Federal Claims Court Agrees That Religious Foundation Is Not A "Church"

In Foundation of Human Understanding v. United States, (Fed. Cl., July 21, 2009), the U.S. Court of Federal Claims agreed with the Internal Revenue Service that the Foundation of Human Understanding, while qualifying as a non-profit organization, had lost its status as a "church" under IRC § 170(b)(1)(A)(i). This determination meant that the organization became subject to the rules for private foundations in IRC § 509. The IRS has developed 14 criteria to use in determining church status. While the Foundation met some of these, the court held that it did not meet the threshold requirement that it "serve an associational role in accomplishing its religious purpose." It concluded: "The extent to which Foundation brings people together to worship is incidental to its main function which consists of a dissemination of its religious message through radio and internet broadcasts, coupled with written publications."