WHAT IS A CHURCH/MINISTRY?
A church/ministry is not necessarily a building or even a congregation. A church is simply a religious establishment consisting of two or more people. It can be an artificial entity or what might be called: a legal fiction, which anyone, including you, may create or establish. The church/ministry may or may not have buildings, ceremonies, a creed, robes and/or vestments, or what ever. You do NOT have to reveal to anyone the sum total or substance of the religion, and/or the church/ministry, which you establish. (See Words and Phrases at your local law library for the legal definition and scope of the following words: Church, Ministry, Clergy, Ordination, Religion, Ceremonies, etc.)
A United States Supreme court case, Everson vs. Board of Education, 330 US 203.91, LEd 2nd 711, gave us a decision that held that the 'establishment of religion' of the First Amendment means this: Neither a state nor the Federal Government can set up a church. Neither can they pass laws which aid one religion, aid all religions, or prefer one religion over another. Neither can they force nor influence one to go to or to remain away from a church [ministry] against their will or force him to profess a belief or disbelief in any religion. No one can be punished for entertaining or professing religions beliefs or disbeliefs, for church [ministry] attendance or nonattendance.
In Title 26 of the United States Code and Income Tax Regulations - June 26, 1977 Edition, published by Commerce Clearing House Section 1.511-2(ii) volume 1, page 33, 471, 472, and in the Law of Tax Exempt Organizations by Bruce Hopkins, page 107, it states: The term "Church" [ministry] includes a religious order to a religious organization if such order or organization (a) is an integral part of a church, and (b) is engaged in carrying out the functions of a church, whether as a civil law corporation or otherwise. (Note, "or otherwise" you do NOT have to incorporate and thus become a creation of the Government.)
Should you incorporate, (501c-3) or should you remain unincorporated? Should you become public, or should you remain private? The official IRS Audit Guide, Section 242.31 states that "the privilege against self incrimination under the Fifth Amendment does NOT apply to corporations. The theory for this is that the State, having created the corporation (and therefore the entity is "public"), it therefore has reserved the power to inquire into its operation and activities. If it created it, then it can control it.
Now, if we truly subscribe to the doctrine of "Separation of Church and State", we should sincerely give the question on this matter our full attention. Do you want the State to control your church/ministry's affairs? Do you want your church/ministry's affairs to be public, or do you want to keep them private? Should a church/ministry be "set up" and "controlled" by God, or should it be set up and controlled by man? God gave us the Right to make a choice on how a church/ministry is set up and the United State Supreme Court agreed. Not only do we have the freedom of religion, but also we have the freedom to make a choice of how the church/ministry is set up.
RELIGIOUS FREEDOM, A NATURAL RIGHT
The first amendment of the United States of America's Constitution reads as follows: "Congress shall make NO LAW respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievance."
Some people use the 14th Amendment in their argument for religions freedom, but the truth of the matter is that the 14th Amendment does not add anything to the first ten. Since a "natural right" only comes from God, and "privileges" come from man, and since "person" can mean an artificial entity, (not a human), then the 14 Amendment should have no bearing on our natural right for religious freedom. In all reality, the 14th Amendment deals with "persons", not "we the people". It also only deals with "privileges"-- NOT with "natural God given rights". Therefore, we will not discuss the 14th Amendment any further.
What we must stay focused on is that we have the NATURAL RIGHT to freedom "FROM" religion. NO law FOR, AGAINST or OTHERWISE can ever be made with regard to the "Church", as it exists under the Supreme Law of the Land, within a LEGAL NULL. There is NO LAW AT ALL respecting an establishment of religion or the free exercise thereof.
The RIGHTS (not privileges) spoken of here, in the first Article and the following nine Articles (the BILL OF RIGHTS), are personal rights, fought and paid for, by the sacrifice of human life - our ancestors. These laws - rights, as well as the entire Constitution for the United States of America, are in fact, the Supreme Law of the Land. The Supreme Court for the United States of America has addressed itself to this fact and holds the following opinion: "Any law opposed to the Constitution of the United States [of America] is as if it were NO LAW AT ALL!"
In fact, this doctrine is so important that I will include it here: "The general rule is...that an unconstitutional statute, though having the form and name of law, is in reality NO LAW, but is wholly void, and ineffective for any purpose, since unconstitutionally dates from the time of its enactment and not merely from the date of the decision so branding it an unconstitutional law, in legal contemplation, is as inoperative as if it had never been passed. Since an unconstitutional law is void, the general principles follow that it imposes no duties, confers no rights, creates no office, bestows no power or authority on anyone, affords no protection, and justifies no acts performed under it. A contract which rests on an unconstitutional statute creates no obligation to be impaired by subsequent legislation. A void act cannot be legally inconsistent with a valid one. And an unconstitutional law cannot operate to supersede any existing valid law. Indeed, insofar as a statute runs counter to the fundamental laws of the land, it is superseded thereby. Since an unconstitutional statute cannot repeal or in any way affect an existing one, if a repealing statute is unconstitutional, the statute which it attempts to repeal remains in full force and effect. The general principles stated above apply to the constitutions as well as the laws of the several states insofar as they are repugnant to the Constitution and the Laws of the United States. Moreover, a constitution that will nullify is as effectual as if it had, in express terms, been enacted in conflict therein".
Summary: From this, it established by the Supreme Law of the Land, that NO LAW for, because of, against, or otherwise is possible regarding religion. NO LAW IS NOT LAW AT ALL! The church/ministry exists in a legal null created only by Christ Himself. It is therefore protected under the Supreme Law of the Land, the Constitution for the United States of America.
EXEMPT ORGANIZATIONS
This is the question - is the "church" and its auxiliaries an "organization" which is listed as tax exempt in Title 26, USC (IRS Code.) The Code expounds on what the IRS has held concerning the Code taking into consideration court cases, rulings, etc.
IRS Code Section 501 (c) (3) - List of exempt organizations, foundations and establishment organization, etc.; organized and operated exclusively for religious purposes (the Church and it's auxiliaries). Restrictions - No part of the net earnings of which insures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.
Regulation 1.501 (a) (1) - Exemption from taxation Section 501 (a) provides an exemption from income taxes for organizations which are described in Section 501 (c) (volume 1, page 33, 431).
Therefore, we see from the above information, that the church exists as an exempt organization under the laws of the United States of America; that is, the church and its auxiliaries; and not the person or individuals who establish it.
RULES WITH RESPECT TO 501 (C) (3) ORGANIZATIONS
Under the NO LAW concept of the First Article of the Constitution for the United States of America, is there any requirement, by law, for the church/ministry to make application for recognition of Exempt Status?
Under Code 508 (a) it states: "New organizations must notify the secretary that they are applying for recognition of 501 (c) (3) status EXCEPT as provided in Subsection (c)." Found in Code 508 (c) (1), "Exceptions - mandatory exceptions - subsection (a), shall not apply to - (A) Churches, their integrated auxiliaries, and conventions or associations of churches."
Therefore, even the "Code" provides that the "Churches AND their auxiliaries" DON'T HAVE TO NOTIFY THE SECRETARY THAT THEY ARE APPLYING FOR RECOGNITION OF EXEMPT STATUS!
RETURNS BY EXEMPT ORGANIZATIONS
We can see from the above under the NO LAW concept of the First Article that: The Church is exempt by right and does not have to petition any government agency for recognition of exempt status. In fact, as stated in the above paragraph, the law (Section 1, Code 508 - 1 (a) (4)), the church/ministry is exempt whether it files or not. The question remains: When every other organization and private person is allegedly required to file an annual tax return, does the church also have to file?
IRS Code Section 6033 (a) exempts religious organizations from the need for filing returns of ANY KIND!
IRS Code Section 6033 (a) (2) (A) - Mandatory Exceptions - Paragraph (1) shall not apply to - (i) churches.
IRS Code Section 6033 (a) (2) (A) (i) provides for mandatory exceptions to filing requirements for religious organizations and states that filing requirements shall not apply to "churches", their integrated auxiliaries, and conventions or associations of churches.
The definition of integrated means a part of a whole. The definition of auxiliary means a part that is helping or assisting another part. Since a self-supported ministry is definitely a part of the church, which is also assisting the church, it stand to reason that a self-supported ministry would therefore qualify as an integrated auxiliary to the Church.
We can now be sure that we can establish our church or self-supported ministry and operate this organization without any liability to any agency (as far as establishment of recognition of exempt status in concerned); as well as, how we are also legally exempted from filing any return with any government agency for any reason. (No law is, no law!)
DISSOLUTION or TERMINATION
People are no more than the sum total of what they think, say and do. Let us say, because of who we are and where we are emotionally, spiritually, academically, financially and personally, we can no longer live with or otherwise support our involvement in the church and/or the ministry. Is there any requirement for the person, people who establish and operate a church/ministry to notify ANY government agency of a dissolution, termination or substantial contraction of their church/ministry?
In terminating the church/ministry's existence, there is a form published just for that action. The number of the form is Form 966 0 E. It addresses Title 26 USC Section 6043 (b) and the responsibility thereunder. The title of this form is Liquidation, dissolution, termination, or substantial contraction of organizations exempt or formerly exempt under section 501 (a). The Church is in 501 (c) (3), and every organization in (c) is also in (a). You will find in the instructions at the bottom of the page that the church, the integrated auxiliaries and/or conventions or associations of churches are exempt from filing this form.
CONCLUSION
This completes the initial consideration for the establishment, operation and termination of a church. I believe in fact, a church/ministry established using the above information and based on the information provided, with the establishment of a church/ministry, the church/ministry can do three things. 1. Originate; 2. Operate; and 3. Terminate without any responsibility to any agency, civil government or otherwise; to gain their approval, sanction, or any other blessings, with regard to recognition of exempt status (which is your inherent right).
Since it is mandatory that a church/ministry is to be exempted from filing for recognition of exempt status and it is also mandatory that the church/ministry is to be exempted from filing any return with any government agency, you can terminate the church/ministry without telling any government agency anything. The church/ministry in fact, exists within a legal null. THERE IS NO LAW other than God's Law!
SECTION II
COURT DECISIONS
"Religion is not confined to a sect of a ritual. The symbols of a religion to one are anathema to another. What one may regard as charity, another may scorn as foolish waste. Even education is today not free from divergence of view as to its validity." Unity School of Christianity, 4 B. T. A. 61, 70 (1926)
"Neither this court nor any branch of this government will consider the merits or fallacies of a religion. Nor will the court compare the beliefs, dogmas, and practices of a newly organized religion with those of an older, more established religion. Nor will the court praise or condemn a religion, however excellent or fanatical or preposterous it may seem. Were the court to do so, it would impinge upon the guarantee of the First Amendment." Universal Life Church, Inc., vs United States, Judge Brattin for the Eastern District of California, found in 372F. Supp. 770, 776 (E.D. Cal 1974)
"[W]e find the court addressing the concept of God and religion and holding that the test of belief in a Supreme Being (God) is whether a given belief that is sincere and meaningful occupies a place in the life of its possessor, parallel to that filled by the orthodox belief in God of one who is clearly religious". United States vs. Seeger, 380 U.S. 163 (Supreme Court 1965). Note - Assuming the holding of this court is valid in the above case, it then necessarily follows that any lawful means of formally observing the tenets of faith of any religious body is worship within the meaning of the tax exemption provisions.
"The term "religion" or "religious" in tax exemption laws should not include any reference to whether the beliefs involved are theistic or non theistic. Religion simply includes: (1) a belief, not necessarily referring to supernatural powers; (2) a cult, involving a gregarious association openly expressing the belief; (3) a system of moral practice directly resulting from adherence to the belief; and (4) an organization within the cult designed to observe the tenets of belief. The content of the belief is of no moment". Fellowship of Humanity vs Alameda County, 153 Cal. A. 2nd 673, 315 P. 2nd 394, (1957).
Here are a few cases on ordination that may be of benefit.
In Kibbe vs Antram, 4 Conn. 134, 139, we see that to "ordain" is to vest with authority - ministerial function - or sacerdotal power. Also from the same case it is established that, "the ordination" of a clergyman remains even after his separation from a church of which he one had charge, and his spiritual authority continues, although he is not settled over a particular congregation".
From Buttecali vs. U.S.C.C.A., Tex. 130F. 2nd 172, 174, the following rationale is stated: "Generally a duly 'ordained minister' is one who has followed a prescribed course of study of religious principles, has been consecrated to the service of living and teaching that religion through an ordination ceremony under the auspices of an established church, had been commissioned by that church as its minister in the service of GOD and generally is subject of control or discipline by a council of the church".
In Ruggles vs Kirnball, 12 Mass. 337,338, it states: "The minister may be installed over some particular society, either incorporated or unincorporated".
SECTION III
CHURCH/MINISTRY DIRECTION
The brains of each church/ministry are its governing Board of Directors. This board is limited as to what they can do by law and must forever and always struggle to remain above and beyond reproach. If they don't, then I can guarantee that they will endure a world of trouble and personal pain from bureaucratic agencies, established and operated by persons who have nothing but time to create and disseminate trouble, problems and pain. This Board of Directors is further limited by the organizations creative documents i.e., charter and by-laws. This is why it is very, VERY important to have a solid and lawful charter.
The first step is to have an Executive Director that will chose a Managing Director that may or not be an ordained minister. It is very imperative that if these Directors are not ordained, then they should work towards being ordained. Being ordained is actually the first step in your focus on being completely dependent upon God from now on. This is now a life long commitment. However, ordination is only a recognition by some religious society/entity, which publicly proclaims that a said man or woman is vested with spiritual authority, a right which that man or woman had prior to public proclamation. It should be remembered that after once having been ordained, if for any reason this ordained man or woman leaves the church or ministry, their ministerial authority does NOT cease even though they are no longer tied to the initial religious entity. The state or federal government has no say whatsoever in the internal affairs of the church/ministry. The form of the ordination and the ceremony means very little when we take into consideration all the other religious organizations in this world. The "rites" of one religious body are considered just as credible as any other religious body. In any case, Directors should not look for personal gain, but for a church or ministry that will grow and develop other churches and ministries.
The second step is choosing a Board of Directors independent of the Executive and Managing Director. This may take time and it is something that should not be done in haste or taken lightly. The church/ministry can, and will function perfectly without a full Board of Directors, but it may help the church/ministry to grow if it does have a full Board of Directors.
The Directors may then choose the paths and methods of how they want to proceed with the church/ministry. They should open a bank account and if they need an EIN# from the IRS, they may do so--but only for banking purpose! The church/ministry must never have any employees! It may be all right to contract with an "employment agency" for their employees, but for all purposes, all "workers" must be either work by volunteering or by contract. (A contract can be provided by asking me for one).
All property, including vehicles, planes, real estate, and any other personal property should be given (transferred) to the church/ministry. The church/ministry is allowed to purchase property, and since the church is self-supporting, it should have some means of providing funds for its growth. These funds are in no way a profit. It is only to be used for the church/ministry's growth.
The church/ministry operates generally on a tax-exempt basis. This is, exempt from property tax, (some states have a qualifying procedure so you must check with your local county tax assessor), exempt from state sales tax and state income tax in most cases. (You should check with you individual state tax authority as this also varies from state to state). There is also an exemption from Federal Withholding, FICA and FUTA taxes for its "ministers"/"missionaries" (see IRS publication 15 circular E), exempt from Retail Federal Excise Tax and finally, exempt from Federal Income Tax on its exempt purposes (see IRS publications 598 and 1018).
SECTION IV
QUESTIONS REGARDING CHURCH/MINISTRY BUSINESS
Q: What type of records must a church/ministry keep?
A: Under Title 26 USC section 6033, the church/ministry is a religious order and therefore has complete immunity to disclosure. It is not necessary for the church/ministry to maintain records of any kind except for its own purposes and reasons.
Q: Can the church/ministry pay for health or life insurance for its Directors?
A: Yes. If the Board of Directors votes that the minister/Director and his family should be covered with such insurance, they may vote to have the church/ministry reimburse the members for all the medical, hospital, dental, and other health or life insurance for all family members and intended for the church/ministry by taking care of the health of the Director/minister.
Q: Who can donate to the church/ministry?
A: Anyone--even the Directors may donate. The law states that anyone may donate up to 50% of their taxable income to a recognized church/ministry of their choice. The church/ministry may provide a receipt stating that it is a religious entity and provide its EIN number.
Q: Can the church/ministry pay utilities and other expenses for its Directors?
A: Yes. All it takes is a vote of the Board of Directors to make any payments it feels is necessary to provide for the business and function of the church/ministry.
Q: Can the Directors place their own property such as a car into the church/ministry estate?
A: Yes. As long as the property is used for the benefit of the church/ministry, then it may be placed into the estate of the church/ministry.
Q: What type of property may the church/ministry own?
A: Anything that may benefit the church/ministry. If it is a ranch it can be called a retreat. If it is a plane, it may be used for transporting the Directors and its members to church/ministry related functions. The list is endless on what type of property can be placed into the church/ministry's estate.
Q: How often does a church/ministry have to meet?
A: Generally, churches meet on a weekly basis. A ministry usually meets on a daily basis or on a scheduled basis. However, there is NO rule in the law. Therefore, it may be assumed that the meetings are so spaced as to be reasonable for the religious purpose of the church/ministry. Remember, any meeting is when 2 or more people "congregate" for a religious purpose.
Q: How often must the Board of Directors meet?
A: As often as they require for the church/ministry related business. This may be as little as once or twice a year.
Q: How many members of the Board of Directors must be present to have a lawful meeting?
A: At least two out of three.
Q: Is it necessary to keep minutes of Board Meetings?
A: Yes. Everything done by a church/ministry must be done by resolution (order), voted on and passed by the Board of Directors. However, you need to record only those items which received a majority vote in the meetings and are necessary for the function of the church/ministry.
Q: Who decides which Director or Board member may sign checks?
A: The Board of Directors, including the Executive and Managing Directors, vote for the decision and record the vote in the minutes.
Q: Is it possible to take the "parsonage" off the tax rolls if the church/ministry owns the property?
A: No property ever comes off the "tax rolls". Property may be exempt however, if it can be proved that the property is used exclusively for religious purposes. This must be checked out with the local tax authority for each requirement.
Q: What type of "income" may the church/ministry receive without reporting obligations?
A: The church/ministry may receive any form of donations. It may also receive any form of "passive investment" such as: Real Estate, Stocks, Bonds, Mortgages or Bank Interest. It can "sponsor" any kind of fund raising events.
Q: Does the church/ministry have to file a tax return to the state or federal government?
A: No. Not unless anyone can find any law which requires it to file, and I have never been able to find any law.
Q: What happens to the church/ministry's assets when a Director dies?
A: The church/ministry never dies. Its property is still owned by the church/ministry. However, minutes recorded by the Board of Directors may appoint another Director or anyone else to take the place of the Director who died. The church/ministry should have within its recorded minutes directions as to what will happen to the assets when this should happen.
Q: Does a Director have to put all of their property into the church/ministry?
A: Anyone can put all or none - or as little as they want into the church/ministry's name. However, if any Director takes the vow of poverty, they should place everything into the church/ministry, give it to their spouse, or donate the property to anyone of their choice.
Q: How does one prove contributions/donations to the church/ministry?
A; They should write a check from their personal checking account for the amount each month. Then at the end of the tax year, photocopy both the front and back of the checks and receipts. Attach the photocopies to your copy of Form 1040.
Q: How should any check be made out?
A: Pay to the order of: Name of church/ministry.
Q: How should the checks be endorsed?
A: Write the name of the church/ministry, then state "For Deposit Only."
Q: How many people can be members of the church/ministry and how few?
A: You must have at least two for every church/ministry. You may have as many members in the church/ministry as you want.
Q: Can a Director for a church/ministry be a Director of another church/ministry?
A: Yes. There is no law for or against being a member or director for as many church/ministries as you want.
Q: Can the church/ministry pay for trips, (vacations) food, entertainment, clothing and other property that a Director uses or takes?
A: Yes. However, the minutes must reflect the vote of the Board for payment.
