Tax Exemption

“Then he said to them, ‘So give back to Caesar what is Caesar’s, and to God what is God’s.'” (Matthew 22:21b)

Tax exemption for religious charities pre-dates the United States. Some say that the English “Statute of Charitable Uses of 1601” is the basis for modern exemption laws. The justification then and now is that the government’s loss of revenue is made up by charities meeting public needs. I suppose objections to religious tax exemption are as old as the policies themselves, and they certainly exist today.

University of Tampa professor Ryan Cragun has estimated that the cost to the government resulting from religious tax exemptions is $71 billion annually. Keep in mind that this estimate is based on tax deductions allowed to religious charities only. As our society becomes less religious the idea of subsidizing religious organizations has become less popular. More and more people question the benefit that religious organizations offer our society.

It is impossible to put a value on the benefit that tax exemption offers to the Prayer League. Our exempt status enables us to decrease expenses by nearly eliminating taxes we are required to pay. Many donors are able to give more as a result of the tax deduction received. I cannot put a dollar amount on the benefit – but it is safe to say that it is substantial.

There is no indication that opponents of tax benefits for religious organizations will win the day.  Those who believe in the work of religious charities remain numerous and vocal. Even so, just hearing objections has caused me to wonder what would happen if tax exempt status were no longer granted to religious charities. At first glance it would seem devastating. But consider this from the WMPL handbook: “Since God gives our resources, we will continue to treat them as from the hand of God.” We believe that ultimately it is God who provides resources to his people and to the Prayer League. If God chooses to provide resources through the generosity of his people and through generous tax laws, then good; it is still God who provides. If one day tax laws were to change would our God be too small to provide our needs? Of course not! I am thankful that I live and work in a country that values the work of religious charities. I am also thankful for those who continue to argue on behalf of these policies. But in the end we acknowledge that all we receive is from the “hand of God” – and that will not and cannot be changed.

In September we were able to pay all of our missionaries 100 percent of their target allowance. We used $37,856 from the General Fund to meet these needs, leaving the General Fund balance at $86,891. At the end of July our Benefits Fund had a balance of $173,629.

Thank you for your ongoing prayers and support!

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