Political Endorsement Spur Group's Appeal to IRS to Revoke Megachurch's Tax-Exempt Status Citing Restrictions Under IRC

The loud echo of Pastor Jack Hibbs from a Southern California megachurch is causing ripples in the political sphere. His recent endorsement for Republican U.S. Senate candidate Steve Garvey, considered a violation of IRS stipulations for 501(c)(3) organizations, has sparked a bid for his church's tax-exempt status to be revoked. The controversial endorsement, communicated to church-goers and streamed to live viewers, has stirred the Freedom From Religion Foundation (FFRF) into action.

In a sermon, Hibbs, pastor of Calvary Chapel Chino Hills, passionately advocated for Garvey, a former baseball star and now a political sensation. Hibbs urged his congregation to vote for Garvey, triggering laughter and a buzz among the audience. This broadcast was later shared by Right Wing Watch on a platform called 'X,' stirring a lively virtual debate.

Tax-Exempt Status under the Microscope

Pastor Hibbs has recently had his fair share of political and religious controversies. Previously, he had endorsed another Republican candidate, Larry Elder, during the 2022 election to recall Gov. Gavin Newsom. This display of public support for political candidates has opened a can of controversies, pitting the church against various institutions that claim such political endorsement is against IRS regulations.

The latest move by Hibbs attracted the attention of the national organization FFRF. In a strongly worded letter, FFRF staff attorney Christopher Line called upon the Internal Revenue Service to reconsider the tax-exemption status granted to Hibbs' church.

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Does the Church Violate the IRS Code?

Under Section 501(c)(3), the U.S Internal Revenue Code stipulates conditions for granting tax exemption status to nonprofit organizations like churches, ensuring that these entities primarily exist for religious, educational, or charitable purposes. While benefiting from tax deductions on donations, these organizations are expected to adhere to specific regulations, which discourage engagement in political campaigns and endorsements of candidates for public office.

Any violation of these rules attracts penalties, including possible revocation of their tax-exempt status. Hence, there is controversy surrounding Hibbs' endorsement of political candidates violating the 501(c)(3) statute. Consequently, the FFRF argues that Hibbs and his church, having benefited from tax exemption, may have stepped beyond the boundaries set by tax laws and, hence, should face the consequences.

The Road Forward

While Hibbs hasn't yet responded to requests for comments, the issue is generating heated debates across the state and beyond. While champions of free speech contend that pastors like Hibbs are within their rights to express their views, others insist churches and pastors must adhere strictly to the provisions of their tax-exempt conditions. This contentious issue goes beyond Hibbs and his church. It is provoking a more comprehensive conversation about the role of religious institutions in politics, testing the bonds between church, state, and the Internal Revenue Service. This incident is a precedent and is bound to spur reviews and possibly more stringent controls over religious institutions' involvement in political activities in the future.

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Political Endorsement, Group's Appeal to IRS, Megachurch, Megachurch's Tax-Exempt Status, Restrictions Under IRC

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