Unincorporated Churches in America

Why Christian Assemblies Should Not Incorporate nor Obtain 501c3 Status

As a young christian, raised in a christian family in the 1960’s and 70’s, I was taught the importance of “being in subjection to the governing authorities,” (Romans 13:1). Because of that, I (and most christians) took for granted that this “subjection” included any regulation that a government put into place that was not directly and immediately obviously against the Scriptures. The correct exegesis of Romans 13 aside, sometimes, the anti-Scriptural nature of some government requirements is not readily obvious.

Over the years, one activity associated with establishing a new congregation of the Lord’s body in a city or town has almost always been the filing of articles of incorporation (with the state, usually) as a religious or non-profit organization. Many hours of the valuable time of elders, deacons, preachers, and other christian men and women has been spent in preparing these articles, writing by-laws, and then submitting reports and other paperwork to state and federal agencies. More time has been spent filling out Internal Revenue Service forms to obtain tax-exempt status as a “501c3 organization.” Filing and other fees have been dutifully paid in the belief that God required this of us in order to “be in subjection.” Often, each year, a report is prepared and submitted to the IRS and/or state, taking more time and money.

This compliance with various laws and regulations has been taken for granted, done unquestioningly. We do it because "everybody else gets one," and because it has been part of a checklist (formal or informal), that includes this as something to be done, like selecting a location to meet, scheduling times of worship, and organizing classes and the assembly. This article answers a question that most christians never even thought about - why shouldn’t we incorporate our church? Why shouldn’t we file for tax-exempt status?

1. The law does not require that a church incorporate or obtain tax-exempt status.

There is no federal law, and no state has a law (that I know of), which requires that a church[1] obtain any kind of legal recognition or be incorporated in order to function in accordance with God’s will, that is to preach the Gospel, teach the Word, worship the Father, or provide benevolence. Nor is incorporation necessary to allow ownership of property such as a meetinghouse, pay salaries to preachers or others, open a bank account, obtain insurance, or perform other necessary support activities. Every state allows for religious groups to be recognized as “free associations” or something similar.[2]

Nor does any federal law require that a church file paperwork to be “recognized” as a non-profit or tax-exempt organization. In fact, the preamble to the Internal Revenue Service’s manual for filing the forms to obtain “501c3” status specifically states that churches are automatically recognized as “501c3” organizations, that is, non-profit and recognized as tax-exempt. No forms and no identification number are necessary.

Why, with all the desire to control every facet of life, does not the government require this? Because the First Article of the Bill of Rights of the Federal Constitution prohibits the establishment of religion (as do similar clauses in most state constitutions - at least the ones I've studied). Mandating incorporation or other forms of organization is seen, even by nonreligious judges, other attorneys and politicians, as being interference in religion by government. A recent court decision in Virginia (a state which had prohibited incorporation of churches as a violation of the separation of church and state) actually allowed incorporation, but reaffirmed the voluntary nature of that act.

2. When you incorporate a church, you grant the State jurisdiction over that church.

First, by filing an application to incorporate, we are asking the State’s permission to organize. Why should we need the State’s permission to participate in something that God instituted? (Matthew 16:18) We should not need the State’s permission to establish a congregation of the Lord’s church nor should we grovel before state officials to seek it. (What if you apply and the State says "no"?) You must understand that the authority to grant incorporation (a form of license, that is, permission to exist as a legal entity) implies the power to prohibit existence. Corporations are by definition a creation of the State; an “artificial person”, an entity that is limited in its existence and powers by the State.

Yet, the State cannot grant the right to come together to worship God and carry out the responsibilities of the church. It is a God-given responsibility (and right), stated clearly in the Bible. If the State is the one granting existence, where does God fit in? When you organize and incorporate a church, that church is a creature of the State. It is a corporation of the State! Therefore, they have jurisdiction over your church, not God. There is plenty of case law in American jurisprudence that declares this to be true.

It has been well established in law that the State has the authority to prohibit the exercise of certain religious practices that are deemed as harmful to the public, to the environment, or to public order. The “test” is whether the State has a “compelling interest.” In the 1800’s, the Federal Government and most state government outlawed polygamy as practiced by the Latter-Day Saints: it was deemed that there was a “compelling interest.”[3]

Today, many jurisdictions prohibit animal sacrifices, the sprinkling of blood, and other practices common in Old Testament times and in various religions. Currently (2005), the US Department of Justice is seeking to prohibit a religious group from importing a plant from South America it uses in its worship services, claiming it is an illegal hallucinogen. For decades, the Native American Church was prohibited from using peyote, for the same reason; and even today, members of the NAC who are not enrolled members of a federally-recognized tribe break the law by participating in a peyote ritual.

It is easy to say that these are all unscriptural practices and so it is no great loss that such things are illegal. Yet, today, we find that more and more the State or the “public” has a compelling interest in prohibiting such things as singing in residential areas, having regular Bible studies in private homes, or meeting after a certain time of day.

Who knows what “compelling interest” in the future might prohibit teaching of children, or having communion, or baptizing people by immersing them in water? Such things have been prohibited (and in some cases still are) in many foreign lands. Corporations are prohibited from performing illegal acts and can be dissolved by the state for doing so. The State is the entity that decides what is legal and illegal for the Corporation. And when corporations, creatures of the state, are dissolved by the State, it is the State which then gains control of the property that corporation held.[4]

3. When you incorporate under the State, you place your congregation of believers under an immoral body of law.

By obtaining legal recognition as an “artificial entity” called a “non-profit corporation”, you place that group under the jurisdiction of civil courts, which are governed by unscriptural, immoral laws. Under these laws, the organization can be prohibited from “discriminating” against homosexuals, non-christians, or other protected groups. It is increasingly likely that even merely preaching to someone or reading Scripture will be made illegal as “hate speech” or “discrimination.” In fact, this has already happened in Canada, a nation that has many christians and which shares much of our constitutional history and ideals. However, in Canada today, christians are being punished for teaching the truth![5]

By incorporating you agree voluntarily to follow all these laws, regardless of whether they are in accordance with God’s will, and even rules or regulations that are passed or put in force to regulate such organizations, without legislative action or constitutional process. And if we sign those applications and documents then do not follow the law because it conflicts with God’s laws, we open ourselves to charges of hypocrisy.

4. The “articles of incorporation” frequently invade and remove God-given authority in the church.

When you read the Bible, you see that God intended for congregations to have a certain form of organization, of leadership. There was to be a plurality of elders (also called pastors, shepherds, bishops or presbyters) (Acts 20:7); there were to be deacons, teachers, and preachers (evangelists), each with their own responsibilities.

Most states require a certain form of government for nonprofit organizations, usually requiring a “board of trustees.” These mandated organizations are either self-perpetuating oligarchies, or require elections or other democratic or quasi-democratic methods of organizing and governing the organization: none of these methods are scriptural in nature. Even if it is the custom of the church to make the elders the trustees, this is still not a scripturally-authorized arrangement. And in congregations without elders, if a board is required, then men assume unauthorized authority within the congregation by being a “board” or a “trustee.” Elders and other positions of responsibility are not authorized by Scripture to be elected positions, nor to appoint their own replacements, so this is yet another conflict in the church which holds a human “charter.”

In addition, virtually all laws of incorporation require the corporation to have by-laws or something similar, to govern how the corporation is organized and operates, including terms of membership, authority within the corporation, use of property, etc. Not only is this adding to God's Word (Rev. 22:19-20), but this also gives opportunity - indeed, nearly forces - the creation of a creed: I have seen many "church" corporation's by-laws which inserted requirements and concepts either taking away from the liberty God gives, or taking away some part of Scripture, directly or indirectly. And as far as the state is concerned, the by-laws trump the Bible. And by-laws CAN be changed - allowing opportunity for even more mischief.

5. When you have a state-organized church organization, you have two masters.
From the State’s point of view, when you organize a group with articles of incorporation, you are submitting to their supervision, their control. This violates God’s Word, which tells us that “no man may serve two masters.” When such incorporation is voluntary, then again, we are open to charges of hypocrisy and of not telling the truth.

As children and servants of God, our first loyalty, our first obedience, must be to God. As Peter and the other apostles told the Sanhedrin, “we must obey God rather than man.” (Acts 5:29) This means that our subjection to human government, dictated in Romans 13, must be only in those areas in which human government is not in disagreement with God’s Word. We recognize this applies in such situations as divorce, gambling, abortion, and other issues; it is no less true in the legal and organizational affairs of the local congregation.

While the issue of incorporation or registration of churches is part of a larger issue regarding the relationship of church and government, the issues here are quite clear. Romans 13 does not override other Scriptures which make it clearly wrong to submit to such things. It is wrong to incorporate our churches, it is not required to incorporate our churches, and if we are to be true to our calling to do all things in accordance with God’s will, we must sever all unscriptural ties with human government, just as our forbearers did with the denominational ties which bound them in the 1700s and the 1800s. Do we have the courage to do so?

Footnotes:
[1] congregation, religious group, assembly, etc.
[2] I understand that at least one Amerind nation does require both incorporation and registration, and Hawaii also requires registration for conducting marriage ceremonies.
[3] However, the recent Supreme Court decision on a Texan sodomy law brings the validity of the anti-polygamy law into question.
[4] In addition, modern forfeiture laws mean that it is increasingly likely that property used in committing even a misdemeanor can be seized by the police or courts.
[5] In several recent well-publicized cases, a christian who quoted Scriptures condemning homosexuality in a Canadian newspaper ad was convicted of a “hate crime," as was a preacher in Sweden for preaching against homosexuality in the pulpit during worship services.

Thanks to Matt Trewhella, Albert Harty, and to the memory of Phil Potter, who contributed much of the thoughts and discussion to this article.