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Why are Churches Singled Out for Their Tax-Exempt Status?
Why are Churches Singled Out for Their Tax-Exempt Status?
Dec 22, 2025 11:30 AM

Guidelines for nonprofits are often misunderstood, says Dimitri Cavalli, and they are sometimes misrepresented by those seeking to quiet churches:

Every so often, there are calls for the federal government to revoke the tax-exempt status of churches. The mon arguments made for taxing churches are that exemptionsdeny the government important sources of revenueto pay its bills, and that many churches (usually the ones that continue to teach traditional sexuality morality such as the Catholic, Evangelical, and Mormon churches) oftenabuse their tax-exempt statusby violating IRS guidelines that prohibit them from engaging in political activity. The chronic obsession with the activities of the churches in the public square has obscured the fact that they are only a part of the overall nonprofit sector. According to data collected by theNational Center for Charitable Statistics (NCCS), there are over1.5 million registered nonprofit bined total assets of nearly $5.7 trillion as of August 2012) in the United States today—many of which are nonreligious institutions and organizations that, like churches, seek to influence public policy despite being tax-exempt.

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