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501(c)3 vs. Incorporation

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Author Topic: 501(c)3 vs. Incorporation  (Read 339 times)
Kilika
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« on: April 10, 2011, 04:14:46 am »

501(c)3 vs. Incorporation, that is the question.

This is a big topic that has many questions, so seeing the chat comments, I thought it is a good thread topic to discuss and post the differences, pro and cons.

Ultimately, the big difference is in tax obligation, as well as what and how a business reports their activity to the government. This can get very complicated so I'm not sure it's really needed to get into the details.

The big drawback to a 501(c)3 is that the organization is limited or restricted in what activities the non-profit can participate in and what they can or can't promote. The Federal government places various restrictions on churches in particular, namely political restrictions.

For the legal differences, an attorney is needed to say what they are, but one thing to remember is that a corproration is basically treated as a legal entity, kind of like a person, thus it can free up or seperate the corprotate officers from various liabilities, but taxes can be burdensome, and depending on the type of corporation, they must publicly release various information about the board members and the corporation's finances.

The type of corporation called a "LLC", Limited Liability Corporation, is becoming more popular due to it's less restrictive requirements and lower costs in general, as well as more freedomin the business owners structure. They don't have as restrictive rules on board members, etc. Again, a lawyer is need to really spell it out legally.

Here is one website that discusses the issue of incorporating...(for info purposes, as I don't agree or diagree with them but it's got some history about incorporation in America)

http://hushmoney.org/incorporate-facts.htm

They talk of a church should be a "free-church", but I'm not so sure that's a fair name as local ordinances put restrictions on what you can do on your property, just ask some "house churches" that have been attacked by local officials. Dealing with Casear begins at the local level, be it city or county rules on land zoning.

Personally, I don't believe scriptures says anywhere that there is to be any kind of "church" organization. I believe that the churches are people only, and groups of believers is also called a "church" to specify a group of believers within a local geographical area. When scripture says not forsaking assembly, to me that means believers simply are exhorted to spend some time together for fellowship and friendship, that's it. While there may be an effort by that group to materially and financially provide support for the elders of the group who are fulltime evangalists and elders of the group, tha's all the group is called to do. Everything else falls on the individual believers to act like a Christians, loving God and neighbor however the Spirit moves them according to sound doctrine, and not by some "canon" or "church by-laws". Those rules and by-laws are clearly spelled out in scripture itself, and the bible should be the ONLY rules that a group or individual should follow. Modern "churchianity" has compromised the gospel and become friends with the world by doing business with Casear.

The actions of the world, Casear, is based on the love of money. Believers should know that the love of money is the root of all evil.

By believers following scripture, instead of trying to be friendly with the world, they won't have all the issues that come with trying to get recognition from Casear.

So in my opinion, firstly, a local grooup of believers should not have any "official" organization at all. And secondly, if they want to "gather", fine, let them do so in their homes. If they want to complain "we dont have enough room...", then that should be a sign they need to get out of the house and into the streets preaching the gospel to sinners instead of sitting around singing songs and patting each other on the back for being good little "church-goers" one day a week, then going back to the worldly life and jobs they have enslaved themselves in.

1   Now concerning the collection for the saints, as I have given order to the churches of Galatia, even so do ye. 
2   Upon the first [day] of the week let every one of you lay by him in store, as [God] hath prospered him, that there be no gatherings when I come. 
3   And when I come, whomsoever ye shall approve by [your] letters, them will I send to bring your liberality unto Jerusalem.
1 Corinthians 16:1-3 (KJB)


"But watch thou in all things, endure afflictions, do the work of an evangelist, make full proof of thy ministry." 2 Timothy 4:5 (KJB)
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Mark
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« Reply #1 on: April 10, 2011, 05:21:13 am »

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So in my opinion, firstly, a local group of believers should not have any "official" organization at all. And secondly, if they want to "gather", fine, let them do so in their homes. If they want to complain "we dont have enough room...", then that should be a sign they need to get out of the house and into the streets preaching the gospel to sinners instead of sitting around singing songs and patting each other on the back for being good little "church-goers" one day a week, then going back to the worldly life and jobs they have enslaved themselves in.

powerful stuff there.
« Last Edit: April 10, 2011, 05:23:51 am by Dok » Report Spam   Logged

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