The IRS recently concluded its investigation into New Way Christian Fellowship in Palm Coast, Florida, affirming the church’s tax-exempt status under section 501(c)(3) of the Internal Revenue Code. This decision comes after the church was scrutinized for praying for a local school board candidate during a worship service, raising questions about the intersection of faith and politics.
First Liberty Institute, which represented New Way, announced the IRS’s findings in a statement, emphasizing that the church’s activities do not jeopardize its tax-exempt status. Senior Counsel Jeremy Dys remarked, "First Amendment rights don’t end when a pastor, church member, or even a political candidate steps on the platform of a church." This statement underscores the ongoing debate about the role of religious institutions in political discourse.
The investigation began in June 2024 when the IRS sent a letter to New Way indicating potential violations of tax-exempt regulations. According to the IRS, organizations classified under 501(c)(3) are prohibited from engaging in political campaign activities. However, the church’s actions were defended as an exercise of free speech, a fundamental right protected by the First Amendment.
In August, First Liberty and the law firm Jones Day submitted a detailed response to the IRS, arguing that the church’s invitation for the school board candidate to speak was entirely within its rights. They pointed out that revoking a church’s tax-exempt status based solely on a sermon or speech at a worship service would be unprecedented in American history.
The controversy traces back to a visit by Jill Woolbright, a school board candidate, who addressed the congregation and was subsequently prayed for by a member of the clergy. Woolbright’s remarks about her belief in a divine calling to serve on the school board and her battle against "satanic warfare" attracted local media attention.
The IRS’s scrutiny of New Way reflects a broader concern regarding the Johnson Amendment, a 1954 law that restricts 501(c)(3) organizations from engaging in political campaigning. Many conservative Christians have criticized this amendment for limiting religious expression. Despite an executive order from former President Donald Trump in 2017 aimed at easing enforcement of the Johnson Amendment, it remains in effect, and calls for its repeal have yet to gain traction in Congress.
As the conversation around the role of faith in politics continues, the IRS’s decision to close the investigation without penalties is a significant victory for New Way Christian Fellowship and, by extension, for many religious organizations advocating for their right to engage in political discussions. This case serves as a reminder of the delicate balance between maintaining tax-exempt status and exercising the right to free speech within the church.
For more information on the IRS’s regulations regarding tax-exempt organizations, you can visit the IRS Charities and Non-Profits page.