Good point. If they are counting donations to your church as a charitable contribution, then that could change things. The reason I think that, is because I’ve been involved with a few local small churches. And in those churches, the vast majority of member donations went to pay the pastor’s salary, and upkeep of the church itself. Very little got spent on what we might think of as charity work.
Then again, I know someone could mention charities, in which the bulk of the expenditures of the charity are for salaries and upkeep of the organization, as opposed to being spent to deliver charitable aid to people. But perhaps that’s a subject for a separate thread.
Yep—all that is often the case.
Personally, I would tax all organizations alike.
“But perhaps thatâÂÂs a subject for a separate thread.”
You might also want to consider that some churches have been caught distributing charity money to parishioners to invest. It may be a good way to add money to the list of things the church “might” give to the needy, but it also provides a cushion for church costs and further investments. If it pays enough to cover it’s own investment. Then, as a 501(c) (3) charitable organization by IRS standards, there is no need for churches to seek formal recognition from the IRS or submit annual information returns concerning +/-. So who pays for the loss or the gain? This happens more than you think as there are a number of 501 tax exempt organizations. It’s called a loophole.
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