Churches are currently automatically are treated as tax exempt under 501(c)(3), without the need to file form 1023, which is because we as a society have decide that churches are a benefit to society. However we really do not know where all the money being raised is going but no one is suggesting their tax exempt status be revoked but only that they should at least open their books to the public and show their assets and income as it is only fair that we the public get to see exactly how much money is being made and how the churches are spending it. If they are unwilling to furnish that information then the should not have non-profit status.
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