[Vision2020] School Administration and Oversight (from the BLog)

Saundra Lund sslund at roadrunner.com
Sun Mar 25 18:58:14 PDT 2007


Hi Andreas,

You wrote:
"At least at the time of the first tax hearings, they weren't claiming
501(c)(3) status.  Or at least, they were claiming they weren't claiming
501(c)(3) status -- Dickison kept calling the church "tax immune," rather
than "tax exempt," and argued that he couldn't provide the 501(c)(3)
paperwork. When did this change?"

I'm not particularly comfortable trying to explain tax law, so I think the
safest thing to do is quote the IRS:

"Automatic Exemption for Churches

Churches that meet the requirements of IRC section 501(c)(3) are
automatically considered tax exempt and are not required to apply for and
obtain recognition of tax-exempt status from the IRS.

Although there is no requirement to do so, many churches seek recognition of
tax-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."
http://www.irs.gov/pub/irs-pdf/p1828.pdf

So, nothing has changed:  Dickinson was unable to provide 501(c)(3)
paperwork for Christ Church because Christ Church has chosen not to file for
501(c)(3) recognition.

Of course, as you rightly pointed out in your initial post, 501(c)(3) exempt
status can be lost.  In addition to the "inurement of insiders" issue, the
IRS also requires all 501(c)(3) organizations:
  --  they must not provide a substantial benefit to private interests;
  --  they must not devote a substantial part of their activities to
attempting to influence legislation;
  --  they must not participate in, or intervene in, any political campaign
on behalf of (or in opposition to) any candidate for public office; and
  --  the organization’s purposes and activities may not be illegal or
violate fundamental public policy.
http://www.irs.gov/pub/irs-pdf/p1828.pdf

With respect to NSA, it never claimed, at least to my recollection, to be a
501(c)(3) -- our main focus in the tax hearings was on exclusive use and on
whether self-assertion -- absent any proof whatsoever -- of non-profit
status was sufficient for granting the privilege of property tax exemption.


HTH,
Saundra Lund
Moscow, ID

The only thing necessary for the triumph of evil is for good people to do
nothing.
- Edmund Burke

***** Original material contained herein is Copyright 2006 through life plus
70 years, Saundra Lund.  Do not copy, forward, excerpt, or reproduce outside
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-----Original Message-----
From: Andreas Schou [mailto:ophite at gmail.com] 
Sent: Sunday, March 25, 2007 1:44 PM
To: Saundra Lund
Cc: vision2020 at moscow.com
Subject: Re: [Vision2020] School Administration and Oversight (from the
BLog)

On 3/25/07, Saundra Lund <sslund at roadrunner.com> wrote:
> Hi Andreas,
>
> Actually, Logos ***does*** claim 501(c)(3) status:
> http://www.guidestar.org/pqShowGsReport.do?npoId=690723
>
> As does Christ Church:
> http://www.guidestar.org/pqShowGsReport.do?partner=guidestar&npoId=550346
>
> As does ACCS:
> http://www.guidestar.org/pqShowGsReport.do?partner=guidestar&npoId=347118
>
> As does Community Christian Ministries:
>
http://www.guidestar.org/pqShowGsReport.do?partner=guidestar&npoId=100164639
>
> NSA, of course, has chosen a different approach all the while avoiding
> paying property taxes:
> "This includes the College's refusal to seek tax-exempt status (as a
501[c]3
> organization) from the U.S. Internal Revenue Service (see the Important
Tax
> Information note below). This means that though the College is a legally
> recognized non-profit educational institution, contributors who give to
the
> College do not receive a tax break from the IRS."
> http://www.nsa.edu/mission/finances.html

At least at the time of the first tax hearings, they weren't claiming
501(c)(3) status. Or at least, they were claiming they weren't
claiming 501(c)(3) status -- Dickison kept calling the church "tax
immune," rather than "tax exempt," and argued that he couldn't provide
the 501(c)(3) paperwork. When did this change?

-- ACS





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