Should Christian Non-profits Consider Giving up their Tax Exempt 501(c)3 Status?
Posted by Anthony on November 16, 2009
The keyword in the title is consider.
I don’t want anyone thinking that I believe in every case it would be desirable or necessary. I do think, however, that accepting the status quo without persistent reflection is dangerous in general. Just because it has ‘always’ been this way doesn’t mean it should continue to be that way. After all, the whole notion of the 501(c)3 didn’t come until the 1950’s. There were many centuries prior to that when things were not ‘always done this way.’
For the record, the ministry of this website, Athanatos Christian Ministries, is a registered non-profit but is not tax exempt. I envision it always being that way but would not rule out obtaining that status in the future: more evidence I am not categorically condemning tax exemption.
There are two general reasons why I think organizations should consider giving up their tax exemption. The first is the most obvious. Tax exemption currently comes with some strings attached. Essentially, while you can speak about issues, your organization is supposed to refrain from overt endorsements of specific individuals. Failure to abide by this means the lifting of your tax exemption status.
It is true that this is very rare, but that is only because many churches try to abide by the law on this point. The Government helps by keeping the financial carrot close by; the stick is rarely necessary. Read the rest of the entry… »


























