skeeter
When it comes to churches and finances and taxes, you have to remember something. Churches, unlike individuals or corporations, do not have to pay income tax. This is a huge benefit. But there is something even bigger.
Individuals and corporations that give money to a church are allowed to take a charitable tax deduction on that donation, provided they do not receive any goods or services in exchange. So essentially, an individual in the 25% tax bracket can make a $100 donation to a church. It costs that individual $75 after-tax and it costs the federal government $25 in foregone tax receipts.
The deductibility of donations is, I think, a bigger economic topic than the issue of whether the church has to pay an income tax.
Just trying to make a point here for benefit of the discussion.