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Originally Posted by Ehud
Help me out with this because I'm not following the significance. Churches that meet the requirements of section 501(c)(3) are automatically considered tax exempt. Are you saying there is some distinction to be made between a church that qualifies by default and one that applies for and obtains official recognition?
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Okay. Churches are automatically considered tax exempt. They have been (to my knowledge) since the UNITED STATES was born. Separation of church and state, and all that. There is a difference in being tax exempt and being a 501c3 though.
Quote:
Originally Posted by hometown guy
I know churches are automatically considered 501C but don’t actually get any certification for it unless they do the paperwork to get it. As a church you don’t need the paperwork however some church get it because some companies/people won’t donate unless you have it because they don’t understand that.
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No. Churches are not automatically considered 501c3. Many people believe they are, but they are not. They are automatically tax exempt. Which is the case whether they are 501c3, or not.
To my knowledge, churches have never been taxed by the government in the United States. Why? Because the government has no authority over them as a religious organization. Some here have pointed out, and correctly so, that the government has jurisdiction over the building that the church meets in. Sewer, fire codes, plumbing, electrical etc..
So, as I have said before on here, the government has limited authority over the building, and some codes that are tangled up in the construction of the building, but they have no authority over whether, when, how often, you meet, or what doctrine is taught by the church. It is really none of their business.
UNLESS . . . They are a 501c3. Because, no church is automatically a 501c3. They are mostly QUALIFIED for 501c3. They have to apply for that dubious distinction. So . . . Think about that for a moment.
They apply to whom, for that designation?
They apply to the Secretary of State of the state they are geographically located in, Louisiana for Brother Spell. They are applying for the right to abandon their status as a separate entity from the state. They are begging (begging is maybe a bit strong verbiage here, but I’m making a point) for recognition of the fact that they are voluntarily giving up their status of separation from the state. I have NEVER heard of any church being turned down. The church of Scientology was initially, but they appealed and were granted status.
So what happens when they are granted this status? They give up the status of separation, and agree to incorporate, under the laws of the State of Louisiana, in the case of Brother Spell. A corporation is a legal entity. Incorporated UNDER the laws of the state is a legal matter. The church that is incorporated under the laws of the state, are legally bound to obey the laws of that state that apply to such corporations.
That’s the condensed version, as I understand it. Some people are going to dispute this, no doubt, but I have studied it somewhat and I’m pretty sure this is accurate.
Why do churches give up their sovereignty? Because it is widely believed to be a good deal for them. And . . .
DONATIONS ARE OFFICIALLY TAX DEDUCTIBLE. So it comes back to money. The thing is that donations to churches are not disputed by the IRS anyway. But that’s all part of the illusion.
Some will believe, and they may say, otherwise. But law is not opinion. And 501c3 is a matter of law. I welcome other opinions, but I’d like to see documentation. If some would like to verify what I’m saying, or would like to dispute it, do a search on 501c3 status. It is a designation found in IRS tax code.
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