Should churches stop being 501(c)3?

Posted by Ricky Grimsley in Facebook's Pentecostal Theology Group View the Original Post

Since i think we can all see how america is turning, should churches stop being 501c 3’s and start paying taxes to insulate ourselves from the coming “discrimination” over gay marriage and hiring “non-christians”? Ay thoughts or suggestions?

56 Comments

  • Reply March 29, 2016

    Carl Murphy

    You can protect yourself and church by writing in your bylaws that no marriage will be performed unless both parties are members in good standing and sign a profession of faith, which means the pastor does not conduct nor the building used except by members etc. you can also write it for employees. That is the recommendations of our church attorney. Like the Quakers and the draft they must be sincerely held beliefs of the church and no exceptions, not even for a board members daughter that is a non believer

  • Reply March 29, 2016

    Ricky Grimsley

    What about “hate speech” stuff like preaching homosexuality is a a sin? Isnt their a law about 501c3 speaking out against things like that?

  • Reply March 29, 2016

    Carl Murphy

    I do not know, the only thing I know is prohibited is politics. That’s the difference in saying a gay is going to hell and saying a Catholic is?

  • Reply March 29, 2016

    David Lewayne Porter

    I don’t believe we (The Church) will have to make that choice.
    I believe that the government will make it for us. But writing the clauses into the local by laws is strongly recommended as well.
    In addition to the by laws there has to be a written record kept of the minutes from an offically called church meeting with the motion, second, vote tally, and then list of attendees.

  • Reply March 29, 2016

    Troy Day

  • Reply March 29, 2016

    Michael Postlethwait

    If we give into that, then governments could fashion policies that favor some churches over others based on their core beliefs.

  • Reply March 29, 2016

    Ricky Grimsley

    Yep

  • Reply March 29, 2016

    Stan Wayne

    Churches are not 501.c.3

  • Reply March 29, 2016

    John Conger

    Churches incorporate as 501c3 all the time.

  • Reply March 29, 2016

    Stan Wayne

    Churches incorporate – they do not need 501.c.3 because churches are authorized by the IRS to give tax deductible receipts without 501.c.3 merely by being incorporated in their state as a church

  • Reply March 29, 2016

    Stan Wayne

    Incorporation in the state gives the right to claim state property tax exemption like a library or park or school or whatever –

  • Reply March 29, 2016

    John Conger

    No. A church is tax exempt on property tax without 501c3. I was a pastor for almost a decade and pastored when the cog gave us the option to incorporate. I declined. We never paid property tax on our church grounds. We actually owned several acres of brush that we did pay property tax on because we did not use it for religious purposes. A few years into it we started using it for boys camping and pioneers for Christ ministry and that allowed us to no longer pay property taxes on it.

  • Reply March 29, 2016

    Carl Murphy

    Crazy not to incorporate, church gets sued individual members are responsible, incorporating creates a legal identity

  • Reply March 29, 2016

    Ricky Grimsley

    With the irs as its legal head instead of jesus?

  • Reply March 29, 2016

    Carl Murphy

    Again, don’t incorporate and let some kid fall in your parking lot, every member is liable. Also your pastor may want to talk to a tax advisor about housing and other benefits allowed to ministers

  • Reply March 29, 2016

    Ricky Grimsley

    Insurance?

  • Reply March 29, 2016

    John Conger

    we had insurance to cover that and never incorporated. my mother in law fell in a braums where the floor had just been mopped and no wet floor signs were out. broke her hip. lawyer said they arent as easy to win as people think. he told her people have a reaponsibilty to watch where they walk. guess it depends on where you live

  • Reply March 29, 2016

    Carl Murphy

    It is as good as your auto or home insurance, get a verdict for more than the coverages the members will be responsible

  • Reply March 29, 2016

    Carl Murphy

    It also depends on the opposing attorney, why take a chance when 300 dollars will incorporate you?

  • Reply March 29, 2016

    John Conger

    we were also covered by denomination insurance not to mention if someone did get a judgement there is no inforcement of judgement. but this is still a moot point. i never saw any legal protection from a 501c3. where are you getting this?

  • Reply March 29, 2016

    Ricky Grimsley

    Does it matter what you get if its a giant trap?

  • Reply March 30, 2016

    Troy Day

    Corey Forsyth Having registered several 503 / LLC since the Tea Party non-profit scandals, it costs much more than just $300 to incorporate anymore.

    First off, you have to register it with your state ~$100 in fees alone
    Your registration for charitable solicitation is additional $50
    Plus you have to register a deed with your county appraiser’s office before you can proceed to a federal IRS tax exempt status as a corporation

    EIN has to be acquired before you can do anything additional. It does not cost anything. You can even get it online or over the phone, but you need to have it and be approved for it before you can proceed. IRS requires specific language in the articles of incorporation (in IRS Pub 557) to qualify for 501(c)(3) federal tax exemption. These provisions are not always included in state articles of incorporation templates.

    Application for 501(c) ranges between $400 and $850 (if you will operate above $10,000) and 1023-EZ takes between 3-6 months (maybe even more)

    If you do it alone, IRS projects 100+ hours of preparation time for a first-time applicant, that’s excluding calling them for case specific information on each individual registration

    If you decide to use online, template-based services it costs about $500-$600 in fees

    If you use a CPA or attorney who specialize in nonprofit organizations, it will be $2,500–5,000+ to prepare IRS 1023 applications for a SMALL organization. The application could then be denied and in need to re-file

    First year tax prepayment for the privilege of doing business as a corporation ranges from $800 to $1,000. Furthermore, Corporations are required to pay between $50 and $200 in government filing fees. Mandatory meetings for board of directors adds additional costs. And this is just for starters.

    Brotherhood Mutual has proposed a much cheaper protection: http://www.pentecostaltheology.com/4-steps-to-avoid-a-lawsuit-after-u-s-supreme-courts-decision-on-same-sex-marriage/

  • Reply March 30, 2016

    Carl Murphy

    You can also pay the sticker price for a car.

  • Reply March 30, 2016

    Carl Murphy

    But 501c3 and incorporation as a legal entity are two separate actions. One is for tax purposes the other for legal liability purposes.

  • Reply March 30, 2016

    Link Hudson

    Around 2009 or 2010 or so, I heard a man on Christian radio. Some of the things he said jibed with some things I believed the Lord showed me. I contacted the radio station, had an email forwarded to him, and invited him over for dinner.

    During our conversation, he said that the Lord had shown him that many of the churches that, at that time, we did not think would cave to the ‘gay’ agenda, would do so. He said the government was going to use taxes to pressure churches to comply with such things as hiring homosexuals, and that many churches would go along with it to keep their property. He also saw many people of God leaving these institutions.

    Get ready to lose your buildings if you have to and meet in homes.

  • Reply April 15, 2016

    Nina Mindova

  • Ricky Grimsley
    Reply June 28, 2016

    Ricky Grimsley

    Yes

  • Gilberto Rosado
    Reply June 28, 2016

    Gilberto Rosado

    Churches are not required to register with any Government agency. If you do, you are also obligated to submit to authority extra-church. FYI

  • David Lewayne Porter
    Reply October 26, 2016

    David Lewayne Porter

    They will give up their status or they will become a politically correct arm and extension of the government.

  • Eva Benevento
    Reply October 26, 2016

    Eva Benevento

    Why should churches pay taxes on monies that have already been taxed? The point of 501c3 is to give donors tax receipts so they can deduct the amounts from their income taxes. Taking away that status would only remove that tax break from donors. Taking it away may put people in the position of rethinking why they give.

    • David Lewayne Porter
      Reply October 26, 2016

      David Lewayne Porter

      Eva
      It is the same reason as paying income tax on what we earn and then sales tax on what we buy with thst same money.
      Add in property taxes in order to keep what we have purchased…..
      Never ending cycle.

  • Charlie Robin
    Reply October 26, 2016

    Charlie Robin

    David Lewayne Porter Would this be each local church decision or a corporate one?

  • David Lewayne Porter
    Reply October 26, 2016

    David Lewayne Porter

    For the denominational I am guessing their main offices, individual churches would be locally.
    For those incorporated and under a denomination it could go either way if they had the funds to do so.

  • Dennis Lear
    Reply October 27, 2016

    Dennis Lear

    No. We are always only 1 law away from another attack on churches. Whether it is to tap into the Lord’s money or to try to shape our beliefs. Toe the line in unison. If we start paying to keep the government out of our business, history reveals they will ALWAYS come back for more.

  • Charlie Robin
    Reply October 27, 2016

    Charlie Robin

    Some denominations are asking local churches to incorporate under separate chapter for both insurance and loan/credit purposes

  • Ricky Grimsley
    Reply April 9, 2017

    Ricky Grimsley

    Yes churches should stop being 501c3. There are legally not churches anymore tax exempt corporations whose legal head is the irs. Sounds blasphemous.

  • Stan Wayne
    Reply April 9, 2017

    Stan Wayne

    Churches are not 501.c.3
    Their donations can count as tax deductible without 501.c.3 merely by being incorporated as a church

  • Ricky Grimsley
    Reply April 9, 2017

    Ricky Grimsley

    I mean the churches that are 501c3 should stop being 501 c3

    • Stan Wayne
      Reply April 9, 2017

      Stan Wayne

      Hardly any are because they don’t need to be

  • Stan Wayne
    Reply April 9, 2017

    Stan Wayne

    Para church org needs 501.c.3 not churches

  • Tony Conger
    Reply April 9, 2017

    Tony Conger

    Los of churches are 501c3 and yes they should stop.

  • Stan Wayne
    Reply April 9, 2017

    Stan Wayne

    Please Google or ask a lawyer if Churches need to, bother to, are or will be 501.c3 – it is not done – I am a lawyer doing 501.c.3s

  • Tony Conger
    Reply April 9, 2017

    Tony Conger

    Not sure what you’re reading but no one on here is saying they need to be

  • Ricky Grimsley
    Reply April 9, 2017

    Ricky Grimsley

    My church is.

  • Tony Conger
    Reply April 9, 2017

    Tony Conger

    Church of God gave permission to all churches to become 501c3

  • Cor Leonis Johnson
    Reply April 9, 2017

    Cor Leonis Johnson

    I think we should wait and see what the courts look like in 3 or 4 years.

  • Ricky Grimsley
    Reply April 9, 2017

    Ricky Grimsley

    The courts are irrelevant if legal head of your church is the irs and not jesus.

  • Stan Wayne
    Reply April 9, 2017

    Stan Wayne

    Failure to communicate here – big time – no church needs to be 501c.3 to get the benefits that a parachurch organization that is 501c.3 gets. They just need state incorporation. No relationship with IRS is necessary – that is strictly the donor and his giving receipt issue

  • Troy Day
    Reply August 18, 2019

    Troy Day

    Philip Williams Jim Price given your last post about overspending by church and pastors what say ye?

  • Eddie Burdick
    Reply August 18, 2019

    Eddie Burdick

    If we ever get a democrat in office I think 8 love change that church will be taxed

    • Philip Williams
      Reply August 18, 2019

      Philip Williams

      Eddie Burdick commercial enterprises like the most outwardly successful churches ought to be taxed just like other businesses.

  • Ron Hamm
    Reply August 18, 2019

    Ron Hamm

    Every person who gives regularly to charity has already paid taxes before they give of what is left. To tax a non profit is a double tax.

  • Steve Losee
    Reply August 18, 2019

    Steve Losee

    501c3 is a charitable organization, exempt from taxation as an entity. Churces oten become dpeendent on this to maintain their largely unnecessary facilities, and local & state govts have threatened to revoke those of ministries that are faithful to Scripture. So yes, we should get rid of them and function without them.

  • Casius Leonidas
    Reply August 18, 2019

    Casius Leonidas

    If it’s a matter of government interference that’s one thing.
    If it’s to grow a mega church like a corporation, to avoid running afoul of the IRS (like Olsteen did), then I’d say no.

  • Salvatore Tropea Sr
    Reply August 18, 2019

    Salvatore Tropea Sr

    6 more years of President Trump
    and then The Rapture before the American persecution begins so let’s keep the deduction for now. It helps widowers as I to give more to the Church while lowering my taxable income!

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