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Churches and 501c3
Posted: June 7th, 2010, 5:00 pm
by Col. Flagg
As much as I haven't really cared for the attitude of Dr. Paul Drockton and his posts here in the forum over the past 6 months or so (although, he is no longer posting), I think he nails this one...
http://www.moneyteachers.org/Babylon1.html
"To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170."
Analysis: And so we see the muzzle that has been placed on our Churches in America. In exchange for their "non-involvement" in political matters, and influencing our laws, they avoid the payment of taxes as a "Tax-exempt" organization. In the opinion of many, this forces our religious organizations to proclaim "neutrality" on what are definitely moral issues that have been turned into legislation and espoused by politicians.
One example of this is abortion. The Catholic Church has spoken out against it. Yet, its political opposition is notably absent. It even refuses to excommunicate politicians who support pro-abortion laws and positions. This is a direct result of 501c3 rules that politicians use to threaten religious organizations. If the Catholic Church were to support an "anti-abortion", political candidate, they would lose their protected "Tax-exempt" status.
Another example is the so called "Gay Rights" movement in America and the LDS (Mormon) Church. When the Church fought Proposition 8 in California, which would have legalized homosexual marriages, they were repeatedly threatened by homosexual activists with the loss of their tax-exempt status. The same church that helped defeat gay marriage in California is now standing with gay-rights activists on an anti-discrimination law in its own backyard.
Chuck Baldwin has been outspoken about this too over the last year. I think they're both 100% right... the U.S. 'government' has purchased silence from our churches here in the U.S., including our own, by giving them all a tax-exempt status in exchange for their silence on many fronts, many of which have morphed into political issues from moral ones .
Re: Churches and 501c3
Posted: June 7th, 2010, 5:23 pm
by John Adams
At the "get together" with Bruce Wydner that Darren put together, Bruce mentioned briefly a little history behind this (mentioning that President Benson said the church was under condemntation for not taking seriously the Book of Mormon--inferring the condemnation being that the saints would rather have their tax-deductible tithing vs. really understsanding "the law.") However, he never really mentioned the source for his information. Anyway, if Bruce/Darren has some more information on this I would appreciate hearing more.
I agree that we (speaking collectively not necessarily individually) have chosen this path so we now get the consequences.
Re: Churches and 501c3
Posted: June 7th, 2010, 5:34 pm
by Col. Flagg
John Adams wrote:At the "get together" with Bruce Wydner that Darren put together, Bruce mentioned briefly a little history behind this (mentioning that President Benson said the church was under condemntation for not taking seriously the Book of Mormon--inferring the condemnation being that the saints would rather have their tax-deductible tithing vs. really understsanding "the law.") However, he never really mentioned the source for his information. Anyway, if Bruce/Darren has some more information on this I would appreciate hearing more.
I agree that we (speaking collectively not necessarily individually) have chosen this path so we now get the consequences.
I think this is the first time I've ever had someone agree with my concerns here... usually, I get lambasted and called out for questioning this and its impact on the brethrens' tongues. Glad to see some support, thanks John!
Re: Churches and 501c3
Posted: June 8th, 2010, 8:49 am
by natasha
You know how I stand on this one, Col...and I reiterate...the government did not BUY the Brethren's silence. Read this and ponder it:
Why Become 501(c)(3)?
Why become a 501(c)(3)? The simple answer is three-fold. First, having 501(c)(3) status allows your church the ability to guarantee that all tithes, offerings and donations are tax deductible because you have written proof from the IRS that your church is a registered charity. Second, many states do NOT automatically guarantee tax exempt status without a 501(c)(3) letter from the IRS. Many states will not give your church sales tax exempt status without your 501(c)(3) approval. Additionally, bulk mailing rates and most grants will not be extended to your church or ministry without 501(c)(3) status. Third, IRS section 508(c) states that all churches are automatically recognized as exempt under 501(c)(3) and are therefore required to comply with all 501(c)(3) requirements. In a 1996 court case, a Federal judge ruled that just because section 508(c)(1)(a) exempts churches from applying for 501(c)(3) status, it does not exempt the church from having to meet all of the requirements of sections 501(c)(3) and 170(c). While a church is automatically exempt under section 508(c)(1)(a), the court ruled that "Nothing in section 508(c)(1) relieves a church from having to meet the requirements of section 501(c)(3) . . . its contributors must prove the church's right to an exemption under section 501(c)(3) in order to be entitled to a deduction for their contributions” (Jack Lane Taylor v. Commissioner of Internal Revenue). In fact, if your church does not apply for 501(c)(3) status, you pass the burden of proof on to your members and donors. If any donor of your church gets audited, he or she will have to prove to the IRS that your church is operating in compliance with all of the requirements of sections 501(c)(3), 4958, 107, and many more. This may discourage many (particularly large donors) from giving to your church.
Col. Flagg wrote:John Adams wrote:At the "get together" with Bruce Wydner that Darren put together, Bruce mentioned briefly a little history behind this (mentioning that President Benson said the church was under condemntation for not taking seriously the Book of Mormon--inferring the condemnation being that the saints would rather have their tax-deductible tithing vs. really understsanding "the law.") However, he never really mentioned the source for his information. Anyway, if Bruce/Darren has some more information on this I would appreciate hearing more.
I agree that we (speaking collectively not necessarily individually) have chosen this path so we now get the consequences.
I think this is the first time I've ever had someone agree with my concerns here... usually, I get lambasted and called out for questioning this and its impact on the brethrens' tongues. Glad to see some support, thanks John!
Re: Churches and 501c3
Posted: June 18th, 2010, 1:50 pm
by John Adams
natasha wrote:You know how I stand on this one, Col...and I reiterate...the government did not BUY the Brethren's silence.
I don't think the Brethren sell out to anyone, but I definitely think they "allow" things to happen.
Re: Churches and 501c3
Posted: June 18th, 2010, 3:45 pm
by Col. Flagg
natasha wrote:You know how I stand on this one, Col...and I reiterate...the government did not BUY the Brethren's silence. Read this and ponder it:
Why Become 501(c)(3)?
Why become a 501(c)(3)? The simple answer is three-fold. First, having 501(c)(3) status allows your church the ability to guarantee that all tithes, offerings and donations are tax deductible because you have written proof from the IRS that your church is a registered charity.
Actually, this is a fallacy... religious institutions do not have to file for a 501c3 status to have their members be able to deduct donations.