In addition, ordained Roman Catholic clergy direct all Conference worship activities.
GLCF’s state tax exemption journey began with an application for sales tax exemption, so that it could purchase tax-free goods for its annual men’s conference.Īs a religious event, each annual Conference is overseen by the Diocese of Rockford. GLCF’s primary exempt activity is its Great Lakes Catholic Men’s Conference, which annually unites men in public worship. GLCF is organized separately from the Catholic Church in order to promote wide participation among many Catholic parishes. GLCF is an Illinois nonprofit corporation dedicated to promoting Catholic fellowship and evangelism. Great Lakes Catholic Fellowship’s Uphill Climb to State Exemption This was the challenge faced by Great Lakes Catholic Fellowship (GLCF) in its administrative appeal against the Illinois Department of Revenue (DOR). In Illinois, nonprofits must not only fit precisely within one of the above exemption categories, they also must satisfy stricter evidentiary standards to prove qualification by “clear and convincing” evidence with “all debatable facts” resolved against exemption. But they face an uphill climb to secure state sales and property tax exemption. Many nonprofits easily garner Section 501(c)(3) recognition from the IRS, under the federal requirements and qualify for income tax exemption and tax-deductible contributions. “charitable,” which is the catchall category for organizations that widely distribute charitable benefits without “undue obstacle and without any “view to profit” (to the extent any fees are charged).“educational” generally means institutions of learning that relieve government burdens (i.e., grammar schools, but not trade schools) and.“religious” has historically been interpreted narrowly by the Department of Revenue as confined only to houses of worship (i.e., churches and other religious institutions), and not more broadly per Illinois court precedent.For these exemptions in Illinois, nonprofits generally must be Section 501(c)(3) tax-exempt organizations and additionally show that they fit into one of the following categories: religious, educational, or charitable. Such exemptions often provide valuable economic benefits. Under Illinois law and many other state laws, nonprofits may obtain exemption from both local property taxes and retail sales taxes. This administrative ruling is consistent with Illinois court rulings and therefore should pave the way for improved recognition of both property and sales tax exemptions based on religious qualifications with the Department of Revenue. Instead, the Administrative Law Judge ruled that this constrained interpretation improperly scrutinizes bona fide religious activities and that the term “religious” also extends to organizations with a broader religious nature. The decision rejects the Department of Revenue’s position that the religious exemption under Illinois law is limited to houses of worship. What is sufficiently “religious” for state tax exemption? The lawyers of Wagenmaker & Oberly and the Thomas More Society, a Chicago public interest law firm, collaborated together to reach a groundbreaking administrative appeal victory on this question, in Department of Revenue v.