As for deducting donations, I see it as good stewardship.
My daughter's church (Fundamentalist Baptist) gave up it's tax exempt status a few years back. They separated the ministries from the church and the ministries retained a tax exempt status. The ministries owns the property and leases it to the church. So they divide their tithes between the church and donations to the ministries. That way the church only has the pastor, utilities and a small rent payment to make, yet they can still speak out politically, and the ministries are unaffected by taxes.
A national retail sales tax is worth five minutes of your time.
FAQ page:http://www.fairtaxvolunteer.org/smart/faq.html
We do not have to lose our tax exempt status. The government has no right to take money from a church that belongs to God first! The point is that the church should be engaging this lost culture at every level and especially at the elected level of goverment. Those on the lost left have no trouble gathering funds at their kind of gatherings to support abortion rights, gay rights, etc.--why do we want to give up our tax exempt status? The idea that it doesn't matter is wrong.
What would happen if the church lost it's tax exempt status? Then people would give from a heart of love, not tax deductions. Giving is an act of faith, and faith works by love.