As to the question about the Church not using the 501(c) status for tax exempt purposes, you have to ask yourselves:
How deep are your pockets?
It’s one thing to talk about giving up your tax-exempt status when you’re a rural or suburban church; it’s another when your parish is parked in the middle of the city on land worth, say a couple of million dollars. No longer being a tax-exempt organization, your church now has to pay property taxes on that land. Have you calculated how much annually that will cost your parish? your diocese?
Of course, people will still joyfully contribute to the Church, except those who only contribute so they can get the tax deduction. BTW, do you actually tithe; i.e., do you give your local church either 10% of your income or practice a “time, talent, and treasure” where you give 5% of your income and 5% of your time and talent? Don’t forget: the Biblical command to tithe is not a suggestion. It is to be the first 10%, not what’s left over; and it is to be the MINIMUM amount given. Check out
Deuteronomy 14:22 and
Leviticus 27:30. (I bring this up because I know of many people who swear that their businesses survived and their families prospered when they put their trust in the Lord and began to tithe. Something to keep in mind in these economic times.)
Can your parish, on the basis of non-tax-deductible contributions alone, continue any soup kitchens or any other outreach or social programs?
These are the questions that we need to ask ourselves. These are the issues that need to be preached from the pulpit, because if we are reaching the point where we cannot count on the government looking kindly on religion. If we choose to depend on the government more than G_D, then we will get from G_D what we have desired.