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501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 5:35 pm
by _Mercury
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.

Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.

The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual


Open the books NOW, that is unless they have something to hide.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 5:42 pm
by _Jason Bourne
All 501(c)(3)'s must file annually a Form 990 which is available to the public. However Church's are excluded from that requirement.

I still wonder how the LDS Church gets past that "attempting to influence legislation" clause of the tax exempt law.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 5:55 pm
by _Some Schmo
Yep, any time I hear someone complaining about taking god out of schools, making a case for displaying the 10 commandments in a public place, or bitching about the definition of marriage, I'm going to tell them they have no case and I don't want to hear it until I see their church paying taxes.

It's such a double standard. Don't these people understand separation of church and state? I think churches should have to pay taxes anyway, given all the wasted time already spent on things like prop 8. Given the crap load of money being raked in, it could help balance the budget and pay down the deficit.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 6:14 pm
by _TAK
Some Schmo wrote:Yep, any time I hear someone complaining about taking god out of schools, making a case for displaying the 10 commandments in a public place, or bitching about the definition of marriage, I'm going to tell them they have no case and I don't want to hear it until I see their church paying taxes.

It's such a double standard. Don't these people understand separation of church and state? I think churches should have to pay taxes anyway, given all the wasted time already spent on things like prop 8. Given the crap load of money being raked in, it could help balance the budget and pay down the deficit.


At a time when communities are squeezed for resources and budgets for schools and services are being cut - its a crock that churches sit on the most valuable properties exempt from paying taxes like any other business. Which is what a religion is. A business. To the extent that actually perform a charitable - I have no problem making at exempt. Other wise they perform much the same function as a Country Club and Yacht Club. And they pay taxes.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 7:24 pm
by _Jason Bourne
TAK wrote:
Some Schmo wrote:Yep, any time I hear someone complaining about taking god out of schools, making a case for displaying the 10 commandments in a public place, or bitching about the definition of marriage, I'm going to tell them they have no case and I don't want to hear it until I see their church paying taxes.

It's such a double standard. Don't these people understand separation of church and state? I think churches should have to pay taxes anyway, given all the wasted time already spent on things like prop 8. Given the crap load of money being raked in, it could help balance the budget and pay down the deficit.


At a time when communities are squeezed for resources and budgets for schools and services are being cut - its a crock that churches sit on the most valuable properties exempt from paying taxes like any other business. Which is what a religion is. A business. To the extent that actually perform a charitable - I have no problem making at exempt. Other wise they perform much the same function as a Country Club and Yacht Club. And they pay taxes.


Here is the deal. For some reason congress and other communities believe that it is in societies best interest to give tax exemptions to NFPs including Churches. They also give you a tax benefit if you choose to support them. Don't like it? Write your congressman or senator or start a lobby group to persuade congress to change the law.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 7:44 pm
by _TAK
Jason Bourne wrote:
Here is the deal. For some reason congress and other communities believe that it is in societies best interest to give tax exemptions to NFPs including Churches. They also give you a tax benefit if you choose to support them. Don't like it? Write your congressman or senator or start a lobby group to persuade congress to change the law.


Considering a man or women can not get elected if they do not profess a belief in magic beings.. its not likely to change anytime in the near future – but I have my hopes…
edit to add .. in the mean time we all subsidize religions..

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 8:20 pm
by _asbestosman
TAK wrote:in the mean time we all subsidize religions..

Makes you wonder how much support the public would continue to have if they realized that they're subsidizing religions they don't like be it Catholics, Mormons, or Scientologists.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 8:25 pm
by _Scottie
Some Schmo wrote:Given the crap load of money being raked in, it could help balance the budget and pay down the deficit.

Be careful not to equate all churches with the behemoth that is the LDS church. There are many small churches who rely on the meager donations given by the parishioners. I wouldn't wish taxation on these already humble churches.

Re: 501c3 and Tax Exemption

Posted: Tue Oct 21, 2008 8:34 pm
by _TAK
asbestosman wrote:
TAK wrote:in the mean time we all subsidize religions..

Makes you wonder how much support the public would continue to have if they realized that they're subsidizing religions they don't like be it Catholics, Mormons, or Scientologists.


When you factor in tax deductions for individuals as well as the Churches it would have to be in the billions in lost taxes.

Re: 501c3 and Tax Exemption

Posted: Wed Oct 22, 2008 12:56 am
by _Jason Bourne
asbestosman wrote:
TAK wrote:in the mean time we all subsidize religions..

Makes you wonder how much support the public would continue to have if they realized that they're subsidizing religions they don't like be it Catholics, Mormons, or Scientologists.


When you factor in tax deductions for individuals as well as the Churches it would have to be in the billions in lost taxes.[/quote]

Last year Americans gave a record $302,000,000,000 to charity. That equates to roughly about $100,000,000,000 in taxes give or take some. I do not know how much of that went to religion but I am sure it was a large part of it.