From the book, “What People Ask About The Church,” by Dale A. Robbins — 37 — In the United States, any legitimate group of religious people can
file the appropriate documents with their secretary of state, to incorporate as a
nonprofit religious organization. The state will require evidence of the religious nature
of the group, articles of incorporation, a corporate constitution and bylaws, and a board
of directors (usually with the assistance of an attorney). The primary reason for this incorporation, is so that a 501(c)(3)
tax exempt status from the Internal Revenue Service can be secured that will exempt the
church from paying taxes on its offerings and property, and will provide a tax exemption
to the organization's donors. The incorporation also serves to protect private individuals
in the church from incurring personal liability in the organization's behalf. Whenever a
church becomes such a corporation, it is required by law to keep detailed records of
donations and financial records so to prove the nonprofit intent of the organization and
to protect the intended purpose of the donor's offerings. Violations of related laws can
result in revocation of a church's non profit status. Section 501 (c) (3) of the IRS code describes what the government
considers to be an eligible nonprofit, religious group. "A tax-exempt religious
organization is a legal entity or vehicle created and operated exclusively for religious
purposes, no part of the net earnings of which insures to the benefit of any private
individual, no substantial part of the activities of which is carrying on propaganda, or
otherwise attempting to influence legislation, and which does not participate in or
interfere in any political campaign on behalf of any candidate for public office." Most churches are incorporated as nonprofit organizations, but there is no scriptural edict that requires any such status or any recognition from secular government. Some have contended that if persons regain their donation in the form of deducted taxes, it diminishes the sacrificial value of the original offering (2 Sam. 24:24). However, the tax exemption status has generally been viewed as one of God's great blessings to the American church, enabling it to direct greater sums to evangelism, benevolence, and foreign mission fields. This article is copyrighted © by Dale A. Robbins, 1995, and is a publication of Victorious Publications, Grass Valley, CA 95949. Unless otherwise stated, all scripture references were taken from The New King James Bible, © Thomas Nelson Inc., 1982.You may download for personal use as long as you retain credit to the author. Obtain permission before reproducing copies for any reason, by filling out our simple permission form. For media reproduction rights, or to obtain published quantities of this title, . |
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