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VBVMI StaffI notice that VBVMI applied for 501(c)(3) status with the I.R.S. Why did you choose to subject your ministry to government oversight when it wasn't necessary?
In the United States a "non-profit" status may make an organization eligible for certain benefits, such as state sales, property, and income tax exemptions; however, this corporate status does not automatically grant exemption from federal income tax. To be tax-exempt, most organizations must apply for recognition of exemption from the Internal Revenue Service to obtain a ruling or determination letter recognizing tax exemption.
While VBVMI was not obligated to apply for such recognition by the IRS, there are several advantages to doing so. First, obtaining IRS recognition protects a non-profit from future tax disputes with the IRS and potential tax penalties.
Secondly, many corporate donors (and individual donors) require IRS recognition of non-profit status as a pre-requisite for making contributions.
Finally, IRS recognition offers assurance to our donors that our ministry stewards our finances in a transparent and lawful manner.
For these reason, the VBVMI Board of Director determined that it was prudent to seek IRS recognition of our non-profit status under section 501(c)(3) of the Code. This action removes unnecessary barriers to future donations while eliminating any tax burden that might reduce our operating funds.
More importantly, submitting to governmental requirements in these matters is not only prudent but also biblical. As Paul commanded the church:
Notice that Paul specifically mentions we are to be in subjection to the government on matters of paying taxes, which include seeking tax-exempt status in lawful ways.
Furthermore, Jesus gives similar instructions to His disciples:
Jesus commands us to render to the government what the government requires because the government is empowered by God in matters of taxation (among other matters). Therefore, the Church must set a good example by obeying the government in this area. Since the United States government makes available a process for lawful exemption from taxes, VBVMI chose to pursue that process in keeping with the law.
Scripture quotations taken from the (NASB®) New American Standard Bible®, Copyright © 1995, 2020 by The Lockman Foundation. Used by permission. All rights reserved. www.lockman.org