[ksen]

When a church files for tax exemption as a 501(c)(3), it becomes a non-profit corporation. It's just a short walk from there to having the pastor think of himself as a manager/CEO.

I am totally against churches having a 501(c)(3) exemption. I heard Larry Burkett say, and lawyers supported him, that churches are naturally exempt from taxes and do not need a 501(c)(3) exemption. All that serves to do is give the government a potential string to pull to make your church dance to their tune.

[Alex Murphy]

churches are naturally exempt from taxes and do not need a 501(c)(3) exemption. All that serves to do is give the government a potential string to pull to make your church dance to their tune.

Any church IMO that applies for 501(c)(3) status is making one of two religious statements about the relationship of Church and State, either:

"Today, we voluntarily place our local church under the authority of the Civil Government. We voluntarily place the Civil Government as the head of our local church.

Or this

"We acknowledge that the Civil Government is, and has always been sovereign over the affairs of the Church. We confirm that we cannot, and will not, exist as a local church without the express permission of the Civil Government.

[blue-duncan]

A church is automatically exempt from federal income taxes and the filing of federal tax returns or informational returns. However, that exemption is conditional on the church abiding by certain provisions such as the "non-inurement" provision and the abstaining from certain types of involvement in legislation and political campaigns.

A church usually applies for the 501(c) Determination Letter in order to avail itself of sales tax exemptions, real property exemptions, local and state income and franchise tax exemptions, lenders usually require it when a church gets financing, discounts for supplies and furniture, franking privileges from the post office and there are other reasons for the Determination.

However, a church still exists if it does not have the exemption. All that it means is that the contributions and gifts to the church are not tax deductible and the church might have to file tax returns or informational returns declaring its income. It might have to pay the other taxes and lose other privileges that flow from the Determination. It still functions as a church preaching the gospel, teaching its people, comforting the afflicted and providing a sanctuary from the world. It can involve itself in legislation and endorse and criticism candidates for public office with impunity.

Nothing changes as far as the church's mission is concerned if the church does not have the Determination, just that the people no longer have the exemption from taxation. It causes a financial hardship but does not hinder the message or the purpose of the church.