Well they ain't collectivist now!
BTW I was under the impression that most churches today ARE
501(c)3 nonprofits.
Am I wrong on this?
JeffH in Occupied TX
Yes they are
Churches vs. Private Nonprofit Organzations or Businesses
Churches are nonprofits under the same section of the Internal Revenue Code (IRS - 501 c 3) as all other charitable organizations, even though a lot people believe churches and nonprofits as separate categories.
The difference is that churches (or other legitimate religious congregations) are exempt from almost all of the filing and reporting requirements that apply to other nonprofits. For example, nonprofits generally must file the Form 1023 with the IRS to seek tax exemption, but churches are automatically exempt without filing, which is why they are not in the IRS records.
Each year, most nonprofits must file the IRS Form 990 annually to report on their programs and finances, in addition to charitable registration forms with the Secretary of State's Offices (requirments vary from state to state) if they raise funds and an independent audit if they raise more than $100,000 per year. "None of these requirements apply to churches."
The underlying reason for this difference is the principle of separation of church and state, which comes out of the First Amendment to the Constitution, even though it is not explicitly stated there.
Some religious leaders are critical of the idea of separation of church and state, I think they better "Be careful what they ask for!" Churches are without a doubt the most free and least regulated institutions in our society.
My hope is that they must file as a "Private Nonprofit Organzation". That means that all churches "must" file a 1023 and an annual 990 form with the IRS. Then these rip-off con artist will find it way more difficult to "misutilize" donations.
