What is the difference between tax code 501 c3, 501c1a and 508c1a?

Created by Amber Wright, Modified on Mon, 23 May 2022 at 10:46 PM by Amber Wright

508(c)(1)(A) Free Church vs. 501(c)(3) State Church

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What every believer needs to know concerning churches that are automatically tax exempt under 508(c)(1)(A) [Free Churches] verses the government approved churches 501(c)(3) [State Churches] 


The Church was once a great influence on our nation and its government. However, that all changed in 1954 when churches were added to the 501(c)(3) section of the IRS tax code (IRC). The 501(c)(3) church has been stripped of its freedom of speech as a result of its partnership with the government. They have voluntarily silenced themselves concerning anything touching politics and the government, even in spiritual matters important to believers. If the Church had not lost its freedom of speech to influence the government, maybe prayer would have not been removed from schools on June 25, 1962. It was at this point the nation began a huge spiritual spiral downward, the statistics are staggering.


The Church’s influence on politics and government concerning spiritual matters such as freedom of religion, freedom of speech, abortion, and homosexuality is the evolutionist

greatest fear. By silencing themselves regarding “political” issues, the 501(c)(3) church has given government run public schools permission to teach our children lies without

resistance and compromise the truth on these and many other issues touching our faith.


When we compromise we agree to go below what we believe or know to be true, at that point we allow falsehood to become the “truth”. Something cannot be both true and false; it

has to be one or the other. Once falsehood is added to or replaces any part of the truth, the statement, belief or “fact” is no longer true. The Butler Act was passed in 1925, prohibiting the teaching of evolution in public schools; it was overturned in Tennessee on May 19, 1967. Its overturn allowed evolutionism, which is one of the greatest “Fairy Tales” in the history of the world, to be taught in public schools. It is currently not taught as an idea, theory, hypothesis or guess, but as an actual

fact. The public schools are teaching our children an inaccurate account of our country’s history by removing references to the providences of God and the Christian faith, which is what our country was founded upon. The public school system is also teaching our children about inappropriate sexual relations, promoting the homosexual lifestyle in their sex education classes. All this is aimed at removing God from our hearts and minds in order to erode the faith of our children.


The Church, the Body of Christ, can once again become a spiritual influence on the government if we take back our voice, our freedom of speech, by breaking the bond it has with the government. When the Church turns away from the world and submits itself to and is ruled by Jesus Christ the Lord alone, then it can truly be the light of the world and the salt of the earth. Only then will the Body of Christ truly be “the Church”.


The Lord reveals that as His disciples we should not be unequally yoked with unbelievers (2 Cor. 6:14-7:1). This not only covers marriage and personal relationships, but also all

business partnerships. As the Church, this also includes our partnerships with the State and Federal government in pursuit of 501(c)(3) status. How can we take back our freedom

from the government’s control? We can do this by not incorporating our churches and pursuing 501(c)(3) status. The Church, or individual groups of the Church, should not incorporate on a state level, due to becoming creatures of the State which are subject to the State. Those who incorporate and choose to pursue 501(c)(3) status, become creatures which are subject to the Federal government and are prevented (gagged) from speaking out on political and spiritual matters that do not agree with the current “political atmosphere”.


Section 508(c)(1)(A) states that “churches, their integrated auxiliaries, and conventions or associations of churches” are a mandatory exception to section 501(c)(3), they are already

tax exempt without notifying or applying to the government under section 501(c)(3). Churches receive the same tax exempt status and benefits as a 501(c)(3) organization, without the partnership with the government. We do not have to lose our voice! 

Sec. 508. — Special rules with respect to section 501c3 organizations

    (a) New organizations must notify Secretary that they are applying for recognition of section 501(c)(3) status

    Except as provided in subsection (c), an organization organized after October 9, 1969, shall

not be treated as an organization described in section 501(c)(3)

(c) Exceptions

(1) Mandatory exceptions

(A) churches, their integrated auxiliaries, and conventions or associations of churches, or


In IRS Publication 526, Charitable Contributions, the IRS once again states that churches are qualified organizations and do not need to apply to the IRS: “You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.”


Examples. The following list gives some examples of qualified organizations. Churches, a convention or association of churches, temples, synagogues, mosques, and other

religious organizations.” 


And according to IRS Publication 557,Tax-Exempt Status for Your Organization:


“Churches. Although a church, its integrated auxiliaries, or a convention or association of churches is not required to file Form 1023 to be exempt from federal income tax or to receive tax deductible contributions, the organization may find it advantageous to obtain recognition of exemption.”


As shown in the examples above and the IRS code itself, a church does not have to apply to or notify the government (state or federal) of its tax exempt status, we are already

established as a separate creature from the state. We need to remain separated from the state and not join in any type of partnership that would create a yoke between the church

and government, no matter what “benefits” they may mislead us to believe are available.


Note: The church as described under IRC 508(c)(1)(A) in this article is also known as a “Free Church”.

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