The Comparison – In order to better understand everything, let’s first discuss the IRS’s jurisdiction over both the 508c1a and 501c3. The tax code 26 USC 508c1a, under which you establish your Church’s Constitution Document and the Corporation Sole, grants a mandatory tax exemption status to Churches without any pre-conditions. You’ll begin to see why creating your Church with a legal Constitution, and then organizing its finances through a subsequent Corporation Sole, is the only viable way to create a truly free church in the current political climate of today.
A. Tax Code 508c1a
– Jurisdiction over churches, their auxiliaries, conventions, associations of churches, or any non-private private foundation, the gross receipts ONLY by court of law if there is suspicious behavior. IRS MUST get a court order to investigate CS accounting books.
– In some states, the church’s legal Constitution is required to be filed along with Corporation Sole Articles.
– Given mandatory tax exemption status
B. Tax Code 501c3
– Jurisdiction over corporations, certain trusts, community chests, funds and foundations, and complete access to financial records. – NOT churches!
– Only religious organizations that have incorporated themselves are underneath the 501c3s jurisdiction.
– Given conditional tax exemption status
C. Assets are why churches today are forced into having a board of directors. A Corporation Sole is the only exception to this rule! It does not require an oversight committee to manage its assets.
D. Here is the most important caveat to the 501c3 conditional tax exempt provision that keeps the churches on their collective heels: It mandates that no substantial part of the activities of which is carrying on propaganda and which does not participate in, or intervene in any political campaign on behalf of any candidate for public office. This is why the legally establishing your church is so important, establishing the church under its rightful and proper tax code, 508c1a, which circumvents the political restrictions which inhibits the church from speaking out the truth in love, and educating fellow believers about political candidates who share our love and value for God’s Word.
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