Many Christians may disagree with this post. Nevertheless, I have felt for some time that something needs to be said. So, here goes.
Churches and other religious organizations may apply for tax-exempt status under Title 26, Section 501(c)(3) of the Internal Revenue Code. Just because you can do something does not mean you should. There is more to it than just the immediate financial benefit to charitable organizations and contributors. As always, we will seek out the whole wisdom of God on the matter from the Bible, and we will discuss the practical application of God’s Word to the problem.
The easy way would be to cite a proof text to make a point, and then call it good. However, the Word often complex. If I were to include everything in the Bible that might be applied to whether churches ought to obtain tax-exempt status, the result would be a book, not a blog post. Therefore, some representative texts are provided.
I urge you to obtain a good Bible concordance, and to start looking up key words and the verses in the Bible in which they appear. When the meaning of a text is unclear, you will find a great collection of commentaries at https://biblehub.com/ If you are blessed with a good Pastor, please ask him or her. However, do not be lazy. Do your own research.
The position of believers in the world is central to whether churches should become tax- exempt. Are we citizens of the Kingdom of Christ, or are we citizens of the nation state in which we live? If the church will have more money to spread the gospel through tax-exemption, shouldn’t we do it? What about the way the government spends our taxes? Do we want the money God’s people give to the church to pay for government programs and policies that are unbiblical? As citizens in a democratic republic, do we bear a corporate responsibility for what our elected government does?
Christians are to be, ‘in the world but not of it.’ The Bible says we are called to be separate, (2Corinthians 6:17), and that loving the things of world is enmity to God. (James 4:4) Chapters 17 and 18 of Revelation describe a world economic, religious, and political system that is controlled by the Antichrist, during the Great Tribulation. Are we seeing the precursors of that system now? How close can we get to the world before we become complicit in its opposition to God?
Jesus said that we are to, “Occupy ‘til I come.” (Luke 19:13 KJV)* In context, the idea is that we are to be about our Master’s business until He returns. Foremost, our Master’s business is to:
Therefore, go and make disciples of all the
nations, baptizing them in the name of the Father and the Son and the Holy
Spirit. Teach these new disciples to obey all the commands I have
given you. And be sure of this: I am with you always, even to the end of the
age.” (Matthew 28:19-20 NLT)*
For now, we are called to live here and to evangelize. We are to instruct the brethren in how to become disciples of Jesus Christ.
What about our citizenship? As Jesus told Pilate:
My Kingdom is
not an earthly kingdom. If it were, my followers would fight to keep me from
being handed over to the Jewish leaders. But my Kingdom is not of this world. (John 18:36 NLT)*
Jesus will establish His kingdom here on earth after the Second Coming. (Revelation 19 and 20) Until then, Christians have a sort of dual citizenship. An example is given to us in the life of Paul. Assuredly, the Apostle Paul was a citizen of the Kingdom of Christ. However, he was also a Roman citizen. If publicly claiming the privileges of Roman citizenship was a betrayal of his Lord, Paul would never have done it - but he did publicly claim Roman citizenship. (Acts 22 and 23).
To be clear, our first duty is to our Lord Jesus Christ (Acts 5:29), but to the extent possible, we must also obey the government. (1Peter 2:13) American followers of Jesus Christ are US citizens. We owe allegiance to the United States of America, and we are subject to its laws. Section 501(c)(3) is the law. If churches choose to apply for tax-exempt status, they must obey the law. If ministries choose not to apply for tax-exempt status, they also must obey all applicable laws. Remember that our Lord told us, “… give to Caesar what belongs to Caesar, and give to God what belongs to God.” (Matthew 22:21 NLT)*
Now here is the problem. Section 501(c)(3) prohibits ministries with tax-exempt status from involving themselves in political campaign activities and supporting or opposing legislation. It restricts pastors, church leaders, contributors, and others from realizing “excess” economic benefit from ministry activities. There are many other rules, and a church may lose its tax-exempt status for intentional or unintentional violations. Like most tax law, 501(c)(3) is convoluted and difficult to understand. The IRS has a publication to “help” people comply. It is 13 pages long! Ministries with tax-exempt status are intimidated into compliance by the threat that the IRS will take their tax-exempt status away. In short, the government can regulate what is said in tax-exempt churches, and to an extent the IRS regulations govern how such churches are administered.
The First Amendment to the US Constitution says in part that, “Congress shall make no law respecting the establishment of religion, or prohibiting the free exercise thereof, or abridging the freedom of speech …” (emphasis added) The courts have ruled that 501(c)(3) does not violate these First Amendment rights, (Branch Ministries vs. Rossotti, 12 May 2000). My mind is overwhelmed with acerbic observations. Nevertheless, case law is law until it is overturned.
To make matters worse, there seems to be a disparity in how the law is applied. Christian ministries seem to be regulated in a heavy-handed way, while the religious bodies of other faiths are not. As an example, some Mosques are known for “radicalizing” potential terrorists. Yet, nothing seems to have been done to stop them.
Churches, other Christian ministries, and those that support them need to ask themselves what their first love really is. Is it advancing the cause of Christ, or is it money?
One of the worries church organizations have is that contributors may stop giving if the ministry loses its tax-exempt status, and their donations can no longer be claimed as a tax deduction. Contributors, are you giving to the Lord’s work because you love Him, or is it because you can claim the gift as a tax deduction? It is not wrong to take any legal tax deduction, but Jesus sees into our hearts. He knows our motivations, and cares about our reasons for giving. If the primary reason for your giving is to get a tax deduction, rather than serving Jesus, you have your reward and can expect nothing further from our Father in Heaven. (Matthew 6:1-3) Our Lord taught us that, “You cannot serve God and be enslaved to money.” (Matthew 6:24 NLT)*
Jesus said:
“You are the
salt of the earth. But what good is salt if it has lost its flavor? Can you
make it salty again? It will be thrown out and trampled underfoot as worthless.
“You are the light of the world—like a city on a hilltop that cannot be hidden. No one lights a lamp and then puts it under a basket. Instead, a lamp is placed on a stand, where it gives light to everyone in the house. In the same way, let your good deeds shine out for all to see, so that everyone will praise your heavenly Father. (Matthew 5:13-16 NLT)*
Can we be salt and light in a derelict world when the government can tell us what we can (or can’t) say in our own churches; or outside them? Will we obey when government tells us not to talk about which candidate’s goals and policies match God’s Word most closely? Is your Pastor able to preach freely in support of laws that will make the United States a Godlier nation?
I have served on the board of a small church. I am aware of how difficult it is for ministries to make ends meet. Yet, it is best policy, in my opinion, for Christian organizations to refrain from applying for tax-exempt status, and to withdraw themselves from it if they are currently tax-exempt. We must have faith. God will provide. Jesus said:
… your heavenly Father already knows all your needs. Seek the
Kingdom of God above all else, and live righteously, and he will give you
everything you need. (Matthew 6:32-33 NLT)*
