by Franklin Dumond, Director of Congregational Ministries
While numbers in the current pandemic center around numbers of new cases and the percentage of hospital beds utilized for COVID patients, numbers in the ancient world often became code language for names and phrases. The ancients had a secret code that assigned number values to specific letters. This secret code allowed secret communication. One such example was discovered in graffiti on the walls of Pompeii preserved by the volcanic ash that destroyed that city in A.D. 79. “I love her whose number is 545” lives on as a final love letter by an anonymous romantic.
For Christians, the most famous remnant of this kind of numerology comes from Revelation 13:18 where the number of the beast, a man’s number, is defined as 666.
Because of the sinister nature of that number a genuine dread of it pervades some Christian communities. Psychologists even have an elaborate name for the fear of the number 666. It is called Hexakosioihexekontahexaphobia.
One example of this fear of 666 was found in that stretch of highway in the western United States originally named U.S. Route 666. The naming was originally done in keeping with the pattern used across the country. It was the 6th spur of US Highway 66. But when accidents and incidents become more common it became known as “Devil’s Highway” and was later renamed U.S. Route 491.
Numbers have an ongoing significance for churches in the United States and it behooves church leaders to be familiar with the nature and use of these numbers as they re-engage ministry in the “new normal”.
- Federal Government Numbers of Interest
Tax Exempt Organizations 501(c)3
501(c) exemptions tend to be a bit misunderstood, and too often you’ll hear people wondering how political groups, or organizations like the NFL, are given tax-exempt status. The problem is that, when most people think about tax-exempt organizations, they are picturing corporations that have filed for 501(c)3 status.
501(c)3 entities typically have charitable, educational, or religious missions, thus any donations are tax-deductible. A 501(c)3 exemption is also the most popular type tax exemption – 74% of all 501(c)s are 501(c)3. However, there are twenty-eight other types of 501(c) eligible groups, and only two can solicit donations as tax-deductible.
For General Baptist churches 501(c)3 status is granted to participating churches under an umbrella ruling from the Internal Revenue Service. This status can be important when making grant applications or clarifying non-profit status for certain tax exemptions. A letter certifying 501(3)c status is available upon request.
Employer Identification Number
This unique number, which is issued by the federal government, is used by the IRS in order to quickly and easily identify each business for tax purposes. The EIN serves as a Social Security Number for a business, organization, trust, or foundation. The EIN is issued by the IRS through an on-line application that only requires a few minutes to complete.
This EIN will be used by churches on 941 tax withholding forms, 1099 and W-2 forms and to secure banking or investment accounts.
- State Government Numbers of Interest
Sales Tax Exemption
States are free to choose whether to tax non-profit and charitable organizations. Certain requirements must be met for an organization to qualify for a sales tax exemption. Many states tie their exemption to federal provisions under Section 501 of the Internal Revenue Code. Other states tie their exemption determination to the purpose of the organization (i.e. charitable, religious, educational, not-for-profit).
For most states that grant an exemption to non-profit organizations, the exemption is for purchases of items used in conducting exempt activities. If the organization makes sales that compete with for-profit companies, their sales are often either subject to sales tax when sold or taxable when purchased. Examples of potentially exempt organizations are schools, churches, non-profit hospitals, charitable organizations, and PTAs.
Contact your state’s Department of Revenue and request an application for a sales tax certificate of exemption. The tax-exemption certificate you need may vary depending on what product or service you seek tax exemption from.
Sales tax exemption certificates enable a purchaser to make tax-free purchases that would normally be subject to sales tax. The purchaser fills out the certificate and gives it to the seller. The seller keeps the certificate and may then sell property or services to the purchaser without charging sales tax.
Note that the renewal period of exemption certificates varies by state and by type of exemption. Some states’ exemption certificates do not expire. Other states’ certificates expire within a set period of time.
In most cases, the sales tax exemption from one state is not valid in another state so a church doing business out of state may need to make a special application for sales tax exemption or be prepared to pay sales taxes in that state.
In all cases, sales tax exemption is granted to purchases made by the church and should not be claimed by individuals who are purchasing on behalf of the church using their personal funds even if those purchases are to be reimbursed. To properly claim sales tax exemption the purchase should be made by church check or church credit card.
State Employer Identification Number
This unique number, which is issued by the state government, is used to quickly and easily identify each business for tax purposes. Each state will issue its own State Employer Identification Number that is valid for purposes in that state. This number will be used on state tax withholding reports as well as 1099 and W-2 income reports.
Two Really Important Numbers
Here are two other really important numbers.
There is only one (1) way to connect with God and that is through Jesus Christ.
While there are approximately 7.8 billion people alive today on planet earth, each one (1) of them can connect with God when they hear the Good News of forgiveness of sin and eternal life offered by faith in the Lord Jesus Christ, “ for, ‘Everyone who calls on the name of the Lord will be saved.’ How, then, can they call on the one they have not believed in? And how can they believe in the one of whom they have not heard? And how can they hear without someone preaching to them? And how can anyone preach unless they are sent?” Romans 10:13-14