NonBelief Relief and Church Financial Disclosure

As we’re all very aware, questions of financial transparency have recently become tremendously salient to the church and its members.

There are, of course, ways to remedy the issue of financial transparency. The church could voluntarily release financial information. Or Congress could change U.S. tax law to require churches—like virtually every other tax-exempt organization—to file a Form 990, which would then be released to the public.

NonBelief Relief wanted to help spur this second option. NonBelief Relief was a charitable organization formed by the Freedom From Religion Foundation. Its charitable mission was to provide humanitarian-style aid, improving the world and the situation of people here. It also had a secondary purpose: to challenge the constitutionality of the tax law requiring non-church tax-exempt organizations to file information returns, but exempting churches from that requirement.[fn1] [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…]

Some Tax Benefits Are Just for Churches

(I originally wanted to call this “Pastoral Housing, Take 2″[fn1] but, it turns out, pastoral housing is only one small aspect of the case.)

Last week, a federal court in Kentucky issued a decision in a lawsuit that could have far-reaching ramifications for churches.[fn2] In broad strokes, American Atheists, Inc., Atheists of Northern Indiana, Inc., and Atheist Archives of Kentucky, Inc. sued the IRS, arguing that certain tax provisions applicable solely to churches were unconstitutionally discriminatory. [Read more…]