Our bodies are inclined to ease, pleasure, gluttony, and sloth. Unless we practice self-control, our bodies will tend to serve evil more than God. We must carefully discipline ourselves in how we “walk” in this world, else we will conform more to its ways rather than to the ways of Christ.
Donald S. Whitney

A Tax Exempt Church is not

A Tax Exempt Church is not

A Church With Tax Exemption is not a Tax-Exempt Church!

by Art Fisher

During the recent Senate hearings on Senate Bill 557 (the so-called “Civil Rights Restoration Act”), it was noted that Sen. Kennedy and other supporters consistently referred to “religious or church organizations”, whereas opponents spoke of defending “religious freedom” and “rights” of the church. The term “organizations” may be the the key to understanding governmental meddling in the affairs of the church.

A “religious or church organization” is a CORPORATION that functions in a legal capacity, doing business as a church. The IRS is fully aware of this distinction, and their publications reinforce that status. Nowhere do they define “tax exempt churches” — they always refer to religious or church “organizations”. Surely Congress, in writing the tax law, understands this distinction as well!

A church that voluntarily initiates an application to the state for corporate status expects “limited liability” and “tax exemption”. It in turn owes to the state its right to exist and prosper. It is obvious that its legal status and that of its of its “flock” has been drastically altered.

Churches do NOT have rights granted by the Constitution. They enjoy INALIENABLE rights granted by God, which are secured by the Constitution. Incorporated churches, in contrast, are artificial entities which may have such “privileges and immunities” as are granted by the state.

The U.S. Supreme Court well understands the artificial status of corporations: A corporation is a creature of the state. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises … Its powers are limited by law … It’s rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation. Wilson v. U.S., 221 US 382. Corporations are not citizens … The term citizen … applies only to natural persons … not to artificial persons created by the legislature … Paul v. Virginia, 8 Wall 168, 177. (See also, Opinion Field, 16 Wall 36, 99). Whenever a corporation makes a contract it is the contract of the legal entity … The only rights it can claim are the rights which are given to it in that character, and not the rights which belong to its members as citizens of a state. Bank of Agusta v. Earle, 13 Pet 586.

According to IRS Publication 557, the instruction manual for organizations seeking recognition of tax exemption under Section 501(c)(3); in order to be