of Americans in the nineteenth century were either Christian or at least had a reverence for the Bible and Christianity. In 1892, the Court declared that this nation would go by the principles of Christianity, not by the principles of other religions which the Court called imposters of the true religion (Rector, Etc., of Holy Trinity Church v. United States). God was honored by some, if not most, civil government organizations and officials in their official public proclamations, speeches, and prayers. Official prayers were given in Jesus’ name. God was recognized by leaders and judges who acknowledged that only the God of the Bible could bring blessings and curses to the nation. Among the myriad examples is the Thanksgiving Day Proclamation of President George Washington:
“Whereas it is the duty of all Nations to acknowledge the providence of Almighty God, to obey his will to be grateful for his benefits, and humbly implore his protection and favor, and Whereas both Houses of Congress have by their joint Committee requested me to ‘recommend to the People of the United States a day of public thanks-giving and prayer to be observed by acknowledging with grateful hearts the many signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness.
“Now, therefore, I do recommend and assign Thursday, the 26th day of November, next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then unite in rendering unto Him our sincere and humble thanks for His [many blessings before becoming a nation, during the late war, etc.]….
“And also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations, and beseech Him to pardon our national and other transgressions…” (Norman Cousins, In God We Trust (Kingsport, Tennessee: Kingsport Press, Inc., 1958), pp. 71-72; quoted only in part. Notice that even President Washington included the purpose of the nation as being the “safety and happiness” of the people.). [Emphasis mine to show enlightenment influence.]
Things have changed. Although the First Amendment to the Constitution states that “Congress shall make no law regarding an establishment of religion or preventing the free exercise thereof,” the civil government, contrary to the mandate of that amendment, through laws passed by Congress and approved by the President, controls and even defines the corporate 501(c)(3) religious organization and undermines such organizations with the promotion and support of most and participation by some “Christians.”
The Supreme Court has not had to attack the churches to subjugate them to the civil government. Most churches have taken themselves from under the jurisdiction of God and placed themselves under the civil government through incorporation and Internal Revenue Code (“IRC”) § 501(c)(3) status. Churches have done this even though the federal government acknowledges that churches are different from “religious organizations” and that the civil government has no requirement for a church to be under the state—a church can only voluntarily place itself under the state. Satan would much prefer that churches come to him willingly. Regrettably, most Christians are members of a corporate 501(c)(3) church (This aspect of civil government control of churches is covered in Section VI of God Betrayed which is reproduced on this blog.). Many Christians in incorporated 501(c)(3) religious organizations are discovering the truth, but have no knowledge about how to disentangle their churches from the state; others simply ignore the issue and continue in their polluted state.
Why have some “Christians,” as well as the Supreme Court and other branches of government, not recognized that a church is to be entirely under God and that the civil government has limited jurisdiction under God? The answers to these questions are very simple: Some “Christians” and Supreme Court justices and other civil government leaders and officials have no understanding of biblical principles or of the history of their nation concerning government (which includes the all-powerful government of God, self-government, family government, civil government, and church government), church, separation of church and state, and the proper relationship between God and state and God and His churches. They simply do not understand that God is the Sovereign over all, that God gives all civil governments the choice of whether to recognize His sovereignty and operate under His rules, and the consequences of the choices made. They have been deceived by false secular and “Christian” teaching in those areas. As a result, even “Christians” advance secular principles and arguments rather than God-honoring biblical principles and arguments.
Since man does not gravitate towards God’s principles, but rather toward Satan’s principles, the Christian population of the nation decreased steadily and is now a very small remnant. A Christian population honored God individually and as a nation, to a degree, regardless of the wording of the Constitution. A Christian population applied a more biblical interpretation and understanding of the First Amendment. A non-Christian population seeks the lowest level. America is rapidly sinking to that level and is now near rock bottom.
Much of the writing concerning the First Amendment is confusing and certainly untrue since the understanding of the history of the amendment has been revised by both secular and Christian writers. Generally, either nothing is said about, or lies and revisions are dissiminated about, the power of God, His principles, and the warfare between those principles and the false versions of those principles in the theologies of many “churches” and denominations and in the revised histories of colonial America and the United States. When God and His principles are left out, revised, and/or lied about in the discussion of anything (as is almost always the case), the path is only downward toward judgment. “The fear of the LORD is the beginning of wisdom: and the knowledge of the holy is understanding” (Pr. 9.10). “[T]he foolishness of God is wiser than men; and the weakness of God is stronger than men” (1 Co. 1.25). “But the natural man receiveth not the things of the Spirit of God: for they are foolishness unto him: neither can he know them, because they are spiritually discerned” (1 Co. 2.14). “For the wisdom of this world is foolishness with God. For it is written, He taketh the wise in their own craftiness. And again, The Lord knoweth the thoughts of the wise, that they are vain” (1 Co. 3.19-20).
Do you know how the Supreme Court has gone about removing God from practically all civil government matters? Don’t feel bad if you don’t know the answer to that question because most Christians in America have not had time to do the intense study required to understand this issue. If you are interested in knowing the answer, the following audio teaching will give you a basic understanding of the history of Supreme Court religion clause jurisprudence.
To play, just click the link. To download, right click link and then left click “Save link as.”
Even though the Supreme Court has used the religion clause and the term “separation of church and state” to remove God and create a pluralistic nation, the Court still recognizes the original meaning of the clause. Churches can still choose to operate under God only and be in line with the First Amendment and the Supreme Court interpretation of the Amendment. In other words, churches can, without violating man’s law and/or being persecuted, choose not to become legal entities such incorporate, become corporations sole or unincorporated associations and get the 501(c)(3) tax exemption. In other words, they can choose to remain “First Amendment” churches organized according to the principles of the New Testament without being persecuted.
Left click the above link to hear Jerald Finney teaching on this subject. Right click the link and then left click “Save link as…” to download. The teaching is preceded by a hymn sang by Rocky Otwell, a great man of God, and prayer. The teaching is approximately 25 minutes, not including the song.
“And the lord commended the unjust steward, because he had done wisely: for the children of this world are in their generation wiser than the children of light” (Lu. 16.8b).
It is amazing to see that most of the fundamental “Bible believing” pastors and Christians that I know believe that something is wrong with a church who refuses to incorporate and get Internal Revenue Code (“IRC”) §501(c)(3) (“501(c)(3)”) status. Biblical principles are against incorporation and 501(c)(3) for churches, and civil law does not purport to require that churches get either corporate or 501(c)(3) status. In fact, the First Amendment to the United States Constitution, laws, and regulations of the federal government as well as the constitutions, laws, and regulations of the states guarantee that churches may remain free under God without persecution. This article addresses church 501(c)(3) status.
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.
The more I study the subject of “separation of church and state,” the more I realize that secular scholars have more insight into the issue than do most of those, including pastors, who call themselves fundamental Bible believers. Both the Internal Revenue Service and secular scholars know that churches are not required by law to be incorporated and get 501(c)(3) status and that 501(c)(3), as applied to churches, is an exemption-definition-control scheme which is implemented simply by invitation. In this article I give a brief review of the 501(c)(3) exemption-control-definition scheme and insights from the law, from the Internal Revenue Service, and from legal scholars.
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, and
5. the organization’s purposes and activities may not be illegal or violate fundamental public policy.
The above listed rules, except for rule number 5, are stated in 501(c)(3). The original 501(c)(3) law had no accompanying rules, but four of the five were added by legislative enactment, and signed into law by the president. The last one, “may not violate fundamental public policy,”is not stated in the law; that is, it is not listed as a requirement in § 501(c)(3). This requirement was unilaterally implemented by the Internal Revenue Service and upheld as law by the United States Supreme Court in the illogical Bob Jones University, 461 U.S. 574, (1983) case. The federal government may add additional requirements to the law in the future.
Under these rules, 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 wants to control churches, and does so through 501(c)(3).
A study of relevant law, as well as IRS regulations and legal scholarship reveals that 501(c)(3) is voluntary and that it is a control-definition scheme.
IRC § 508(a),(c), in line with the First Amendment, says churches are excepted from obtaining § 501(c)(3) tax exempt status. In other words, churches are non-taxable; and, therefore, churches are an exception to the civil government requirement that certain organizations file for 501(c)(3) tax exempt status. Thus, the law recognizes that a New Testament Church is non-taxable under the First Amendment to the United States Constitution.
The IRS doesn’t hide the fact that churches are non-taxable under the First Amendment and IRC § 508(a),(c) and that the exemption-definition-control scheme is implemented by invitation. The IRS proclaims in IRS Publication 1828 (2007):
“Although there is no requirement to do so, many churches seek recognition of tax-exempt status from the IRS because such recognition assures church leaders, members, and contributors that the church is recognized as exempt and qualifies for related tax benefits…. 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.”
In the exemption and restriction scheme, the government extends an invitation to incorporated “religious organizations” to receive a tax exemption in return for allowing the government to interpret and categorize their expression and activities.
Civil government not only knows what it is doing when encouraging churches to incorporate and seek 501(C)(3) status; it also blatantly belittles the fact that the IRC provisions exempting churches from taxation and providing for certain controls over corporate 501(c)(3) “churches” are contrary to the First Amendment. The federal government flaunts the lack of knowledge and understanding of the average Christian as to both spiritual and earthly matters. IRS Publication 1828 states:
“Congress has enacted special tax laws applicable to churches, religious organizations, and ministers in recognition of their unique status in American society and of their rights guaranteed by the First Amendment of the Constitution of the United States.” [Emphasis mine.] …
A comparison of the above statements of the IRS with the words of the religion clause of the First Amendment reveals the fact that the IRS flaunts the fact that Congress has enacted laws “respecting the establishment of religion and preventing the free exercise thereof.” The First Amendment religion clause says:
“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof….” [Emphasis mine.]
Some legal scholars who have studied the issue know what the civil government is up to with the exemption-definition-control scheme. For example, Richard Garnett, assistant professor at Notre Dame Law School, wrote in A Quiet Faith? Taxes, Politics, and the Privatization of Religion, published in Volume 42 of B.C. L. Rev. starting on page 771 (this is a paraphrase of selected portions of the article with citations omitted):
“The imposition of a tax is, after all, an assertion of power and an ‘application of force.’ The same is true of the decision not to tax, or to exempt from taxation. A power is no less real that is exercised selectively or indulged with restraint. The decision to exempt certain associations, persons, activities, or things from taxation presupposes and communicates the ability to do otherwise; definitional lines drawn to mark the boundaries of such exemptions implicitly assert the power to draw them differently…. My claim here is that the decision to exempt religious associations from federal taxation may reasonably be regarded as an assertion of power—the power, perhaps, to ‘destroy’—over these communities, their activities, and their expression….
“In other words, maybe the power to tax churches, to exempt them from taxation, and to attach conditions to such exemptions really does as Chief Justice Marshall quipped, ‘involve the power to destroy’ religion. Neither heavy-handed repression nor even overt hostility toward faith is required, but merely the subtly didactic power of the law. Government need only express and enforce its own view of the nature of religion—i.e., that it is a private matter—and of its proper place—i.e., in the private sphere, not in politics—and religious believers and associations may yield to the temptation to embrace, and to incorporate, this view themselves….
“It is an exemption-and-restriction scheme in which the government extends an invitation to ‘religious organizations’ to receive a tax exemption in return for allowing the government to interpret and categorize the expression and activities of the church. There is the danger that, having made their own the government’s view of religion’s place, now-humbled and no-longer-prophetic religious associations will retreat with their witness to the ‘private’ sphere where—they now agree—they belong, leaving persons to face the state alone in the hollowed-out remains of the public square….
“Still it strikes me that the Internal Revenue Code Section 501(c)(3)’s exemption-and-restriction scheme is noteworthy in the extent to which it invites government to label as ‘propaganda’ or ‘campaign[ing]’ what are, for religious believers and communities, expressions of their faith and responses to their calling. It is far from clear that this is an appropriate task for the liberal state….
“My concern … is that the premises of the conditional exemption scheme, the labeling it invites, and the monitoring of distinctions it creates will tame religion by saying what it is and identifying what it is not, tempt religion to revise its conception of itself and of its mission, and convince religious consciousness to internalize the state’s own judgment that faith simply does not belong in politics….
“[The tax exemption] is simply the government’s way of paying churches not to talk about certain things, enforce certain beliefs, or engage in certain actions—in other words, it’s the government’s way of privatizing the church….
“By determining for its own purposes the meaning of religious communities’ statements and activities, and by enforcing the distinctions it draws, government subtly reshapes religious consciousness itself. In other words, by telling religion what it may say, really is saying, or will be deemed to have said, and by telling faith where it belongs, government molds religion’s own sense of what it is….
“[Certain pronouncements] led my colleague, Professor Bradley, to suggest in another context that ‘[t]he Court is now clearly committed to articulating and enforcing a normative scheme of ‘private religion.’ Indeed, he argues powerfully that the Court’s post-Everson v. Board of Education cases ‘are most profitably understood as judicial attempts to move religion into the realm of subjective preference by eliminating religious consciousness.’ … [T]he Court turned to privatization ‘as the ‘final solution’ to the problem of religious faction.’ Its ambition—not merely the unintended effect of its decisions—is not only to confine the potentially subversive messages of religion to a ‘nonpublic ghetto,’ but also to revise and privatize the messages themselves. Having acquiesced to judicial declarations that it is a private matter, and accepted that its authority is entirely subjective, religious consciousness is unable to resist the conclusion that its claims to public truth are ‘implausible nonsense,’ and therefore cannot help but concede the field of public life and morality to government….
“[T]his privatization of religion is not simply its institutional disestablishment or an entirely appropriate respect on government’s part for individual freedom of conscience and autonomy of religion institutions. Nor is the claim only that the exemption privatizes religion by deterring political activism and silencing political advocacy by religious believers and communities. It is, instead, that the exemption scheme and its administration subtly re-form religion’s conception of itself. Government evaluates and characterizes what churches say and do, and decides both what it will recognize as religious and what it will label as political….
“[P]rivatization of the church is its remaking by government and its transformation from a comprehensive and demanding account of the world to a therapeutic ‘cacoon wrapped around the individual.’ It is a state-sponsored change in religious believers’ own notions of what their faith means and what it requires…. The government tells faith communities that religion is a private matter, and eventually, they come to believe it.
“And finally, the retreat of religious associations to the private sphere suggests an ill-founded confidence that government will not follow. But it will. The privatization of religion is a one-way ‘ratchet that stems the flow of religious current into the public sphere, but does not slow the incursion of political norms into the private realm.’”
Michael Hatfield, Associate Professor of Law at Texas Tech University School of Law makes some important points in his article published in Volume 20 of Notre Dame Journal of Ethics and Public Policy beginning on page 125. (I suggest that the serious student get the article and study it for himself.):
“There is an assumption among contemporary scholars [&, I might add, among Pastors and other Christians] that a church doing without tax exemption is ‘fundamentally repugnant,’ so there is no need for substantive analysis of the tax issues involved if a church becomes taxable. Instead of analyzing the tax problem, the tax problem tends to be used to introduce ‘bigger’ ideas about the Constitution, religion, and politics. In the current scholarship, the context of the issue – religion and politics – tends to become substituted for the substance: federal income taxation. The critical issue, however, is federal income taxation.”
Professor Hatfield states that he uses the terms ‘Taxable Church’ and ‘Tax Exempt Church’ to make it clear that churches need not be Section 501(c)(3) organizations.…
Professor Hatfield states, “A tax without a cost has no meaning.… Because of the unique treatment churches receive under the Internal Revenue Code, the impact of the revocation is likely to be more symbolic than substantial.”
He states: “Churches ought not make guesses about the value of their assets or their moral convictions. There is no reason to believe that most American churches are eager to claim an express political identity, though there are indications that, more and more, religious and political identities in America are being fused. For churches with a clear moral conviction to campaign, the implication of the Asset Management Analysis is clear: crunch the numbers. Determine the cost of losing tax exemption. Decide if that cost is worth campaigning. Do not be distracted by imaginations as to what tax exemption is about. It is about taxes. It is about money. It is not about the ‘right’ and ‘wrong’ way to be a church, which is a religious issue and not a tax issue. It should be – and presumably is – the religious convictions and not the tax worries of churches that keep them out of politics.”
Thus, a New Testament Church (“NTC”) – that is, a church operating according to New Testament principles – is non-taxable, because even if the term “taxable” is used, civil government cannot, according to its own IRS law, tax a NTC because (1) all her income is from gifts (See Section 102 of the IRS Code; Professor Hatfield points this out in his article), and (2) a NTC spends every dime given in tithes and offerings for church ministries. Since gifts are not net income, what is left after subtracting expenses from net income? Even a business with no net income pays no taxes. And an individual or a business has to make a certain amount of money before paying any taxes.
How can it be that “Bible believing” Christians have gotten the churches of America so far astray from the principles for churches laid down by God in His Word? Are pastors and Christians ignorant or are they willfully ignorant? We cannot hope to straighten America out unless we first straighten our churches out, but it seems that more Christians are concerned about the state of America than they are about the state of the churches in America. God’s people and God’s churches, as well as America, are being destroyed because of a lack of knowledge.
Note. The sodomites understand what 501(c)(3) for churches means, yet pastors and other Christians continue to ignore the issue because they, like lepers to whom the leprosy has spread to the head, have ‘their understanding darkened, being alienated from the life of God through the ignorance that is in them, because of the blindness of their heart: Who being past feeling have given themselves over to lasciciousness, to work all uncleanness with greediness” (Ephesians 4.18-19). Here is a link to a sodomite article on the issue: “Equality is what we’re all about in Maine” (Click link to go to article).
Defining the Biblical Relationship between Church and State and Holding in Trust That Which God Has Committed Unto Us