Are Churches Tax Exempt?
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- Опубліковано 20 лип 2024
- Churches are non-profits, but does that mean they are exempt from all taxes? I'll look into Property Tax, Sales Tax, Income Tax, and Payroll Taxes in this video.
For ND Sales Tax: www.nd.gov/tax/faqs/faq-searc...
For SD Sales Tax: dor.sd.gov/Taxes/Business_Tax...
Thanks for this video, Jeff! Starting a church soon and looking into the legal requirements of doing so.
I'm glad this helped. I really admire those with the courage to start a new church. Few things are more difficult. I'm praying for you.
Hello 👋🏽
Thanks for taking the time to make this informative video.
I have a question:
A church that I was looking into said that my tithes don’t qualify for a tax receipt from them.
I heard that wasn’t normal for them not to be able to do that. Also, Do churches have to report tithes to the IRS? I was thinking if a church won’t give you a tithing receipt, then they don’t have to report all of those donations.
What’s your take on it?
That sounds odd. In most cases where a church doesn't want to give a donor statement or tax receipt, it's because they're being lazy. Churches typically don't report donations to the IRS.
There does seem to be a fringe movement for churches to avoid 501c3 status in order to be more active in politics. To do this, the church would organize as a for-profit business instead of a typical non-profit. If that's the case, giving to the church wouldn't be tax deductible. This could be verified by looking up the church on the Secretary of State's website usually.
@@JeffPospisil
Hi Jeff.
Thanks for your response.
@@JeffPospisil
Hi again,
I have another question. If a building is not zoned to be a church, can they still be qualified for tax exemption?
@@CrusaderforChrist-Channel. Good question. For Property Tax purposes, I always run this by the county's Dept of Equalization. With churches I've worked with, their parsonage will go on and off the tax rolls depending on if they are renting it out or actually housing a pastor in it.
For Income Tax purpose, this isn't a problem. The most important thing is how they are organized. I prefer churches to be setup as non-profit corporations with their Articles of Incorporation including the 501c3 language. Whether they meet in a house, movie theater, or other doesn't affect their 501c3 status so they should be exempt from income taxes and be able to receive charitable contribution that the donor can write off.
@@JeffPospisil
Thanks so much, Jeff. ☺️
Jeff, could a church choose to pay taxes and be "For profit" to avoid the restrictions of political speech in the 501c3 ?
If so, what how would that be done?
That is an interesting question! First, I think the IRS is currently looking the other way when it comes to political speech. So a church could continue as a 501c3 and just ignore this and hope for the best. I'm not sure what I think about that.
If a church wanted to be more politically active and actually endorse candidates, I think they would fall under 501c4. I don't know much about this. I'm pretty sure donors couldn't claim deductions for charitable contributions. Not sure what the filing requirements are, but this might help: www.irs.gov/charities-non-profits/electronically-submit-your-form-8976-notice-of-intent-to-operate-under-section-501c4
@JeffPospisil Thank you for the response.
Based on my limited knowledge of the 501 c3, it is my understanding that its creation was never intended to support or help the Church in any way. Instead, it was created to silence the voice of the Church concerning unfavorable legislation.
That being said, no amount of "Tax Benefits" are worth restricting the Will and Word of God.
@@jesusshinesministries8899 Under 501c3, Churches can speak for or against legislation...just not for or against political candidates. There are some restrictions on lobbying politicians on particular legislation as well.
No
That was a nice concise answer. ;)
Even churches shouldn't even get tax exempt status that should be lifted and you should pay taxes like the rest of us.
Robert, the rest of us? Last I saw, the majority of private citizens don't pay income tax (www.cnbc.com/2021/08/18/61percent-of-americans-paid-no-federal-income-taxes-in-2020-tax-policy-center-says.html). I would be surprised if the majority of churches had positive income. It is making them exempt from filing taxes which is a big perk.
@@JeffPospisil what planet are you on I'm sorry you probably believe the planet is flat! I don't know about you but everyone I know around me who was not waving around across! Has to pay taxes! But I think we're going to fix that! Because if you want to get into the political arena, you're going to pay like the rest of us.
@@robertschooner1812 You believe that everyone pays income taxes? That's interesting.
@@JeffPospisil yeah if they're legal or if they're wealthy enough to be able to circumvent the tax code. But the average American most definitely pay taxes! That's what's interesting.
@@robertschooner1812, Are you talking about Federal Income Tax? The stats on that are pretty clear. Only about 40% of Americans pay Federal Income Tax. If you are talking about payroll taxes (i.e., FICA or Social Security Medicare), I agree that the vast majority of Americans pay in...but so do churches.