The church holds vast assets, minimal SEC fines, and extensive real estate. Why is it still recognized as a religious institution, and could there be undisclosed financial influence at play?
My observation is that religious status derives from a combination of historical precedent and legal interpretations rooted in the constitutional guarantee of religious freedom. While the church does operate on a large scale, it is exempt because its core purpose is not commercial profit but spiritual guidance and charitable work. Financial transparency and accountability are subject to internal church policies rather than typical corporate regulations. From personal research, it appears that the legal framework distinguishing religious institutions from for-profit entities continues to be robust despite the scale and operations resembling a corporate structure.
imho it comes down to centuries old legal decsions. the govt sees it as a spiritual org, not a money making one, regardless of its vast assets. its more about tradition and purpose than corporate norms.
I think the exemption survives because the church’s mission remains seen as spiritual, not commercial—even if its finances look corporate. How might more financial disclosure change perceptions of religious privileges in the future?
Through my own in-depth research, I’ve come to see that legal criteria for religious exemption remain firmly rooted in intent and historical practice rather than present-day financial scale. The focus is on the spiritual mission and community service provided by the church rather than on pursuing profit. Courts and regulatory bodies have consistently underscored that the benefits of religious freedom apply to organizations fulfilling a device that extends beyond simple business operations. The lasting interpretation of these laws has continued to support their tax-exempt status while emphasizing their distinct cultural and spiritual role.
imho the church stays exempt cuz its seen as a faith based org with a long tradition. legal norms protect spiritual missions, even if its operations act like a corp. it’s all about preserving religious freedom over financial scrutiny.