Gay marriage and 501c3 churches- Page 2

[Jilani]

Posted: 1/27/06 at 11:59am

I'm glad touchmeinthemorning brought up the Bob Jones University case, because it focuses on the relevant issue: eligibility for 501(c)(3) status (which is distinct from receipt of federal money). I'm pretty sure a private individual can't sue an entity to revoke that status; rather, that decision is up to the IRS. In the case of Bob Jones University, the IRS revoked the University's 501(c)(3) status and then the University sued to get it back. So isn't the question: how likely would the IRS be to try to revoke the 501(c)(3) status of a church because it refuses to perform gay marriage? I would think that would be highly unlikely in the near future.

[DBillyP]

Posted: 1/27/06 at 12:43pm

I have to agree with Jilani. The IRS is much more likely to go after a liberal church, like they are doing with All Saints Episcopal in Pasadena, CA.

The question here involves partisan politics. In order to maintain 501c3 status a church cannot endorse a poltical candidate or an idea that is considered partisan. The former rector preached an anti-war sermon. The IRS apparently feels that peace is a partisan issue.
IRS Story in the L.A. Times

[touchmeinthemorning]

Posted: 1/27/06 at 12:51pm

All Saints is a fansatic church. Good for them! I don't understand why they continue to have state ties through the 501c3 status. Why not be a free church?

[DBillyP]

Posted: 1/27/06 at 1:24pm

Every church by definition is 501c3. As I understand it, the decision to incorporate rather than stay a "free church" involves the church's liability. For example, the leaders in a free church, should the church be sued, are personally liable for any damages. In a church that is incorporated the leaders serve as representatives of that church and are not personally responsible.

[touchmeinthemorning]

Posted: 1/27/06 at 2:11pm

Actually, the IRS states that churches (like any other organization) need to APPLY for 501 status. Churches are "automatically tax-exempt and tax-deductible," but not 501c3 -- which is a specific legal standing.

Hmmm...I'd never heard the free church as culpible argument before. Perhaps that explains why so many people incorporate.

[DBillyP]

Posted: 1/27/06 at 2:53pm

Thank you for the correction, touchme; that is actually what I meant to type.

I chatted with my boss, the Dean of our church, before posting that. In my notes I wrote "tax exempt by def." but typed "501c3."

That's what I get for coming here on the sly at work!