Then said he to them, Render therefore to Caesar the things which are Caesar's; and to God the things that are God's. -Matthew 22:22

Something strange has been going in the American Protestant Church since the mid 1950's. Most churches have organized as "501c3 tax-exempt religious organizations." Section 501(c)(3) of the US Internal Revenue Code, allows for federal tax exemption of nonprofit organizations and is regulated by the US Department of Treasury. Thus, the organizations which qualify for this are supposed to be non-profit organizations which must show a zero balance at the end of each year. I want to make it clear that no church had been organized this way until now, nearly two thousand years after our Lord told Peter, “on this rock I will build my church..” (Matthew 16:18)

Listen to what the IRS says about churches and their ministries, in Publication 557:

Some organizations are not required to file Form 1023. These include:

• Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men’s or women’s organization, religious school, mission society, or youth group. These organizations are exempt automatically if they meet the requirements of section 501(c)(3).

Churches Are “Automatically Tax-Exempt”

According to IRS Code § 508(c)(1)(A):

Special rules with respect to section 501(c)(3) organizations.

(a) New organizations must notify secretary that they are applying for recognition of section 501(c)(3) status.

(c) Exceptions.

(1) Mandatory exceptions. Subsections (a) and (b) shall not apply to—

(A) churches, their integrated auxiliaries, and conventions or associations of churches.

In other words, according to the IRS’ "mandatory exception" rule, a church “is automatically tax-exempt.”

Do churches still need to become a 501c3 so that contributions to it can be taken as a tax deduction?
The answer is no!

According to IRS Publication 526: Organizations That Qualify To Receive Deductible Contributions

• You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.

In the IRS’ own words a church “is automatically tax-deductible.”

Last but not least, churches Have a Mandatory Exception To Filing Tax Returns.

The bottom line is, churches do this because of money and protection. When people want to make big donations, they are more likely to do it if they see that the church is 501(c)(3) certified. The church gets tax breaks, purchase breaks, postal breaks and not only that, many don't know that the leader of the corporation (normally the pastor) gets some of the most elaborate tax breaks around. Some pastors are able to write off things as little as dishes.

What are churches really saying when they do this? “Sell yourself to the government and you can get more money in, (bigger donations) and you will also have less money going out (tax, postal, and other exemptions) and all it will cost you is a little white lie and the headship of Christ!” Is this following the model of the Apostles?

It's mighty funny that the same organization that tells us to tithe until it hurts and trust the Lord for the increase, the same organization that tells us to “lie not,” the same one that tells us to be accountable for our actions, that “The LORD is my light and my salvation; whom shall I fear? the LORD is the strength of my life; of whom shall I be afraid?,” -(Psalm 27:1) will hide behind Uncle Sam in order to defend itself against law suits. The sad thing is, Incorporation does little if anything in the way of actually protecting the church. The legal reality is that a church cannot be sued and brought into court until it incorporates. A church “is not an entity recognized in law.” If a church is not legally recognized by courts, it cannot be sued.)

To illustrate this, if someone slipped and fell on a slippery floor at a biblical church, they could only sue the individual who mopped it and not the church itself. Not only is it non-biblical to sue your spiritual brother in the first place, it's a lot less appealing when he is a school teacher and the prize is only a couple thousand dollars. This alone will be a deterrent to frivolous law suits, most individuals will not have millions, but a mega-church may.

But this is not new. Since God choose Israel as His covenant people, He guided them through the desert and won countless victories to get them to the promise land. He even got them out of slavery from the Egyptians. Despite this, many years later Israel ran to Egypt for help in a time of war. The Egyptians had a large army with lots of horses and chariots. Thus, Israel rejected the protection of God in favor of the protection of man.

God's response to this was as follows:

1Woe to them that go down to Egypt for help; and stay on horses, and trust in chariots, because they are many; and in horsemen, because they are very strong; but they look not unto the Holy One of Israel, neither seek the LORD!

2Yet he also is wise, and will bring evil, and will not call back his words: but will arise against the house of the evildoers, and against the help of them that work iniquity.

3Now the Egyptians are men, and not God; and their horses flesh, and not spirit. When the LORD shall stretch out his hand, both he that helpeth shall fall, and he that is holpen shall fall down, and they all shall fail together. Isaiah 31:1-3

God was not pleased with those who put their trust in man. Churches who call themselves the body of Christ and hide behind the government are doing the same!

To Lie or not to Lie? That is the Question!

One of the more challenging requirements of the 501 (c) (3) is that you must legally incorporate to create a legal organization. The Articles of Incorporation you must file with the government would outline basic principles of your corporation, such as: your corporation’s name, duration of its planned existence, exempt purposes, specific purposes, membership, directors, prohibitions, dissolution conditions, registering agent and office, incorporation’s name, and indemnification clause. You will need to supply a minimum of 3 directors for your corporation: President, Vice-President, and Treasurer/Sec., and establish (and perhaps register) By-Laws for your corporation. Your Articles of Incorporation must contain the correct verbiage for a tax-exempt 501(c)(3) corporation via IRS rules.

In other words, a church can't get a 501(c)(3) tax exemption unless it lies. It must claim to be something it's not. A church would therefore have to file paperwork that will define it as a corporation and promise that will run itself accordingly. Let me say that again, the church admits to being a corporation (not the body of Christ) and promises to run itself by the guidelines of a corporation (not the Bible.) The church that Jesus founded didn't have presidents, vice presidents, secretaries, treasurers, first ladies and the like.

And God hath set some in the church, first apostles, secondarily prophets, thirdly teachers, after that miracles, then gifts of healings, helps, governments, diversities of tongues. 1 Corinthians 12:28

This is a true saying, If a man desire the office of a bishop, he desireth a good work. 1 Timothy 3:1

Likewise must the deacons be grave, not doubletongued, not given to much wine, not greedy of filthy lucre; 1 Timothy 3:8

Odds are, that your church is incorporated. As of 2012, there are only an estimated five to ten percent of American churches that are not. Yes reader, true churches have elders and deacons whose jobs are not infused with subtitles to fit the ideas of the government. The church that the Apostles built did not have By-laws or Articles of Incorporation.

Whats so wrong about being a corporation anyway? Besides from not being the body of Christ, nothing. A corporation is defined as:

1. "A 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 limitation 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 (the state). There is a reserved right in the legislature to investigate its contracts and ascertain if it has exceeded its powers" (Hale v. Henkel, 201 U.S. 43).

A true church derives its existence and authority from its Head, the risen and victorious Son of God. It is comprised of individual members who have covenanted together to further Christ's Kingdom by the preaching of the Gospel and the disciplining of the nations (Matthew 28:19-20).

2. "[A corporation is] an artificial person or legal entity created by or under the authority of the laws of a state. An association of persons created by statute as a legal entity.... The corporation is distinct from the individuals who comprise it (shareholders).... Such an entity subsists as a body politic under a special denomination, which is regarded in law as having a personality and existence distinct from that of its several members." Black's Law Dictionary West Publishing Company, 1991; 6th Edition, page 340.

This enables a corporation to hold title to real property. The church is family of God, brothers and sisters in Christ. An unincorporated church could only hold property in the name of one or a few members.

3. "A corporation derives its existence and all of its powers from the State and, therefore, has only such powers as the State has conferred upon it. Power is used here to mean the legal capacity to execute and fulfill the objects and purposes for which the corporation was created, and the source of this power is the charter and the statute under which the corporation was organized." Len Young Smith and G. Gale Roberson, Smith and Roberson's Business Law, West Publishing Company, 1966, page 796.

A corporation is created by, and derives its existence from, the State. In contrast, the church is created by, a creature of, derives its existence from, subject to, and obeys the Law of, Jesus Christ. The church derives its power from the Holy Spirit and the name above all names.

"And they sent out to him their disciples with the Herodians, saying, Master, we know that you are true, and teach the way of God in truth, neither care you for any man: for you regard not the person of men. Tell us therefore, What think you? Is it lawful to give tribute to Caesar, or not? But Jesus perceived their wickedness, and said, Why tempt you me, you hypocrites? Show me the tribute money. And they brought to him a penny. And he said to them, Whose is this image and superscription? They said to him, Caesar's. Then said he to them, Render therefore to Caesar the things which are Caesar's; and to God the things that are God's. When they had heard these words, they marveled, and left him, and went their way" (Matt.22:16-22 KJV).

Jesus' words in verses 16-22 were spoken in the context of answering an attempt of the Pharisees to trap him into saying something that could be considered rebellion against the Roman government. The Jews were a conquered people. They were not sovereigns over their property or their lives. They lived or died by the will of Caesar. When Jesus said "Render to Caesar what is Caesar's," he was not making a superficial statement, because Caesar owned everything by right of conquest.

Jesus cleverly avoided this trap and still answered the question. Since Caesar's image was on the money, and he is in authority, it was right to obey Caesar (the government) and give him our taxes. Since man is made in God's own image, it's right for man to obey the sovereignty of God and give him our lives. Notice, that Caesar himself, being a man is subject to God as well. In this way, Jesus shows that the sovereignty of God is greater than that of any and every man. "When they had heard these words, they marveled, and left him, and went their way" (v22).

In the Bible the church and the state are two distinct God ordained entities. This was in fact, one of the sticking points of the sixteenth-century Reformation. The Church and the State are separate governments, and that, although they are to work together for the furtherance of God's Kingdom, they are not to either merge with one another or usurp the sphere of authority of one another (Westminster Confession of Faith, Chapter XXIII:3) The Church is forbidden by Scripture to take up the State's "sword" (Romans 13:4), and the State is likewise forbidden to assume the Church's "keys" (Matthew 16:19). However, this is exactly what happens whenever a church seeks incorporation. At some point the church must honestly answer the question of whether they are led by King Jesus or king Caesar.

Is God's house a house of Merchandise?

Since it is clear that the modern church is dead set on being a business and not a body and many have (unknowingly) rejected Christ and set up the government to be their sovereign. We must now turn our attention to what kind of business the corporate "church" intends to be. We have already seen the benefits of government grants and tax exemptions, now lets take a look at "church the merchant." What is the church's merchandise?

When we hear the word merchandise, we usually think about the goods in a store that they are attempting to sell. This is how they make their money. The ability of the “merchant” or the seller to get and sell items for a profit is how he stays in business. No good business will survive by selling their “merchandise” at a loss. A cell phone store will sell cell phones and cell accessories, a car lot; cars, a grocery store; food. All of these items sold are know to be the merchandise. But are churches, who are pointing the way to the free gift of salvation, supposed to be merchants? Do churches sell the gospel? Are churches supposed to be in the coffee, book, and tape business? [Click here for-The true Church] Before we answer, are we asking ourselves these questions or are we asking God?

To get a better understanding about how God feels about buying and selling in church, let's first take a look at the tithing law.

God instituted the law of tithing. Then gave instructions as to how it was to be carried out. It may surprise you that the tither was supposed to eat the tithe.

And thou shalt eat before the LORD thy God, in the place which he shall choose to place his name there, the tithe of thy corn, of thy wine, and of thine oil, and the firstlings of thy herds and of thy flocks; that thou mayest learn to fear the LORD thy God always. Deuteronomy 14:22

The people were instructed to take their tithes to the place of God's choosing and enjoy it their as part of a feast of thanksgiving. God knew that the journey might be to far for some to haul their crops and drive their herds so He gave them the option to sell it for money.

And thou shalt eat before the LORD thy God, in the place which he shall choose to place his name there, the tithe of thy corn, of thy wine, and of thine oil, and the firstlings of thy herds and of thy flocks; that thou mayest learn to fear the LORD thy God always. Dueteronomy 14:24,25

Once in the place of God's choosing, they were to take the money and buy provisions for the feast. This was their tithe.

And thou shalt bestow that money for whatsoever thy soul lusteth after, for oxen, or for sheep, or for wine, or for strong drink, or for whatsoever thy soul desireth: and thou shalt eat there before the LORD thy God, and thou shalt rejoice, thou, and thine household, Dueteronomy 14:26

By the time Jesus came around, the religious leaders of the temple had found a simpler way to make this happen. Instead of having to purchase their tithe from the local farmers and shepherds, all people had to do was go to the temple. The temple was filled with merchandise (animals and grain) and whatever else a person may have wanted to purchase as their tithe. In time, some of the sellers began to get greedy and started to use dishonest weights and scales.

One day Jesus came in and threw the wicked out of the temple.

15And they come to Jerusalem: and Jesus went into the temple, and began to cast out them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves; 16And would not suffer that any man should carry any vessel through the temple. Mark 11:15-16

One reason Jesus did this is because of the dishonest scales. He did this because the sellers were cheating the buyers.

And he taught, saying unto them, Is it not written, My house shall be called of all nations the house of prayer? but ye have made it a den of thieves. Mark 11:17

However, that is not the only reason that they were cast out. In fact, it is debatable if that was the most important reason. What is often missed in scripture is the fact that Jesus cast out both buyer and seller. But why would this be important?

If you own a restaurant and in comes an unruly customer, do you throw everyone out or just the offender?

If you go to a movie and there are some people talking loudly and playing on their cell phones does the usher throw everyone out or just the offenders?

A bank is being robbed and hostages taken. After a four hour skirmish with the police the robbers are convinced to surrender. Do the police arrest everyone in the bank or just the offenders? I guess you get the point. If the sellers where the only offenders, why did Jesus throw everyone out?

Thankfully, God in His divine wisdom saw fit to record Jesus throwing out wicked offenders in the gospel of John as well.

And when he had made a scourge of small cords, he drove them all out of the temple, and the sheep, and the oxen; and poured out the changers' money, and overthrew the tables; 16And said unto them that sold doves, Take these things hence; make not my Father's house an house of merchandise. John 2:15,16

Again we see everyone being cast out but this time the offense is recorded as being turning God's house into a house of merchandise.

The Greek word for merchandise here is the word emporion. It means- a place of traffic, mart, market, market-house. In other words, Jesus was upset because the people had made God's house into a everyday store. God's house was not meant to be a market were buying and selling takes place. It was meant to be a place were people could come a get the word of life freely.

Take time to examine scripture for yourselves. Did Jesus or the apostles make money for the church by selling bar-b-que dinners or fish plates. Did Jesus charge admission for the sermon on the mount or charge the people who ate the loaves and the fish? Where is the evidence in the Bible that anyone charged a set fee for a sermon or a song?

Worse still, when did the founders of God's church charge for any ministry? Ministry is important. Ministry is necessary. Ministry is FREE! Church daycare during a gathering is nice but not the kind that happens on Monday through Friday that it charges for. Keeping the children of believers that are feeding on God's word is a ministry. Charging people to keep their children while they go to work is a business. There are to be no coffee shops, book stores, McDonald's or any other establishments that sell merchandise or services in the gathering of God's children. Even more than this, whatever the church sponsors, it is to be given freely. The children of God are to absorb the costs.

The argument here is because it cost us something to get it, what's wrong with passing the expense on to others? The answer is -that is not how to do ministry. That is not what Jesus or the Apostles did.

Listen to what Jesus said.

And as ye go, preach, saying, The kingdom of heaven is at hand. 8Heal the sick, cleanse the lepers, raise the dead, cast out devils: freely ye have received, freely give. Matthew 10:7,8

The most important thing we get in this life is free; -a relationship with the Lord Jesus Christ which results in salvation. Notice that the salvation that is given costs us nothing but it cost Jesus His life. Salvation is expensive indeed, the blood of Jesus will attest to this, however it is His free gift to us. In order to do ministry, it may cost the believer something but it is our free gift to others. What is the church if not imitators of Christ?

Merchandise of men

And through covetousness shall they with feigned words make merchandise of you: whose judgment now of a long time lingereth not, and their damnation slumbereth not. 2 Peter 2:3

Greek word for merchandise: emporeuomai
Definition: I travel as a merchant, engage in trade; I traffic in, make gain or business of.

How can someone make a gain of people? How can someone make a business out of people? The simple answer is with crafty and deceptive speech “feigned words.” They tell people lies, promise them salvation, and take money that they do not deserve. There are many ministers who are making a profit off people in their church by teaching things that they shouldn't. Some do this by error and others by deception but the bottom line is God's sheep are being fleeced. There is a lot more that can be said on this subject so to go in deeper study, you can hit on this link: The truth about Tithes as well as this one: The Error of the Prosperity Gospel.

I would like to say that the scriptures make it clear that those who make merchandise of men will have their day to stand before the Almighty, but each follower will have no one to blame but themselves.

If any man teach otherwise, and consent not to wholesome words, even the words of our Lord Jesus Christ, and to the doctrine which is according to godliness; 4He is proud, knowing nothing, but doting about questions and strifes of words, whereof cometh envy, strife, railings, evil surmisings,5Perverse disputings of men of corrupt minds, and destitute of the truth, supposing that gain is godliness: from such withdraw thyself. 1 Timothy 6:3,4 FROM SUCH PEOPLE, WITHDRAW YOURSELF.

The Problem not doing things God's Way

The true church is under the authority of Christ, to be run by biblical principles, not the government. Yes, we submit to the laws of the land, but there is nothing that requires a church to seek after 501(c)(3) tax exemption. Sadly, many assemblies have exchanged the headship of our Lord Jesus over a tax exemption. The biggest reasons not to do this is because it's simply not true, (a church is not a non-profit business), it makes the church subordinate to the state, and that’s bad theology.

When a church applies for a 501(c)3 the government will not only require that it obey the current (complex) IRS code but the church also promises to obey all future IRS code sections. Incorporating can be a source of huge future problems. An Attorney General can, and has in the past, taken control of a church and put all of its assets under the control of a government receiver. All it took for this to happen was the testimony of former disgruntled members who claimed that the church was not following the corporate by-laws. The church was a “registered non-profit corporation” and the state's corporation code gave the Attorney General the right to investigate non-profit corporations that strayed from their bylaws. The receivership only ended because a bill was passed that limited investigations of church corporations. The Attorney General never paid back the millions of church money that they wasted.

There was a Houston pastor of a 501(c)(3) church who could not be removed by biblical principles. This case was reported in the Houston Chronicle newspaper and it documented a situation where a pastor allegedly “uncontrollably consumed” alcohol, cursed a church officer, made lewd remarks to the female members and forced a parishioner off church property at gunpoint. Seventy members of the church could not force him to resign by scripture which only requires the testimony of two or three witnesses “the testimony of two or three witnesses,” and had to sue him instead. In an unincorporated church, this situation could be handled by a special meeting of the deacon board (yes, another biblical position) who could then vote him out. Churches that set their pastors up as Presidents and CEO's do so at the behest of scripture. They automatically put themselves in a situation that they will have to appeal to the authority of the state instead of the authority of Christ. These churches do not simply mimic corporations for special favors. Reader, these churches are corporations.

I hope you understand the ramifications of this. In the first example, churches who reject the protection of Christ and seek it from the state instead, must understand that laws protecting church corporations can be repealed by the legislature at any time. There is nothing to stop most state attorney generals from taking over any church corporation which they have received complaints. In the second example, when there is a discrepancy about church conduct, the church might find itself powerless to handle it “in house” and must put it's matters in the hands of unbelievers. When we take church out from under the headship of Christ, our only other recourse is to vote with our feet and leave.

The State’s lack of jurisdiction over the church is not only the Word of God, but in the First Amendment to the Constitution for the United States:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof…

Reader, the Internal Revenue Service completely understands this. Plain and simply, the civil government does not require churches in America to get 501c3 status. Churches do so completely voluntarily, just as they incorporate on a voluntary basis. Since there is absolutely no law that requires a church to get 501c3 status, no attorney, pastor, or anyone else can show you such a law. In fact, there is a law that clearly states that you do not have to get 501c3 status: Internal Revenue Code § 508 (“508″). That law explicitly states that churches are an exception to the requirement that certain organizations get 501c3 status.

In light of what we have learned about the Israelite and other nations in the Old Testament. Coupled with what we learned about “serving two masters,” in the new Testament, it should be clear that the 501(c)(3) Church is an apostate church. When a bride hopes in bed with someone other than her husband, the Bible calls it adultery, but when she does the same thing for financial favor, the Bible calls it harlotry. The incorporated church has hopped in bed with things other than Christ, selling itself for financial favors. The Bible clearly warns us not to be joined with a harlot because the two shall be one flesh.

What? know ye not that he which is joined to an harlot is one body? for two, saith he, shall be one flesh. -1 Corinthians 6:16

When we look at scripture, God is consistently against unions that make His people rely on anyone other than Him. This is exactly what today's incorporated church is doing, and this, my friends is wrong. In order to be recognized by law as a church, all one needs to do is follow a few simple steps which do not involve incorporation or waving ones right to freedom of speech.

Update: On Friday, June 26, 2015 the Supreme Court ruled that same sex marriage will be recognized and honored in the United States. This ruling can and probably will have profound implications on churches who are not "free and simple" (The biblical model). The reason for this is because the churches who have organized themselves as 501c3 non-profit organizations must now honor their bosses (the governments) views on what marriage is or forfeit their rights to any of the governments benefits. At the rate of America's moral decline, it is even concealable that the IRS can and will take away those multi-million dollar buildings that so many people have wasted money on if churches do not comply with their wishes. The IRS can and has done this in the past to those who fall behind on their tax obligations. There is good reason for the separation of church and state.

For more on this read: time for the Church to give up its 501c3.

The more study on the Church as a business

http://thefaithfulword.org/megachurch.html