Church, tax exempt or a business?

August 26, 2019

The United States gives churches a tax exempt status but should this standard be maintained when many churches involve themselves in politics or discriminate against certain groups of people? These are two issues that I believe the United States Congress should re evaluate in terms of whether or not churches should retain their tax exempt status.  A separate issue but also one that is very important to consider in whether or not to allow any church to retain its tax exempt status should be its charitable activities and spending. There should be a minimum amount of church expenditure whether monetary or service-based, based on the income of the church, in order to retain their tax exempt status. If this basic obligation is not met annually, the church should have its tax exempt status revoked.

1.Does the church discriminate against people based on their sexual orientation and/or gender identity?

2.Does the church act politically by contributing money to any political candidates, parties, or campaigns? Or, does the church support any political candidates, parties or campaigns not monetarily but with endorsements and/or public statements? Both types of support should be considered to be political actions.

If a church is non-inclusive, discriminates, and/or is abusive to any of its members, to people who want to be members, or to the general public and/or culture and society, it should not be considered a religious institution and therefore should not be tax exempt. It should be taxed fully as an ordinary business using ordinary business tax rules and law.

The culpability of the church can be determined even by the testimony of a single person with a solid grievance. The church accused of discrimination and/or abuse can appeal but has the burden of proving that it does not or did not discriminate and was not abusive in order to clear itself of the accusation. The church would have to prove, beyond a doubt, that it does not or did not do anything that was discriminatory and/or abusive. On the other hand, if a church does not ever have any complaints against it in terms of how it treats its members or people who would like to be members, it should be able to retain its tax exempt status as a religious institution.

Churches should be required at tax time to demonstrate their charitable spending to maintain their tax exempt status. Churches should be required to spend a fixed amount of their income on charity and the provision of services to the community.their tax exemption. 

If churches are to be thought of as being religious institutions with a tax exempt status they should be required to not discriminate against anyone, whether a member of the congregation or anyone outside of the church, on the basis of sexual orientation or gender identity. Churches found to be violating civil/moral/ethical/and, yes, religious precepts to not discriminate should no longer be given a tax exempt status.

Churches, if involved in political activities or discrimination should have their tax exempt status revoked. They can appeal, but the churches would have to prove beyond a doubt that they did not discriminate and that they did, indeed, fulfill their legal obligation to spend x amount of their income on charity and/or the provision of service to the community. It would be the burden of the church to prove its innocence in cases of discrimination and in compliance in matters of charitable spending at tax time.