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Franklin Graham’s Tax-Exempt Status Revoked
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The Billy graham Evangelistic Association (BGEA) and Samaritan’s Purse, led by Franklin Graham, had their tax-exempt status challenged and ultimately revoked by the Internal Revenue Service (IRS) in April 2018. This action stemmed from Graham’s political statements,which the IRS persistent violated the prohibition against 501(c)(3) organizations engaging in substantial political campaign activity.
Background and IRS Scrutiny
The IRS prohibits tax-exempt organizations, particularly those classified under section 501(c)(3) of the Internal Revenue code, from participating in partisan political campaigns. This restriction is intended to prevent these organizations from using tax-deductible donations to influence elections. The IRS provides detailed guidance on political campaign activities for 501(c)(3) organizations.
Franklin Graham faced scrutiny for comments made in support of then-candidate Donald Trump during the 2016 presidential election. Specifically, statements suggesting voters should support Trump and questioning Barack Obama’s faith were cited as potential violations.These statements prompted complaints to the IRS, leading to an audit.
The IRS Determination and Revocation
In April 2018, the IRS determined that Graham had engaged in excessive political campaign activity. the IRS sent notices to both the BGEA and Samaritan’s Purse informing them of the revocation of their 501(c)(3) status. Politico reported on the IRS determination at the time.
The IRS stated that Graham’s statements were not neutral and constituted intervention in a political campaign on behalf of a candidate. The revocation meant that donations to these organizations were no longer tax-deductible for donors.
Response and Current Status
Graham and the BGEA contested the IRS’s decision, arguing that his statements were expressions of personal opinion and not endorsements made on behalf of the organizations. However, the IRS maintained its position.
As of December 2025, the tax-exempt status of both the BGEA and Samaritan’s Purse remains revoked. The Christian Post provides ongoing coverage of this issue. The organizations continue to operate, but donations are not tax-deductible.
Key Takeaways
- Franklin Graham’s political statements led to the IRS revoking the tax-exempt status of the BGEA and Samaritan’s Purse in April 2018.
- The IRS prohibits 501(c)(3) organizations from engaging in substantial political campaign activity.
- The revocation means donations to these organizations are not tax-deductible.
- The BGEA and Samaritan’s purse have contested the IRS’s decision, but as of December 2025, the status remains revoked.
This case highlights the complexities of navigating political speech for religious organizations and the importance of adhering to IRS regulations regarding tax-exempt status. The situation continues to be monitored for any potential changes or appeals.
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