Tag Archives: Internal Revenue Code Section 508

Can a church force a homosexual to turn straight to stay in the church?

Jerald Finney
Copyright © September 9, 2015

This article presents a question on AVVO, a legal website, asked by person who practices homosexual conduct, and my answer. On September 14, 2014, I was notified that the question asker picked mine as the best answer. The following, before the article, is a copy of that notification:

BestAnswer

The following question was asked on AVVO, a legal website on 090815:

A church which is a legal entity (e.g. incorporated 501c3 church) grieves our Lord and is partially, at the least, under a head other than the Lord Jesus Christ.
A church which is a legal entity (e.g. incorporated 501c3 church) grieves our Lord and is partially, at the least, under a head other than the Lord Jesus Christ.

I am homosexual and my new pastor says that I have to turn straight to stay in my church. Can force me to it to be able to stay?

“I have gone to the same church for 11 years. I have never had a problem in my church even if I am openly gay and dress quite feminine. We have a new pastor since a year and he has tried to talk me into becoming straight since day one. Clearly, he is quite homophobic…. I have been able to laugh about if until now, but he is now trying to put pressure on my by the other pastors.

“They have never had a problem with me before. Suddenly they want me to dress differently and “become straight”.

“I am feeling harassed by my pastor and he even talked about me in church yesterday. It was clearly about me and I could feel the hostility.

“What can I do? Can I even try to do something legal against my pastor or is he protected by the law since he is God’s voice?”

My answer  to the above question was as follows:

“Yours is not like the case in which the baker refused to do a wedding cake for homosexuals. That was a business. Your dispute is with a church. Businesses are not covered by the First Amendment whereas churches are. The First Amendment says:

4“‘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.’

“One can read the history of the First Amendment at: https://opbcbibletrust.wordpress.com/contents/onl….

“An abbreviated version of that history is at: https://opbcbibletrust.wordpress.com/2010/01/06/a….

For the history incorporated with an examination of both Christian and Secular Historical revisionism of the history of the First Amendment see https://opbcbibletrust.wordpress.com/god-betrayed/books/the-trail-of-blood-of-the-martyrs-of-jesus/ 

“I cannot fully answer your question in this forum, but I will give you an answer in a nutshell with additional resources for more detailed study.

“If your church is totally under the First Amendment (has not become a legal entity by incorporating, getting Internal Revenue Code Section 501c3 or Section 508 status, etc.), you have no legal recourse whatsoever against your church.

9“On the other hand, should your church be a legal entity, she has voluntarily taken herself, for many purposes, out from under First Amendment protections. For example, your church may be held in violation of the rule which says that the 501c3 religious organization shall not violate fundamental public policy. This rule was set in place by the IRS and upheld by the United States Supreme Court as to a religious organization – a religious school named Bob Jones University. The issue involving a church has not been dealt with. What the court would do in the church religious organization setting is not certain. However, I believe that the court should enforce the “against public policy” exception as to any religious organization. After all, if a church has voluntarily agreed to 501c3 status, she has agreed, as do religious schools, charitable trusts, Planned Parenthood, the Church of Wicca, and other organizations, to abide by the rules that go along with the status. The religious organization is getting benefits, so she should be willing to abide by the give and take contract she eagerly sought. There are many arguments one can make to support upholding the rules for all 501c3 organizations, not just select organizations.

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

“I don’t have the room to cover all the arguments, the law, etc. in this short space. This is all covered in much detail on the website, opbcbibletrust.wordpress.com. A link to the PDF of the comprehensive book on these matters is at https://opbcbibletrust.wordpress.com/contents/boo…. One can go to the index and look up Bob Jones University, and many other specific issues, or the Table of Contents to get general subjects such as incorporation, 501c3, etc. The online version has updates and is at: https://opbcbibletrust.wordpress.com/contents/boo…. The online version does not have an index.

“To look at church legal entity status one can go online to https://opbcbibletrust.wordpress.com/contents/boo….

“The courts have not yet addressed the question of violation of fundamental public policy in the church (religious organization) context. As I said above, the courts have no jurisdiction over the purely spiritual church (the non-legal entity) church; such a church in America may still operate according to the principles in the Bible without civil government jurisdiction and persecution.

“You will need someone to help you who is well-versed in the law should you desire to proceed legally. The res
End – out of characters”

To go the the webpage of the above question with answers from other attorneys, click here.

Church Internal Revenue Code § 508 Tax Exempt Status

See also, Legal answer to Pastor’s inquiry concerning whether a potential donor of substantial gift an claim a tax deduction under IRC Section 508 even though the church will not give an IRS acknowledgement (123118)

Jerald Finney
Copyright © April 28, 2014

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

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

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

The First Amendment says:

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

Notice especially that the First Amendment says, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.” [Emphahsis mine.]

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

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

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

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

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

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

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

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

Second, to rely on 508 contradicts the First Amendment. To repeat, the First Amendment religion clause states:

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

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

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

From IRS Publication 1828

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Endnotes

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

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

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

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

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

Companion website:Church and State Law

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

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

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

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

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

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

Does God and/or Civil Government Require Churches to Get 501(c)(3) Status?

Jerald Finney
Copyright © March, 2010
Revised on April 10, 2013

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 Souls in online form as well as in PDF form. 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 Amendment to the United States Constitution prohibits the making of any law respecting 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.

The religion clause of the First Amendment, in conjunction with the other clauses of the First Amendment, is a statement of the biblical principle of separation of church and state. To understand this, read An Abridged History of the First Amendment or the more complete version (Section IV of God Betrayed, or Part II of The Trail of Blood of the Martyrs of Jesus which are available free or can be purchased in softback. (See Order information, free PDF, and free online version page for books by Jerald Finney) or. The First Amendment commands that the federal government make no law respecting an establishment of religion or preventing the free exercise thereof.

When I first wrote this article, I stated that Internal 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.

501c3 comes with rules that churches agree to honor. Thus, when a church gets 501c3, she places herself under a sovereign other than God to some degree. The author goes into the rules that come along with 501c3 in the following articles: The Internal Revenue Code Section 501(c)(3) Exemption-Definition-Control Scheme, Laws Protecting New Testament Churches in the United States: Read Them for Yourself.

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 at Render 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 (A
ccording to Internal   Revenue Code § 102 tithes 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.

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