501c3 Facts
Should churches apply for 501c3?
The Revenue Act of 1954
Lyndon
B. Johnson's Conspiracy To Silence the Churches of America
Most churches and Ministries in America have
organized as "incorporated 501c3 tax-exempt religious organizations."
This is a fairly recent trend that has only been going on for about fifty
years. Churches were only added to section 501c3 of the tax code in 1954.
We can thank Sen. Lyndon B. Johnson for this.
Johnson was no ally of the church. As part of his political agenda, Johnson had it in mind to silence the church and eliminate the significant influence the church had always had on shaping "public policy."
Although Johnson proffered this as a "favor" to churches, the favor also came with strings attached (more like shackles). One need not look far to see the devastating effects 501c3 acceptance has had to the church, and the consequent restrictions placed upon any 501c3 church.
In Bob Jones University v. United States (461
U.S. 574), the U.S. Supreme Court noted the following about the government’s
intended purpose for the 501c3:
The
Court asserts that an exempt organization must “demonstrably serve and be in
harmony with the public interest,” must have a purpose that comports with “the
common community conscience,” and must not act in a manner “affirmatively at
odds with [the] declared position of the whole Government.” Taken together,
these passages suggest that the primary function of a tax-exempt
organization is to act on behalf of the Government in carrying out
governmentally approved policies.
Government Hushmoney
IRS
Code § 501c3 reads as follows:
Sec.
501. Exemption from tax on corporations, certain trusts, etc.
(c)
List of exempt organizations —
(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.
While
it may be appropriate for many non-profit organizations to waive their right to
intervene in political campaigns, or to influence legislation, is this the
right thing for a church to do?
Waiving
such rights is to waive one’s freedom of speech. Waiving one’s right to
influence legislation is especially problematic. The inevitable result has been
that the church has abandoned its responsibility to influence their elected
representatives to craft legislation that is biblical and that comports with
the Constitution.
The
unchurched, and even those who are openly hostile to the church, have taken
over that influence and are now seeing to it that their legislators craft
statutes which are unbiblical, immoral, and unconstitutional.
One
need not look far to see that the church’s acceptance of the 501c3, and its
significant restrictions, has had devastating consequences to not only the
church, but to the entire nation.
When
a church accepts the 501c3 status, that church:
- Waives its freedom of speech.
- Waives its freedom of religion.
- Waives its right to influence legislators and the legislation they craft.
- Waives its constitutionally guaranteed rights.
- Is no longer free to speak to the vital issues of the day.
- Becomes controlled by a spirit of fear that if it doesn’t toe the line with the IRS it will lose its tax-exempt status.
- Becomes a State-Church.
This did not happen
by accident, but by design.
35 Things An IRS Approved Church Cannot Do
These 35 prohibitions on churches and ministries demonstrate
how the IRS and the federal government now control churches and insure
politically and religiously "correct" behavior. Liberal Christian
churches and false religions (paganism and heathenism) such as Hinduism,
Witchcraft, and Scientology are not affected by these rules only fundamental
Bible-believing, Christian ministries and churches.
Also, keep in mind:
These 35 things are not prohibited by law or by the Constitution.
The IRS considers itself
above the law and the Constitution. When
your church incorporates
with the state and becomes and IRS 501(c)3 tax exempt corporation it forfeits
all protections provided by the constitution including the establishment clause
of the first amendment.
According to the IRS, Christian churches,
ministries, and organizations may not:
1. Expose conspiracies.
2. Criticize the New World Order.
3. Say or publish anything negative about any politician,
Republican or
Democrat. (teach
about the two-horned beast and the false
prophet?)
4. Criticize government agencies and bureaus―the IRS, FBI,
BATF, CIA, EPA,
DEA, OSHA, DOJ,
etc.
5. Criticize an institution of government such as the White
House, the
Congress, the
Federal Reserve Board, or the Supreme Court.
6. Encourage citizens to call or write their congressman,
senator, governor,
mayor, or other
public official.
7. Criticize any proposed or pending bill or legislation that
would take away
the rights and
freedoms of the people. (e.g. the mark of the beast)
8. Make disparaging remarks about, or criticize, any other
faith group, cult,
or religion. (teach
Dan 7:8, 24-25, 8:12-13, 11:31; Matt. 24:15)
Daniel
7:8,24,25
8 I
considered the horns, and, behold, there came up among them another little
horn, before whom there were three of the first horns plucked up by the roots:
and, behold, in this horn were eyes like the eyes of man, and a mouth
speaking great things.
24 And the ten
horns out of this kingdom are ten kings that shall arise: and
another shall rise after them; and he shall be diverse from the first, and he
shall subdue three kings.
25 And he shall speak great words
against the most High, and shall wear out the saints of the most High, and
think to change times and laws: and they shall be given into his hand until a
time and times and the dividing of time.
Daniel 8:12-13
12 And an host was given him against the
daily sacrifice by reason of transgression, and it cast down the truth
to the ground; and it practised, and prospered.
13 Then I heard one saint speaking, and another
saint said unto that certain saint which spake, How long shall be
the vision concerning the daily sacrifice, and the transgression
of desolation, to give both the sanctuary and the host to be trodden under
foot?
Daniel
11:31
And arms
shall stand on his part, and they shall pollute the sanctuary of strength, and
shall take away the daily sacrifice, and they shall place the
abomination that maketh desolate.
Matthew
24:15
When
ye therefore shall see the abomination of desolation, spoken of by Daniel the
prophet, stand in the holy place, (whoso readeth, let him understand:)
9. Expose or criticize the New Age Movement
10. Support or encourage a law-abiding citizen's militia.
11. Support or encourage the Second Amendment, the right of
the people to
keep and bear arms.
12. Discourage young women from getting an abortion, or
endorse the pro-life
movement.
13. Teach that abortion, especially partial birth abortion,
is murder and is the
killing of
innocent babies.
14. Identify homosexuality as a sin and an abomination to
God.
15. Express an opinion on any subject or issue.
16. Appeal to peoples' emotions by employing an
evangelization method (such
as "fire and
brimstone" preaching) not considered a "reasoned approach"
by the IRS.
17. Discuss or identify threats to Christianity.
18. Discuss subjects or topics the IRS deems
"sensationalist."
19. Criticize well-known public figures or institutions the
IRS deems "worthy",
such as the
super-rich elite, international bankers, the Hollywood movie
industry, etc.
20. Publish or broadcast information on any topic without
giving credence to
the opposing
viewpoints of Christ's enemies.
21. Publish and offer books, tapes, or products that expose
the elitist plot
against humanity
and God.
22. Criticize the Pope or the Vatican, or contrast the New
Catholic Catechism
with the truths
found in the Holy Bible. (Note: Only liberal churches are
permitted by the
IRS to criticize the Catholic Church).
23. Criticize the United Nations or such globalist groups as
the Council on
Foreign
Relations, the Bilderbergers, and the Trilateral Commission.
24. Criticize the Masonic Lodge, the Order of Skull &
Bones, or other secret
societies.
25. Highlight or otherwise bring attention to immorality of
public officials or
corruption in
government.
26. Complain of government wrongdoing or injustice, such as
happened at
Waco, Ruby Ridge,
and elsewhere.
27. Criticize the Jewish ADL or other Jewish lobby groups.
28. Say anything positive about the "religious
right" or the "patriot
movement."
29. Support home schooling, home churches, or unregistered
churches.
30. Spend money on missionary projects or charitable causes
not approved by
the IRS.
31. Promote or encourage alternative healthcare (herbs,
vitamins,
etc.).
32. Expose false teachings of any kind by anyone.
33. Support or encourage persecuted Christians suffering
under anti-Christian
regimes in Red
China, Cuba, Russia, Israel, Saudi Arabia, the United
States, and
elsewhere.
34. Ordain a pastor whose training or qualifications are not
approved by the
IRS.
35. Advocate or teach any Bible doctrine that is politically
or religiously
incorrect, or is
inconsistent with any "public policy" (abortion, feminism,
gay rights, etc.) currently being
enforced by the IRS.
Did
the church ever need to seek permission from the government to be exempt from
taxes?
Were churches prior to 1954 taxable?
No, churches have never been taxable. To
be taxable one would first need to be under the jurisdiction and therefore
under the taxing authority of the government. The First Amendment clearly places
the church outside the jurisdiction of the civil government: "Congress
shall make NO LAW respecting an establishment of religion, nor prohibiting the
free exercise thereof."
Religion cannot be free if you have to pay the government, through taxation, to exercise it. Since churches aren't taxable in the first place, why do so many of them go to the IRS and seek permission to be tax-exempt? It occurs out of:
According to IRS Code § 508(c)(1)(A):
But
in order to remain a true and faithful compass, the church must remain separate
and independent of the influences of that society, particularly its civil
government. It must be a “free-church.” Should the church become subordinate,
or in any way controlled or co-opted by the civil government (a “State-Church”
system), it can no longer effectively serve as that society’s moral compass.
Unless it is respected, no one will listen to what it has to say.
Rather than operating as "tax exempt
nonprofit religious corporations," churches once functioned as "free churches."
It is the right of any church to operate free of
the corrupting and compromising influence and control of the State; and it is a
right guaranteed by the Constitution:
Religion cannot be free if you have to pay the government, through taxation, to exercise it. Since churches aren't taxable in the first place, why do so many of them go to the IRS and seek permission to be tax-exempt? It occurs out of:
- Ignorance ("We didn't know any better")
- Bandwagon logic ("Everyone else is doing it")
- Professional advice (many attorneys and CPAs recommend it)
Does the law require, or even encourage, a
church to organize as a 501c3?
To answer that question let's turn to what the
IRS itself has to say.
Churches Need Not Apply
In order to be considered for tax-exempt status
by the IRS an organization must fill out and submit IRS Form 1023 and 1024.
However, note what the IRS says regarding churches and church ministries, in
Publication 557:
Some
organizations are not required to file Form 1023. These include:
Churches, inter-church organizations of local units of a church, conventions or
associations of churches, or integrated auxiliaries of a church, such as a
men’s or women’s organization, religious school, mission society, or youth
group. These organizations are exempt automatically if they meet the
requirements of section 501(c)(3).
Churches Are “Automatically Tax-Exempt”
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.
(b) Exceptions.
(1) Mandatory exceptions. Subsections (a) and (b) shall
not apply
to—
(A)
churches, their
integrated auxiliaries, and conventions or associations of churches.
This is referred to as the "mandatory
exception" rule. Thus, we see from the IRS’ own publications, and the tax
code, that it is completely unnecessary for any church to apply for tax-exempt
status. In the IRS’ own words a church “is automatically tax-exempt.”
Churches Are “Automatically Tax-Deductible”
And what about tax deductibility? Doesn’t a
church still need to become a 501c3 so that contributions to it can be taken as
a tax deduction? The answer is no! According to IRS Publication 526:
Organizations That Qualify To Receive Deductible
Contributions
You
can deduct your contributions only if you make them to a qualified
organization. To become a qualified organization, most organizations other
than churches and governments, as described below, must apply to the IRS.
In the IRS’ own words a church “is automatically
tax-deductible.”
Churches Have a Mandatory Exception To Filing
Tax Returns
Not only is it completely unnecessary for any
church to seek 501c3 status, to do so becomes a grant of jurisdiction to the
IRS by any church that obtains that State favor. In the words of Steve Nestor,
IRS Sr. Revenue Officer (ret.):
"I am not the only IRS employee who’s
wondered why churches go to the government and seek permission to be exempted
from a tax they didn’t owe to begin with, and to seek a tax deductible status
that they’ve always had anyway. Many of us have marveled at how church leaders
want to be regulated and controlled by an agency of government that most
Americans have prayed would just get out of their lives. Churches are in an
amazingly unique position, but they don’t seem to know or appreciate the
implications of what it would mean to be free of government control."
Most churches also incorporate
At law a corporation is:
By definition an incorporated church is a “State
Church.” Is that what Christ came to earth to establish?
"a creature of the State," and "the
State is sovereign over all corporations."
Not only are there
immense legal ramifications, there are also huge theological ramifications to
any church incorporating.
Just because everyone else is doing it, does that make
it right?
“The church is the moral compass of society.”
John Adams stated while he was our President,
“The church is the moral compass of society.”
The church is the minister of grace, while the State
is the minister of justice.
No
church can remain separate and distinct from the civil government when it
incorporates and/or accepts 501c3 status. For legal purposes an incorporated
501c3 church has subordinated itself, by contract, to the civil government. For
theological purposes, that church has made a covenant with the State, a
covenant which Scripture in no way supports.
What is the solution to the church's current
messy state of affairs?
It must cease operating
as an underling of the State. The solution is for the church to legally operate
as it once had in America (might I add, quite successfully so).
Just what exactly is a free-church?
A
free church operates independent of, and is in no way subordinate to, the civil
government.
Congress shall make no law respecting an
establishment of religion, or prohibiting the free exercise thereof…
No church in any nation at any point in history can lay
claim to the freedoms and liberties that are guaranteed the church in America.
The First Amendment is an act of God’s Providence to safeguard His church and
maintain its independence from the State. The First Amendment is the highest
form of real protection the church has ever known in history.
A free church is a church that is truly separate,
independent and autonomous from the State. It is established by a local body of
Christian believers, or chartered or "planted" by another church body
or denomination, without the permission or sanction of the State. The only
"sovereign" of the Free Church is the Lord Jesus Christ. A free
church cannot incorporate; it cannot seek a 501c3 status. It cannot become a
tax collector for the State (withholding agent.) It cannot accept
government-issued tax numbers (EIN).
To sum all this up:
The solution rests in the church abandoning the phony
third-rate protections and benefits of the State and returning to
those real protections and benefits that are ours in Christ Jesus.
A 501c3 status is not necessary for any church or ministry. When they do apply and become a 501c3 Church or ministry, they place themselves under the regulatory control of the IRS, and all the potential threat and intimidation that comes along with it. Why would any pastor or ministry want to do this when it's not at all necessary?
Thankfully, there's a remedy for those who wish to not have the yoke of bondage of this world on their shoulders, but to walk in the fullness of what God intended for us.
Mar
12:14-17
14 And when
they were come, they say unto him, Master, we know that thou art true, and
carest for no man: for thou regardest not the person of men, but teachest the
way of God in truth: Is it lawful to give tribute to Caesar, or not?
15 Shall we
give, or shall we not give? But he, knowing their hypocrisy, said unto them, Why tempt ye me? bring me a penny, that I may see it.
16 And they
brought it. And he saith unto them, Whose
is this image and
superscription? And they said unto him, Caesar's.
17
And Jesus answering said unto them, Render to Caesar
the things that are Caesar's, and to God the things that are God's.
And they marvelled at him.