President Trump, desiring to help churches and “Christians,” and according to the advice of those “Christians” who surround him, pledged to eliminate the Johnson Amendment which limits all nonprofits from endorsing and opposing political candidates. See Endnote 1 for links to articles on this matter. I believe he is sincerely trying to help churches. Accordingly, he signed an executive order easing restrictions on political activity by non-profits. Of course, he cannot unilaterally change the law; but he did all he could do to help – ease but not eliminate one of the five restrictions which come with 501(c)(3) status. Just as non-profit corporation status puts the state of incorporation over a church for many matters, 501(c)(3), a man made law, still puts the federal government and the IRS agency over churches with respect to certain rules and a multitude of regulations that come with the chosen 501(c)(3) status. See Endnote2 for list of some of the regulations that come with 501(c)(3) and links to resources which explain 501(c)(3) and 508(c)(1)(A) tax exempt status in some detail.
Does this action by the President correct the problem with 501(c)(3)? No. I explain why in this article.
Click the above to go to the article, “Is Separation of Church and State Found in the Constitution?
One should be aware that the highest man made law in America, the First Amendment to the United States Constitution, and corresponding state constitutional provisions make clear that churches have a choice – remain under Christ only or submit to the state and federal governments through corporate 501(c)(3) status.
Keep in mind, for example:
Matthew 16:18 “And I say also unto thee, That thou art Peter, and upon this rock I will build my church; and the gates of hell shall not prevail against it.” Is a church built partially or wholly by man (man’s law) a church of Christ? Is such a church His church?
Ephesians 1:22 “And hath put all things under his feet, and gave him to be the head over all things to the church.” Is Christ the head over all things to an incorporated 501(c)(3) or 508 church? The simple to comprehend answer is an emphatic, “No!”
Colossians 1:18 “And he is the head of the body, the church: who is the beginning, the firstborn from the dead; that in all things he might have the preeminence.”
Let us first briefly examine or look at what church 501(c)(3) status really is. This will highlight the real issue. We will have to touch on incorporation since the two are intertwined.
Most churches choose to apply for both corporate and 501(c)(3) or 508(c)(1)(A) tax exempt status even though a choice not to do so is protected by the First Amendment and corresponding state constitutional provisions. 508(c)(1)(A) status puts a church in the same position as 501(c)(3) status. See, Church Internal Revenue Code § 508 Tax Exempt Status. Churches who incorporate and/or get 501(c)(3) or 508(c)(1)(A) status are established churches. They combine with civil government under man-made law. They get some perceived “benefits” and powers from civil government. In return, they agree to abide by the non-profit corporation laws of the state of incorporation and the commandments which come with the federal 501(c)(3) law they sought and agreed to. They also agree that, in the event they have issue with a commandment imposed by the law, the authority who will decide the issue is the government through its court systems. Their authority for many matters is the civil government, not the Lord Jesus Christ. One might call those churches who constantly defy and complain about the rules or commandments they agreed to “hypocrites.”
Churches who seek and obtain 501(c)(3) agree to abide by the rules and regulations that come with 501(c)(3), and also to any future rules added by the federal government though legislation, or by the Internal Revenue Service and upheld by the courts. Maybe some do not realize what they are doing when they get such status; some may proceed without knowledge, understanding, and wisdom. Nonetheless, when they get the status, they agree to the rules and commandments which come with the status and they agree that, in the event their authority who will decide the issue is the first the agency process with appeal to federal court available to the losing side, not the Word of God. Corporate 501(c)(3) churches proudly proclaim victory when their authority rules in favor of their position and moan and groan when their authority decides against them. They cannot understand that they lost no matter what their authority decides because they have put themselves under the wrong authority, according to the Word of God; and even their so-called victories are riddled with compromise.
Originally, a church who chose 501(c)(3) status agreed to 4 commandments or rules, added by legislative law. The IRS added a fifth. Prior to Bob Jones University v. United States, 461 U.S. 574 (1983), there were four rules. Bob Jones University upheld the IRS “shall not violate fundamental public policy” rule. Now there are five commandments. The fifth one has not yet been applied, as far as I know, to a church. However, many pastors do not preach of certain matters because they fear that they will be in violation of that rule—they do not wish to offend their master, their authority, by preaching certain matters covered by the Word of God. Many pastors openly preach on prohibited matters knowing that the state may exercise their authority and command them to comply or lose their status and suffer other penalty imposed by their master. The only authority to which a church can appeal, should the IRS agency rule against them, is the civil court system. By the way, the court will not allow such a church to make Bible based arguments.
As one can see, corporate 501(c)(3) status comes with the loss of many of the church’s First Amendment rights. A corporate 501(c)(3) church is a “legal entity,” an artificial person who has placed herself under the Fourteenth Amendment for many purposes thereby giving up much of her First Amendment protection. A First Amendment church cannot be sued for violation of the rules that come with 501(c)(3) or 508(c)(1)(A) because such a church has not submitted herself to the Internal Revenue Code Section 501(c)(3) or Section 508(c)(1)(A). She cannot be forced to get such status because the First Amendment religion clause says, “Congress shall make no law respecting the establishment of religion or prohibiting the free exercise thereof.”
A 501(c)(3) church also agrees to many regulations. See Endnote2 for list of some of the regulations that come with 501(c)(3) and links to resources which explain 501(c)(3) and 508(c)(1)(A) tax exempt status in some detail.
One who does just a little study can easily understand that the governments of the state of incorporation and the federal government are the authorities, for many purposes, of a corporate 501(c)(3) church. The Lord Jesus Christ is, at most, only one of their authorities or heads. For many churches, Christ is completely eliminated from the equation and their sole authority is civil government. Churches grieve our Lord by submitting to another head. Christ is not over “over all things to” those churches. According to the Bible, this raises a very important question, “Are corporate 501(c)(3) churches churches of Christ, built by Christ and Him alone?” They are churches, but are they Christ’s churches? The answer is obvious.
So the main issue is one of authority. Looking beyond that, only the legislature, not the President, can eliminate the Johnson Amendment or any other rule that comes with 501(c)(3) status. It is a law, passed by Congress and signed by the President. The President, of course, is the law enforcer. Like any law enforcer, he can choose to ease or relax his efforts to enforce what he deems to be an unjust law, you might say. He cannot do away with the fact that the authority of the 501(c)(3) church, as to the rules that come with it, is the federal government through its agent, the IRS. The courts, not the President, decide unresolved clashes between 501(c)(3) churches and the IRS. Only the legislature, not the President, can repeal a law subject to his signature of approval. The legislature has taken no action to overrule the Johnson Amendment in the many months since President Trump filed his executive order nor has President Trump encouraged the legislature to do away with either 501(c)(3) status or any of the other rules that come with 501(c)(3).
Even should the Johnson Amendment be eliminated by legislative law signed by the President, there would still be four other rules that churches agreed to comply with when they chose to apply for 501(c)(3) tax exemption. It is no secret that churches and so called “Christian” lawyers have also been worried about rule number five, the fundamental public policy rule, for at least 15 or 20 years. Their advice: “pray about it.” I would like to hear one of their prayers. I do not think they will pray, “Lord, forgive us for dishonoring you and causing you much grief by prostituting your churches. We repent. Help us to honorably withdraw from our unholy alliances.”
I have touched on the main issue. Let me restate some of the above points and list some other matters. President Trump’s speeches and his executive order reflect Christian revisionist history. They:
ignore the fact that churches are required to give up some of their First Amendment protections when they choose to become 501(c)(3) organizations who submit to the federal government as to certain matters;
ignore the fact that churches voluntarily put themselves under 501(c)(3) with all the rules and regulations that accompany their choice ;
ignore the fact that churches voluntarily give up much of their First Amendment protection when they place themselves under a law which commands them not to do certain things;
ignore the fact that churches who incorporate and get 501(c)(3) status put themselves, for many purposes, under the Fourteenth Amendment;
do not take into account that 501(c)(3) was a law implemented in 1954, 164 plus years after the adoption of the First Amendment;
ignore the question of whether 501(c)(3) is even constitutional since the First Amendment religion clause says, “Congress shall make no law respecting an establishment of religion or preventing the free exercise thereof;”
reflect a lack of understanding of the true history of the First Amendment;
reflect the “Christian” revised history of the First Amendment;
misrepresent what church/state establishment meant when the Constitution and First Amendment were adopted;
misrepresent what Thomas Jefferson, for example, stood for (He stood for a secular state with complete separation of church and state); (See, Endnote 3 for links to an unrevised history of the First Amendment)
disregard and go contrary to Bible principles concerning church, state, and the relationship God desires between church and state;
ignorantly work for the end-time one world union of church and state under the beast;
etc.
I wish to make one other point: I believe that freeing 501(c)(3) non-profit organizations to become active in politics will unleash liberal 501(c(3) organizations–atheist, secular, and religious–who will fight for liberal candidates, and that those organizations substantially outnumber and have much more money and power than the conservative churches who constantly attack the rule. Those liberal organizations include Planned Parenthood, Inc. (an organization that gets a lot of government money), the Church of Wicca, Inc. and many many other incorporated 501(c)(3) organizations and churches who will support liberal candidates.
In conclusion, I believe that President Trump is sincerely trying to help the cause of religious liberty. But he is being misled by certain “Christian” persons and organizations who will use any means necessary to achieve their goals. Their false Biblical interpretations and goals hasten fulfillment of end time prophecies—religion and government will unify and bring in a 3 ½ year of peace followed by 3 ½ year period of great tribulation, and finally the appearance of our Lord who will crush the world powers who are coming against Israel and then establish His 1000 year reign on the earth.
Equality Act Creates LGBT Rights Everywhere! (102315)(Revealed: LGBT Nuclear Bomb Against Churches – Will apply to state churches, such as incorporated 501c3 churches and corporation sole 508 churches, only. The article below explains how this applies to state churches, but not to New Testament churches.)
The principles in the article below can be applied to the issue of what a church should do if required by civil law to officiate over the impossible – the marriage of people of the same sex.
I. Introduction (includes the question to be answered)
II. The two types of churches in America III. The answer to the question for a state church
IV. The answer to the question for a New Testament church
V. Conclusion
I. Introduction
Another storm is brewing over the spiritual foundations of America. That storm may with full force strike our religious edifices at any time. The reaction of preachers to this threatened destruction of the recognition – at least as to some vital matters – of religious liberty, freedom of speech, press, association, and the right to petition the government for a redress of grievances – by the federal and state governments in America is very revealing as to the spiritual condition of America’s “Bible-believing” churches and pastors.
One should understand that Christ, not civil government, has set the believer free, no matter what the civil government does. A civil government can choose to recognize the freedom God has given all who repent of sin and trust Jesus Christ as their savior from their sin, but civil government cannot take away that liberty, even should the civil government take the temporal physical life of believers for following Christ (See “Laws Protecting New Testament Churches in the United States: Read Them for Yourself” for more information on true life and true liberty).
This article answers this question:
What should a church and a preacher do (1) now, (2) when the storm hits and the civil law either forbids him to preach on something included within the counsel of God, or (3) when the civil law is unclear as to the application of a law as against preaching on a biblically covered topic?
According to the Bible, the answer to the question depends upon whether the church involved is a state church or a New Testament church. The pastor of a state church should honor his sovereign state as to certain matters to which the church has agreed when incorporating and getting Internal Revenue Code § 501(c)(3) (“501c3”) status. The pastor of a New Testament church is under God only and must honor his only Sovereign, the Lord Jesus Christ and His rules laid down in His Holy Word.
New Testament believers including pastors should be ideal citizens (in God’s eyes) of the earthly state they reside in. They should honor those laws which have to do with the treatment of their fellow man as reflected in God’s Word (See, e.g. Matthew 5:38-48; Luke 6:27-36; Romans 12:9-21, 13:8-14; 1 Peter 2:12-20, 4:12-19; 2 Peter 1:3-10); but when the state exceeds its God-given jurisdiction and delves into matters concerning man’s relationship and duties toward God and toward his fellow man as directed by God, they should “obey God rather than men” (Acts 5:29 and the whole book of Acts). No one is exempt from being punished under the criminal laws of their earthly government, whether those laws fall within the God-given jurisdiction of the state or not. (See the article “American Abuse of Romans 13:1-2 and Related Verses” for an in depth study of verses taken out of context to support subjection to the state beyond that desired by God).
Churches in America are free to operate as either state churches or New Testament churches. A state church has legal status. A state church is a legal entity. A state church chose to be a state incorporated and usually 501c3 or 508 church and therefore agreed to the accompanying rules and procedures. (See Church Internal Revenue Code § 508 Tax Exempt Statuswhich proves that 508 “tax exempt” churches are subject to the same rules as a 501c3 church.) Those rules and procedures are not hidden, but are clearly stated in the law of the state of incorporation and the Internal Revenue Code. As the old adage goes, “Ignorance of the law is no excuse.”
This article will first describe the two types of churches in America. Then, the article will answer the question presented above for the state church. Finally, the article will answer the question as to the New Testament church.
II. The two types of churches in America
State churches and New Testament churches are distinct. The state church is a legal entity. A legal entity is an entity which can sue or be sued and act legally. Examples of legal entities are corporations, corporations sole, unincorporated associations, business trusts, charitable trusts and certain other trusts. The ordinary Bible trust is not a legal entity, nor does it render a church which places tithes, offerings and gifts in the Bible trust estate a legal entity. Thus, when a church incorporates (sole or aggregate), she becomes a legal entity. An incorporated church is a private, as opposed to a public, corporation (to gain a complete understanding of church incorporation, Internal Revenue Code Section 501(c)(3), and related issues, go to Separation of Church and State: God’s Churches – Spiritual or Legal Entities?. For proof that church corporation sole status is nothing more than non-profit corporation status see Critique of ‘Church Freedom and the Corporation Sole’ Website. For an example of one trust scheme which renders a church a legal entity, see Ecclesiastical Law Center Exposed.
As a private corporation, an incorporated church is subject to the law of incorporation since the state, through its laws, provides the manner and means and legalities of incorporation. The corporate part of a church is an “artificial being, invisible, intangible, and existing only in contemplation of law.” The law is clear that the sovereign of the incorporated church is the state creator of the corporation and the law makes clear that an incorporated church is a creature of the state. The law is clear as to the definition, requirements, organization and procedures for the corporation, including the corporate church.
Through incorporation, state law creates several contracts: contracts between the corporation and the state, between the corporation and the members, between the members themselves, and between the members and the state of incorporation. Problems can be taken to the sovereign state for resolution. Resolution of those problems by the state, which is the controlling party to the contracts created by incorporation, will exclude God and His principles entirely. Should a state church dispute this observation, let that church try to take a Bible or biblical principles into the courtroom when a matter involving that church goes to a court of law. Of course, the courts have said that they will not interfere with ecclesiastical matters; but the state ultimately determines what is ecclesiastical and what is not.
The state church has lost much of her First Amendment protection by incorporating. Unlike the New Testament church which is subject solely to the First Amendment and retains all her First Amendment protections from encroachment by the state, the state church now falls under the “Fourteenth Amendment” due process and equal protection provisions and is also subject to attack by individual church members, people outside the church, as well as the state itself.
Almost all corporate churches are also 501c3 churches. As such, those churches agree to five rules, four of which have been legislatively added since the statute was enacted and one of which, “the public policy” rule, was added by the Internal Revenue Service and upheld by the United States Supreme Court in Bob Jones University, 461 U.S. 574 (1983)(See God Betrayed for a full analysis of this case and its possible application to churches). A pastor and church should be aware that those rules were enacted unilaterally by the civil government without any input from churches. Therefore, other rules may, in the future, be added by the civil government through the legislative process and by the Internal Revenue Service.
Pastors of state churches are fearful that their sovereign state will come against them for violating the rules of 501(c)(3). For example, most state preachers will not preach that a particular candidate for public office is evil or good, as the case may be; and many pastors fear that they will violate “fundamental public policy” should they preach on certain biblical subjects such as sodomy (See, e.g., the article, “The Internal Revenue Code § 501(c)(3) Exemption-Definition-Control Scheme” for a more thorough analysis of the rules, etc. to which a church submits when she gets 501c3 status). Whether the state comes against a 501(c)(3) church or not, the church is in violation of God’s directive for churches – that churches have no authority over them other than the Lord Jesus Christ.
A New Testament church is a spiritual entity only. She is not a legal entity in any way. She has not compromised her First Amendment protections in any way. More importantly, she is under God only. Her allegiance is to God only. Of course, such an allegiance means that she will be an asset to individuals, families, and the state (regardless of whether the state realizes this or not and regardless of whether the state persecutes her or not). She has entered into no agreement with the state and the state has no jurisdiction over her. Christ is her creator, builder, and head (Matthew 16:28; Acts 4:7-11). She, unlike a state church, is in a position to love God supremely (see the article, “The Most Important Thing: Loving God and/or Winning Souls”). She owns no property (see the article, “Analysis of another reason for church corporate status: to hold property,” in order to understand how a church in American can, under both civil law and biblical precept, meet on property without owning it; see also, the other articles under the topic at left, “Reasons given for incorporating a church”).
III. The answer to the question for a state church
If the church is a state church and if the law is clear, the preacher and church should obey the law. If the law is unclear, the pastor can preach on the subject and wait to see if he and/or his church is charged with violating the law or if the state will act to remove the church tax exempt status. Many times, the pastor chooses to refrain from preaching on a subject or issue which he fears may violate man’s law even though the subject or issue is clearly included in the “whole counsel of God.” Should a state church pastor choose to preach on the matter, the state may come against him; and the state, through a state agency—usually the Internal Revenue Service—or state court will decide the issue. If an agency rules against a church in such a case, the church can appeal to the appropriate court. Whatever the decision of the highest court which hears the issue, the church and pastor are bound by both the state and the Lord to follow the ruling of that court. The Lord makes clear in His Word that it is a great wickedness or iniquity for a church to submit to any authority other than Himself; but should a church do so, that church has an obligation under God to honor the ruling of the state since, as has been stated, the church voluntarily acquired the status and the baggage that accompanied it. The state church is in a catch-22 situation.
IV. The answer to the question for a New Testament church
A cCorporation sole church is not under God only.
On the other hand, if the church is not a state church (that is, if the church has no legal status), then the pastor and church should obey the will of the Lord, as revealed in His Word. Since the church has no legal status, the state cannot proceed against the church. No contract or agreement with the state exists. The church is under God only. The pastor of such a church can preach on the “whole counsel of God,” thereby pleasing the Lord.
Remember, the pastor of a state church displeases God by becoming a state church; and he also grieves the Lord by violating the rules of the earthly sovereign of the state church he pastors. This is not true for a New Testament church because that church still pleases the Lord in this matter of separation of church and state; that church will be under God only and the pastor will preach whatever the Holy Spirit and the Word of God lead him to preach. Should the state become tyrannical and try to assert unauthorized jurisdiction over him and/or the members of church he pastors, his response will be like the Spirit filled response of believers to the authorities who had imprisoned them for healing and speaking in the name of Jesus as recorded in Acts 4:24-30:
“And … they lifted up their voice to God with one accord, and said, Lord, thou art God, which hast made heaven, and earth, and the sea, and all that in them is: Who by the mouth of thy servant David hast said, Why did the heathen rage, and the people imagine vain things? The kings of the earth stood up, and the rulers were gathered together against the Lord, and against his Christ. For of a truth against thy holy child Jesus, whom thou hast anointed, both Herod, and Pontius Pilate, with the Gentiles, and the people of Israel, were gathered together, For to do whatsoever thy hand and thy counsel determined before to be done. And now, Lord, behold their threatenings: and grant unto thy servants, that with all boldness they may speak thy word, By stretching forth thine hand to heal; and that signs and wonders may be done by the name of thy holy child Jesus.”
No matter what the state does to a pastor or members of a New Testament church, the state cannot destroy such a church (See the article, “An Abridged History of the First Amendment” for more understanding about this matter).
V. Conclusion
True believers and churches have, since the inception of the church, “obeyed God rather than man.” The apostles and Christians of the New Testament did, the Christians and martyrs before the marriage of church and state in the early fourth century did; true believers including millions of martyrs after the marriage of church and state did; true believers to this day in countries such as China, Korea, Iran, Iraq, Afganistan, etc. are continuing this tradition; but sadly, most “Christians” in America do not.
It seems a paradox that in America—where the law provides for freedom of religion and where churches may choose to operate under God without any persecution whatsoever—churches and Christians voluntarily place themselves under a head other than the Lord Jesus Christ whereas true believers down through the ages, and to this very day, who were and are persecuted by the state, by the state in conjunction with the established church or religion, or by the established church or religion have chosen to remain under God only in spite of persecution.
Those heroes of the faith showed and continue to show the power of God to the world around them, and as a result, the world was and is influenced and changed by their spiritual actions which are motivated by their love for the Lord and not by worldly ambition, force, greed, selfishness, and sinful pleasure:
“And when they had prayed, the place was shaken where they were assembled together; and they were all filled with the Holy Ghost, and they spake the word of God with boldness” (Acts 4:31).
Reliable sources such as The Voice of the Martyrs report that the underground church in China has as many as 100,000,000 members. Chinese citizens—as did the Roman soldiers who threw down their weapons, converted on the spot and walked into the coliseum to be torn asunder by wild beasts, along with the Christians whose power they witnessed—show forth the power of God. Likewise do those North Korean refugees in China who are saved and return to Korea to witness to their friends and loved ones in North Korea in the face of almost certain death.
What about churches in America? As a percentage, good churches are a small fraction of the total number of churches in America. Therefore, the author is very thankful to be a member of a good Bible believing and preaching church. However, American churches have become, for the most part, impotent, heretical and apostate and are powerless in the spiritual warfare which Christians are called to fight. Modern American Christians, in the main, have no spiritual knowledge, understanding, and wisdom. They are not “enduring hardness, as a good soldier of Jesus Christ” (2 Timothy 2:3). They are not fighting the spiritual warfare “against principalities, against powers, against the rulers of darkness in this world, against spiritual wickedness in high places” (Epesians 6:12). They are “[entangling] themselves with the affairs of this world” and, as a result, God, who has chosen him to be a soldier, is not pleased (1 Timothy 2:4). “He that hath an ear, let him hear what the Spirit saith unto the churches” (Revelation 2:11, 17, 29; 3:6, 13).
Contents I. Letter No. 1 II. My Reply to Letter No. 1 III. Letter No. 2 IV. My Reply to Letter No. 2 V. Letter No. 3 VI. My Reply to Letter No. 3 VII. Letter No. 4 VIII. My Reply to Letter No. 4 IX. Pastor’s Response to My Reply to Letter No. 4 X. My Reply to Pastor’s Response XI. Letter No. 5 XII. My Reply to Letter No. 5 XIII. Conclusion XIV. Links to IRS Laws XV. Note
Click maroon or blue colored links to go directly to the linked articles, websites, etc.
This article gives some pastors’ e-mails with their comments and questions concerning articles on this blog, and my replies to those e-mails. This is the second article on this blog with letters from pastors. The first article was What Pastors Are Saying in Response to this “Separation of Church and State Law” Blog (click link to go to article).
I will publish future articles on other e-mails from pastors because these e-mails not only raise important questions which need to be addressed, but also give insights into the thoughts of pastors on issues such as church incorporation and 501(c)(3).
You probably have received and possibly read some of my articles on this blog. Click this link, “Separation of Church and State Law Blog,” for links to all the articles on this “Separation of Church and State Law” blog.
I. Letter No. 1 (Received October 21, 2009:):
Bro. Finney…Thank you for the email. Where did you get my info? I am the pastor of ________________ Church in ______________, TN. We have recently formed a church and were debating about incorporation. This is very intersesting, we merged with another church that was incorporated and were about to just chnge the name on the incorporation, even though it is a whole new church. I asked God to stop me if it was ot His will, and I got your email out of the blue. I would love to talk to you and get the other side of the story. What is your #, Mine is ______________________.
[Pastor’s name]
“Ye Must be born again”
II. My Reply to Letter No. 1:
Dear Pastor _______________,
My phone nos. are: C: 512-785-8445; H: 512-385-0761. It would be an honor to discuss this with you. I still have some work to do, then going on visitation and church. I will try to call you as soon as I can get my work done, or feel free to call me at anytime.
For His Glory,
Bro. Jerald Finney
Note. I did call this dear brother
III. Letter No. 2 (received December 19, 2009 Pastor gave me permission to use his identifying information.):
Dear Brother [Finney],
I briefly read your article on Separation of Church and State.
When we planted Fellowship Baptist Church in Cumberland R.I. in 1997, I was getting counsel from my sending church on how to write-up the “articles of incorporation” to become “legitimate” .
I praise the Lord that my eyes were open to God’s wisdom and shut to man’s foolishness. As I was reading through the laws of what incorporation meant, it struck me like a lightening bolt that Caesar and of course the devil were immediately seeking to control the church that our Lord and Saviour Jesus Christ shed His precious blood for. The State IS NOT the head of the church and if it becomes the head through incorporation, then one has immediately surrendered.
Incorporation is a way for these State run entities to protect their lands and buildings. Of course when Peter warned of false prophets making merchandise out of the brethren, clearly the LORD saw our modern day “churches” being run as businesses.
I have had some professed believers who would not join the church because of us not being incorporated. Clearly, taking this stance separates the sheep from the goats.
I praise God for your article and will share it with the brethren.
In the Love of Christ Jesus,
Mark Manzoni
Pastor
Fellowship Baptist Church
Cumberland, Rhode Island
IV. My Reply to Letter No. 2:
Dear Pastor Manzoni,
Praise the Lord for men of God like you! Any man of God who believes God’s Word should have your insights, but many professors do not. It is an encouragement to hear from you. The Lord called me into this ministry in 2005, and since then I have spent thousands of hours in research as well as writing and speaking on the issue. As you might suspect, many pastors do not respond to this message as you have. It is encouraging every time I meet another pastor or Christian who realizes the importance of this issue to our Lord.
With your permission, I would like to use your letter. It may be a month or two before I publish it. If you do not want your church or name mentioned, I will delete names.
As I teach in my books, articles, etc., members of a corporate church have less protection than a New Testament church. First a New Testament church has the blessing and power of God, which a state church does not have. Second, if church property is held properly by a New Testament church, church members have more protection than do members of state churches.
For His Glory,
Brother Jerald Finney
V. Letter No. 3 (Received October 15, 2009):
Are you saying we should not be registered?
________________
VI. My Reply to Letter No. 3:
Dear Brother _________________,
It is not what I say or think about an issue. The real question is, “What does the Word of God teach on this issue. That is, what are the biblical principles concerning this issue?” So, first one must understand the biblical principles involved – in this case, the biblical principles concerning church, state, and separation of church and state. Then, one must apply fact to principle to see if principle is being violated.
This is what I do in the studies provided. A pastor or other Christian can study the teachings. This gives one a reference point to consider these issues. Most pastors, evangelists, missionaries, and other Christians today have never looked at these principles. Christ loved the church and gave himself for it that he migh sanctify and cleanse it with the washing of water by the word (Ep. 5.25-26). The epistles of Paul develop the doctrine of the church who was jealous over the church with a godly jealousy. As Paul wrote “I have espoused you to one husband, that I may present you as a chaste virgin to Christ. But I fear, lest by any means, as the serpent beguiled Eve through his sutilty, so your minds should be corrupted from the simplicity that is in Christ” (1 Co. 11.2-3). The principles of civil government are also laid out in the Bible as is the principle of separation of church and state. Millions have and continue to give their lives for these principles, but not in America.
It is your love relationship with the Lord that is affected. When an individual and a church violates that relationship, not only is our Lord is grieved but also there are bad consequences.
Thanks for your interest in this matter.
For His Glory,
Bro. Jerald Finney
VII. Letter No. 4 (Received January 16, 2010):
Dear Jerald,
I have been a fundamental Baptist pastor for almost 40 years. My dad was a IFB pastors for 50 years. The churches involved are/were all 501(c)(3). I have never witnessed any government interference or encroachment into church affairs.
Dr. ____________________
VIII. My Reply to Letter No. 4:
Dear Pastor __________________,
There are many good pastors who have never studied either the biblical principles of church, state, and separation of church and state or the facts about the nature of incorporation and 501(c)(3). When a born-again believer does not do such a study, he is easily led astray in the matter of church organization since he does not know or understand those very important biblical principles. Most of the “fundamental Baptist churches” in America are not following God’s principles of organization for His churches. The Bible makes clear that God desires us to continue in His Word so that we may know the truth and so that we may grow and proceed in knowledge, understanding, and wisdom in this spiritual warfare we are in.
In fact, the civil government will not interfere in your church affairs as long as you abide by the rules you agreed to when you took the 501(c)(3). When a church gets a 501(c)(3) exemption, she violates biblical principles and grieves our Lord. 501(c)(3) originally had no rules. Five rules or requirements for 501(c)(3) organizations have been added to the law since Internal Revenue Code Section 501(c)(3) was initially enacted, four of which were added by legislation and one by the Internal Revenue Service and upheld by Supreme Court decision. There is nothing a religious organization can do to stop further rules from being added to 501(c)(3) or to remove those already there because the controlling party to the agreement initiated by 501(c)(3) status is the federal government.
In order to get the 501(c)(3) a church must be a legal entity such as a corporation. The facts about incorporation and 501(c)(3) prove that for a church to incorporate and get 501(c)(3) status violates many biblical principles and grieves our Lord.
The heretical teaching that 501(c)(3) and incorporation of churches is acceptable to God displeases our Lord and leads to further heresy and finally to apostasy. The steps in the downfall of a nation, according to the Bible, are religious apostasy, moral awfulness, and political anarchy. We are well into the third stage in America.
Fundamental Baptist churches who have incorporated and obtained 510(c)(3) status display the results of heresy to one degree or another. Of course, those churches do not even realize their error and the results; but the consequences of their ignorance, whether willful or not, is on display. Since they have no power of God or a diluted power of God, the world sees nothing in them that is attractive, nor do I or other knowledgeable Christians.
I get into these matters in great detail in my books, audio teachings, and articles.
IX. Pastor’s response to my reply to Letter No. 4:
Dear brother Finney,
I have annotated several comments below for your consideration. I find it of interest that you as a lawyer consider yourself to have greater understanding of Scripture than ordained men of God who have spent a lifetime studying the Word. What would you think if I as a layman to the legal arena had read some books on law and therefore were making pronouncements about how lawyers should discharge their law practice? By the way, as the founding pastor of this church, I personally filled out the papers to incorporate with the State of Minnesota and then the 501(c)(3) application myself and did not use a lawyer. The Minnesota not-for-profit papers are renewed each year (or 3 years whatever) on a 3″x5″ post card or more recently a couple of clicks on the internet. I am aware of the benefits of incorporation and have never seen any of the supposed problems thereof in the real-life work of the church.
X. My reply to His response:
Dear Pastor __________________,
A lot of the ordained men of God who have studied the relevant principles agree with me. The problem is that many who do not agree with me have not studied the principles, facts, history, or legalities; nor were they taught these matters in church, Bible College or Seminary, or by the “Christian” lawyers who make millions helping state churches or helping churches to become state churches.
I have been saved since 1982. I was saved in a revival meeting at a non-incorporated, non-501(c)(3) Baptist church. Of course I had no idea that the church was non-incorporated or non-501(c)(3) at that time. I knew nothing about such matters. However, for the first time in my life, I saw the power of God at work.
Since that time, I have been faithful to church and faithful to studying the Bible. In addition to the teaching from my pastors, I read the Bible, heard and took notes on thousands of sermons since I rarely missed church services and attended camp meetings where many pastors preached and taught, and followed the teaching of Dr. J. Vernon McGee for many years. I have been an active particpant in many ministries, a faithful tither and giver, etc.
In 2003, I began an intense study of the biblical principles of church, state, and separation of church and state. I have read many, many other books dealing with those issues, and was called by God, in 2005, to actively deal with those issues. I wrote my findings in my writings, beginning with God Betrayed/Separation of Church and State: The Biblical Principles and the American Application. Before I published it, I gave it to several pastors, including my own pastor, and asked for them to critique it. I received feedback from a few. My pastor said the book was OK to publish.
After publishing the book, I gave copies to probably 50 or more pastors, missionaries, Bible teachers, and other Christians, besides those who have bought the book. I asked for honest feedback. I told everyone, and continue to do so, “Tell me where you believe I am wrong and I will be glad to have a congenial and honest discussion to see if you can convince me I am wrong.”
The result has been that many have praised or agreed with the book. However, those Christians and pastors who are against it, but cannot refute it (or just do not take the time to study it), get mad, usually as soon as they learn that I am crusading against churches becoming incorporated and getting 501(c)(3) status or becoming legal entities in any way, and that I believe doing so is contrary to the will of God as laid out in His Word.
I have met very few pastors, Christians, lawyers or anyone else, as a percentage, who have done a study of the biblical principles of church, state, and separation of church and state; and I have met very few who have studied incorportion, 501(c)(3) or the other methods of becoming a legal entity. Especially of note is that I have never met the pastor of an incorporated, 501(c)(3) who has a clue about the relevant biblical principles and facts, both legal and historical. I see, for the most part, the blind leading the blind.
It is easy for a church to incorporate and get a 501(c)(3) exemption. It is just a matter of filling out forms. Anyone of average intelligence can fill out forms. Thank God you did not abuse God’s money by using a lawyer to do that. However, understanding the law, facts, and biblical principles concerning what you were doing is something entirely different. How many hours have you spent to understand those matters?
I invite you to critique my books. In order to do that, you must read and study them, as well as the Word of God, with an open mind as led by the Holy Spirit. It will be well worth the effort because “Christ loved the church and gave himself, for it;” because He likens His church to His wife, his bride over whom He desires to be the only Head; because He is jealous of His church, etc. Let me say that there are problems with incorporation and 501(c)(3), but only one who is walking in the Spirit according to knowledge, wisdom, and understanding can see them.
All born again believers, including pastors, have a responsibility to study the Word of God. The Holy Spirit leads them into truth when they diligently continue in God’s Word. Every one of us is responsible for growing in knowledge, understanding, and wisdom.
I am not your enemy. Actually, I was sent by God to help those who have an ear to hear. “He that hath an ear, let him hear what the Spirit saith unto the churches” (Revelation 3:22).
I’m the Pastor of an Independent Baptist church in Texas. I find your information very informative . Now comes my question if our church iscurrently a 501 (c) (3) what can we do to leave the governments program . Would we face legal repercussions. Please when you have time advise me .
Sincerely In Christ,
Pastor _________________
XII. My Reply to Letter No. 5:
Dear Pastor ________________,
In order to properly advise you, I need to talk to you. There is absolutely no charge for my services. Should you decide to go forward, I do ask a love gift for my legal associate who does the ground work. She is highly qualified, and I do ask a love offering for her services since she has given her life to serving the Lord in this cause.
Can you all me at 512-385-0761 (H&O) or 512-785-8445?
For His Glory,
Jerald Finney
Note. Pastor ______________ called and we discussed this matter.
XIII. Conclusion
My conclusions from reading and responding to these e-mails, as I believe you will agree, is that:
“the understanding of the biblical principles, history, law, and facts among pastors varies widely. Some pastors are like secularists in that they have no spiritual knowledge, wisdom, and understanding and refuse to (and maybe cannot) look at the issues with an open mind. Some rely on their opinions as opposed to the Word of God as the basis for what they believe. Many take Scriptural verses completely out of context to support their erroneous views. Others are eager to please the Lord, and seek to increase their knowledge about these preeminent matters. Some already have some degree of understanding, greater or lesser, about these issues. Some are already practicing biblical principles in the area of church and state.”
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 (Tithes and offerings are gifts and, therefore, according to the Internal Revenue Code § 102, not income) 7.§ 2503. Taxable gifts 8. § 170. Charitable, etc., contributions and gifts
XV. Note
The Biblical Law Center helps churches to organize as New Testament churches completely out from under civil government and under God only. See churchandstatelaw.com for contact information for Jerald Finney, counsel for the Biblical Law Center. This is a ministry, not a business enterprise. Jerald Finney has made no profit at all in this endeavor of Christian love, but rather has expended much of his own money for God’s glory, in attempting to provide information and service for God’s churches.
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.
About Jerald Finney: 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.
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.
Click the above to go to the article, “Is Separation of Church and State Found in the Constitution?
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.
Preliminary note. The author has made significant revisions to this article as his knowledge grows with continued study. The original title to the article, “Laws Protecting New Testament Churches: Read Them for Yourself,” was changed to “First Amendment Protection of New Testament Churches/Federal Laws Protecting State Churches (Religious Organizations)” on July 13, 2015.
You can always find a lawyer or Christian who will agree with the position that an American church should become a religious organization by becoming a legal entity such as a non-profit corporation (included corporation sole), unincorporated association, charitable trust, etc. and get 501(c)(3) or 508 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.
You may go directly to a link (letters in maroon), or, to save time, you may read only the relevant portions of a provision or law which are in the article below.
Virginia Passes Legislation Forcing Churches to Allow “Transgender” Males into Women’s Bathrooms(04720)(Of course, this will be contested in court. Regardless of the outcome of such contest(s), keep in mind that the established church (incorporated, 501(c)(3) or 501(c)(1)(A) churches have voluntarily given up much of their First Amendment protections and placed themselves under the 14th Amendment for many purposes. Churches who choose to remain under the First Amendment for all purposes are not subject to state legislation. Contact this Churches under Christ Ministry for more information.)
Contents:
Note. At the very end is an excellent Facebook comment on “What happens if we abuse liberty” by Herei Stand on October 16, 2015.
I. Introduction II. The Highest Law: God’s Law III. United States Law: Man’s Law A. The First Amendment to the United States Constitution B. The Internal Revenue Service Code 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
The author is completely aware that most “Christians” and “Christian” lawyers tell churches to incorporate, get 501(c)(3) or 508 status or to become a legal entity in some other manner. The author takes issue with those lawyers and Christians and has written and taught extensively on the God-given principles concerning church and state and the application of those principles in America.
Those of you who do not know the author cannot be expected to trust him. Therefore, in order that a Christian can see for himself what the law says, this article will lay out the law which protects New Testament (the First Amendment) churches, and the laws which allegedly protect state churches. The First Amendment (quoted below) says that Congress shall make “no law” as to certain matters. Yet, 501(c)(3) (and 508) is a law which does exactly what the First Amendment forbids, as to churches. When a church submits herself to either of those laws, she becomes a religious organization (according to the explicit words in those laws) and subjects herself to the rules that come with those laws. The federal government, specifically the Internal Revenue Service, becomes sovereign of a 501(c)(3) or 508 church for certain purposes and enforces the rules that come with 501(c)(3) at its discretion; indeed, as will be seen, the IRS can add rules, having already added one rule which was contested and upheld the Supreme Court. Having succumb to the sovereignty of the federal government for some purposes through willing submission to 501(c)(3) law, the federal government added other laws to the Internal Revenue Code to protect religious organizations to a degree from arbitrary actions by the Internal Revenue Service.
A church which is a legal entity such as in incorporated church and or which gets Internal Revenue Code Section 501(c)(3) status loses much of her First Amendment protection and places herself under the Fourteenth Amendment to a large degree; the author fully explains this in his teachings on this website. One can go directly online to the laws in their entirety by clicking the blue underlined links.
In case you are not aware of it, an American church can operate as a spiritual entity only, under the First Amendment, without persecution, under God as a non-legal entity (as a spiritual entity) instead of a legal entity such as a non-profit corporation, charitable trust, unincorporated association, or corporation sole and without Internal Revenue Code Section (“IRC”) 501(c)(3) (“501(c)(3)” or Section 508 (“508”) status.FN1
New Testament churches are protected, for the time being, by the First Amendment which is a statement of Bible principle and, therefore, in line with God’s law. State churches and other religious organizations – the protection of the First Amendment and God not being enough for them to attain their worldly temporal goals (they think) – have turned to laws which contradict the First Amendment for protection. In so doing, they have shunned the protection of God and the First Amendment for many purposes. The chickens are coming home to roost.
II. The Highest Law: God’s Law
Of course, the highest law that protects churches everywhere, including churches in America, is God’s law as laid out in His Word. Although, in many nations, churches who wish to operate under God only will suffer persecutions, including physical death, for honoring God and His principles of organization and operation, no civil government can take the life or liberty of a true Christian or destroy a true church. The author has done a complete systematic study God’s principles concerning church and state in his other works.FN2
No nation gives anyone or any church life or liberty. Nations choose whether to protect the God-given life and liberty of individuals and churches from persecution.
God, the highest authority, establishes His churches and gives life to believers only:
“And I say also unto thee, That thou art Peter, and upon this rock I will build my church; and the gates of hell shall not prevail against it” (Matthew 16:18).
“He that hath the Son hath life; and he that hath not the Son of God hath not life” (1 John 5:12).
“While we look not at the things which are seen, but at the things which are not seen: for the things which are seen are temporal; but the things which are not seen are eternal. For we know that if our earthly house of this tabernacle were dissolved, we have a building of God, an house not made with hands, eternal in the heavens. For in this we groan, earnestly desiring to be clothed upon with our house which is from heaven: If so be that being clothed we shall not be found naked. For we that are in this tabernacle do groan, being burdened: not for that we would be unclothed, but clothed upon, that mortality might be swallowed up of life. Now he that hath wrought us for the selfsame thing is God, who also hath given unto us the earnest of the Spirit. Therefore we are always confident, knowing that, whilst we are at home in the body, we are absent from the Lord: (For we walk by faith, not by sight:) We are confident, I say, and willing rather to be absent from the body, and to be present with the Lord.” (2 Corinthians 4.18; 5.1-6, 7-8; See also, Romans 8.18-25.).
Additionally, only Christ gives liberty to believers, and only to believers who continue in His Word:
“The Spirit of the Lord is upon me, because he hath anointed me to preach the gospel to the poor; he hath sent me to heal the brokenhearted, to preach deliverance to the captives, and recovering of sight to the blind, to set at liberty them that are bruised” (Luke 4:18).
“Then said Jesus to those Jews which believed on him, If ye continue in my word, thenare ye my disciples indeed; And ye shall know the truth, and the truth shall make you free” (John 8:31-32).
“If the Son therefore shall make you free, ye shall be free indeed” (John 8:36).
“Being then made free from sin, ye became the servants of righteousness” (Romans 6:18).
“But now being made free from sin, and become servants to God, ye have your fruit unto holiness, and the end everlasting life” (Romans 6:22).
“For the law of the Spirit of life in Christ Jesus hath made me free from the law of sin and death” (Romans 8:2).
“Because the creature itself also shall be delivered from the bondage of corruption into the glorious liberty of the children of God” (Romans 8:21).
“For he that is called in the Lord, being a servant, is the Lord’s freeman: likewise also he that is called, being free, is Christ’s servant” (1 Corinthians 7:22)
“For though I be free from all men, yet have I made myself servant unto all, that I might gain the more” (1 Corinthians 9:19).
“Now the Lord is that Spirit: and where the Spirit of the Lord is, there is liberty” (2 Corinthians 3:17).
“And that because of false brethren unawares brought in, who came in privily to spy out our liberty which we have in Christ Jesus, that they might bring us into bondage” (Galatians 2:4).
“So then, brethren, we are not children of the bondwoman, but of the free” (Galatians 4:31).
“Stand fast therefore in the liberty wherewith Christ hath made us free, and be not entangled again with the yoke of bondage” (Galatians 5:1).
“For, brethren, ye have been called unto liberty; only use not liberty for an occasion to the flesh, but by love serve one another” (Galatians 5:13).
“But whoso looketh into the perfect law of liberty, and continueth therein, he being not a forgetful hearer, but a doer of the work, this man shall be blessed in his deed” (James 1:25).
“While they promise them liberty, they themselves are the servants of corruption: for of whom a man is overcome, of the same is he brought in bondage” (2 Peter 2:19).
Christians are to walk in the spirit, not in the flesh.(See, e.g., 1 Corinthians 2; 3.1-3; Galatians 5, Romans 6-8). Most do not. New Testament churches are spiritual organisms, not earthly entities. Thus, an incorporated, 501(c)(3) or 508 church has violated God’s principles by placing herself, at least partially, under a head other than the Lord Jesus Christ. For systematic studies of all the arguments used to justify submission of individuals and churches to civil government see FN3.
The Martyrs of the faith clearly understood the liberty given them by Jesus Christ.
A. The First Amendment to the United States Constitution
Man’s law is below God’s law. Again, God gives civil governments the option of honoring Him and His principles. America, as a result of a great theological warfare between persecuted dissenters (the persecutions were carried out by colonial governments acting under the guidance of the established churches and their theologies) and the established churches, became the first nation, the second civil government behind the colony of Rhode Island, to apply God’s principles concerning the relationship between church and state and the individual person and the state and to guarantee religious liberty. This was done in the First Amendment to the United States Constitution (the second highest law in America after God’s law) which reads as follows:
First Amendment to the United States Constitution
“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 peaceable to assemble, and to petition the Government for a redress of grievances.” FN4
The following lay out the history of the First Amendment:
The First Amendment did not originally apply to the states. As a result, states were free to pass laws which provided state corporate status to churches, and they did so. Many churches ran down to incorporate under state law soon after the Constitution and First Amendment were ratified.FN5 Some did not incorporate or become state churches.
Although the United States Supreme Court has now applied the First Amendment to state and other lower governments, incorporation of churches by state statute has never been held to violate the First Amendment, even though incorporation of churches is contrary to the First Amendment as well as Bible principles.
Churches which become legal entities such as corporations (includes corporation sole), unincorporated associations, charitable trusts, 501c3 and 508 religious organizations lose much or their First Amendment protections and fall, as artificial persons, under the Fourteenth Amendment for many purposes.
Churches which are spiritual entities only are New Testament churches and have the protections of the First Amendment. As we know, First Amendment protections enjoyed since 1791, the date of adoption, are targeted for destruction. When the First Amendment is destroyed, God’s churches, as opposed to state churches (churches which are legal entities) will have no choice but to operate underground, much as the churches in China, North Korea and many other countries, especially in many Muslim countries operate.
B. Internal Revenue Code
Once a church becomes a religious organization under Internal Revenue Code, Section 501(c)(3) or Section 508, she does have some protection from arbitrary attack by the federal government for some purposes. Such protections are not needed by a First Amendment church since that church is under God only. After the government destroys First Amendment protections for churches and believers, they will have to go underground to maintain their New Testament status.
Ҥ 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….”
In the twentieth century, the United States passed § 501(c)(3), a law which, when applied to churches or any other religious organization, “respects an establishment of religion” and prevents “the free exercise thereof.” 501(c)(3) may be utilized by earthly and religious organizations. A church is not required to get 501(c)(3) and 508 status, but that status is available for any church who wants it. That a church is not required, by civil law, to obtain 501(c)(3) status is made clear by the First Amendment. When a church chooses to get 501(c)(3) or 508 status, she has—in addition to placing herself under state authority through incorporation or some other means—also placed herself under the authority of the Federal government. For more on 508 status, seeChurch Internal Revenue Code § 508 Tax Exempt Status.
When a church gets 501(c)(3) or 508 status, that church becomes a religious organization. Churches who have 501(c)(3) or 508 tax-exempt status are under four rules which are stated in the 501(c)(3) law. Those rules or laws prevent the free exercise of religion under God by churches.
One can see four requirements in 501(c)(3) by reading the law above. Those rules are:
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.
Those four rules for religious organizations were in the law made by Congress and signed by President Eisenhower. All 501(c)(3) and 508 religious and other organizations are required to comply with the requirements. Congress and the President are free to put other requirements into law in the future. You see, they are the sovereigns elected by the people. They decided to dishonor God’s law first and the First Amendment second when they made 501(c)(3) and 508 status available to churches. Churches who incorporate and get 501(c)(3) or 508 status dishonor God and place themselves under two other sovereigns. Of course, they still have some of their God-ordained freedom, but they have voluntarily given up some of those freedoms as they have submitted to other sovereigns.
Not only have Congress and the President added requirements to 501(c)(3) since its initial passage into law, the Internal Revenue Service has also added a requirement to the law which was approved by Supreme Court opinion. The case considered an action—deemed to violate fundamental public policy—by Bob Jones University, an incorporated 501(c)(3) religious organization.FN6 Of course, Bob Jones University was not a church, but a future Supreme Court could easily declare that the new requirement applies to churches, and a future Court could add additional requirements to 501(c)(3). The new requirement is this:
“the organization’s purposes and activities may not be illegal or violate fundamental public policy.”FN7
An old adage in the law says, “Ignorance of the law is no excuse.” In other words, just because one is ignorant of the law does not excuse one from obeying it, especially when one was not required to submit to a law but did so voluntarily. Christians are instructed to proceed with knowledge (See, e.g., 2 Peter 1.3-10). Christians are also to have integrity. If they agree to something, they are to keep their part of the contract or bargain. Corporate 501(c)(3) churches contract with the state when they incorporate, the state being the controlling party to the contracts created by incorporation—in the event of disagreement or suit because over contract, civil courts will decide the issue. Those courts will decide such issues based upon man’s law, not Biblical principle.
Likewise, when a church, of her own free will, obtains 501(c)(3) or 508 status, she agrees (whether she knows it or not) both to be bound by the rules in existence at the time she receives state exemption and any rules which may be handed down after obtaining the status. Only ignorance prevents her from recognizing that, in the event of disagreement with IRS assertion that an action of the church is in violation of the statute, the state (not God) will decide the issue.
IRC § 508 (the codification of Public Law 91-172 ratified in 1969) provides in relevant part:
Ҥ 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.” FN8 [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. In other words, the federal government recognized by law that churches are non-taxable; and, therefore, that churches are an exception to the civil government requirement that certain organizations file for 501(c)(3) tax exempt status.
Churches should claim First Amendment, not § 508 status. By claiming § 508 status, a church has claimed the protection of a law made by the federal government. Remember what the First Amendment states: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof….” § 508 is a law respecting an establishment of religion (and likely may be used to prevent the free exercise thereof) made by Congress and is therefore unconstitutional. By claiming § 508 status, a church thereby agrees that, should an issue regarding that church end up in court, that the court may look at § 508 and interpret issues from the perspective of § 508. In other words, the court will define the terms and determine the relevance and meaning of § 508 and the words therein rather than looking at the First Amendment and clear language of that amendment which was written so that anyone can understand it and make the applications. For example, the court would tell the litigants what the term “exception” means. Also, by claiming § 508 status, a church may be argued to have made itself a legal entity required to abide by the rules that come along with § 501(c)(3) in order to maintain their “tax exempt” status. First Amendment churches are non-taxable whereas § 501(c)(3) churches are “tax-exempt.” For more on this, see Church Internal Revenue Code § 508 Tax Exempt Status.
Churches who remain under God and His principles for churches (First Amendment churches) even if there were no First Amendment are non-taxable anyway because they are not businesses, they are not legal entities of any type, and they have no income and make no profits. Even businesses pay no taxes if they make no profit. To make a profit, income must exceed expenses and deductions. A legal entity, such as a corporate 501(c)(3) religious organization, who poses as a church, who is in business(es), and who makes a profit should, in the opinion of the author, pay taxes.
New Testament (First Amendment) churches are not legal entities, so they cannot and do not receive income. Church members give tithes and offerings to God and which are used for certain purposes and ministries approved by God; for providing for their pastor; for providing for a place to meet; for helping the poor; and for any other purpose consistent with Biblical principle.
If a church does not apply for exempt status, and if it is organized as and operates in conformity to Biblical principle, according to the First Amendment which agrees with the Biblical principle of separation of church and state, the church maintains her non-taxable status.
If a church successfully applies for exempt status under section 501(c)(3) or claims exemption under § 508, the government is granted some jurisdiction over the church since the civil government now declares and grants an exemption.
IRC § 7611 gives the only reasons for which the Internal Revenue Service can audit a religious organization defined as a church by the federal government. Of course, a New Testament church is not a legal entity, has no income, and cannot be audited. All tithes, offerings, and gifts by church members are given to God, not to a religious organization such as an incorporated 501(c)(3) or 508 church. There are not church (religious organization) books to keepl IRC § 7611 states in relevant part:
Ҥ 7611. Restrictions on church tax inquiries and examinations
“(a) Restrictions on inquiries.— “(1) In general.—The Secretary may begin a church tax inquiry only if—
“(A) the reasonable belief requirements of paragraph (2), and
“(B) the notice requirements of paragraph (3), have been met. “(2) Reasonable belief requirements.—The requirements of this paragraph are met with respect to any church tax inquiry if an appropriate high-level Treasury official reasonably believes (on the basis of facts and circumstances recorded in writing) that the church – “(A) may not be exempt, by reason of its status as a church, from tax under section 501(a), or “(B) may be carrying on an unrelated trade or business (within the meaning of section 513) or otherwise engaged in activities subject to taxation under this title. “(3) Inquiry notice requirements.— “(A) In general.—The requirements of this paragraph are met with respect to any church tax inquiry if, before beginning such inquiry, the Secretary provides written notice to the church of the beginning of such inquiry. “(B) Contents of inquiry notice.—The notice required by this paragraph shall include— “(i) an explanation of— “(I) the concerns which gave rise to such inquiry, and “(II) the general subject matter of such inquiry, and “(ii) a general explanation of the applicable— “(I) administrative and constitutional provisions with respect to such inquiry (including the right to a conference with the Secretary before any examination of church records), and “(II) provisions of this title which authorize such inquiry or which may be otherwise involved in such inquiry.
“(b) Restrictions on examinations.— “(1) In general.—The Secretary may begin a church tax examination only if therequirements of paragraph (2) have been met and such examinationmay be made only— “(A) in the case of church records, to the extent necessary to determine the liability for, and the amount of, any tax imposed by this title, and “(B) in the case of religious activities, to the extent necessary to determine whether an organization claiming to be a church is a church for any period. “(2) Notice of examination; opportunity for conference.—The requirements of this paragraph are met with respect to any church tax examination if— “(A) at least 15 days before the beginning of such examination, the Secretary provides the notice described in paragraph (3) to both the church and the appropriate regional counsel of the Internal Revenue Service, and “(B) the church has a reasonable time to participate in a conference described in paragraph (3)(A)(iii), but only if the church requests such a conference before the beginning of the examination. “(3) Contents of examination notice, et cetera.— “(A) In general.—The notice described in this paragraph is a written notice which includes – “(i) a copy of the church tax inquiry notice provided to the church under subsection (a), “(ii)a description of the church records and activities which the Secretary seeks to examine, “(iii)an offer to have a conference between the church and the Secretary in order to discuss, and attempt to resolve, concerns relating to such examination, and “(iv)a copy of all documents which were collected or prepared by the Internal Revenue Service for use in such examination and the disclosure of which is required by the Freedom of Information Act (5 U.S.C. 552). “(B)Earliest day examination notice may be provided.—The examination notice described in subparagraph (A) shall not be provided to the church before the 15th day after the date on which the church tax inquiry notice was provided to the church under subsection (a). “(C)Opinion of regional counsel with respect to examination Any regional counsel of the Internal Revenue Service who receives an examination notice under paragraph (1) may, within 15 days after such notice is provided, submit to the regional commissioner for the region an advisory objection to the examination. “(4) Examination of records and activities not specified in notice.—Within the course of a church tax examination which (at the time the examination begins) meets the requirements of paragraphs (1) and (2), the Secretary may examine any church records or religious activities which were not specified in the examination notice to the extent such examination meets the requirement of subparagraph (A) or (B) of paragraph (1) (whichever applies).
(c) Limitation on period of inquiries and examinations.— “(1) Inquiries and examinations must be completed within 2 years.— “(A) In general.—The Secretary shall complete any church tax status inquiry or examination (and make a final determination with respect thereto) not later than the date which is 2 years after the examination notice date. “(B) Inquiries not followed by examinations.—In the case of a church tax inquiry with respect to whichthere is no examination notice under subsection (b), theSecretary shall complete such inquiry (and make a finaldetermination with respect thereto) not later than the datewhich is 90 days after the inquiry notice date. “(2) Suspension of 2-year period.—The running of the 2-year period described in paragraph (1)(A)and the 90-day period in paragraph (1)(B) shall be suspended – “(A) for any period during which— “(i) a judicial proceeding brought by the church against the Secretary with respect to the church tax inquiry or examination is pending or being appealed, “(ii) a judicial proceeding brought by the Secretary against the church (or any official thereof) to compel compliance with any reasonable request of the Secretary in a church tax examination for examination of church records or religious activities is pending or being appealed, or “(iii) the Secretary is unable to take actions with respect to the church tax inquiry or examination by reason of an order issued in any judicial proceeding brought under section 7609, “(B) for any period in excess of 20 days (but not in excess of 6 months) in which the church or its agents fail to comply with any reasonable request of the Secretary for church records or other information, or “(C) for any period mutually agreed upon by the Secretary and the church.
“(d) Limitations on revocation of tax-exempt status, etc.— “(1) In general.—The Secretary may— “(A) determine that an organization is not a church which— (i) is exempt from taxation by reason of section 501(a), or (ii) is described in section 170(c), or “(B)(i) send a notice of deficiency of any tax involved in a church tax examination, or “(ii) in the case of any tax with respect to which subchapter B of chapter 63 (relating to deficiency procedures) does not apply, assess any underpayment of such tax involved in a church tax examination, only if the appropriate regional counsel of the Internal Revenue Service determines in writing that there has been substantial compliance with the requirements of this section and approves in writing of such revocation, notice of deficiency, or assessment. (2) Limitations on period of assessment.— “(A) Revocation of tax-exempt status.— (i) 3-year statute of limitations generally.—In the case of any church tax examination with respect to the revocation of tax-exempt status under section 501(a), any tax imposed by chapter 1 (other than section 511) may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, only for the 3 most recent taxable years ending before the examination notice date. “(ii)6-year statute of limitations where tax-exempt status revoked.—If an organization is not a church exempt from tax under section 501(a) for any of the 3 taxable years described inclause (i), clause (i) shall be applied by substituting “6most recent taxable years” for “3 most recent taxable years”. “(B) Unrelated business tax.—In the case of any church tax examination with respect to thetax imposed by section 511 (relating to unrelated businessincome), such tax may be assessed, or a proceeding in court forthe collection of such tax may be begun without assessment,only with respect to the 6 most recent taxable years endingbefore the examination notice date. “(C) Exception where shorter statute of limitations otherwise applicable.—Subparagraphs (A) and (B) shall not be construed to increasethe period otherwise applicable under subchapter A of chapter66 (relating to limitations on assessment and collection). “(e) Information not collected in substantial compliance with procedures to stay summons proceeding.—
“(1) In general.—If there has not been substantial compliance with— “(A) the notice requirements of subsection (a) or (b), “(B) the conference requirement described in subsection
(b)(3)(A)(iii), or “(C) the approval requirement of subsection (d)(1) (if applicable), with respect to any church tax inquiry or examination, any proceeding to compel compliance with any summons with respect to such inquiry or examination shall be stayed until the court finds that all practicable steps to correct the noncompliance have been taken. The period applicable under paragraph (1) or subsection (c) shall not be suspended during the period of any stay under the preceding sentence. “(2) Remedy to be exclusive.—No suit may be maintained, and no defense may be raised in anyproceeding (other than as provided in paragraph (1)), by reasonof any noncompliance by the Secretary with the requirements ofthis section. “(f) Limitations on additional inquiries and examinations.— “(1) In general.—If any church tax inquiry or examination with respect to anychurch is completed and does not result in— “(A) a revocation, notice of deficiency, or assessment described in subsection (d)(1), or “(B) a request by the Secretary for any significant change in the operational practices of the church (including the adequacy of accounting practices),
no other church tax inquiry or examination may begin with respect to such church during the applicable 5-year period unless such inquiry or examination is approved in writing by the Secretary or does not involve the same or similar issues involved in the preceding inquiry or examination. For purposes of the preceding sentence, an inquiry or examination shall be treated as completed not later than the expiration of the applicable period under paragraph (1) of subsection (c).
“(2) Applicable 5-year period.—For purposes of paragraph (1), the term “applicable 5-year period” means the 5-year period beginning on the date the notice taken into account for purposes of subsection (c)(1) was provided. For purposes of the preceding sentence, the rules of subsection (c)(2) shall apply.
“(g) Treatment of final report of revenue agent.—Any final report of an agent of the Internal Revenue Serviceshall be treated as a determination of the Secretary underparagraph (1) of section 7428(a), and any church receiving such areport shall be treated for purposes of sections 7428 and 7430 ashaving exhausted the administrative remedies available to it. “(h) Definitions.—For purposes of this section— “(1) Church.—The term “church” includes— “(A)any organization claiming to be a church, and “(B)any convention or association of churches. “(2) Church tax inquiry.—The term “church tax inquiry” means any inquiry to a church(other than an examination) to serve as a basis for determiningwhether a church – “(A)is exempt from tax under section 501(a) by reason of its status as a church, or “(B)is carrying on an unrelated trade or business (within the meaning of section 513) or otherwise engaged in activities which may be subject to taxation under this title. “(3) Church tax examination.—The term “church tax examination” means any examination forpurposes of making a determination described in paragraph (2) of— “(A) church records at the request of the Internal Revenue Service, or “(B) the religious activities of any church. “(4) Church records.— “(A) In general.—The term “church records” means all corporate and financialrecords regularly kept by a church, including corporate minutebooks and lists of members and contributors. “(B) Exception.—Such term shall not include records acquired – “(i) pursuant to a summons to which section 7609 applies, or “(ii) from any governmental agency. “(5) Inquiry notice date.—The term “inquiry notice date” means the date the notice with respect to a church tax inquiry is provided under subsection (a). “(6) Examination notice date.—The term “examination notice date” means the date the notice with respect to a church tax examination is provided under subsection (b) to the church. “(7) Appropriate high-level Treasury official.—The term “appropriate high-level Treasury official” means theSecretary of the Treasury or any delegate of the Secretary whoserank is no lower than that of a principal Internal Revenueofficer for an internal revenue region. “(i) Section not to apply to criminal investigations, etc.—This section shall not apply to— “(1) any criminal investigation, “(2) any inquiry or examination relating to the tax liability of any person other than a church, “(3) any assessment under section 6851 (relating to termination assessments of income tax), section 6852 (relating to termination assessments in case of flagrant political expenditures of section 501(c)(3) organizations), or section 6861 (relating to jeopardy assessments of income taxes, etc.), “(4) any willful attempt to defeat or evade any tax imposed by this title, or “(5) any knowing failure to file a return of tax imposed by this title.”
Note.A New Testament church cannot have employees as defined by American law. If a church has employees, she is a religious organization. Biblical principle defines a church, her members and their roles, and her destiny. No Biblical teaching is consistent with a church having employees. According to God’s Word, however, a New Testament church must have members and a pastor who is to be provided for by the members. Also, members or anyone else may give gifts to anyone they please.
The following is directly from IRC § 1402:
Ҥ 1402. Definitions
“(a) Net earnings from self-employment.—The term “net earnings from self-employment” means the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business, plus his distributive share (whether or not distributed) of income or loss described in section 702 (a)(8) from any trade or business carried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary income or loss—”…
“(8)an individual who is a duly ordained, commissioned, or licensed minister of a church or a member of a religious order shall compute his net earnings from self-employment derived from the performance of service described in subsection (c)(4) without regard to section 107 (relating to rental value of parsonages), section 119 (relating to meals and lodging furnished for the convenience of the employer), and section 911 (relating to citizens or residents of the United States living abroad), but shall not include in such net earnings from self-employment the rental value of any parsonage or any parsonage allowance (whether or not excludable under section 107) provided after the individual retires, or any other retirement benefit received by such individual from a church plan (as defined in section 414 (e)) after the individual retires; “… “(14) in the case of church employee income, the special rules of subsection (j)(1) shall apply; “… “(b)Self-employment income.—The term “self-employment income” means the net earnings from self-employment derived by an individual (other than a nonresident alien individual, except as provided by an agreement under section 233 of the Social Security Act) during any taxable year; except that such term shall not include—
“…
“(2) the net earnings from self-employment, if such net earnings for the taxable year are less than $400.
“(c) Trade or business.—The term “trade or business”, when used with reference to self-employment income or net earnings from self-employment, shall have the same meaning as when used in section 162 (relating to trade or business expenses), except that such term shall not include—
“…
“(2) the performance of service by an individual as an employee, other than—
“…
“(D) service described in paragraph (4) of this subsection,
“… “(4) the performance of service by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order;
The provisions of paragraph (4) or (5) shall not apply to service (other than service performed by a member of a religious order who has taken a vow of poverty as a member of such order) performed by an individual unless an exemption under subsection (e) is effective with respect to him.
“(d) Employee and wages.—The term “employee” and the term “wages” shall have the same meaning as when used in chapter 21 (sec. 3101 and following, relating to Federal Insurance Contributions Act).
“(e) Ministers, members of religious orders, and Christian Science practitioners.— “(1) Exemption.—Subject to paragraph (2), any individual who is (A) a duly ordained, commissioned, or licensed minister of a church or a member of a religious order (other than a member of a religious order who has taken a vow of poverty as a member of such order) or (B) a Christian Science practitioner, upon filing an application (in such form and manner, and with such official, as may be prescribed by regulations made under this chapter) together with a statement that either he is conscientiously opposed to, or because of religious principles he is opposed to, the acceptance (with respect to services performed by him as such minister, member, or practitioner) of any public insurance which makes payments in the event of death, disability, old age, or retirement or makes payments toward the cost of, or provides services for, medical care (including the benefits of any insurance system established by the Social Security Act) and, in the case of an individual described in subparagraph (A), that he has informed the ordaining, commissioning, or licensing body of the church or order that he is opposed to such insurance, shall receive an exemption from the tax imposed by this chapter with respect to services performed by him as such minister, member, or practitioner. Notwithstanding the preceding sentence, an exemption may not be granted to an individual under this subsection if he had filed an effective waiver certificate under this section as it was in effect before its amendment in 1967.
“…
“(g) Members of certain religious faiths.— “(1) Exemption.—Any individual may file an application (in such form and manner, and with such official, as may be prescribed by regulations under this chapter) for an exemption from the tax imposed by this chapter if he is a member of a recognized religious sect or division thereof and is an adherent of established tenets or teachings of such sect or division by reason of which he is conscientiously opposed to acceptance of the benefits of any private or public insurance which makes payments in the event of death, disability, old-age, or retirement or makes payments toward the cost of, or provides services for, medical care (including the benefits of any insurance system established by the Social Security Act). Such exemption may be granted only if the application contains or is accompanied by—
“…
“(h)Regular basis.—An individual shall be deemed to be self-employed on a regular basis in a taxable year, or to be a member of a partnership on a regular basis in such year, if he had net earnings from self-employment, as defined in the first sentence of subsection (a), of not less than $400 in at least two of the three consecutive taxable years immediately preceding such taxable year from trades or businesses carried on by such individual or such partnership.
“…
“(j)Special rules for certain church employee income.— “(1) Computation of net earnings.—In applying subsection (a)—
“(A) church employee income shall not be reduced by any deduction;
“(B) church employee income and deductions attributable to such income shall not be taken into account in determining the amount of other net earnings from self-employment.
“…
“(4) Church employee income defined.—For purposes of this section, the term “church employee income” means gross income for services which are described in section 3121 (b)(8)(B) (and are not described in section 3121 (b)(8)(A)).”
“In the case of a minister of the gospel, gross income does not include—
“(1) the rental value of a home furnished to him as part of his compensation; or
“(2) the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.”
“(a) General rule “Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.
“(b) Income “Subsection (a) shall not exclude from gross income—
“(1) the income from any property referred to in subsection (a); or
“(2) where the gift, bequest, devise, or inheritance is of income from property, the amount of such income.
“Where, under the terms of the gift, bequest, devise, or inheritance, the payment, crediting, or distribution thereof is to be made at intervals, then, to the extent that it is paid or credited or to be distributed out of income from property, it shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property. Any amount included in the gross income of a beneficiary under subchapter J shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property….”
“§ 2503. Taxable gifts “(a) General definition. The term ‘taxable gifts’ means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).
“(b) Exclusions from gifts. “(1) In general.—In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Where there has been a transfer to any person of a present interest in property, the possibility that such interest may be diminished by the exercise of a power shall be disregarded in applying this subsection, if no part of such interest will at any time pass to any other person.
“(2) Inflation adjustment.—In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—
“(A) $10,000, multiplied by
“(B) the cost-of-living adjustment determined under section 1 (f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 1992” in subparagraph (B) thereof.
“If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.
“….”
Note.The author has found only one case, Morey v. Riddell,205 F. Supp. 918 (S.D. Cal. 1962), which addresses the issue of deductions for members of a New Testament church. That case held that § 170 applies to what appears from the record to have been, at least for the most part, a New Testament church. The government argued that contributions did not qualify as deductions. The Court held for the church on all points. The author has done an analysis of the case in God Betrayed/Separation of Church and State: The Biblical Principles and the American Application. Each member of a New Testament church is responsible to God first and the civil government second for the decision he makes as to whether to take a deduction for tithes and offerings to a New Testament church.
IRC 170 provides in relevant part:
Ҥ 170. Charitable, etc., contributions and gifts
“(a)Allowance of deduction.— “(1) General rule.—There shall be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only if verified under regulations prescribed by the Secretary.
“…
“(c) Charitable contribution defined.—For purposes of this section, the term “charitable contribution” means a contribution or gift to or for the use of—
“…
“(2) A corporation, trust, or community chest, fund, or foundation—
“(A) created or organized in the United States or in any possession thereof, or under the law of the United States, any State, the District of Columbia, or any possession of the United States;
“(B) organized and operated exclusively for religious, charitable, scientific, 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;
“(C) no part of the net earnings of which inures to the benefit of any private shareholder or individual; and
“(D) which is not disqualified for tax exemption under section 501 (c)(3) by reason of attempting to influence legislation, 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.
“A contribution or gift by a corporation to a trust, chest, fund, or foundation shall be deductible by reason of this paragraph only if it is to be used within the United States or any of its possessions exclusively for purposes specified in subparagraph (B). Rules similar to the rules of section 501(j) shall apply for purposes of this paragraph.”
IV. The Laws of Kansas
A. The Kansas Constitution Click links (maroon colored words) to go directly to quoted provisions.
PREAMBLE.We, the people of Kansas, grateful to Almighty God for our civil and religious privileges, in order to insure the full enjoyment of our rights as American citizens, do ordain and establish this constitution of the state of Kansas, with the following boundaries, to wit: Beginning at a point on the western boundary of the state of Missouri, where the thirty-seventh parallel of north latitude crosses the same; thence running west on said parallel to the twenty-fifth meridian of longitude west from Washington; thence north on said meridian to the fortieth parallel of north latitude; thence east on said parallel to the western boundary of the state of Missouri; thence south with the western boundary of said state to the place of beginning.
§ 3. Right of peaceable assembly; petition.The people have the right to assemble, in a peaceable manner, to consult for their common good, to instruct their representatives, and to petition the government, or any department thereof, for the redress of grievances.
§ 7. Religious liberty.The right to worship God according to the dictates of conscience shall never be infringed; nor shall any person be compelled to attend or support any form of worship; nor shall any control of or interference with the rights of conscience be permitted, nor any preference be given by law to any religious establishment or mode of worship. No religious test or property qualification shall be required for any office of public trust, nor for any vote at any elections, nor shall any person be incompetent to testify on account of religious belief.
§ 11. Liberty of press and speech; libel.The liberty of the press shall be inviolate; and all persons may freely speak, write or publish their sentiments on all subjects, being responsible for the abuse of such rights; and in all civil or criminal actions for libel, the truth may be given in evidence to the jury, and if it shall appear that the alleged libelous matter was published for justifiable ends, the accused party shall be acquitted.
§ 15. Search and seizure.The right of the people to be secure in their persons and property against unreasonable searches and seizures shall be inviolate; and no warrant shall issue but on probable cause, supported by oath or affirmation, particularly describing the place to be searched and the persons or property to be seized.
§ 1(b). § 1: System of taxation; classification; exemption. … (b) All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants’ and manufacturers’ inventories, other than public utility inventori es included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, shall be exempted from property taxation.
“79-201.Property exempt from taxation; religious, …. The following described property, to the extent herein specified, shall be and is hereby exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:
First. All buildings used exclusively as places of public worship … with the furniture and books therein contained and used exclusively for the accommodation of religious meetings … together with the grounds owned thereby if not leased or otherwise used for the realization of profit, except that: … (b) any building, or portion thereof, used as a place of worship, together with the grounds upon which the building is located, shall be considered to be used exclusively for the religious purposes of this section when used as a not-for-profit day care center for children which is licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto, or when used to house an area where the congregation of a church society and others may purchase tracts, books and other items relating to the promulgation of the church society’s religious doctrines.
Second. All real property, and all tangible personal property, actually and regularly used exclusively for … religious … purposes, including property used exclusively for such purposes by more than one agency or organization for one or more of such exempt purposes. Except with regard to real property which is owned by a religious organization, is to be used exclusively for religious purposes and is not used for a nonexempt purpose prior to its exclusive use for religious purposes which property shall be deemed to be actually and regularly used exclusively for religious purposes for the purposes of this paragraph, this exemption shall not apply to such property, not actually used or occupied for the purposes set forth herein, nor to such property held or used as an investment even though the income or rentals received therefrom is used wholly for … religious … purposes. In the event any such property which has been exempted pursuant to the preceding sentence is not used for religious purposes prior to its conveyance which results in its use for nonreligious purposes, there shall be a recoupment of property taxes in an amount equal to the tax which would have been levied upon such property except for such exemption for all taxable years for which such exemption was in effect. Such recoupment tax shall become due and payable in such year as provided by K.S.A. 79-2004, and amendments thereto. A lien for such taxes shall attach to the real property subject to the same on November 1 in the year such taxes become due and all such taxes remaining due and unpaid after the date prescribed for the payment thereof shall be collected in the manner provided by law for the collection of delinquent taxes. Moneys collected from the recoupment tax hereunder shall be credited by the county treasurer to the several taxing subdivisions within which such real property is located in the proportion that the total tangible property tax levies made in the preceding year for each such taxing subdivision bear to the total of all such levies made in that year by all such taxing subdivisions. Such moneys shall be credited to the general fund of the taxing subdivision or if such taxing subdivision is making no property tax levy for the support of a general fund such moneys may be credited to any other tangible property tax fund of general application of such subdivision. This exemption shall not be deemed inapplicable to property which would otherwise be exempt pursuant to this paragraph because an agency or organization: (a) Is reimbursed for the provision of services accomplishing the purposes enumerated in this paragraph based upon the ability to pay by the recipient of such services; or (b) is reimbursed for the actual expense of using such property for purposes enumerated in this paragraph; or (c) uses such property for a nonexempt purpose which is minimal in scope and insubstantial in nature if such use is incidental to the exempt purposes of this paragraph; or (d) charges a reasonable fee for admission to cultural or educational activities or permits the use of its property for such activities by a related agency or organization, if any such activity is in furtherance of the purposes of this paragraph; or (e) is applying for an exemption pursuant to this paragraph for a motor vehicle that is being leased for a period of at least one year.”
“79-3603.Retailers’ sales tax imposed; rate. For the privilege of engaging in the business of selling tangible personal property at retail in this state or rendering or furnishing any of the services taxable under this act, there is hereby levied and there shall be collected and paid a tax at the rate of 5.3%. Within a redevelopment district established pursuant to K.S.A. 74-8921, and amendments thereto, there is hereby levied and there shall be collected and paid an additional tax at the rate of 2% until the earlier of the date the bonds issued to finance or refinance the redevelopment project have been paid in full or the final scheduled maturity of the first series of bonds issued to finance any part of the project upon:
“(a) The gross receipts received from the sale of tangible personal property at retail within this state; …”
“79-3606.Exempt sales. The following shall be exempt from the tax imposed by this act:
“…
“(aaa) all sales of tangible personal property and services purchased by a religious organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and used exclusively for religious purposes,”
Non-state churches should contact Jerald Finney for help in seeking exception from sales tax on items bought for use in church ministry.
FN1 Many books, articles, and audio teachings address the Biblical principles, history, and facts one can refer to in order to determine that when a church becomes a legal entity and obtains 501(c)(3) status, she violates Biblical principles and displeases our Lord.
IRC § 5O1 provides in relevant part:
Ҥ 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]….
FN2 Browse this website for all written and audio teachings, available at no cost. Books can be ordered – see the Books page. All the books by Jerald Finney are available free in online and PDF form. The links to all online books and PDFs are at the Books Order Information page.
FN5 See God Betrayed/Separation of Church and State: The Biblical Principles and the American Application (Xulon Press, 2008 (www.xulonpress.com) or Austin, TX: Kerygma Publishing Co. 2008 (churchandstatelaw.com), Section IV. This book and all books, articles, audio teachings of Jerald Finney are available at no cost on this website. Ordering information for the books is available at Order Information for Books by Jerald Finney.All the books by Jerald Finney are available free in online and PDF form. The links to all online books and PDFs are at theBooks by Jerald Finney Page.
FN6Bob Jones University, 461 U.S. 574 (1983).
FN7Ibid.
FN8 26 U.S.C. § 508 (2007).
“(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….”
This article gives (without names or identifying information) some pastors’ e-mails with comments and questions concerning articles on this blog and my responses. I have received other e-mails from pastors and may do future articles on their comments and my responses because these e-mails not only raise important questions which need to be addressed, but also give insights into the thoughts of pastors on issues such as church incorporation and 501(c)(3) as well as the biblical doctrines of government, church, and separation of church and state.
My conclusions from reading and responding to these e-mails, as I believe you will agree, is that:
“the understanding of the biblical principles, history, law, and facts among pastors varies widely. Some pastors are like secularists in that they have no spiritual knowledge, wisdom, and understanding and refuse to (and maybe cannot) look at the issues with an open mind. Some rely on their opinions as opposed to the Word of God as the basis for what they believe. Many take Scriptural verses completely out of context to support their erroneous views. Others are eager to please the Lord, and seek to increase their knowledge about these preeminent matters. Some already have some degree of understanding, greater or lesser, about these issues. Some are already practicing biblical principles in the area of church and state.”
You probably have received and possibly read some of my articles on this blog. Go to the very end for links to all the articles on this “Separation of Church and State Law” blog.
BEGIN 1st E-MAIL:
E-mail from a pastor who read some of my articles:
“I am writing to ask questions… not as a know it all, or in anger…. but because I always seek to do those things pleasing to the Lord, and according to law as a citizen of both Heaven and the USA. I became the pastor of a church planting effort almost 3 years ago. When we wanted to open our own bank account we were told that we needed our own EIN.
“I did not rush into the decision, but after counsel from others who said even Christ paid a “religious” tax with his disciples that he was certainly exempt from… that we could submit to the request to receive such a number.
“Our church did incorporate, believing that this was necessary so that we could file w-2 forms for me as the pastor. We did not seek 501(c) 3 status because the law explicitly said we did not need to.
“Question: How would I as a pastor pay tax on my income if I did not incorporate and receive an EIN.
“Question: How do you have a bank account to hold church money that is given, without an EIN.
“Question: If these things can be done, how would I communicate that to my bank.
“As a citizen of the USA, I am also a Citizen of Heaven. I have a social security number and the government defines much of what I can and cannot do. Yet I do not tear up such a number, I simply walk when I can in agreement with the law, and when I cannot I obey God. How is this different from what I now do as a pastor. I do not read IRS code to determine what I preach.
“I appreciate the work you are doing… but do not think I fully understand. I did listen to one of your broadcast that was linked below.”
Pastor ____________________
My response:
Dear Bro. __________________,
It is always exciting to hear from a pastor who has an mind open to consider these preeminent issues.
Can you call me? To answer your questions would be much easier if we could talk. Or e-mail me and leave your phone number and I would be glad to give you a call.
Let me suggest my blog article American abuse of Romans 13.1-2 (I think you can access the article by clicking the title) and other related verses. There is an audio teaching included with that article. I have one book which deals specifically with Romans 13 and other verses including the verses dealing with the tribute money which are routinely misinterpreted by many pastors and Christians.
To understand the issues, one must do a dedicated study of Scripture. I have done such a study and have put my findings in God Betrayed. I have also written on three other books dealing with related issues. My studies have consumed thousands of hours. Most pastors, through no fault of their own, were never taught the biblical principles and doctrines concerning church, state, and separation of church and state.
I would be happy to discuss all your questions with you, but I just don’t have the time to write out the answers since to fully answer them would require writing a book.
I appreciate all Bible believing pastors. Hopefully more will, like you, begin to look into these very important issues.
For His Glory,
Jerald Finney
END OF 1st E-MAIL.
BEGIN 2nd E-MAIL:
After reading the e-mail, I first offer this response followed by his comments and my responses:
Dear Pastor __________,
Thanks for taking your valuable time to offer your opinions on this subject. I offer the following insights in love. I do not offer my opinions. I base all I say on the Word of God. I base my analysis of fact, law, and history on the Word of God. Truth is not based on opinion. In your opinion, incorporation and 501(c)(3) for churches is a minor issue. To God, according to His Word, this is a major, major issue. That this is a major issue to God is apparent from His Word. That is why He likens Himself to the Bridegroom, Husband, and Head of His church who is the wife and bride of Christ. That is why He tells us:
“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” (Ephesians 5:25-27).
God is giving this analogy so that a Christian who is walking in the spirit can understand how important these issues are.
In addition to telling us how He feels about His churches, He gives us His desired organization, purposes, and definition of His churches. I go over all this in great detain in my books and in the audio teachings on my “Separation of Church and State Law” blog.
Now to your comments and my answers – I have already addressed some of your comments. I will give my answer after each of your paragraphs:
From: … To: Jerald Finney <jerald.finney@sbcglobal.net> Sent: Tuesday, October 20, 2009 7:51:08 AM Subject: RE: Important information on 501c3 and incorporation of churches
Pastor’s comments:
Dear Brother Jerald,
Thanks for the e-mail my kind sir, but no thanks on the message. The day the Feds come after the churches for whatever excuse they will think of, it will matter not if one is 501c3. Matter of fact, they will probably go after the non 501c3 churches first. While I am very familiar with the whole of the issue wither to be or not to be 501c3, I find it to be a sub issue with little to no relevance to our Faith and practice as a local Church. This is a minor issue ,one has to have been burned as BJU (a non local church taking a unbiblical stand, {that they have later recanted of}) was to think it a major one. The Control of the Federal Government via 501c3 on local churches is nil in my 25 years of ministry experience. Churches & ministries trying to fleece the people of God with book stores, fund raisers and the like, ought to be paying taxes when they are turning a profit, like A-BEKA was.
My response: Civil government in America would go after New Testament churches (churches which are not legal entities such as corporations, unincorporated associations, corporations sole, etc. and which have not obtained 501(c)(3) status) if they could. They do not for two reasons: first, such churches are free under God – they are free in America, in China, Korea, and in every nation. I could show you this biblically, but that is a deep study. Let me just give you one verse: “If the Son therefore shall make you free, ye shall be free indeed” (John 8:36). Jesus said, “Upon this rock I will build my church and the gates of hell shall not prevail against it” (Matthew 16.18)(He is speaking of His churches, not state churches). Tyrannical governments can force churches to meet underground, but they cannot touch those churches. They can only persecute Christians when they are caught practicing their faith and destroy or take property. Nonetheless, those Christians are free. Most Christians in America, like lost people, are in bondage to the American system – they have been so Americanized that they cannot walk in the Spirit and do things God’s way in spite of the fact that they can do so without persecution and with only mild inconveniences.
Second, New Testament churches in America are protected by the First Amendment and various state constitutional and legal provisions. Civil government will go after, as they are already doing, state churches (legal entities such as corporations, unincorporated associations, corporations sole, etc. and possibly also 501(c)(3)) first. They have controlled and defined those churches to one degree or another. State churches reflect America’s principles, not God’s principles. Furthermore, state churches have given up much of their First Amendment protection which non-state churches still enjoy. The “gates of hell” are already prevailing against those churches. I do not have time to fully explain this – see my books. Obviously, from the contents of your letter, you are not familiar with the issue of incorporation and 501(c)(3).
By the way, Bob Jones University was not a church, nor was it a free educational institution. It was an incorporated 501(c)(3) institution of higher learning which had subjected itself to civil government control in return for supposed government perks. I have thoroughly read the case and analyzed it in two of my books.
I agree with you about churches which conduct businesses. I believe that they should be taxed. I cannot remove a candlestick, but God may have already done so as to many churches which, to Him, are no longer churches. Ultimately, God is and will be their judge, just as He will judge those churches and Christians who have failed to “love Him with all their heart, soul, mind, and strength.” Incorporated 501(c)(3) churches and churches who have chosen to become legal entities in any way have not loved God, from His perspective – therefore, they do not love Him. State churches arrange their affairs according to man’s laws, not those of God. Even though they may be right about some things, they are wrong in their organization, procedures, and operation. I go over this thoroughly in The Most Important Thing: Loving God and/or Winning Souls. In that book, I explain what the Bible teaches on the subject, not what I think; and I do not take verses out of context to support my opinion.
And let me say this, no one in America is forced to go to any church. In addition, the First Amendment as well as state constitutional provisions and laws protect those churches who do things God’s way and choose not to entangle themselves in the control-definition schemes devised by civil government. I do not go to a state church because to do so would be to dishonor my Lord and Savior. I go to a New Testament church. You are free to run a state church and people are free to go to that church. In America, one is free to serve either God or mammon without persecution.
Also, anyone who commits a crime, regardless of what church he is in, can be charged and subjected to the criminal justice system. I believe that many more members of state churches are guilty of sinning against God and man than members of true New Testament churches.
Pastor’s comments: I know of churches that have un-incorporated, so they can say, “we have no power but God over us.” only to find out that they could not get a bank account, people could no longer deduct their giving, and the church had to operate on a complete cash basis, anyone could be sued personally with no protection and as an added bonus, draw the community’s attention of being secretive and cultish. No Thanks! While I am sure the anti-christ in the tribulation will utilize the current finical computer systems of the banking industry to control the masses, I don’t plan on being here. And Until such time that being 501c3 violate clear biblical command to obey God rather than man, our church will utilize to the current system of protection set up by the American government.
My response: I know churches who are pleasing God and operating according to the principles of the New Testament. There are ways under the laws of America for New Testament churches to operate and utilize property while not owning that property. Also, it is possible to set up bank accounts for the use of the monies given by church members. I know of many churches which are now utilizing those methods and honoring God. Their people are happy, and they love the Lord and His precepts. Although they suffer some minor inconveniences, many of them take tax deductions. Internal Revenue Code Publications (see my books and audio teachings), in accordance with the law says they can do so and the issue has been taken up and ruled upon positively by at least one federal court. I personally do not take such a deduction, since I give for His pleasure, not so that I can get a tax deduction. One caveat is this – since the enactment of the Patriot Act there are sometimes hurdles for a New Testament church to jump in attempts to open a bank account.
You allow the community, not God to define you? You fear that they will label you as secretive and cultish? Let me tell you, the non-state churches I know of are completely open. Anyone can come and observe them. No IDs are taken at the door and they, like state churches, probably have state agents observing them. God’s churches love and fear God, not man and civil government. The Bible speaks much on the issue of fear to the believer who is walking in the Spirit. For example, “For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind” (2 Timothy 1:7). “Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee. So that we may boldly say, The Lord is my helper, and I will not fear what man shall do unto me” (Hebrews 13:5-6).
In America today, even sold out state churches are disdained. Even pseudo-Christians in state churches are disdained. Jesus was disdained. The apostles were all disdained and persecuted. True Christians over the last two thousand years have been labeled as cultish and secretive by their communities. Furthermore, they have been beheaded, drowned, burned alive, imprisoned, etc. by the church state alliances (by the established churches using the arm of the state or the state using the established churches) all because they would have no power over them but the Lord Jesus Christ. John Bunyan was one of those who refused to bow down to civil government. And over hundreds of years, they had to be somewhat secretive, because to operate openly meant certain torture and/or death. For a state church to use the example of John Bunyan to support their position is beyond ludicrous.
And you fall back on the rapture. I believe in the rapture. But don’t count on it to save you from persecution. First, if you are not saved, you will not be taken in the rapture. Second, there is no guarantee that Christians in America will not once again suffer persecution. Christians all over the world to this very day are beaten, imprisoned, tortured, killed, etc. for their faith by communities and governments who label them as secretive and cultish. What makes you think American Christians are any better? What gives you the right to discount persecution? We are told that those “who live godly in Christ Jesus shall suffer persecution.” Jesus said,
“Blessed are they which are persecuted for righteousness’ sake: for theirs is the kingdom of heaven. Blessed are ye, when men shall revile you, and persecute you, and shall say all manner of evil against you falsely, for my sake. Rejoice, and be exceeding glad: for great is your reward in heaven: for so persecuted they the prophets which were before you” (Matthew 5.10-12).
Christians who are persecuted for Christ’s are highly favored by God. “Greater love hath no man than this, that a man lay down his life for his friends” (John 15.13). Christ laid down his life for his children, but “Christians” in state churches are unwilling to lay down anything, much less their lives, for Him. After all, that is not necessary since they believe that they will be raptured out of here before they have to suffer anything for our Lord.
Getting 501(c)(3) clearly violates biblical principles and grieves our Lord. You take a portion of 1 Peter 2.13 out of its immediate context and the context of Scripture as a whole to support your erroneous position. I deal with 1 Peter 2.13, Romans 13 and other verses taken out of context and abused by Christians as well as secularists in my books and teachings. One of my books, Render Unto God the Things that Are His: A Systematic Study of Romans 13 and Related Verses, as well as one audio teaching on “Separation of Church and State Law” blog are devoted entirely to this issue. To fully understand the issue, one must either do his own extensive study or get God Betrayed/Separation of Church and State: The Biblical Principles and the American Application.
Pastor’s comments: Do I trust them? No, no more than Paul did when Rome (the powers that be) cut off his head, but little he did, stopped the Roman government from its evil plan orchestrated by Satan. So to, little that we do in the matter of 501c3 will have any effect on the end times and Satan’s master plan for world domination.
My response: Here you say you don’t trust them, but in the other paragraphs you praise them for protecting state churches and their members. Our God-given goal is not to “stop them.” Our God-given goal is to glorify Him by following his principles as laid down in His Word. We can only do that if we are saved, and then only if we cherish Him and His precepts and submit ourselves to Him. We cannot do this if we are ignorant.
Pastor’s comments: In Conclusion, while I find the premise of why not to be 501c3 somewhat valid biblically, I find the practice of operating without the protection of 501c3 risky and as well non-biblical, for Christ told us to be as wise as serpents and gentle as lambs. I must ask myself as a pastor, how wise is it to subject my people to possible lawsuits, government inquires to why we operate below radar, community people accusing us of not being above board and cultish thus hurting the testimony of Christ. No, I have made my decision, this is not jolly old England telling me to get a permit to preach the gospel as they did John Bunyan, this is the USA trying to give protection to the 1st amendment as well as keep charlatans who would operate as a non-profit churches and ministries who’s real purpose is political or for profit or worse yet for fleecing the people of God.
My response: Your first sentence in your conclusion is internally inconsistent and you quote a verse completely out of context to support a position that the verse does not speak to. Again, to understand what Scripture teaches about government, church, and separation of church and state requires systematic study. See 2 Timothy 2.15.
As to your reliance on incorporation for “limited liability,” I address this and other spurious rationale you give for becoming a legal entity in my books. I can’t do the subject justice here, but will give you a brief synopsis of biblical truth on the issue of limited liability. See my books for God’s perspective on the other false reasons given for incorporating and getting a 501(c)(3). A state church (legal entity such as corporation, etc. and 501c3) and members of that church have less protection than a non-state church. Members of each are still liable for their crimes and torts and crimes and torts to which they are a party. As to protection of personal assets against suit against the church for failure to pay debts of the church, biblical principles make clear that we are not to go into debt, but that if we do, as Christians, we are to pay those debts, not seek protection through a legal device devised by man. And that device does not offer the protections you allude to. Check my books and audio teachings for a full understanding.
A New Testament church is still fully protected by the First Amendment. A New Testament church cannot be sued, since she is not a legal entity and is protected from state attempts to make it a legal entity by the First Amendment as well as by state constitutional and statutory provisions. Her members can be sued or charged for their crimes and torts. A New Testament church cannot enter into contract, because she is not a legal entity.
A state church has given up much of its First Amendment protection. Such a church now falls under the Fourteenth Amendment. Again, see my books and teachings.
Whether you know it or not, the state has limited you as to what you can preach if you are an incorporated 501(c)(3) church. Five rules go along with the 501(c)(3) status. Four are clearly stated in the law and one has come about by court decision. If you are like most state church pastors, you have never read the law or the rules that you agreed to when you got your 501(c)(3). In addition, God expects you to honor any rules you agree to, even if they are contrary to His rules. Obviously, He would rather you honor Him in the first place. Should the state say you have violated one or more of those rules, your only recourse is to go to court – the court will tell you whether you have violated the rule(s) and will tell you the consequences. You will not be able to appeal to God’s Word and rules, only the reasoning and rules laid down by the civil government. I go over all this in detail in my books and teachings.
A state church has denied the power of God. She has turned to the state because God and His principles are not sufficient. Christians in state churches (in general), as evidenced by your letter, do not know His principles, much less the facts about incorporation, 501(c)(3), etc. State churches believe that civil law gives them more protection than does God, but they are totally deceived – they have less protection. Most state churches don’t even examine the rules, procedures, etc. that they have bound themselves to keep. To fully understand this read my books and/or listen to my audio teachings.
This does not mean that a church which has chosen not to become a legal entity is operating according to God’s truth in all areas. Those New Testament churches I know of operate very honorably and according to the Word of God. Their pastors preach the whole counsel of God. Although preeminent, church organization and operation are not the only aspects of the Christian walk. New Testament churches who operate according to God’s principles in the area of church organization are much more likely than state churches to honor God’s other precepts as well. On the other hand, state churches are definitely operating outside God’s will in their organization, are at least partially under a head other than the Lord Jesus Christ, and are causing God much grief, even though they may be honoring one or some of His principles.
Churches and pastors who choose to honor God in the way they organize their churches are much more likely to honor him in other ways. The New Testament church pastors I know are far more honorable that most state church pastors I have ever met. Those preachers of New Testament churches do not get big salaries and perks. They preach the whole counsel of God, not just selected portions that do not offend. They are honorable men.
I would like to add that even a state church can have a good pastor. I know such pastors. A state church is like the nation Israel when she demanded a king. Being under God alone was not what they wanted. God granted their wish since He always give people what they want, when they have a choice (See 1 Samuel 8). Even though they had committed a great wickedness in demanding a king, God still promised that he would bless them if they would serve the Lord with all their heart and turn not aside (See 1 Samuel 12). However, the nation had dishonored their Husband (Yes, Israel was called the wife of God the father, just as the church is likened unto the wife of the Lord Jesus. See my books.). Once one takes the first step away from her husband, other steps inevitably follow. Before it was over, Israel was into complete apostasy and the only remedy was judgment. Judah, after the division, had some good kings although most were evil. When she had a good king and followed God, she was blessed and vice versa. Israel never had a good king – all were evil. The same principles apply to a church who has taken that first step to dishonor her Husband. Sooner or later she will not have a good pastor. Sooner or later she will sink into heresy and then into apostasy. We are seeing this happen in many state churches in America.
You try to bolster your opinion with lies that you cannot substantiate interspersed with total ignorance of the issues. Here is one specific example of that from your conclusion: “[T]his is the USA trying to give protection to the 1st amendment as well as keep charlatans who would operate as a non-profit churches and ministries who’s real purpose is political or for profit or worse yet for fleecing the people of God.” You attack the many excellent New Testament churches, pastors, and Christians in those churches with no basis to support your attack. No New Testament church I know of makes a profit. Every dime given by the members of New Testament churches I know of goes for biblically sound purposes, mostly for legitimate ministries. The last I heard, the church I attend gives 60 or 70% of all tithes and offering to missions. The only churches I know of that are illegitimate and doing the things you mentioned in the quote above are state churches – churches who have chosen to operate according to worldly principles as legal entities such as corporations, corporations sole, unincorporated associations, etc. and with 501(c)(3) religious organization tax exempt status.
Your statement about what the USA is trying to do is so ridiculous, I am not going to reply to it.
Pastor’s closing:
Take it for what is worth, my brother,
Pastor _______
END 2nd E-MAIL.
BEGIN 3rd E-MAIL:
Another pastor e-mailed me the following question: “Are you saying we should not be registered?”
My reply:
Dear Brother _________________,
It is not what I say or think about an issue. The real question is, “What does the Word of God say about and teach on this issue. That is, what are the biblical principles concerning this issue?” So, first one must understand the biblical principles involved – in this case, the biblical principles concerning church, state, and separation of church and state. Then, one must apply fact to principle to see if principle is being violated.
This is what I do in the studies provided. A pastor or other Christian can study the teachings. This gives one a reference point to consider these issues. Most pastors, evangelists, missionaries, and other Christians today have never looked at these principles. “Christ loved the church and gave himself for it that he might sanctify and cleanse it with the washing of water by the word” (Ep. 5.25-26). The epistles of Paul develop the doctrine of the church who was jealous over the church with a godly jealousy. As Paul wrote, “I have espoused you to one husband, that I may present you as a chaste virgin to Christ. But I fear, lest by any means, as the serpent beguiled Eve through his subtilty, so your minds should be corrupted from the simplicity that is in Christ” (1 Co. 11.2-3). The principles of civil government are also laid out in the Bible as is the principle of separation of church and state. Millions of Christians have given their lives and Christians continue to give their lives for these principles, but not in America.
It is your love relationship with the Lord that is affected. When an individual and a church violates that relationship, not only is our Lord is grieved but also there are bad consequences.
Thanks for your interest in this matter.
For His Glory,
Bro. Jerald Finney
END 3rd E-MAIL.
BEGIN 4th E-MAIL:
Bro. Finney,
I have no desire to be 501c3, and know the reason why. The first link on our email contains an extra “.” which prevents folks from accessing the information (unless they notice the extra period).
Any relation to Charles Finney? He is from this area (not that I hold to all that he did).
Bro. _____________________
END 4th E-MAIL.
BEGIN 5th E-MAIL:
Another pastor commented as follows to one of my articles: “Stop connseling pastors and go back to practicing law. You are not helping anyone.”
My response: “The legal association to which I volunteer much of my time (pro bono) has helped many churches to organize according to the biblical principles. Pastors and other Christians who have biblical knowledge, spiritual understanding and wisdom and open minds are coming to me ever more frequently for help in understanding and applying biblical principles relating to church organization.”
END 5th E-MAIL.
May you find the audio teaching and articles on this “Separation of Church and State Law” blog inspiring and helpful in your attempts to submit to our spiritual Husband and Head, the Lord Jesus Christ.
END
Churches under Christ Ministry Website: Understanding and Applying God's Principles for Church Headship "Would to God ye could bear with me a little in my folly: and indeed bear with me. For I am jealous over you with godly jealousy: for I have espoused you to one husband, that I may present you as a chaste virgin to Christ. But I fear, lest by any means, as the serpent beguiled Eve through his subtilty, so your minds should be corrupted from the simplicity that is in Christ" (2 Corinthians 11:1-3). ————————————This Ministry is under the authority of Charity Baptist Tabernacle of Amarillo, Texas. Jerald Finney, a Christian Lawyer and member of Charity Baptist Tabernacle, 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).
President Trump, desiring to help churches and “Christians,” and according to the advice of those “Christians” who surround him, pledged to eliminate the Johnson Amendment which limits all nonprofits from endorsing and opposing political candidates. See Endnote 1 for links to articles on this matter. I believe he is sincerely trying to help churches. Accordingly, he signed an executive order easing restrictions on political activity by non-profits. Of course, he cannot unilaterally change the law; but he did all he could do to help – ease but not eliminate one of the five restrictions which come with 501(c)(3) status. Just as non-profit corporation status puts the state of incorporation over a church for many matters, 501(c)(3), a man made law, still puts the federal government and the IRS agency over churches with respect to certain rules and a multitude of regulations that come with the chosen 501(c)(3) status. See Endnote 2 for list of some of the regulations that come with 501(c)(3) and links to resources which explain 501(c)(3) and 508(c)(1)(A) tax exempt status in some detail.
Simply Church: God's Prescribed Relationship Between Church and State 