To qualify
the organization is required to have a board of trustees, keep minutes and turn
over financial information to the government. It allows the organization to
open bank accounts, buy property and securities and function like a corporation.
The government does not take an active hand in the running of the organization
but they are able to monitor it and if deemed necessary to audit it.
Churches
have responded to this in different ways. Churches with a plurality of elders,
such as the Presbyterians give their elders a dual title. In terms of the
church, they're elders. In terms of the 501c, they're trustees.
Other
congregations will have their pastors, elders and deacons and then in addition
have a board of trustees to oversee the financial records and requirements of
the 501c. This arrangement is particularly egregious as it splits the authority
of the Church and utilizes an office, that of Trustee which is nowhere found in
Scripture. At that point the government is quite literally playing a part in
Church polity or government by creating offices.
Of course
there's another aspect to this. Non-profits are ostensibly engaged in some kind
of social work, otherwise they would be seeking profits. But in the United States
political activism and lobbying outside of certain limits is considered beyond
the realm of tax exemption. These monies have to be reported and are subject to
taxation. This is presently the subject of a great deal of debate, all the more
as many American Churches are becoming more deliberate and determined in their
political activism and efforts at mobilization.
Thus many
Churches feel as if they have to toe the line and are cautious in what they say
in an official capacity. They don't want to risk an audit or losing the status.
Frankly, a lot of ministries and churches and playing fast and loose with the
rules and would face sanction. Some believe the government needs to change the
law and allow churches to raise money as tax exempt organizations and then do
whatever they want even if it's political. If this happened Churches would be
placed at the centre of money laundering as they would be able to take in
massive funds and yet not account for how they are spent.
As this
controversy has expanded, a very small number have chosen to forego their tax
exempt status in order to be able to preach politically from the pulpit without
any restrictions.
We are categorically
opposed to 501c incorporation. This is not because we wish to preach politics.
Far from it. And yet if we did believe that was the case then we fail to
understand the pandering and compromise on the part of so many churches. It's a
stunning and sad admission that they would put money above preaching the
message they believe to be necessary and true.
Again, it is
not our desire to promote political parties. We are critical of all of them and
every aspect of the world political and economic system. We are strangers and
pilgrims. We are not silent regarding these matters and some solutions are
better than others but we would never as the church endorse political solutions
to the problems of fallen world or put our home in a candidate or party. The
world needs Christ and no government can legislate the Gospel.
We object to
the idea of registering our congregation with any government and allowing that
government to dictate to us how we should order our congregation or giving us
guidelines for what kind of records or minutes we would need to keep. We object
to them imposing offices upon us... that of trustee for example and we are
uncomfortable with the idea that we play a 'name-game' with the office elder
and trustee in order to accommodate this arrangement... all just to save money?
Churches are
trapped in a vortex of money-centered thinking, a business mindset, and we are
convinced that the costs of actually operating a congregation are quite small.
On a
practical level there are difficulties with opening bank accounts and paying
out money for bills or to support missionaries. But these barriers are actually
surmountable. There are solutions and they're really not that complicated. The
Church functioned without these financial mechanisms for most of its history.
We are not convinced by the stewardship arguments that we need to worry about
investing money and earning interest. We believe the parables appealed to in
this case have been ripped from their context and misunderstood. Churches do
not need large savings accounts and investment portfolios.
As far as
the legality of collecting money without reporting it to the government...
If we as a
congregation don't exist as a formal entity, then there's nothing to report.
Legally speaking there's no collection occurring. If Christians are spending
their money on non-political activities and we're not banking, investing,
earning dividends and interest then there's nothing to be said, nothing to
report. There's no law being broken because legally the congregation has no
status. Legally, it doesn't exist. The government of the United States has
nothing to do with our congregation. What congregation? Legally speaking we're just
a group of individuals gathering together. If we pass money around, that's no
business of the government any more than it is when a group of people
contribute to paying a bill at a restaurant. It's only an issue if we're
raising money for activities and then trying to avoid paying tax. That's something
we're not involved in doing.
Functionally
speaking we are an underground church. Like the underground churches in China,
we have no legal status. Thankfully in our system we don't have to worry about
being imprisoned for it.
It's
interesting how many Christians in America are supportive of the Chinese Underground
Church and critical of the officially recognized Three-Self Patriotic
Churches... those that have registered with the Beijing government. Beijing
doesn't directly control their messages, but it monitors their activities.
Beijing is especially concerned about the influences of international money
being laundered through churches and used to foment subversion. The Three-Self
Churches are scrutinized and monitored and just like 501c's in America are
subject to restrictions of political speech.
The
Underground Church rightly views this as a mortal compromise and as something
approaching apostasy. They believe these churches have placed their security,
respectability and financial footing above the Gospel. The Three-Self Churches
have nice buildings and many resources. The Underground Church is just that...
underground and meets in houses or other venues.
Essentially
we believe that we have a similar situation here in the United States but that
most congregations for the sake of money have sold out and registered with the
state.
We admire
the handful of congregations that have refused to do this but lamentably it has
most often been motivated by a desire to be more politically active. We simply
want to go about our Kingdom work, minding our own business, working with our
hands, leading quiet lives and serving God. The world will not understand what
we're doing or what we're about. Unlike many ministries and denominations, we're
not running a financial scam. Giving money to God's work is an act of Christian
devotion. The government has nothing to do with it.
Finally
there are those believe that Christians can get more 'bang for their buck' by
claiming these donated monies on their tax form. Most Churches issue a tax
receipt so that the tax-filer can produce an official record of how much they
have given. At that point the government grants them tax credits or a deduction.
This is money that anyone else would have to pay but they are exempted from
because of the deduction. Sure, everyone does it right?
But
theologically what are the implications of this? You're getting money in your
pocket in the form of a credit, money you would otherwise have to pay, because
you gave money to your Church? We also find it troubling that Churches keep
records of how much people give. That's no one's business. That's between the
individual and God.
Many justify
these practices because they're bitter about paying taxes in the first place.
Many Americans have not accepted the New Testament's teaching regarding how we
are to view the state and taxes. Simply put, we are to pay them and not
complain. Yes, they're wasted. Yes, the money is used for evil things... wars
and waste. It was no different under Tiberius or Nero. The money was used for
wars and pagan temples. That's not the point. Government is ordained by
Providence and as bad as it is still serves a purpose. Tax refusal is simply
worldly-wisdom, often theological confusion and ultimately a refusal to obey
New Testament teaching.
But if
someone says "I gave $10,000 to the Church last year," and then
received $2000 in tax deductions as a result of that.... then they didn't
really give $10,000 did they? They got a kick-back. They gave $8000.
And where
does that money come from? Well, the items in the state and federal budgets
have to be paid for (regardless of the foolishness and waste) and so if you
didn't pay them, then someone else did. The money effectively has come out of
someone else's pocket.
Should the
Church of Jesus Christ be aided financially by civil government? Most would say
no, but that's the present reality.
This is
troubling on many fronts and theologically it is reminiscent of the
slight-of-hand intellectual dishonesty at play in the Ananias and Sapphira
episode.
If we give,
then we give and we don't expect financial perks and exemptions. The financial
issues of the Church need to be separated from the government.
It's only
because the Church has sought to become a large institution with real estate,
property, assets and investments that has raised these questions and led to
these difficulties. The issue needs to be reconsidered.
And step one
is for Bible-based congregations to dispense with registering for 501c tax
status.