Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.Certain activities or expenditures may not be prohibited depending on the facts and circumstances. For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner.
On the other hand, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.
Available at: http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/The-Restriction-of-Political-Campaign-Intervention-by-Section-501(c)(3)-Tax-Exempt-Organizations
Note the bolded text. "Voter education" could be any ordinary preaching that says, for just one example, that abortion is murder and you shouldn't vote for any candidate that support it. So, to get tax exempt status under 501c3, you'd have to agree to that, and that would be a bargain with the devil himself.
So why do churches incorporate as non-profits under 501c3 in the first place? Because theoretically, their doners can lower their taxable income by giving a portion of it to a recognized tax-exempt organization. But honestly, many congregations, especially small poor ones, are not going to have a problem with this, because many individual doners will be in an income range where the tax benefit for them is slim to nothing.
For large, wealthy churches, with a stable of large doners, 501c3 status is still too high a spiritual price to pay, and they should be willing, at least theoretically, to pay income taxes as required under the law, because all informed Christians know Jesus and the Apostles taught we should render unto Caesar the coin bearing his mark, and further that when we are obligated to pay, He himself will provide that coin, even from the mouth of a fish when necessary. So we do our obligations to the ordinances of man, and we trust him for the net gain to the church coffers. He owns the cattle on a thousands hills, and he will do a far better job protecting your income than IRS loopholes.
For the above reasons and more, some churches have simply sidestepped the problem. They don't organize as 501c3 entities, their pastors have a secular day job, they have no employees, they have a minimal investment in physical property, and their contributions are oriented to meeting immediate needs in the congregation, as opposed to being made to avoid income tax.
Many thanks for that info!
Wondering what certain denominations and groups have done in order to be able to get around the 501c3 limitations (example, rev Jesse Jackson etc and big denominations such as one that has its HQ in Italy).
Did they split off some “departments” into non 501c3’s?