Expert: Rev. Robert Woods - 2/27/2009

Question
QUESTION: Should a church incorporate and apply for 501(c)3 status or not?  What is your opinion?

ANSWER: Blessings and thank you for your question.

Yes, there are a couple of advantages to being declared a 501(c)3.
First, taxes.  A church should then be tax exempt from sales tax and corporate income taxes.  Also, contributors to the church can take , of the charitable giving deduction.  Secondly, depending of the state, it gives certain protections to the church (like not paying unemployment compensation, privacy protections, and some clergy protections).  In some states, a minister cannot perform a marriage ceremony if he is not the head of a recognized church.

At this time, our government is not officially "anti-church."  There may be a time in the future when the church is persecuted and will not want the recognition from the government.



---------- FOLLOW-UP ----------

QUESTION: So, do you disagree with the argument that any church that incorporates and applies for tax-exempt status is then submitting to the government and asking the government's permission to exist?

Answer
Blessings and thank you for your question.

Yes, I disagree.  The government is not requiring any church to submit, it is up to the church to decide if tax-exempt status is worth it.  There are many countries that use a "registration" to try to control the church.  When we enter the "end of days" or tribulation, then the US will be like every other country and will try to control or eliminate the church.  But for now, incorporation is a better deal.

Now I do think that the 501(c)3 status is a way the government keeps the church from entering the world of politics (like endorsing candidates or parties).  I applaud those churches that have challenged the IRS ruling, although I think they could have done it a better way.  But, I am eagerly waiting the results.

Blessings