Legally Free Churches vs. 501(c)(3) Churches

The sole headship of Jesus Christ  vs. mixing the Holy with the profane

In humble response to 501(c)(3) churches that want to clearly have their cake and eat it as well

God may now be revealing the ‘hidden from view‘ hypocrisy

What is the real purpose and agenda for churches voluntarily yoking themselves to the state?

No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.” — Matt 6:24


The church and tax law by Mary Ann Hofmann  – The ATA Journal of Legal Tax Research.  Volume 13, Issue 1 2015, pp 36–53

Why All Churches Should  be a 508(c)(1)(a) By Cleveland Futch & Dan Peterson


What every believer needs to know concerning churches that are automatically tax exempt under 508(c)(1)(A) [Free Churches] verses the government approved churches 501(c)(3) [State Churches]

The Church was once a great influence on our nation and its government. However, that all changed in 1954 when churches were added to the 501(c)(3) section of the IRS tax code (IRC). The 501(c)(3) church has been stripped of its freedom of speech as a result of its partnership with the government. They have voluntarily silenced themselves concerning anything touching politics and the government, even in spiritual matters important to believers. If the Church had not lost its freedom of speech to influence the government, maybe prayer would have not been removed from schools on June 25, 1962. It was at this point the nation began a huge spiritual spiral downward, the statistics are staggering.

The Church’s influence on politics and government concerning spiritual matters such as freedom of religion, freedom of speech, abortion, and homosexuality is the evolutionist greatest fear. By silencing themselves regarding “political” issues, the 501(c)(3) church has given government run public schools permission to teach our children lies without resistance and compromise the truth on these and many other issues touching our faith. When we compromise we agree to go below what we believe or know to be true, at that point we allow falsehood to become the “truth”. Something cannot be both true and false; it has to be one or the other. Once falsehood is added to or replaces any part of the truth, the statement, belief or “fact” is no longer true.

The Butler Act was passed in 1925, prohibiting the teaching of evolution in public schools; it was overturned in Tennessee on May 19, 1967. Its overturn allowed evolutionism, which is one of the greatest “Fairy Tales” in the history of the world, to be taught in public schools. It is currently not taught as an idea, theory, hypothesis or guess, but as an actual fact. The public schools are teaching our children an inaccurate account of our country’s history by removing references to the providences of God and the Christian faith, which is what our country was founded upon. The public school system is also teaching our children about inappropriate sexual relations, promoting the homosexual lifestyle in their sex education classes. All this is aimed at removing God from our hearts and minds in order to erode the faith of our children.

The Church, the Body of Christ, can once again become a spiritual influence on the government if we take back our voice, our freedom of speech, by breaking the bond it has with the government. When the Church turns away from the world and submits itself to and is ruled by Jesus Christ the Lord alone, then it can truly be the light of the world and the salt of the earth. Only then will the Body of Christ truly be “the Church”.

The Lord reveals that as His disciples we should not be unequally yoked with unbelievers (2 Cor. 6:14-7:1).This not only covers marriage and personal relationships, but also all business partnerships. As the Church, this also includes our partnerships with the State and Federal government in pursuit of 501(c)(3) status. How can we take back our freedom from the government’s control?

We can do this by not incorporating our churches and pursuing 501(c)(3) status. The Church, or individual groups of the Church, should not incorporate on a state level, due to becoming creatures of the State which are subject to the State. Those who incorporate and choose to pursue 501(c)(3) status, become creatures which are subject to the Federal government and are prevented (gagged) from speaking out on political and spiritual matters that do not agree with the current “political atmosphere.”

Section 508(c)(1)(A) states that “churches, their integrated auxiliaries, and conventions or associations of churches” are a mandatory exception to section 501(c)(3), they are already tax exempt without notifying or applying to the government under section 501(c)(3). Churches receive the same tax exempt status and benefits as a 501(c)(3) organization, without the partnership with the government. We do not have to lose our voice!

Sec. 508. — Special rules with respect to section 501c3 organizations

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

Except as provided in subsection (c), an organization organized after October 9, 1969, shall not be treated as an organization described in section 501(c)(3)

(c) Exceptions

(1) Mandatory exceptions

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

In IRS Publication 526, Charitable Contributions, the IRS once again states that churches are qualified organizations and do not need to apply to the IRS:

“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.”

Examples. The following list gives some examples of qualified organizations.

Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations.”

And according to IRS Publication 557,Tax-Exempt Status for Your Organization:

Churches. Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption.”

As shown in the examples above and the IRS code itself, a church does not have to apply to or notify the government (state or federal) of its tax exempt status, we are already established as a separate creature from the state. We need to remain separated from the state and not join in any type of partnership that would create a yoke between the church and government, no matter what “benefits” they may mislead us to believe are available.

Note: The church as described under IRC 508(c)(1)(A) in this article is also known as a “Free Church.”





Churches have been beguiled and seduced into voluntarily submitting to governmental control. In 1954, then-Senator Lyndon B. Johnson offered tax exempt status to churches as a “favor.” All they had to do was fill out a government form, the 501(c)(3) form, declaring their organization to be a church.

It was a Trojan horse. By law, churches were tax exempt anyway! The Internal Revenue Service (IRS) is the agency that collects taxes for the federal government of the United States. One IRS agent, Peter Kershaw wrote:

I am not the only IRS employee who’s wondered why churches go to the government and seek permission to be exempted from a tax they didn’t owe to begin with, and to seek a tax deductible status that they’ve always had anyway. Many of us have marveled at how church leaders want to be regulated and controlled by an agency of government that most Americans have prayed would just get out of their lives. Churches are in an amazingly unique position, but they don’t seem to know or appreciate the implications of what it would mean to be free of government control.7

Tax exempt status has been the tempting whore to seduce churches into voluntarily giving the government control over what they can and cannot say. In order to retain their official tax exempt status, churches cannot say certain things about the government or even teach certain things that are in conflict with government policy. If they do, their 501(c)(3) status can be revoked and their members will no longer be able to deduct their tithes and offerings from their personal income taxes. This results in fewer contributions given to the support of the church. Religious organizations that accept licenses or some other form of recognition from the state or, as in the U.S., apply for 501(c)(3) status, willingly place themselves under the jurisdiction of the state. Accepting government recognition or 501(c)(3) status willingly surrenders to the state the right to dictate to the church what it can and cannot preach about.

Churches who refuse to conform to government requirements have their 501(c)(3) status revoked. Tax exempt status is of vital importance to church leaders because without it, most of their members will no longer give money in support of the church.

An example of this occurred when the Congressional Black Caucus held a conference to give advice to black churches on how to deal with the rise in voter ID laws to aid in voting for Barack Obama, the United States’ first black president. Congressman Emanuel Cleaver, President of the Congressional Black Caucus, spoke of the conference, explaining to an MSNBC news reporter:

We’ll have representatives from nine denominations who pastor somewhere in the neighborhood of about 10 million people and we are going to, first of all, equip them with the information they need to know about what they can say and what they cannot say in the church that would violate their 501(c)(3) status with the IRS. In fact, we’re going to have the IRS Administrator there, we’re going to have the Attorney General, Eric Holder, there, we’re going to have the lawyers organization from around the country there, the ACLU [American Civil Liberties Union] – all giving ministers guidance on what they can and cannot do.8

When a government gives a license for anything, implied in that very act is the right of that government to remove the license and withdraw permission for whatever action is covered by that license. The power to bestow grants the power to remove. If a government does not give a license for something, it is understood that the individual does not need government permission for that activity and thus, the government does not have any authority in that area. It is wrong for a church to submit their theology or an individual his conscience to the government just to save money.

The apostle Paul warned against being unequally yoked with unbelievers.

Be ye not unequally yoked together with unbelievers: for what fellowship hath righteousness with unrighteousness? and what communion hath light with darkness?

And what concord hath Christ with Belial? or what part hath he that believeth with an infidel?” (2 Corinthians 6:14-15)

A religious organization becomes a corporate entity under the regulation of the government when it accepts 501(c)(3) status or by accepting state recognition as a licensed church. Accepting government recognition allows government intrusion that, invariably, ends up changing the policy of the church or organization accepting such recognition from the government. During the Cold War, church leaders in the Soviet Union and its satellites not only changed their teachings to not be offensive to the government, but also even went so far as to betray fellow Christians to the authorities. Nor did this end with the fall of the Iron Curtain. It continues to a greater or lesser degree wherever the state exercises control of the church.

The vast majority of denominational churches, religious organizations and charitable institutions in the United States are actually corporations holding 501(c)(3) tax exempt status. In Amos 3:3, Yahuwah asked, “Can two walk together except they be agreed?”

To submit to government oversight, is to submit to government control.

When a church accepts the 501c3 status, that church:

  • Waives its freedom of speech

  • Waives its freedom of religion

  • Waives its right to influence legislators and the legislation they craft

  • Waives its constitutionally guaranteed rights

  • Is no longer free to speak to the vital issues of the day

  • Becomes controlled by a spirit of fear that if it doesn’t toe the line with the IRS it will lose [revoke] its tax-exempt status

  • Becomes a State-Church9

Such churches are no longer under the leadership of Yahuwah, but under a new master: the state. They take their direction and guidance from the state, not from the word of Yahuwah. Lest there be any doubt that the government’s intended purpose is to exert control over the theology of the incorporated churches, one need only consider Bob Jones University v. United States (461 U.S. 574). In this ruling, the US Supreme Court revealed the government’s intended purpose for the 501c3:

The Court asserts that an exempt organization (one that has become a 501c3) must “demonstrably serve and be in harmony with the public interest,” must have a purpose that comports with “the common community conscience,” and must not act in a manner “affirmatively at odds with the declared position of the whole Government.” Taken together, these passages suggest that the primary function of a tax-exempt organization is to act on behalf of the Government in carrying out governmentally approved policies.10

Submission to the State for Monetary Gain:  [Are you REALLY giving to the Father?]

Churches value their official 501(c)(3) status more than the truth as presented in Scripture. If there were no other reason, this alone would be sufficient to identify these organizations as synagogues of Satan. But there is more. When a church incorporates as a 501(c)(3) entity with the government, it agrees to be bound by all the rules and laws governing 501(c)(3) corporations!

A church which has filed a 501c3 application has agreed to forego its Constitutional right to practice religion without government interference.

. . . A church that has built boundaries around itself by 501c3 rules has consented to diminish [Yahuwah’s] law in favor of private civil law. For example, by agreeing not to speak out and campaign against morally corrupt politicians. They do this in order to ‘enjoy’ an exemption from taxes to which they were immune in the first place . . . .11

It is for this reason that World’s Last Chance has been urging all faithful believers to flee all organized religions. Regardless of the amount of truth that any individual church has, it is truth that is mingled with error. Yah’s true and faithful followers will have nothing to do with Babylon.

It should not be assumed, however, that all of the blame lies with a handful of church leaders at the very top of each denomination. Individual church members are as guilty as the leaders because often it is the members themselves that pressure the leaders to incorporate as 501(c)(3) entities. Again, the motivation is purely financial. While churches may technically be tax exempt, the members’ donations in tithes and offerings cannot be deducted from their personal income tax reports unless they can prove to the satisfaction of the IRS that their charitable donations were given to a legitimate church.

Although there is no requirement to do so, many churches seek recognition of exempt status from the IRS because such recognition assures church leaders, members and contributors that the church is recognized as exempt and qualifies for related tax benefits. For example, contributors to a church that has been recognized as tax-exempt would know that their contributions are tax-deductible.12

Sadly, truth is sacrificed on the altar of personal gain.

This is a vital issue to the last generation. “For what shall it profit a man, if he shall gain the whole world, and lose his own soul? Or what shall a man give in exchange for his soul?” (Mark 8:36, 37) All organized religions that have submitted to the government for financial gain or temporal security are a part of Babylon and will, in turn, become persecuting powers as depicted in prophecy. John the Revelator was shown a beast, ridden by a “great whore.”

And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:

And upon her forehead was a name written, Mystery, Babylon The Great, The Mother Of Harlots And Abominations Of The Earth.

And I saw the woman drunken with the blood of the saints, and with the blood of the martyrs of Yahushua. (Revelation 17:4-6)

“Fornication” is the joining together of that which is not lawful by the law of Yahuwah. Religion in bed with government is fornication. Yah’s people will not be members of any such organizations.

It is fallen, it is fallen, Babylon that great city, and is become the habitation of devils, and the hold of all foul spirits, and a cage of every unclean and hateful bird.

For all nations have drunken of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich of the abundance of her pleasures.

And I heard another voice from heaven say, Go out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues:

“For her sins are come up into heaven, and [Yahuwah] hath remembered her iniquities.” — Rev 18:2-5



2 Ibid.

3 The NIV version of the passage was quoted here verbatim because this corrupted translation is frequently used to perpetuate an erroneous interpretation of Paul’s words. WLC in no way endorses the NIV translation. See “What is the position of the WLC Team on today’s Bible?”



6 Quotes taken from news video. For more information, see: and

7 In Caesar’s Grip, forward.



10 Ibid.


12 IRS Publication 1828, Tax Guide for Churches and Religious Organizations, page 2, emphasis supplied.