by Devilsnok 81 Replies latest jw friends
To add a bit more to this discussion ... 501 C3 is meant to apply to any non-profit organization or charity - NOT just religions.
I know this because (years ago) I started a couple of 501 C3 Computer User Groups. There are all sorts of rules that one must follow as an organization - or run the risk of getting their tax-exempt status 'pulled'.
Regards,
Jim TX
Okay well Devil did provide an IRS link.... so let us discern starting on page 5
Substantial Lobbying Activity
In general, no organization, including a church, may qualify for IRC section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). An IRC section 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.
Legislation includes action by Congress, any state legislature, any local council, or similar governing body, with respect to acts, bills, resolutions, or similar items (such as legislative confirmation of appointive offices), or by the public in a referendum, ballot initiative, constitutional amendment, or similar procedure. It does not include actions by executive, judicial, or administrative bodies.
A church or religious organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation.
Churches and religious organizations may, however, involve themselves in issues of public policy without the activity being considered as lobbying. For example, churches may conduct educational meetings, prepare and distribute educational materials, or otherwise consider
public policy issues in an educational manner without jeopardizing their tax-exempt status.Measuring Lobbying Activity
Substantial part test. Whether a church’s or religious organization’s attempts to influence legislation constitute a substantial part of its overall activities is determined on the basis of all the pertinent facts and circumstances in each case. The IRS considers a variety of factors, including the time devoted (by both compensated and volunteer workers) and the expenditures devoted by the organization to the activity, when determining whether the lobbying activity is substantial. Churches must use the substantial part test since they are not eligible to use the expenditure test described in the next section.
Consequences of excessive lobbying activity. Under the substantial part test, a church or religious organization that conducts excessive lobbying activity in any taxable year may lose its tax-exempt status, resulting in all of its income being subject to tax. In addition, a religious organization is subject to an excise tax equal to five percent of its lobbying expenditures for the year in which it ceases to qualify for exemption. Further, a tax equal to five percent of the lobbying expenditures for the year may be imposed against organization managers, jointly and severally, who agree to the making of such expenditures knowing that the expenditures would likely result in loss of tax-exempt status.
Expenditure test. Although churches are not eligible, religious organizations may elect the expenditure test under IRC section 501(h) as an alternative method for measuring lobbying activity. Under the expenditure test, the extent of an organization’s lobbying activity will not jeopardize its tax-exempt status, provided its expenditures, related to such activity, do not normally exceed an amount specified in IRC section 4911. This limit is generally based upon the size of the organization and may not exceed $1,000,000.
Religious organizations electing to use the expenditure test must file IRS Form 5768, Election/Revocation of Election by an Eligible IRC Section 501(c)(3) Organization To Make Expenditures To Influence Legislation, at any time during the tax year for which it is to be effective. The election remains in effect for succeeding years unless it is revoked by the organization. Revocation of the election is effective beginning with the year following the year in which the revocation is filed. Religious organizations may wish to consult their tax advisors to determine their eligibility for, and the advisability of, electing the expenditure test.
Consequences of excessive lobbying activity. Under the expenditure test, a religious organization that engages in excessive lobbying activity over a four-year period may lose its tax-exempt status, making all of its income for that period subject to tax. Should the organization
exceed its lobbying expenditure dollar limit in a particular year, it must pay an excise tax equal to 25 percent of the excess.
Tuesday, it all depends on how strict you apply the rule. A simple bake sale to raise money for a political cause could be seen as getting politically involved too. Any organized effort by a church could be seen as politically crossing the line.
You're still confusing the difference that I pointed out. That is organizing people to make personal donations, that's different than donating church funds to a political cause.
Two scenarios:
1.) Brother Sh!t-For-Brains announces that there will be a special donation collection for a Sister-In-Need.
2.) The church donates it's donations to the Sister-In-Need.
1 is prompting people to donate specifically for a cause and not involving church funds, it is personal funds. They're being prompted to donate to a cause, but they don't have to.
2 is taking funds that were intended for the church and donating them.
Apply this to the political agenda.
Yes, I see what you are saying. Direct giving from the churches bank account would appear to be a violation. Yes I get it.
Now the question is, I wonder how careful they went about it?
Churches are a microcosm, sometimes, of what is happening in communities. Oftentimes, if a church feels the same way about something, voting can be influenced. Does that mean we hold the church responsible, and tax it outside of its stated purpose? No. Several non-profit groups rally in the same way: raising money, protest marches, etc. If we held them all responsible for influencing voter decisions, what's the point in having non-profits? If we hold the Mormons to a certain standard, then we have to hold ALL religions, and ALL non-profits to the same standard.
Non-profits hold a valuable place in our communities. They raise money for the homeless, help with food pantries, adoptions, all kinds of great things that benefit our communities. To tax them would cut off a valuable part of our Society. Sure they have an agenda. Who doesn't? If voters are influenced by the agenda, indirectly or directly, that's that voter's choice. A good thing about America is we have CHOICES. To effectively cut off all information from all segments of society because we don't agree with it, would effectively block the First Amendment rights we have all enjoyed!
It would cut off great help sites like www.silentlambs.com as that is a non-profit. No, we may not agree with what the agenda is, but we do have the right to pick and choose, cafeteria style, on what we choose to vote for.
The Mormon Church, and the Catholic Church, obviously have an agenda going on. Not a problem. People are going to vote their conscience, and what they feel is best for them and their families. That should be their choice. They have that right. By stifling ANY sort of non-profit, we are only making this country go lose more rights than we originally bargained for. Churches are a great helping point for many people, and they provide great community services that would be cut off if we taxed them.
CG
Wow Country Girl, you said that so eloquently.
Most non profits have some kind of agenda to further their beliefs and causes.
LDS church didnt use its funds but it leant heavily on members to donate their funds, time and efforts. Some Sunday meeting business minutes donated to organising what was to be done, hand out yard signs etc...
Well good, it looks like they played it safe and legal.
Just ha a thought
According to Jc if the gov pulls tax exemptions for churches then churches wil start to become a lot more political. As can be seen by the way that the gay population have turned on the LDS, if churches become political then the populaton on the whole will start to turn on them and religion in general. There were a lot of pissed of americans that were pissed because religion was dragged into this years presidential election.
And we all know what happens when the population turns on religion <g>
I'm trying to find the case in Pasadena, CA where a minister made alot of comments from the pulpit as to which way to vote. There was no money collection or bake sales, but his comments got the attention of the IRS. Does anyone have info on that case and how it may have set a precedent for future cases?
