501c3 Facts

Hush Money

Most churches in America have organized as “501c3 tax-exempt religious organizations.” This is a fairly recent trend that has only been going on for about fifty years. Churches were only added to section 501c3 of the tax code in 1954. We can thank Sen. Lyndon B. Johnson for that. Johnson was no ally of the church. As part of his political agenda, Johnson had it in mind to silence the church and eliminate the significant influence the church had always had on shaping “public policy.”

Although Johnson proffered this as a “favor” to churches, the favor also came with strings attached (more like shackles). One need not look far to see the devastating effects 501c3 acceptance has had to the church, and the consequent restrictions placed upon any 501c3 church. 501c3 churches are prohibited from addressing, in any tangible way, the vital issues of the day.  

For a 501c3 church to openly speak out, or organize in opposition to, anything that the government declares “legal,” even if it is immoral (e.g. abortion, homosexuality, etc.), that church will jeopardize its tax exempt status. The 501c3 has had a “chilling effect” upon the free speech rights of the church. LBJ was a shrewd and cunning politician who seemed to well-appreciate how easily many of the clergy would sell out.

Did the church ever need to seek permission from the government to be exempt from taxes? Were churches prior to 1954 taxable? No, churches have never been taxable. To be taxable a church would first need to be under the jurisdiction, and therefore under the taxing authority, of the government. The First Amendment clearly places the church outside the jurisdiction of the civil government: “Congress shall make NO LAW respecting an establishment of religion, nor prohibiting the free exercise thereof.”

Religion cannot be free if you have to pay the government, through taxation, to exercise it. Since churches aren’t taxable in the first place, why do so many of them go to the IRS and seek permission to be tax-exempt? It occurs out of:

  • Ignorance (“We didn’t know any better”)
  • Bandwagon logic (“Everyone else is doing it”)
  • Professional advice (many attorneys and CPAs recommend it)

Does the law require, or even encourage, a church to organize as a 501c3? To answer that question let’s turn to what the IRS itself has to say.

Churches Need Not Apply

In order to be considered for tax-exempt status by the IRS an organization must fill out and submit IRS Form 1023 and 1024. However, note what the IRS says regarding churches and church ministries, in Publication 557:

Some organizations are not required to file Form 1023. These include:

Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men’s or women’s organization, religious school, mission society, or youth group. These organizations are exempt automaticallyif they meet the requirements of section 501(c)(3).

Churches Are “Automatically Tax-Exempt”

According to IRS Code § 508(c)(1)(A):

Special rules with respect to section 501(c)(3) organizations.

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

(c) Exceptions.

(1) Mandatory exceptions. Subsections (a) and (b) shall not apply to—

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

This is referred to as the “mandatory exception” rule. Thus, we see from the IRS’ own publications, and the tax code, that it is completely unnecessary for any church to apply for tax-exempt status. In the IRS’ own words a church “is automatically tax-exempt.”

Churches Are “Automatically Tax-Deductible”

And what about tax-deductibility? Doesn’t a church still need to become a 501c3 so that contributions to it can be taken as a tax deduction? The answer is no! According to IRS Publication 526:

Organizations That Qualify To Receive Deductible Contributions

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.

In the IRS’ own words a church “is automatically tax-deductible.”

Churches Have a Mandatory Exception To Filing Tax Returns

Not only is it completely unnecessary for any church to seek 501c3 status, to do so becomes a grant of jurisdiction to the IRS by any church that obtains that State favor. In the words of Steve Nestor, IRS Sr. Revenue Officer (ret.):

“I am not the only IRS employee who’s wondered why churches go to the government and seek permission to be exempted from a tax they didn’t owe to begin with, and to seek a tax deductible status that they’ve always had anyway. Many of us have marveled at how church leaders want to be regulated and controlled by an agency of government that most Americans have prayed would just get out of their lives. Churches are in an amazingly unique position, but they don’t seem to know or appreciate the implications of what it would mean to be free of government control.”

from the Forward of In Caesar’s Grip, by Peter Kershaw

http://hushmoney.org/501c3-facts.htm

13 thoughts on “501c3 Facts

  1. Churches, just like individuals have been misled with regard to who and what constitutes “income” tax liability. The IRCode is over 3,000,000 words and confusing as hell to understand. When one reads a particular section, that section can reference something written many, many pages back which has been completely put out of mind while reading the present section, which is where the application gets lost. (confusing to say the least)
    Anyway, once it is broken down in a simple, logical manner, it becomes extremely clear as to who is liable and what constitutes “income.”
    I don’t know if churches(I wouldn’t think so) file a W-4,”Employee’s Withholding Allowance Certificate” or a 1099 of which when signed automatically becomes a presumption of liability and if not rebutted at tax time will stand as evidence that “income tax” is owed. Anyway, none of this is complicated once you comprehend WHO is liable and what is “income.”
    I’m living proof of this, I’m no impostor, just a regular folk just as all of you are, having read Cracking The Code and acted on the information obtained along with tens of thousands of other people. Remember the saying, “Knowledge is Power.” This knowledge will keep ones private earnings where they should be, with the person.
    Regardless of what anyone thinks about Pete Hendrickson the information he has brought forth is complete and correct beyond any doubt. Stop looking at the messenger and look at the message.
    You can see our 2016 tax return with every penny of federal, SS, and Medicare returned with interest. Calculate the amounts on the W-2 then add the interest which is located at bottom left of Treasury Dept. Check under the word Austin and to the left of this you’ll see INT$ which indicates interest, the calculated amount is reflected on the Treasury Dept. Check. http://losthorizons.com/Newsletter.htm#Victories
    People, read Cracking The Code even if you don’t deal with tax forms anymore so you’ll be able to tell others that do.
    Also, I realize this topic is not the total fix to the multitude of problems at hand, yet I will say, it is a start to put a STOP to the feds. and many States(those that have a State “income” tax) monies that fuel the insatiable beast.

  2. Biggest scam in America, the 501c3. Put your money in BS charity account, draw a salary. Pay little or no tax, laugh all the way the bank.

    Do jack sht in the way of any meaningful charity work.

    1. CAN I GET AN AMEN BROTHER!….( and a small love gift when the jingle plate gets passed around to ya!

      The Rev. Weebee gangster

  3. I AM CURRENTLY INVOLVED IN A WORK CONCERNING THE SOVEREIGNTY OF GOD, HIS CHURCH (SINGULAR) AND THE BILL OF RIGHTS, AND HOW ONE IS TO SUPPORT THE OTHER OUTSIDE OF A TYRANNICAL “THEOCRACY”. UPON COMPLETION,I’M HOPING HENRY WILL FIND IT WORTHY TO PUBLISH.

  4. I’ve known this for years. But try telling any church about it! I DO think the churches in my area know this as well, but they insist on being 501-c3 (though I have told them they didn’t need to be, even in the IRS Codes)–
    1. The old Romans 13 nonsense—one of these days (I hope) God Himself lets these “Romans 13” BS-ers know the TRUTH about Romans 13!
    2. Because if they don’t go 501-c3, some area church WILL spill the beans on ’em, they fear.
    3. Only “anti-govt.” “radical” churches don’t do 501-c3…which “lets” them spout politics or whatever.
    4. It is likely in some code or doctrine of some denomination (yet non-denominationals also mostly do 501-c3)
    5. That way, they can have “Boards of Directors” who constantly cause issues between church members (I know several folks who have quit the church I used to attend regularly simply because a Board member pissed them off!), and can get employees to file tax returns with w-2’s…after all chiurches of God can’t allow off-the-books payroll, now can they?

    And THAT folks, is the BIGGEST reason why I no longer attend church regularly! Because a damned good pastor cannot tell the whole truth!

    1. ROMANS 13 UPHOLDS THE FACT THAT THE CHURCH IS TO SUPPORT THE BILL OF RIGHTS………..

    2. DL, if I recall correctly you were among several folks that dismissed the work Hendrickson has done regarding the “income” tax. Whether you agree with the man or not, like or dislike his personality, etc., the facts are based on what the code sets forth as well as Supreme Court rulings, etc..
      Now this article has gone into the code, quoted from it, showing churches are exempt, which is no different than what Pete did concerning the individuals exemption from unprivileged activity, which is NOT taxable, yet it was basically ignored and actually ridiculed, yet we see a post on tax and churches and the code is quoted as well as IRS Sr. Revenue Officer (ret.) and for some reason the code actually means something now, yet as you stated the folks in churches you’ve spoken to will have nothing to do with this “non-sense,” for whatever reason, fear, cowardice, so called benefits, pure unbelief, all churches do it, name the reason, none will suffice the blatant facts of the irs code.
      Try speaking this to people working and literally giving their money to the feds. and state, ignorantly, yet they will have nothing to with reading a book, or even inquire by questioning the validity of what is being spoken to them or ask where more info. could be found on the subject, most of the time it’s, “wow, you’re braver than I am,” “I’m not picking that battle,” “Oh, you better be careful, blah, blah, blah.” I
      shake my head in absolute amazement, cringe my mouth, and realize many people will not do what is necessary to secure a most basic right, “the property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable. The patrimony of the poor man lies in the strength and dexterity of his own hands, and to hinder his employing this strength and dexterity in what manner he thinks proper, without injury to his neighbor, is a plain violation of this most
      sacred property.” “Wealth of Nations,” Adam Smith

      “Included in the right of personal liberty and the right of private property partaking of the nature of each is the right to make contracts for the acquisition of property. Chief among such contract is that of personal employment, by which labor and other services are exchanged for money or other forms of property.” Coppage v. Kansas, 236, U.S. 1 (1915).

      Folks can remain ignorant, afraid, skeptical, wary, concerned they will loose everything, etc.., and never take action which will continue to perpetuate that which could NEVER be unless one is receiving a benefit directly from the fed. govt..
      So simple, yet many that I’ve come into contact with, DON’T CARE.

    3. The issue with the churches is probably that the states insist on church pastors and ministers being licensed to do their work. And to give away info belonging to members of the church so as to offset leadership tax exemption.

  5. “As part of his political agenda, Johnson had it in mind to silence the church and eliminate the significant influence the church had always had on shaping “public policy.”

    Johnson was an idiot, then.

    That’s not the jew way.

    THEY infiltrate, and use that ‘… significant influence the church had always had on shaping “public policy.” to their advantage… by corrupting it.

  6. Lyndon Johnson was a Jew by the fact his mother was a Jew. As a Jew it was his duty to curtail the influence of Christianity in America so the Zio takeover could pick up more momentum.

  7. Lyndon Johnson was a Jew by the fact his mother was a Jew. As a Jew it was his duty to curtail the influence of Christianity in America so the Zio takeover could pick up more momentum.

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