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by donw 5397 days ago
> Yes, you are biased. Non profit means "not to make a profit", and that fits religious organizations quite well. None of them try to make a profit, therefor they are non-profit. It's not really that complicated.

Except that really isn't the case; most religions are non-profit only because you can specify quite interesting definitions for the word 'profit'.

As a case-in-point, look at the Mormon church. Mormon families are supposed to give a monthly donation of ten percent of their income to the church as 'tithing', which is tax-deductible, and of course the church is a 'non-profit'.

Church assets are estimated at over $30 billion USD, and they pull in about $5 billion annually. That's a lot of profit for a 'non-profit' organization.

This money pays for a lot of business-like activities. Salaries for high-level church officials, construction of buildings for church and public activities, global recruitment and proselytization operations, investment, lobbying activities, etc.

Some of it even makes it into humanitarian efforts, although that's part of the proselytization arm.

I've got no problem with any of this; as private citizens, they should be free to spend money however they want.

My problem is that these are all business activities. Nothing the church does is purely humanitarian; even their aid packages for disaster areas come with copies of the Book of Mormon, which I'd consider Sales and Marketing.

As such, they should pay taxes in the same way that a large corporation does.

Note that I'm not picking on the Mormons specifically; the Catholics, Methodists, Muslims, Jews, and pretty much every other major organized religion that I can think of do the same things.

[1] http://en.wikipedia.org/wiki/Finances_of_The_Church_of_Jesus...

1 comments

You do realize that all non-profit organizations pay their employees... right?
I don't take issue with them having a large pile of money, or with what they do with it.

My problem is that they don't act in the public interest, which is what a non-profit is supposed to do.

The Red Cross pulls in about half what the Mormon church does, and while quite a bit gets eaten up by overhead costs, even more goes to providing medical aid and supplies to those in need -- regardless of color, creed, sexual orientation, or coffee preference.

The Red Cross doesn't lobby to deny basic human rights to 'undesirable' groups. They don't have investment holdings in insurance companies and real estate. The Red Cross isn't members-only, where you have to 'join the club' to receive aid.

The Red Cross helps anybody in need.

The Church (pick one) exists solely to further the interests of its members -- shareholders, if you will -- at the expense of other groups.

This is why I say The Church is a business, and as such should be taxed as one.

Is "not making profit" the only criterion for being a non profit? Just saying - a lot of startups could save on taxes and special offers...
Of course not. 501(c)(3) accreditation is the standard in the USA for legal purposes. Wikipedia has a good writeup if you want to know more about how "nonprofit" is usually defined:

https://secure.wikimedia.org/wikipedia/en/wiki/Nonprofit_org...

If what you want is more financial or tax-based information, though, I'd go directly to the IRS website:

http://www.irs.gov/charities/charitable/article/0,,id=96099,...

Just because a place is called a "nonprofit" doesn't mean that they have no money, no savings and no employees. It would be nearly impossible to run any kind of organization that way and would ridiculously handicap what they could accomplish. No money, savings, employees or profit is pretty much the recipe for a failed startup, after all. Anyhow, the IRS link explains exactly what is and is not allowed.

They also need to show that they are doing work which is a public benefit. For example, several free software projects are set up as a non-profit foundation, and they need to convince the IRS that they are a public good, vs. a company trying to shelter under the non-profit umbrella.