The Tax Roots of OD2(?)

It’s become an article of faith in some circles that the end of the racial temple and priesthood ban was motivated, at least in part, by the specter of the church losing its tax-exempt status. And that’s not just the bloggernacle, and it’s not just ex-Mormon reddit (though you can certainly find the assertion—repeatedly—on various internet fora). The same claim is made in academically rigorous places.

For example, in The Mormon Church and Blacks: A Documentary History, Harris and Bringhurst write,

Specifically, the Mormon hierarchy became concerned about potential lawsuits over their tax exemption status, particularly in light of the student protests against BYU in the late 1960s and early 1970s. They had watched very closely the Bob Jones University case, in which the IRS revoked its tax exemption status in an important 1975 ruling.

(p. 106) [Read more…]

On Fred Karger, Tax Exemptions, and the Mormon Church

Today, Fred Karger asked a provocative question: should the Mormon church lose its tax exemption? To answer that question, he’s asking for certain (anonymous) tips about the church’s use of its money, though implicit in the way he frames the question is that yes, it should. In short, his argument the the church should lose its tax exemption seems to follow these contours:

  • The church has, and earns, lots of money.
  • The church engages in for-profit businesses and investments with that money, and doesn’t pay taxes on its for-profit earnings.
  • The church uses tax-deductible tithing money for lobbying, in contravention of the tax law.

He wants to collect information to ultimately file “the biggest, loudest and most comprehensive IRS challenge to a Church’s tax-exempt status in history.”  [Read more…]