Are there downsides 2 501c or what do u think JESUS would answer 2 this ? ?

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Doug

Could you explain what you mean without exchanging words for numbers and using slang. I haven't got a clue what you mean.

Thanks.

501c is a type of corporation here in the USA Enid. Most, if not all churches operate as corporations here that are defined as non-profit. As a result all "Tithe" money is tax deductible for the parishioners.

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Jeremiah Dusenberry

I never liked the fact that titheing or giving in general is tax deductible, it never settled well with me and so I just don't deduct it from my taxes.

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Matthew Guldner

I think so long as the church can utilize such an organizational registration with the federal government, without compromising itself, it is a prudent thing to do. Not so much for the tax benefits of it's donors, but so that a group of people can put money into a common pot for the sake of the gospel, without that money being treated as income to the church, and thus taxed as if it were a corporation.

Without the tax shelter afforded to a 501c3 organization, the church would have to pay 25+ percent tax on all money donated to it, like any other corporation in America. For the time being, we should recognize this tax status as a blessing from the Lord, especially when it comes to performing mercy ministries. Otherwise, without such a tax exempt status, if money were to be simply given to one person, it would all have to be "under the table" money, which techincally speaking, is an illegal source of income if not taxed.

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Jimmy H

Areadymind,

Thanks for explaining. Plain English. That's all I wanted.

There are generally two concerns over a church filing with the IRS as 501c organizations.

1) Concern that some religious organizations are using their non-profit tax emption status for unscrupulous profiteering.

2) Concern that registering with the government means a loss of liberty for the conscience and speech of the church members.

While both of these concerns are valid, the original intent of 501c was also valid. It was designed to prevent unscrupulous profiteering by the government off of charitable donations, and well as helping to ensure the liberty of conscience for church members by protecting them from being targeted with excessive or punitive taxation.

Separation of church and state is not as easy as people sometime make it out to be. While 501c registration does open the door for abuse, it also opens the door for large scale work to be done without government interference. The news tends to only print the scandals, but I suspect by in large the law has enabled charitable work to be accomplished that might not otherwise be funded. Statistics have traditionally shown that the largest and most charitable donor base in the US are conservative Christians, despite their misrepresentation as being socially unconcerned and materially close-fisted by liberal media. (On a side note, there is also recent research showing that specifically bible reading Christians are not only the most charitable segment of our society, but also have the least debt.)

It may be that the intolerance for Christianity in this country will eventually lead to some heretofore unwritten tyrannical code of beliefs and conduct for 501c churches, but that day is not here yet. It is my belief that if 501c status was closed for churches, it would represent a significant loss of religious liberty in this country. As the axiom says, the power to tax, is the power to destroy. Those "ministries" who are abusing their exemption from this power will have to answer to the Lord. For everyone else, I think the law allows more good then bad.

MC

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Mike Compton

thanks guys certain ministries a lot i see sending my family letters of love and other criteria and almost beg for donation making sure to tell them its tax deducible others do the faith based thing i guess JESUS would say. Just let me handle it i think thats what Mueller did.Love on

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Doug

Churches should be taxed. They occupy space like everyone else does.

The thought is that churches and other such charitable organizations provide so much benefit, that taxing them would actually hurt the community. Thus, they are not taxed.

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Jimmy H