The Truth About 501 C 3 Churches and Taxes

Have you heard that 501 C 3 Churches aren’t required to file taxes?

Do you run a welfare or faith-based organization? Or know someone who does?

While the IRS offers many different kinds of tax exempt entities, the vast majority of these organizations often require one to give up their rights for the benefit of a tax-exemption license.

The rights lost include: freedom of speech, forced agreement to comply with all future IRS Rules, restriction of religion, disallowance of political views and the penalty of losing their tax-exempt status should they violate federal law political restrictions.

Tax-exempt entities can lose their tax-exempt status if they do or speak out about something the State doesn’t like. Or the State considers them to be a disturbance, public danger or even a domestic terrorist…

To us it’s rather odd but we suppose some people think it will add more money to the public system or ‘will shut them up’…




But taxes (especially income taxes) don’t work that way in reality. We’ll be touching more on this in coming days.

So for these reasons, we do not recommend the State 501(c)(3) Church entity.


Clearly there’s no true separation of Church and State with a 501(c)(3) – the very separation fundamental to the American system that is guaranteed by the Constitution.

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So, how does one obtain the coveted tax-exempt status without succumbing to the government & losing all of their constitutionally protected rights?

Remember, we’re looking to be the tax exception – not be tax-exempt.

If you operate a welfare or faith-based organization, the best way to accomplish this is by…

utilizing a 508(c)(1)(A) Free Church.

The little-known Free Church is tax excepted and can give tax deductible receipts for donations. (That is, a church that is truly separate, independent and autonomous from the State and IRS.)

It enjoys freedom of speech, including, but not limited to: politics, referendums, initiatives and candidates.

Over the next few days, you’ll learn about Greg J. Dixon of Indianapolis Baptist Temple and his journey from operating as a State Church to a Free Church – and learn from all the mistakes he made.

Your friends in finance,
Private Wealth Academy

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