Part I: THE Human Reasoning BEHIND a Church Organizing Under the 501c3 Corporate Structure by Pastor Jason Cooley
This will be part one of a series Entitled: Human reasoning in organizing a church under the 501c3 corporation model. As I have studied the 501 c3 corporate status of churches today I have come to the realization that the only reason that pastors organize that way is human reasoning. Paul warned us in scripture not to fashion ourselves after the
rudiments of this world. Colossians 2:8: “Beware lest any man spoil you through
philosophy and vain deceit, after the tradition of men, after the rudiments of the world, and not after Christ.” At the least one would have to say that incorporating a church is after the tradition of men, it is certainly not after the Christ model found in the Word of God. Let’s look at the human reasoning behind churches incorporating.
THE CORPORATION IS HUMANISTIC IN ITS VERY EXISTANCE. You may be thinking right now that this is the opinion of an overzealous Baptist preacher. But this is actually the opinion of the Supreme Court: “Upon the other hand, the corporation is a creature of the State. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises, and holds them subject to the laws of the State and the limitations of its charter. Its powers are limited by law. It can make no contract not authorized by its charter. Its rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation.”
Do you see the humanistic design? It is a creature or invention of the state. It is not the design of God Almighty for his Bride the Local New Testament Church. God is the creator of mankind. Therefore, God set down his order and we are to follow it and if we do not there are consequences for those actions. So it is with the church that is a 501c3. The state is the creator of the corporation. The state says what the corporation is allowed to do and the state lays down rules for the corporation to follow. If a corporation does not, it is subject to certain consequences.
This is human reasoning at its highest level. Remember, we are to follow the order that God laid down for his church in Scripture, not recognize some other authority in the local church. 1 Timothy 3:15: “But if I tarry long, that thou mayest know how thou
oughtest to behave thyself in the house of God, which is the church of the living God, the pillar and ground of the truth.” Paul laid down the proper behavior, the order or proper church government that was to be followed in the local church. But today humanistic
reasoning has crept in and churches have looked at another head to another entity beside the Lord Jesus Christ over his church. Many believers wrongly believe that
INCORPORATION IS RIGHT TO DO BECAUSE IT PROTECTS THE ASSETS OF INDIVIDUAL CHURCH MEMBERS.
The number one humanistic argument is that incorporation protects the members from lawsuits and from their personal assets being taken from them. First of all, this statement implies that members that go to an unregistered church are in danger of losing everything they own, that automatically if a crime occurs in the local church or somewhere in the ministry that someone that has no knowledge of the crime will be sued and they will take everything you own. That is a deceitful approach and scare tactic of
David Gibbs and the Christian Law Association and other “Christian” legal associations to push their agenda of bowing down to government at any cost.
The truth is actually the complete opposite of this fable. And Unregistered Baptist Church that is organized under the Declaration of trust is not a legal entity and cannot be sued as such. The church I pastor, Old Paths Baptist Church, is not a legal entity. When a church accepts 501c3 status, that church becomes a legal entity. Let’s look at the definition of a legal entity from the dictionary:
“An association, corporation, partnership, proprietorship, trust, or individual that has legal standing in the eyes of law. A legal entity has legal capacity to enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued in its own right, and to be held responsible for its actions.”
So you see by the very definition of “legal entity” a church that establishes a well crafted, biblically honoring, law abiding declaration of trust is not a legal entity at all (As long as she is careful not to act as a legal entity in some other manner). Such a church cannot be
recognized as a legal entity because it holds no property, does not buy or sell, and acts legally in no way whatsoever.
Therefore it cannot be sued or sued. The Declaration of Trust allows the Pastor/Trustee to hold property for the benefit of the Lord Jesus Christ. The Declaration of Trust is not the church. The Pastor is not the church in his capacity as Pastor/Trustee. On the other hand, churches which accept the invitation from the federal government to become a 501c3 corporation are legal entities and can sue and be sued.
Another misconception is that if you go to a 501c3 incorporated church you cannot be sued. This is false. Every human being alive is a legal entity. We buy and sell and we conduct business and we are held responsible for our actions. Being a member of a 501c3 corporate church does not give you the ability to sign away liability for torts and crimes you commit against someone else. If you commit a tort (“A private or civil wrong or
injury, including action in bad faith breach of contract, for which the court will provide a remedy in the form of an action for damages…. A legal wrong committed upon the person or property independent of contract.” BLACK’S LAW DICTIONARY) or harm someone you can be sued or if it can be proven that you were negligent. If you commit, participate in, or encourage a crime being committed you can be charged with a crime. Do not the Scriptures say so as well? Ecclesiastes 5:8: “If thou seest the oppression of the poor, and violent perverting of judgment and justice in a province, marvel not at the matter: for [he that is] higher than the highest regardeth; and [there be] higher than
they.” The Scriptures clearly say that if you and I see the oppression of someone and do nothing about it, God who is full of justice sees it from above and will rightly judge the matter.
Civil government does have the obligation and jurisdiction under God to protect one person from another if physical harm is done. That is why anyone, member of a corporate church or not, can still be charged if he knowingly participates in, encourages, or knows about and does nothing to prevent a crime or tort (harming another causing damages).
But many Christian Lawyers or falsely so called will go around to churches that have never been incorporated and they will tell them that Grandma that is down stairs cooking the chicken noodle soup for the church fellowship can be sued for something that takes place upstairs that she has no knowledge, or control over. This is a ridiculous scare tactic and needs to be exposed. In fact, try doing Google searches to determine what goes on in corporate 501(c)(3) churches. You will be amazed at the extent of the graft and criminal and tortious activity that goes on in such churches.
In America we have the opportunity to purchase a liability insurance to protect those who are injured or hurt in some way while at the meeting house. If organized under the Declaration of Trust, the Pastor/trustee can purchase such a policy as God has entrusted the pastor with the care of the flock, to feed, them spiritually and to protect them from harm; the church does not purchase the insurance.
Rather, the Pastor/Trustee purchases the policy. The false protection that David Gibbs and the CLA sells people is actually enslaving them to the state. It is based on nothing more than human reasoning (and bad reasoning, at that). The Bible clearly says that
Jesus is the Savior or Protector of the body:
Ephesians 5:23: “For the husband is the head of the wife, even as Christ is the head of the church: and he is the saviour of the body.” They trade this false security of being protected for the protection of the Lord. This is humanism. This humanism leads to acceptance of the State’s rules and regulations for the local church.
The corporate church must elect unscriptural officers and file mandatory reporters with the Secretary of State. It does not have the right to deny the state access to church finances: In Hale vs. Henkel,
201 U.S. 74-75 (1906) the Court stated regarding corporations:
“There is a clear distinction in this particular between and individual and a corporation and that the latter has no right to refuse to submit its books and papers for examination at the suit of the State. While an individual may lawfully refuse to answer incriminating questions unless protected by an immunity statute, it does not follow that a corporation vested with certain privileges and franchises may refuse to show its hand when charged
with an abuse of such privileges.”
So you see the human reasoning has set the church up with another head and another set of rules to govern by. Remember the warning that the Apostle Paul gave us: Colossians 2:8: “Beware lest any man spoil you through philosophy and vain deceit, after the tradition of men, after the rudiments of the world, and not after Christ.” Our churches must return to their Sovereign Head, the Lord Jesus Christ, and not be entangled with the state.
HAS HUMAN REASONING LED YOU TO ORGANIZE UNDER THE 501C3? IF SO, YOU CAN REPENT AND ORGANIZE IN A CHRIST HONORING WAY. FOR MONE
INFORMATION CONTACT BROTHER JERALD FINNEY AND THE BIBLICAL LAW CENTER.
THE INFLUENCE OF TAX EXEMPT STATUS ON THE LOCAL CHURCH’S
FINANCIAL STRUCTURE by Pastor Jason Cooley
Many believers say that incorporating with the government has had no effect on their churches. They would even dismiss the notion of any impact incorporating has on their local church. Independent Fundamental Baptist (IFB) churches will state that incorporation is no big deal and does not change anything.
They do not recognize the effects of incorporation on the internal workings of the church. This article will deal with some implications of incorporating a local New Testament church and seeking tax exempt status and how it has changed or altered the simplicity of the local churches financial dealings.
Incorporated churches will look to outside sources to produce revenue for their corporation (church). Yes, they treat the local church more like a business than a spiritual body or called out assembly of Jesus Christ. Many incorporated churches will look for fundraisers and other revenue generating schemes to fund their corporation. They use their government granted tax exempt status for a public fundraiser. They go to the world and in essence beg the world for money to fund God’s church. Imagine how this must grieve the Lord to see members of his body or bride go to the world for the
financial needs of the church instead of going to God in Heaven to meet all their needs This is a clear promise from God’s Word that he will supply all of our needs: “But my God shall supply all your need according to his riches in glory by Christ Jesus”
(Philippians 4:19). Picture this if you were married and your wife was standing on the street corner asking others for money to care for her because her husband could not provide for her. You would come to your wife and say “Why have you done this ?
Have I not always cared for you and met your needs? You have never been without . Why would you shame me so?” I believe the Lord is saying the same thing from Heaven, knowing the answer because he is God but posing the question to us so that we search our hearts to see that we have strayed from simple bible faith in trusting God to meet the needs of HIS CHURCH.
Here is an example of a corporate church fund raising scheme: “Eat at the Wendy’s (by Menards) next Wednesday, July 13, from 5:30 PM (before church service) to 9:30 PM (right after the service). They will donate 15% of their sales during those hours to our Bus Ministry, so please patronize them at this time especially! Please remember to tell the cashiers (inside or at the drive-thru window) that you are from _______Baptist Church (the church that runs the SS Buses), and give them one of our tracts. Please also complete the phone survey on the back of the receipt. (And then get a $2 discount coupon on your next visit by entering a code on the receipt.)”
This church by the way is a soul winning church, where no doubt the pastor preaches the Word of God and his people have a zeal for the Lord and are not aware of their entanglement with the world’s model of fundraising. They are blinded to the effects of the 501c3 or tax exempt status. They are partnering with a worldly organization to fund God’s holy church. It is in essence a partnership with the world. We are warned in scripture not to be a friend to the world system:
James 4:4: “Ye adulterers and adulteresses, know ye not that the friendship of the world is enmity with God? whosoever therefore will be a friend of the world is the enemy of God.”
James 4:5: “Do ye think that the scripture saith in vain, The spirit that dwelleth in us
lusteth to envy?”
Scripture clearly shows that we are lusting when we are friendly to this world system. Many corporate churches are building empires and not simple Bible preaching churches. So, in other words, many churches are going to the world to meet their financial obligations. The problem is that churches have built kingdoms and are weighed down with such debt like a corporation that they have to generate revenue to compensate for that. The problem really lies in leaving the simplicity that is in Christ Jesus and his plan of giving for the local church. God’s Plan to provide for the local church is as follows:
1 Corinthians 16:2: “Upon the first [day] of the week let every one of you lay by him in store, as [God] hath prospered him, that there be no gatherings when I come.” Many churches will adhere to tithing and or giving whatever the Lord lays on their hearts which would mean give it all if God wants it. 2 Corinthians 9:7: Every man according as he purposeth in his heart, [so let him give]; not grudgingly, or of necessity: for God loveth a cheerful giver.” Members are instructed by God to give because of love not because they forced too upon some kind of guilt trip. I put it simply to my people if you Love God you will give to his work and you will give what GOD tells you to give. This is direct obedience to God. This is Gods pattern for the local church and the 501c3 corporate model and tax exempt model has changed all that in many churches today. We look to the world’s model instead of God’s model.
Baptist churches need to leave the corporate model and organize in a way that honors God. PASTOR WHETHER YOU WANT TO ADMIT IT OR NOT THE CORPORATE MODEL HAS CAUSED YOU TO LEAVE THE SIMPLICITY OF GIVING IN THE
CHURCH AND CAUSED YOU TO EMBRACE A WORLDY MODEL THAT IS OUTSIDE OF SCRIPTURAL AUTHORITY.
The second great effect the corporate model has had on many churches is the lust for buildings and property. As we have seen, many corporate churches today have used their tax exempt partnership with the federal government to hold fundraisers. We see many churches today that have left the simple process of a meeting house and went to a huge almost cathedral like monstrosity of a building. The churches are strapped with debt and the pastor has a constant concern of how he will keep the corporation afloat. The Lord’s church should not be bogged down with debt.
As a sidenote, there are many churches out there today that have millions of dollars in property. That would not be possible if was not for their state property tax exempt status. The taxes alone on the properties that are worth millions of dollars would be enough to cripple the tax exempt church if the government every would withdraw their tax exempt
status. State property tax exemption is not related to the federal 501c3 status, but, as does 501c3 status, the property tax exemption goes to motivation for acting contrary to God’s principles as laid down in his word.
State churches are therefore beholden to the civil government. To prove that, one needs only look at the paper work for tax exempt status. The devil is in the details and when you look at the paperwork you will see that there are rules for the state church to follow or risk the heavy hand of the IRS to come in and take away their exempt status. To tax or to exempt from taxation is to show that sovereignty and authority over the taxed entity.
For instance, the states are not allowed or do not have the authority to tax the land used for the federal government even though it lies in their territory. Now the federal government does not have to file paperwork with the state because the state recognizes that they are not taxable.But when churches sign up for the tax exempt status they are
agreeing with the state that they have the right to tax them but the state has granted them tax exempt status. One need only look at history and see that Kings like Solomon and others would tax those territories that they took over and the people accepted the tax because they recognized his sovereignty over them. All of this information below can be
found at this link: http://www.irs.gov/pub/irs-pdf/p1828.pdf
What is traded in for this tax exempt status? What do churches have to do? Here is the first rule that sticks out: They must not devote a substantial part of their
activities to attempting to influence legislation. This legislative rule was added after Lyndon B Johnson-when in Congress in 1954-pulled a fast one while most of Congress were leaving for break he introduced this legislation to quiet the preacher. Well this would blow the famous Baptist preacher John Leland from the famed Leland–Madison battle for the first amendment, right out of the water. Baptists in American history have always been involved in influencing legislation. SO this is used as hush money to keep preachers in line. Another red flag to have state granted tax exempt status removed is this: The organization’s purposes and activities may not be illegal or violate fundamental public policy. A local church will preach against public policy and will reprove the wicked candidates that are running for public office and will preach against wicked public policy if they are obedient to God.
Another possible revocation of tax exempt status is required should a 501c3 organization not give equal time to opposing candidates. So if a state church had a Ron Paul speak, that church would have to give equal time to a Barrack Obama or face losing her 501c3 status. Regardless of whether you would put any politician on your pulpit which I would not, why is a local church following government rules when Baptists historically believed in the All sufficiency of scripture as their rule of faith and practice? The answer is because they have accepted a granted tax exempt status and it has impacted their financial dealings and silenced their pulpits.
The reason they have allowed this is so they can receive donations from wealthy people who wish to have tax write offs. So they give them cars and money and other items of value to write them off. It is an unholy alliance with the state. But when you talk to the average fundamental Baptist pastor they have no intention of dropping the corporate tax exempt model because it has allowed them to build and empire. Then that same pastor will tell his rich men of the church not to tell him how to run the church because they know how to run their businesses but this is the HOUSE OF GOD. When in actuality the pastor is the president of the corporation and he is really being hypocritical in saying that. Those wealthy men understand how to run a business and make wise business decisions.
The local new testament church is a spiritual entity and is not to be ran like a business entity. But many Big name preachers will not give up their ability of write off and possibly lose big givers to the religious organization. Instead, they choose to organize or remain organized in a way that dishonors God as the sovereign head of the church. By the way, there is a Biblical and legal way for a church to utilize property for the benefit of
the Lord Jesus Christ with the pastor as the man entrusted to oversee the local church which remains a spiritual, as opposed to a legal, entity.
In following the tax exempt corporate model, Pastors of corporate 501c3 churches have changed the motives for giving. Now many people give for the write off they will receive not in obedience and love for the Lord as found in 2 Corinthians 9:7: “Every man according as he purposeth in his heart, [so let him give]; not grudgingly, or of necessity: for God loveth a cheerful giver.” But remember the motives of our heart will be judged at the Judgment Seat of Christ. 1 Corinthians 4:5: “Therefore judge nothing before the time, until the Lord come, who both will bring to light the hidden things of darkness, and will make manifest the counsels of the hearts: and then shall every man have praise of God.” These pastors will answer to God for their clear disobedience to his Word and allowing the government authority in the local church. Let Jesus Christ be sovereign in his church and let churches in America get back to the simple model of giving.
For more information on organizing a church in a way that honors God contact Born Again believer and licensed attorney Brother Jerald Finney.