“American Atheists receives tax-exempt status under Internal Revenue Code 501(c)(3),” said American Atheists President David Silverman, “but because the organization is not classified as religious it costs American Atheists, along with all other secular non-profits, significantly more money each year to keep that status. In this lawsuit, American Atheists and the other plaintiffs are demanding that all tax-exempt organizations, including those characterized as religious by the IRS, have the same requirements to achieve tax-exempt status.”
For example, in order to qualify for nonprofit tax-exempt status, any religious or secular organization must demonstrate it exists to benefit the public. After that basic element is established, religious non- profits are almost always declared automatically tax-exempt under the current IRC rules and definitions. However, secular non-profits face a lengthy application and a fee, which can be as high as $850.
“Religious organizations and churches are treated differently from secular organizations,” explained American Atheists National Legal Director Edwin Kagin. “The exemptions are applied in a way that discriminates solely on the basis of whether an entity’s members express beliefs and practices accepted as religious. The IRS treats your organization better if you profess belief in a supernatural deity.”