Tax exempt stance
Church and Society Graphic
“Our involvement in political systems is rooted in the gospel imperative to love our neighbors, to do justice, and to care for the vulnerable. As United Methodists, we acknowledge that love requires responsible political action and engagement aimed at the betterment of society and the promotion of the common good.” United Methodist Social Principles, The Political Community, ¶ 163 Preface
Background
The idea to increase federal government and presidential power to punish non-profits and charitable organizations for not falling in line with presidential political agendas is very concerning and a dangerous practice for Americans. These types of policies will give unchecked power to the federal government and president to punish their political and ideological rivals.
On May 13, 2025, the House Ways and Means Committee approved a tax bill, which includes a section that would enable the Secretary of the Treasury to label any nonprofit as a “terrorist-supporting organization” and strip it of its tax-exempt status. Formerly identified as H.R. 9495 “Stop Terror-Financing and Tax Penalties on American Hostages Act.” This clause would grant the administration unilateral power to investigate any nonprofit and strip them of tax-exempt status based on a unilateral accusation of wrongdoing.
Measures put in place, for any administration - Republican or Democratic - could punish and shut down non-profit organizations that don’t agree with that administration’s agenda or policies.
The clause does not go after real terrorism that threatens our safety and freedom, but it would actually allow politicians to label groups in faith communities and social services they disagree with as terrorists without providing proof. Aiding terrorists is already against the law.
“We affirm that both church and state have vital and distinct roles to play in relation to the larger society. Though the formal relationships between religious communities and governments vary from country to country, we generally affirm the independence and integrity of both institutions, and we advocate for a relationship of mutual respect in which neither institution seeks to dominate or unduly influence the other.” United Methodist Social Principles, The Political Community, ¶ 163.A., Government Responsibilities.
What You Can Do
Call on your Representatives and Senators to oppose the inclusion of a provision in the budget reconciliation package that would embolden the current administration to dismantle tax-exempt organizations they disagree with.