Just 2 people.
Just 2 people.
If churches are going to be a tax free non-profit, we need to see ‘services done’ at roughly a similar order of magnitude as their receipts would allow. And no, a couple of cots is not the answer. Perhaps a small apartment building with 8 units that the church owns and operates, and provides permanent residency for a small local population of the unhoused.
Other wise I think they church should be disbanded and its organizers held liable for tax fraud.
If I run a 501-3c (and I have), I have to provide what amounts to a complete budget of where my organizations income came from, where it went to, and how much was spent on things like overhead, office expenses, executive pay, travel, etc. My board is responsible for me getting those numbers right, otherwise we run afoul of the IRS.
Churches are not held to the same standard. A church is effectively granted tax free status on its receipts (income) and is not required to provide any charitable services as a product of those receipts. They are fundamentally different legal entities, however, I’m arguing that they shouldn’t be, and that churches and “faith based” institutions should be held to the same standards as any other charitable organization under the 501c3 definition of a non-profit.
If your church or faith based organization doesn’t exist to provide a charitable mission, then it shouldn’t be free from taxation.
The Church of Jesus Christ of Latter-day Saints and a nonprofit entity that it controlled have been fined $5 million by the Securities and Exchange Commission over accusations that the religious institution failed to properly disclose its investment holdings.