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What constitutes a church under federal laws?
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Dec 2007
Most churches are easy to recognize when we see them -- a congregation hall, rows of pews, probably a steeple. But what constitutes a church in the eyes of the IRS?
Definitions of Church
The issue of establishing definitions for a church has big implications. Institutions that are considered churches are granted tax-exempt status under Section 501(c)(3) of the Tax Code.
Common definitions of the word "church" refer to the religious entity or organization, not just the building itself. The definition becomes more complicated when taking in to account each religious group's own definition of what constitutes a church.
Churches and the IRS
To clarify the federal government's definitions of a churches and other religious institution, the Internal Revenue Service uses clearly-defined guidelines. Over the years, the IRS has revised this list in response to various court decisions. To define churches and other religious entities, some of the IRS guidelines consider whether or not an institution has:
- a distinct legal existence and religious history,
- a recognized creed and form of worship,
- established places of worship
- a regular congregation and regular religious services, and
- an organization of ordained ministers
Most mainstream religions such as Catholicism, Judaism, and common Protestant sects fit easily within the IRS guidelines. However, churches that are less traditional sometimes face difficulty in meeting the federal government's definition.
Qualifying as a Church
Some of the confusion over churches arises when the IRS differentiates between religious institutions like churches, and religious organizations. The IRS offers the following with regard to religious organizations, "Religious organizations that are not churches typically include nondenominational ministries, interdenominational and ecumenical organizations, and other entities whose principal purpose is the study or advancement of religion."
However, in some cases a religious organization may qualify as a church even if it does not appear to be a church in the traditional sense. This is the case with Young Life, a nonprofit organization that the IRS officially recognized as a church following a July 2005 Ruling.
Interestingly, Young Life does not have an established place of worship or church building per se, but it does have weekly meetings at specific locations. In the end, although Young Life did not meet all federal criteria for religious entities, the IRS concluded that it did meet a sufficient number of them to qualify as a church.
The bottom line is that the IRS has created specific guidelines on churches and other religious entities to determine their tax status. However, it is not a requirement that a church meet all the criteria. Instead, the IRS offers some flexibility, giving various religious institutions the opportunity to qualify for the highly coveted tax exempt status.
Most Viewed in Other Tax Topics
Apr 2007
Comments
Submitted by on Mar 24, 2010 - 4:38PM
This does not really explain how the word "church" is defined by the rest of the federal law.
US Code TITLE 13, CHAPTER 7, SUBCHAPTER II,§ 225
(d) "Where the doctrine, teaching, or discipline of any religious denomination or church prohibits the disclosure of information relative to membership, a refusal, in such circumstances, to furnish such information shall not be an offense under this chapter."
If one were to attempt to avoid other laws by founding a church (or changing doctrinal views), could it be done?
Submitted by on Mar 4, 2011 - 3:55PM
I thought I would drop in and say hello. My name is Greg. Just thought I'd pop in and say hello :)
Submitted by on Mar 23, 2011 - 10:20AM
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Submitted by on Mar 27, 2011 - 3:18AM
What "constitutes a church"? The First Amendment to the Costitution, of course. It states "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof". Since Congress created the position of commissioner of Internal Revenue, the IRS has no jurisdiction over churches. Congress, nor any commission formed by Congress, has no business attempting to determine whether or not the definition of a church is a place, an organization, or even a person.
Submitted by on Apr 24, 2012 - 6:05PM
"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof...". The IRS has no right to define what constitutes a church or a religion. If a "Church" or "religion" opts to make itself subject to corporate laws, that is one matter. However, the IRS is itself subject to Congressional laws and regulations. Congress is subject to the Constitution that states that it CANNOT make any law respecting the ESTABLISHING of religion, or prohibiting the FREE exercise thereof. The IRS, by proxy, and without the consent of Congress (because Congress lacks the Constitutional authority) is attempting to establish religions and granting by de facto the free exercise thereof through those who would submit to its tax codes.
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