Tag:#churches
The Need for Stronger Regulation of the Taxation of Churches
Carolyn Nsimpasi
Associate Editor
Loyola University Chicago School of Law, JD 2026
In the United States, churches and religious organizations qualify for exemptions from federal income tax under IRS Section 501(c)(3) and are generally eligible to receive tax-deductible contributions. While the intention behind this exemption is to protect religious freedom and support nonprofit missions, the lack of robust regulatory frameworks has opened the door to potential misuse. As religious institutions grow in both size and financial complexity, the public benefits they provide do not always receive the same scrutiny as their financial practices. Consequently, it is time for this exemption to be either eliminated entirely or significantly modified following an intensive evaluation of its regulation.