Tax Exemption for Churches?

Question

Some of the money obtained by churches is uses for charitable purposes. Another portion is used for infrastructure. Another portion is used to promote the church and it's religion.

Yet with only some of the money used for charitable causes, shouldn't the tax exemption be pro-rated based on percentage of charitable work performed?

Answer 1

You are confusing churches and charities. Charities have to apply for and be granted tax-exempt status, and if they do not perform as a charity, their tax-exempt status can be taken away.

Churches are tax-exempt as a matter of the US Constitution. They do not have to apply to the IRS for this status, it is automatic and not dependent on any charitable services performed by the church.

Answer 2

Actually, the whole church as an organization is considered a charitable organization. Without the infrastructure (I assume you mean the building and the people that work for the church) and without promotion, the explicitly charitable part would not be able to function.

Having worked as a cashier in retail, I have dealt with tax exempt transactions. My state (IL) gives tax exempt organizations a letter, and then a card. On this letter and card, it usually says charitable organization/non-profit (making them the same category). While you can argue that all the money a Church spends is helping charity, it is safe to say Churches (honest ones at least) are not out to make a profit.

Answer 3

In a way the there is some taxed money.

If they pay a priest his pay is suppose to be taxed and they tax others that the church pays. Churches are usually non-profit organizations and if there is taxes that should be paid and they don't pay them then that isn't a church you would want to go to.

There is also property taxes and other taxes that can affect a church.