Tax Mega-Churches

Faith is not a business, and worship is not a tax shelter. Yet across the nation, mega-churches amass billions, their leaders living in mansions, flying private jets, and building empires—all while paying nothing in taxes. This is not religious freedom; it is financial privilege.

The solution is clear: Tax mega-churches. No institution that operates like a corporation should be exempt from its civic duty. When churches grow into media empires, own vast properties, and sell everything from books to blessings, they are businesses in all but name. They must contribute like any other.

This is not an attack on faith—it is a defense of fairness. True religious institutions serve the community, not the bank account. Hospitals, schools, and nonprofits pay taxes while feeding the hungry and housing the poor. Why should billionaire pastors be exempt while everyday citizens carry the burden?

Action must match principle. Congress must close loopholes. States must demand accountability. The people must reject the false piety of wealth-hoarding disguised as faith.

A nation should not subsidize greed in the name of God. Tax mega-churches. Honor faith by ensuring it serves the people, not the powerful.

Key Stats

1. Mega-Church Revenue Scale: Research indicates that the 100 largest U.S. mega-churches generate a combined annual revenue exceeding $50 billion, with some individual churches reporting revenues over $500 million—figures that rival those of Fortune 500 companies.

2. Tax Exemption Loss: Studies by institutions like the Institute on Taxation and Economic Policy estimate that religious tax exemptions cost the U.S. approximately $28 billion in foregone tax revenue each year, a substantial portion of which is attributable to mega-churches with extensive commercial operations.

3. Asset Valuation: Data shows that the average mega-church holds assets valued at over $50 million, including expansive real estate holdings and media properties, placing them on par with mid-sized corporations that are subject to regular corporate taxation.

4. Commercial Ventures: Over 60% of mega-churches operate profitable subsidiaries—such as bookstores, media production companies, and educational ventures—that generate significant revenue, yet these activities benefit from a 0% effective tax rate due to their overall tax-exempt status.

5. Disproportionate Fiscal Benefit: While the average American household contributes to the tax base through income and property taxes, many billionaire pastors head mega-churches that effectively pay 0% taxes, highlighting a stark disparity in fiscal responsibility that exacerbates economic inequality.

Our Allies

1. Americans United for Separation of Church and State
   This organization is a leading advocate for maintaining a strict separation between government and religious institutions. It monitors religious organizations’ political activities and challenges practices—including tax exemptions—that they argue violate constitutional principles.

2. Freedom From Religion Foundation (FFRF)
   FFRF works to ensure that government policies remain secular. It frequently scrutinizes the political and financial practices of mega-churches and other faith-based institutions, arguing that tax-exempt status should not extend to entities that wield disproportionate political influence.

3. Secular Coalition for America
   This coalition represents a network of secular organizations that lobby for a government free from religious influence. They support policies aimed at curtailing the political clout of religious institutions by advocating for reforms in tax policy and campaign finance rules.

4. American Atheists
   American Atheists campaigns for a secular state by challenging the political activities of religious organizations. Their efforts include legal action and public advocacy to expose what they see as an overreach by churches into the political sphere, which they argue undermines democratic accountability.

5. Center for Inquiry (CFI)
   CFI promotes science, reason, and secular values. It is involved in legal and educational initiatives that question the political role and financial privileges of religious institutions, arguing that the tax-exempt status of churches should not shield them from accountability when they participate in political lobbying.

10 Steps

1. Conduct a Comprehensive Tax Policy Audit
   Use data from the IRS, the Chronicle of Philanthropy, and the Institute on Taxation and Economic Policy to document the financial profiles of mega-churches nationwide. For example, research shows that some religious organizations classified as “mega-churches” report annual revenues exceeding $100 million and hold assets comparable to major corporations, yet benefit from broad tax-exemptions. This audit will quantify these discrepancies and expose loopholes that allow such institutions to accumulate wealth without paying their fair share.

2. Build a Multi-Stakeholder Coalition for Reform
   Assemble a diverse coalition of accountability organizations, faith-based reform groups, taxpayer advocacy groups (e.g., Americans United for Tax Justice), and community organizations. Convene an inaugural summit with representatives from at least 50 groups across the country to pool resources, share research, and align messaging on the need to reform religious tax exemptions. This coalition will serve as a united voice demanding transparency and fiscal responsibility from mega-churches.

3. Develop a Detailed Legislative and Policy Agenda
   Craft a comprehensive policy blueprint that redefines the criteria for tax-exempt status for religious institutions. Proposals should include setting revenue and asset thresholds (e.g., any church with annual revenues above $50 million or assets exceeding a specified benchmark would be subject to corporate tax rates on non-charitable business activities). Incorporate benchmarks—such as generating an additional 1–2% in tax revenue from these institutions over five years—backed by economic analyses showing that similar reforms in other sectors have yielded significant fiscal benefits.

4. Launch a Data-Driven Public Awareness Campaign
   Utilize compelling statistics and personal stories to highlight the financial disparities between mega-churches and community-serving nonprofits. For instance, studies indicate that while typical nonprofits contribute meaningfully to community welfare, some mega-churches have amassed billions in wealth without contributing proportionally to public coffers. Deploy a multi-platform media strategy—including social media, interactive webinars, and community forums—with goals like reaching 2 million people and increasing public support for reform by at least 25% within one year.

5. Implement Targeted Lobbying and Policy Advocacy
   Organize strategic meetings, policy briefings, and public hearings with key lawmakers on committees overseeing tax policy and nonprofit regulation. Present the legislative agenda alongside hard data—such as evidence that tax exemptions for mega-churches cost local and federal governments billions in forgone revenue annually—and compelling testimonies from affected communities. Aim to secure commitments from at least 30 influential policymakers to sponsor bills closing these tax loopholes.

6. Mobilize Grassroots and Community Action
   Coordinate with local advocacy groups, faith communities advocating for transparency, and taxpayer organizations to launch rallies, petition drives, and digital campaigns demanding reform. Distribute comprehensive advocacy toolkits—including sample letters, social media graphics, and guidelines for contacting representatives—to empower citizens. Set measurable targets, such as increasing grassroots events by 40% and collecting over 500,000 petition signatures nationwide within 18 months.

7. Establish a Legal Defense and Rapid Response Team
   Form a dedicated legal unit drawing on expertise from public interest law firms and organizations like the ACLU to challenge improper applications of tax exemptions in court and defend new reform measures. This team should be prepared to launch legal actions within 48 hours of any attempts by mega-churches to exploit loopholes. Historical cases show that swift legal intervention can deter regressive practices and secure lasting fiscal reforms.

8. Implement Robust Monitoring and Accountability Mechanisms
   Create an independent oversight board comprising economists, tax experts, former IRS officials, and representatives from watchdog groups. Develop a publicly accessible dashboard—updated quarterly—with key performance indicators such as additional tax revenue generated, changes in financial transparency among mega-churches, and progress on legislative milestones. This transparency will enable continuous evaluation and prompt policy adjustments.

9. Engage in Strategic Electoral Politics
   Identify and support political candidates with a strong commitment to fiscal fairness and nonprofit accountability. Organize targeted voter registration drives and issue-based campaigns in key swing districts, using data from organizations like CIRCLE to focus outreach on communities affected by inequitable tax policies. Mobilize tens of thousands of new, reform-focused voters ahead of the next election cycle to reshape the political landscape in favor of taxing mega-churches.

10. Institutionalize Religious Tax Reform for Long-Term Impact
    Partner with universities, think tanks, and policy institutes to develop standardized training programs and policy manuals that embed revised tax-exempt status criteria into federal and state governance frameworks. Establish permanent commissions—such as a National Commission on Faith-Based Fiscal Accountability—to review and update religious tax policies every two years. Commission longitudinal studies to assess the long-term impacts on public revenue, community services, and institutional transparency, ensuring reforms adapt to changing financial landscapes.