As New Temple Evangelical enters its second year, I have begun applying myself to the task of drawing up its by-laws and applying for tax exempt status. It is not a step to be taken lightly, especially now that the honeymoon between the church and state in America is coming to an end.
I ask myself, “Where did it all begin?”
Like so many things, in 4th century Rome. After the Emperor Constantine’s conversion in 312 AD, he not only made Christianity legal, but granted its institutions complete exemption from all forms of government taxation. From there the practice passed into medieval England, and from there into modern America.
By the time of the American Revolution, nine of the 13 colonies were giving some kind of tax relief to churches. In 1777, Virginia officially enacted an exemption from paying property tax to “houses of divine worship,” New York followed suit in 1799, and Congress exempted all churches in the District of Columbia from paying property tax in 1870. Federal income tax exemption followed with the Tariff Act of 1894, providing tax exemptions to “corporations, companies, or associations organized and conducted solely for charitable, religious, or educational purposes.” Although this act was declared unconstitutional only two years later, it was reinstated by the Revenue Act of 1913 “in recognition of the benefit which the public derives from the church’s corporate activities.” Since then, the Internal Revenue Service classifies churches as 501(c)(3) nonprofit charitable organizations, making them exempt from federal income tax and able to accept tax-deductible donations.
...it was strongly opposed by presidents like Madison, Garfield, and Grant.
Hooray, right?
Well no, not entirely. Not everyone agreed with the practice. For example, it was strongly opposed by presidents like Madison, Garfield, and Grant. Then, in 1954, Lyndon Johnson amended the Internal Revenue Code to ban any institution enjoying 501(c)(3) status from intervening in political campaigns (with the caveat that pastors were still allowed to campaign as individuals, and churches were still allowed to speak out on public issues so long as they didn’t devote a substantial amount of their activity toward influencing public legislation).
Tricky
Jesus said we should be wise as serpents and innocent as doves.
What constitutes “a substantial amount of activity”? And, more importantly, will churches amend what they preach in order to keep their 501(c)(3) status? To put it less gently, will they remain obedient to their Lord, or will they be ruled by money? True, only one church since 1954 has ever had its tax-exempt status revoked, but that tells us nothing about how many churches have prevaricated on important moral issues in order to keep it, or how many are doing so today.
We should be aware of the times in which we live. Jesus said we should be wise as serpents and innocent as doves, but all too often we have the mentality of a lovebird and the integrity of a snake. The day we sell our consciences for money is the day we cease being a church. What good would it be to retain a 501(c)(3) status and lose our charter from the Lord Jesus Christ? Money will avail us nothing in the Day of Judgment. To be sure, it is expedient that we should manage our financial affairs wisely down here on earth, but the currency of heaven is a pure and upright heart. As our Lord has taught us: What good would it be for someone to gain the whole world and lose his own soul?
I say Amen to that.
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