Did you know...
are all classified as 'churches' or 'association of churches' with the IRS?
Most religious nonprofit organizations, including churches, have applied to the IRS for 501(c)(3) tax-exempt status thinking this was the only option. However, a better way was written into the tax code in 1969 and hundreds of churches and religious organizations have discovered the many benefits. Even well-known religious organizations reclassifying as a “church” or an “convention/association of churches” has been a trend for decades.
The Salvation Army founded in London in 1865, first US branch in 1880, tax-exempt in the US since 1933, reclassified as a “convention of churches” in 1955 after 75 years of US operation. The Navigators reclassified as a church in 2005 after 72 years. Focus on the Family reclassified as a church in 2016 after operating for almost 40 years. Billy Graham Evangelistic Association reclassified as an “association of churches” in 2015 after 66 years. Family Research Council reclassified as an “association of churches” in 2020 after 37 years.
The common question we get is, “How is that possible and why would these well-known religious organizations want to be churches?”
“This was done primarily to protect the confidentiality of our donors. In recent years there have been several occasions on which non-profit organizations—on both the right and the left—were targeted for information, including the names and personal details of their donors. In order to protect our constituents’ privacy, and because Focus does, in fact meet the definition of a church under IRS regulations we applied for and received this designation. In doing so, we have joined the company of many other Christian non-profit para-church organizations who have done likewise. Having said this, we remain committed to the highest standards of fiscal transparency and will continue to make our financial statements available.” – Paul Batura, Spokesman for Focus on the Family
Many other popular religious organizations have also reclassified with approval from the IRS including Ethnos360, Voice of the Martyrs, Campus Crusaders, Precept Ministries, World Vision, Liberty Counsel, and American Family Association.
The reasons for reclassification among these dozens of popular religious organizations vary but these three reasons are a common thread;
- They want to operate according to their biblical faith as an organization.
- They want exemptions in the federal tax code that apply only to churches or associations of churches such as mandatory exemption from yearly Form 990 tax-return filing and exemptions from paying into public insurance programs that pay for abortion, contraception, or other medical services to which the organization is conscientiously opposed.
- They want to protect the confidentiality of their donors since 501(c)(3) tax-exempt organizations are required to disclose to the IRS the names and addresses of donors giving over a certain amount in the year.