Should Governments regulate fraudulent religions?

Churches are simply the ultimate tax shelter. Everyone should start one! Just ask Joel Osteen.
 
In what way are they "fake charities"?
They purport to be charities. Yet they clearly spend lots of money on their propertirs and do not open their books to the same scrutony as other charities.

Fake charities.

You really know nothing about how churches are run, how they keep their books, or how they interact with the IRS, do you? You just make wild-assed assumptions without bothering to do any research, and then run around vomiting your assumptions as fact and working yourself into a panties-ruffled snit over them.

Consider this little lesson my good deed for the less-intellectually fortunate for the month.

Churches exist as two separate entities in the eyes of the IRS. They have a non-profit charitable/religious organization entity, and they have a taxable business entity. Any valuable property or income they possess falls under these two headings, according to where they came from and how they are used. Generally speaking, most of their income and assets end up falling under the heading of their non-profit entity (it depends, obviously, on the church). This is because most of what they own is used for the purpose of being a church. The sanctuary building in which they hold services, for example, is owned as part of their non-profit activities, and follows the same IRS guidelines as, for example, the administrative offices of the Red Cross. Likewise, most of their income comes from donations made by their members, and is used for church-related activities, such as paying utility bills for the church property, paying the pastor's salary, maybe maintaining and operating a church bus that drives people to and from services if they can't do it on their own, operating a soup kitchen (if they happen to do so), etc. This all falls under the heading of their non-profit, religious/charitable activities, and thus is not taxed.

However, if someone leaves them a piece of real estate in their will, for example, and the church chooses to sell it or rent it, rather than using it for church activities, then that falls under the heading of their taxable business entity. It is subject to all appropriate taxes which anyone else would pay on such a transaction.

Contrary to your opinion, churches do a great deal of actual charitable work above and beyond their religious activities. It is very common for churches of any size and income to operate homeless shelters, soup kitchens, food and clothing banks, rehab centers, outreach groups for the elderly, overseas missions programs that include much the same sort of work that the Peace Corp does, programs for at-risk youth . . . There is much more to being a church than just holding services and preaching. The Catholic Church, for example, is the entity to whom the government refers you for assistance which they are unable to provide.

In order to maintain their tax-exempt status, churches must spend the majority of their income on non-profit activities every fiscal year. They are not allowed to stockpile large amounts of assets under this heading. They have a set limit of savings which they are allowed to keep on hand for emergencies, but everything else must go to their stated purpose. And far from your inane claims of "books not open to scrutiny", they are required to submit to the exact same transparency regarding those books as any other charitable institution: everything must be documented clearly for the IRS, and also for their members. Obviously, the books on the for-profit side are subject to the same scrutiny as a comparable entity. Most churches hold a business meeting at least once a year, open to all voting members and usually to any attendee who wishes to show up, at which they disseminate all necessary financial documentation, explain said documentation, and discuss and vote on plans for the upcoming year.
 

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