Religious organizations have enjoyed the benefits of code 503(c)(3) for almost a century. When a religious organization (mosque, temple, church, etc.) files for Tax Exempt status they enter into a binding contract with the government. To be eligible for this benefit, a religious organization must not interfere with politics; government issues, or persuade their congregation in any way regarding politics. For years these religious organizations have not honored their word and we see more and more interference from these organizations in everyday politics and issues. They have breached the contract and the Tax Exempt Status should be null and void. We are in a deficit; religious organizations can't have the cake and eat it too. Let them be taxed!

Exemption Requirements - Section 501(c)(3) Organizations

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.

Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.

The organization must not be organized or operated for the benefit of private interest, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.

Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct.