

You have to understand what profit is.
If I make a church, collect 1 million from my congregation. Then, I pay myself 1 million for the job of being the pastor.
My business, the church, is non-profit. It had 1 million in revenue and 1 million in expenses. No profit.
Now, I would be dumb to pay myself the million as a salary because then that million gets income taxed. I’d “buy” 1 million dollars worth of bibles for Uzbekistan and never fulfill the order or something. Launder it.
The idea of why the church doesn’t get taxed is sound. People pay income tax, church collects taxed income, church spends taxed income to better community.
They are essentially supposed to be a middle man. If i took my taxed income and donated it directly to buy bibles for Uzbekistan. Then it doesn’t make sense for my money to be taxed again. So if i give my money to the church and they give it to Uzbekistan, then why tax it?
Problem is our tax code has loop holes
A church was never supposed to buy a private jet. Yet it has become a business expense.
Is a private jet an operating cost?