Thursday, July 31, 2014

Tax exemptions and endorsing candidates from the pulpit

This post is inspired from the following article:


For those that follow religious news closely, one of the stories you will hear a lot about in the next several months is the possible decision by the IRS to examine churches more closely.

Without going into too much detail, the current tax code in our country keeps churches and religious organizations tax exempt so long as they do not engage in overt political activities. The most clear of these would be for a pastor or church leader to endorse a specific candidate from the pulpit. The tax code is 501(c)(3), which does not allow overt electioneering.

This comes after the previous IRS scandal with the Obama administration, where they had audited non-profit political groups to see if they were in violation of the above mentioned tax code. The scandal was that the Obama administration had specifically targeted conservative groups at the expense of liberal groups. Like most scandals today, there is plenty of outrage and excuse making on both sides, followed up by stories of lost emails, refusing to testify, and other insider political football that generally causes my eyes to roll back in my head. This will certainly fall somewhere within the spectrum of legitimate IRS action that became a little too partisan to devious plan by the administration to destroy grassroots conservative organizations. Your final position, if not apathy, will probably depend on what you already think of the Obama administration.

That said, this new situation is quite different. The general tradeoff of tax exemption for not engaging in electioneering seems to have been the status quo for some time. However, since the time leading up to the election in 2008, more than 1,600 churches have deliberately breaking the law by endorsing specific candidates, with more similar activities planned for the run up to the midterms this year. For more context, check out this article:


What is interesting from that article, however, is that according to surveys only around 10% of pastors think it is a good idea to endorse candidates from the pulpit. And despite the CNN report that endorsing candidates “could hold more sway than previous years” I suspect that the candidate endorsed by most pastors probably didn’t win.

It does seem that endorsing candidates is a direct challenge by the pastors to provoke a response by the IRS that would threaten the tax exempt status of churches and religious institutions. The next move then, supported by the Alliance Defending Freedom (ADF), would be to challenge the law (of no electioneering for tax exempt organizations) for the right to endorse candidates, among other political activities.

It seems that the IRS, even though they were not shy in investigating non-profit political organizations, were not willing to take the step of accepting the bait of the ADF without prompting. However, it seems that an atheist legal group, the Freedom from Religion Foundation (FFRF), had sued a religious organization for electioneering activities in 2012. This organization has agreed to drop this lawsuit after it came to an agreement with the IRS in which the IRS will no look into the political activities of these churches that have endorsed political candidates from the pulpit.

So this is where we are at. A small number of churches have challenged a pretty set status quo by overtly endorsing candidates from the pulpit. The IRS had refused to respond until a lawsuit by an atheist organization has pretty much forced their hand. Over the next few months leading up to the midterms we will see continued coverage, followed by some sort of action by the IRS. If they take action against the churches and religious institutions, there will be a lawsuit by the ADF. If they don’t take action, I suspect that the FFRF will bring another lawsuit. Either way, more fun with lawsuits.

Can’t say I’m a fan of the actions of the pastors and the ADF. I generally see the no overt electioneering for tax exempt status to be a reasonable situation, but this goes far beyond this. Hard to see this as anything but a lose-lose as far as the church is concerned. At stake is the tax exempt status. That is a nice thing for churches and probably pretty close to necessary for many of them to survive. To give that up for the right to publicly endorse candidates strikes me as a disaster. And even if the ADF “wins” and keeps the tax exempt status while still able to publically endorse candidates, then that doesn’t seem like much of a gain either.

Politics out of the pulpit is always a tricky business. I am not naïve enough to expect no politics from the pulpit, but I would like to think of that as pushing specific policy positions rather than pushing a specific candidate or a specific political party. The reason for this is simple, Christ is available to all people, whether they are Republican or Democrat, whether they might have preferred Obama or Romney. For a church to endorse one party or candidate, they risk alienating a significant portion of the congregation, or, perhaps more importantly, a significant portion of their potential congregation.

I do realize with certain denominations and certain locations this is not as much of a concern. Heck, endorsing a political candidate or party might be a wise business plan, but for the church as a whole it is a disaster. It leads to kingdom splitting, not kingdom building. It does nothing to lead people to Christ, but does much to set up a barrier and to reinforce stereotypes that are not true. Reinforce the stereotype that to be a Christian requires a specific set of political beliefs rather than accepting the invitation that is given to us of new life in Christ. That, more than anything, is why pushing the envelope on overt electioneering is a lose-lose for the church.


I will be watching this closely, but I suspect it does not end well for the church, no matter what the outcome is.

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