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What every believer needs to know concerning churches that are automatically tax exempt under 508(c)(1)(A) [Free Churches] verses the government approved churches 501(c)(3) [State Churches]

The Church was once a great influence on our nation and its government. However, that all changed in 1954 when churches were added to the 501(c)(3) section of the IRS tax code (IRC). The 501(c)(3) church has been stripped of its freedom of speech as a result of its partnership with the government. They have voluntarily silenced themselves concerning anything touching politics and the government, even in spiritual matters important to believers. If the Church had not lost its freedom of speech to influence the government, maybe prayer would have not been removed from schools on June 25, 1962. It was at this point the nation began a huge spiritual spiral downward, the statistics are staggering.

The Church’s influence on politics and government concerning spiritual matters such as freedom of religion, freedom of speech, abortion, and homosexuality is the evolutionist greatest fear. By silencing themselves regarding “political” issues, the 501(c)(3) church has given government run public schools permission to teach our children lies without resistance and compromise the truth on these and many other issues touching our faith. When we compromise we agree to go below what we believe or know to be true, at that point we allow falsehood to become the “truth”. Something cannot be both true and false; it has to be one or the other. Once falsehood is added to or replaces any part of the truth, the statement, belief or “fact” is no longer true.

The Butler Act was passed in 1925, prohibiting the teaching of evolution in public schools; it was overturned in Tennessee on May 19, 1967. Its overturn allowed evolutionism, which is one of the greatest “Fairy Tales” in the history of the world, to be taught in public schools. It is currently not taught as an idea, theory, hypothesis or guess, but as an actual fact. The public schools are teaching our children an inaccurate account of our country’s history by removing references to the providences of God and the Christian faith, which is what our country was founded upon. The public school system is also teaching our children about inappropriate sexual relations, promoting the homosexual lifestyle in their sex education classes. All this is aimed at removing God from our hearts and minds in order to erode the faith of our children.

The Church, the Body of Christ, can once again become a spiritual influence on the government if we take back our voice, our freedom of speech, by breaking the bond it has with the government. When the Church turns away from the world and submits itself to and is ruled by Jesus Christ the Lord alone, then it can truly be the light of the world and the salt of the earth. Only then will the Body of Christ truly be “the Church”.

The Lord reveals that as His disciples we should not be unequally yoked with unbelievers (2 Cor. 6:14-7:1).This not only covers marriage and personal relationships, but also all business partnerships. As the Church, this also includes our partnerships with the State and Federal government in pursuit of 501(c)(3) status. How can we take back our freedom from the government’s control? We can do this by not incorporating our churches and pursuing 501(c)(3) status. The Church, or individual groups of the Church, should not incorporate on a state level, due to becoming creatures of the State which are subject to the State. Those who incorporate and choose to pursue 501(c)(3) status, become creatures which are subject to the Federal government and are prevented (gagged) from speaking out on political and spiritual matters that do not agree with the current “political atmosphere”.

Section 508(c)(1)(A) states that “churches, their integrated auxiliaries, and conventions or associations of churches” are a mandatory exception to section 501(c)(3), they are already tax exempt without notifying or applying to the government under section 501(c)(3). Churches receive the same tax exempt status and benefits as a 501(c)(3) organization, without the partnership with the government. We do not have to lose our voice!

Sec. 508. — Special rules with respect to section 501c3 organizations

(a) New organizations must notify Secretary that they are applying for recognition of section 501(c)(3) status

Except as provided in subsection (c), an organization organized after October 9, 1969, shall not be treated as an organization described in section 501(c)(3)

(c) Exceptions

(1) Mandatory exceptions

(A) churches, their integrated auxiliaries, and conventions or associations of churches, or

In IRS Publication 526, Charitable Contributions, the IRS once again states that churches are qualified organizations and do not need to apply to the IRS:

“You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.”

Examples. The following list gives some examples of qualified organizations.

Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations.”

And according to IRS Publication 557,Tax-Exempt Status for Your Organization:

Churches. Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption.”

As shown in the examples above and the IRS code itself, a church does not have to apply to or notify the government (state or federal) of its tax exempt status, we are already established as a separate creature from the state. We need to remain separated from the state and not join in any type of partnership that would create a yoke between the church and government, no matter what “benefits” they may mislead us to believe are available.

Note: The church as described under IRC 508(c)(1)(A) in this article is also known as a “Free Church”.

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This Post Has 10 Comments

  1. Would like to visit with you over the phone when it is naturally conducive to do so.

    Your writings are correct, but wish they involved more bulls eye references illustrating undeniably keyed rights.

    Wishing you all the best from 1-816-695-9973!

  2. We started ministry a year ago Dersire to be a free church I need some assistance on how you file

  3. I would like info on starting a 508c1a . What is cost and can tithers continue to use tithe on taxes?

  4. Just wanted to know more about moving our church away from the 501c3 and onto the 508c1a. Have you done this with your own church? What are the steps? How long is the process? Would you be willing to assist our church in moving onto a 508c1a? We would like to be more free and don’t want to be dependent upon the whims of the government. Thank you for any and all assistance you can give.

    Pastor Steve

  5. I have been a born again Christian since 1973.I want to establish a 508 organization for humanitarian / Christian Faith Based initiatives. I have multiple expressions for one reason – Christian focused evangelism through multiple types of outreach venues (food pantries, clothing, homes for the indigent, etc.).
    I am expecting a large sum of money very soon and I want to that I want to completely earmark for the Gospel outreaches. The outreaches will be operating in the US, Caribbean, and possibly Africa.
    I have been an entrepreneur my whole professional life and have built multiple businesses so I am very familiar with state registration and obtaining an EIN.
    But I have never established a 508 so I am having a little difficulty in finding the proper channels / steps to obtain a 508 EIN and finding the proper guidelines with my home state (TX) to file articles and the proper paper work and who and where to file.
    I have contacted a few firms that can help me, but they want upfront money that I do not have the ability to pay as of today.
    I have done hours of research about a 508 and I know it the best way to create a free church.
    Can you help me?
    I need counsel on the where and how to’s to get started.
    Please communicate with me as soon as you can.
    Thank you in advance for your help and generosity.

    Gary C. Milligan

  6. We are presently a 501c3 church. But that’s changing. However our secretary has said that it’s impossible for us to get a checking account with out it. Is this true? We live in Maryland (ugh) so does that have anything to do with it?

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