WASHINGTON, D.C. – An atheist group last night gave up its lawsuit threatening low-income churches and their communities nationwide. In Gaylor v. Mnuchin, the atheist group Freedom From Religion Foundation (FFRF) sued the IRS to end the parsonage allowance, a federal tax provision that allows churches, mosques, and synagogues to provide faith leaders a tax-free housing allowance to help them live in the communities they serve (Learn more in this 3 min. video). The U.S. Court of Appeals for the Seventh Circuit recently rejected the atheists’ challenge and unanimously upheld the tax exemption as constitutional, and last night the atheist group declined to appeal to the Supreme Court, ending the lawsuit.

In 2016, the atheist group Freedom From Religion Foundation (FFRF) sued the IRS, demanding that it end the parsonage allowance and begin imposing nearly $1 billion in new taxes per year on churches nationwide. Represented by Becket, Pastor Chris Butler of Chicago Embassy Church and several other religious leaders intervened in the case to defend the parsonage allowance. The Seventh Circuit agreed with the churches, ensuring that they will remain free to continue using the parsonage allowance and serving their communities as they have for decades.

“This is a victory for all houses of worship that serve needy communities across the country,” said Pastor Chris Butler of Chicago Embassy Church. “I am grateful that my church can still be a home for South Side Chicago’s at-risk youth, single mothers, unemployed, homeless, addicted, victims of gang violence and others on the streets.”

Pastor Chris leads a predominantly African-American congregation that ministers to Chicago’s poorest neighborhoods. His church can’t afford to pay him a full salary, but it offers him a small housing allowance so he can afford to live near his church and the community he serves. For over 60 years, federal law has recognized that ministers’ housing allowances shouldn’t be taxed as income under the same tax principle that exempts housing allowances for hundreds of thousands of secular workers—including teachers, business leaders, military service members, and many more. This tax exemption also keeps the IRS from becoming entangled in religious matters.

“The tax code has long exempted housing allowances for ministers under the same principle that it exempts housing for soldiers, diplomats, peace corps workers, prison wardens, non-profit presidents, oil executives, school superintendents, teachers, nurses, fisherman, and many more,” said Luke Goodrich, vice president and senior counsel at Becket. “The court rightly recognized that providing this kind of equal treatment to churches is perfectly constitutional, and churches should be allowed to serve the neediest members of their communities without the tax man breathing down their neck.”

Becket represented Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia in this case.

For more information or to arrange an interview with a Becket attorney, contact Ryan Colby at media@becketlaw.org or 202-349-7224. Interviews can be arranged in English, Chinese, French, German, Portuguese, Russian, and Spanish.

WASHINGTON, D.C. – An appeals court today protected Pastor Chris Butler, a leader of a South Side Chicago congregation, and religious leaders across the country from nearly $1 billion per year in new taxes. In Gaylor v. Mnuchin, an atheist group sued the IRS to end the parsonage allowance, a federal tax provision that allows churches, mosques, and synagogues to provide faith leaders a tax-free housing allowance to help them live in the communities they serve (Learn more in this 3 min. video). The Chicago-based U.S. Court of Appeals for the Seventh Circuit unanimously rejected the atheists’ challenge, ruling that the tax exemption is constitutional.

In 2016 the atheist group Freedom From Religion Foundation (FFRF) sued the IRS, demanding that it end the parsonage allowance and begin imposing almost $1 billion in new taxes per year on churches nationwide. Pastor Chris of Chicago Embassy Church and several other religious leaders who rely on the parsonage allowance, represented by Becket, intervened in the case. In 2017, the district court ruled the parsonage allowance was unconstitutional. But Becket appealed to the Seventh Circuit, which today ruled that the parsonage allowance “is simply one of many per se rules” that “allow hundreds of thousands of employees (including ministers) to receive tax-exempt housing every year,” and that it is consistent with the nation’s “lengthy tradition of tax exemptions for religion, particularly for church-owned properties.”

“This ruling is a victory not just for my church but for the needy South Side Chicago community we serve – our youth, our single mothers, our homeless, our addicted, and our victims of gang violence,” said Pastor Chris Butler of the Chicago Embassy Church. “I am grateful that I can continue serving them and living side by side with them to make our neighborhood a safer, more peaceful place.”

Pastor Chris is the leader of a predominantly African-American congregation, and devotes his life to mentoring at-risk youth, decreasing neighborhood crime, and caring for the homeless in Chicago’s poorest neighborhoods. His church can’t afford to pay him a full salary, but it offers him a small housing allowance, so he can afford to live near his church and the community he serves. For over 60 years, federal law has recognized that housing allowances shouldn’t be taxed as income under the same tax principle that exempts housing allowances for hundreds of thousands of secular workers—including teachers, business leaders, military service members, and many more. This tax exemption also keeps the IRS from becoming entangled in religious matters.

“The tax code treats ministers the same as hundreds of thousands of nonreligious workers who receive tax-exempt housing for their jobs—that’s not special treatment, it’s equal treatment,” said Luke Goodrich, vice president and senior counsel at Becket. “The court rightly recognized that striking down the parsonage allowance would devastate small, low-income houses of worship in our neediest neighborhoods and would cause needless conflict between church and state.”

Becket represents Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia.

WASHINGTON, D.C. – Pastor Chris Butler, a South Side Chicago pastor, was in court today defending his ministry from a discriminatory lawsuit that would impose nearly $1 billion per year in new taxes on churches across the country. In Gaylor v. Mnuchin, an atheist group is suing the IRS to end the parsonage allowance, a 64-year-old federal tax provision that allows churches, mosques, and synagogues to provide faith leaders a tax-free housing allowance to help them live in the communities they serve. The U.S. Court of Appeals for the Seventh Circuit must now decide if the law requires the government to discriminate against religious groups by denying them a tax exemption similar to exemptions used by hundreds of thousands of secular employees.

In 2016 the atheist group Freedom From Religion Foundation (FFRF) sued the IRS, claiming that the parsonage allowance was an illegal establishment of religion and demanding its end. Pastor Chris of Chicago Embassy Church and several other religious leaders who rely on the parsonage allowance, represented by Becket, intervened in the case. In 2017, the district court ruled the parsonage allowance was unconstitutional. Becket appealed to the Seventh Circuit and today argued that the parsonage allowance is fair tax treatment, not a special benefit for faith leaders.

“The tax code treats ministers the same as hundreds of thousands of nonreligious workers who receive tax-exempt housing for their jobs—that’s not special treatment, it’s equal treatment,” said Luke Goodrich, vice president and senior counsel at Becket. “Striking down the parsonage allowance would devastate small, low-income houses of worship in our neediest neighborhoods and would cause needless conflict between church and state.”

Pastor Chris is the leader of a predominantly African-American congregation, and devotes his life to mentoring at-risk youth, decreasing neighborhood crime, and caring for the homeless in Chicago’s poorest neighborhoods. The church can’t afford to pay Pastor Chris a salary, but it offers him a small housing allowance so he can afford to live near his church and the community he serves. Ending the housing allowance for faith leaders like Pastor Chris would harm poor communities by diverting scarce resources away from essential ministries and even forcing some small churches to close (Learn more in this 3 min. video).

For over 60 years, federal law has recognized that housing allowances like Pastor Chris’s shouldn’t be taxed as income. This is the same tax principle that allows hundreds of thousands of secular workers including teachers, business leaders, and military service to receive tax-free housing for their jobs. It also keeps the IRS from becoming entangled in religious matters. If the parsonage allowance ends, it would impose nearly $1 billion per year in new taxes on churches, making it impossible, particularly for leaders of small and minority faiths, to live in the communities they serve.

“Today I asked the court to protect our ability to serve our South Side Chicago community – our youth, our single mothers, our homeless, our addicted, our lost, and all those who seek a church family,” said Pastor Chris Butler of the Chicago Embassy Church. “I hope the court will keep letting religious leaders like me not only preach from the pulpit, but live among the people we serve.”

Becket represents Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia. A decision in the case is expected early next year.

For more information or to arrange an interview with a Becket attorney, contact Melinda Skea at media@becketlaw.org or 202-349-7224. Interviews can be arranged in English, Chinese, French, German, Portuguese, Russian, and Spanish.

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Becket is a non-profit, public-interest law firm dedicated to protecting the free expression of all religious traditions and has a 100% win-rate before the United States Supreme Court. For over 20 years, it has successfully defended clients of all faiths, including Buddhists, Christians, Jews, Hindus, Muslims, Native Americans, Sikhs, and Zoroastrians (read more here).

WASHINGTON, D.C. – Pastor Chris Butler, a South Side Chicago pastor, asked a federal appeals court Thursday to end a discriminatory lawsuit that would devastate his community and subject churches across the country to almost $1 billion in new taxes. In Gaylor v. Mnuchin, an atheist group is suing the IRS to end the parsonage allowance, a 64-year-old federal tax provision used by churches, mosques, and synagogues to help faith leaders live in the communities they serve.   

Pastor Chris Butler is the leader of a predominantly African-American congregation, whose ministry includes mentoring at-risk youth, decreasing neighborhood crime, and caring for the homeless in Chicago’s neediest neighborhoods. Ending the housing allowance for faith leaders like Pastor Chris would discriminate against religious groups by treating them worse than many other secular employees who receive similar tax treatment. It would also harm poor communities by diverting scarce resources away from essential ministries. It could even force some small churches to close (learn more in this 3-min. video).    

“For the majority of churches, the pastors are like me and experience at some level the same problems that we’re trying to face in the community,” said Pastor Chris Butler of the Chicago Embassy Church. “If you take away even a little bit, it can become a lot of trouble quickly.”

For over 60 years, the federal tax code has allowed pastors, rabbis, imams, and other faith leaders to receive tax-free housing allowances under the same tax principle that allows teachers, business leaders, military service members and hundreds of thousands of other workers to receive tax-free housing for their jobs. But in 2011 the Freedom From Religion Foundation (FFRF) sued the IRS, demanding it end the tax exemption for faith leaders, saying it violates the Constitution. But the IRS would be discriminating against religious groups if it ended their housing allowance when so many secular businesses and organizations receive similar tax treatment. 

“The same group of atheists claimed it was unconstitutional to put Mother Teresa on a postage stamp, so it’s no surprise they’re trying to sic the IRS on churches,” said Luke Goodrich, deputy general counsel at Becket. “Treating ministers like other professionals isn’t an establishment of religion; it’s fair tax treatment.”  

Becket intervened in the case in January 2017 on behalf of Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia. The Chicago-based Seventh Circuit is expected to hear oral argument and issue a decision later this year. 

For more information or to arrange an interview with a Becket attorney, contact Melinda Skea a or 202-349-7224. Interviews can be arranged in English, Chinese, French, German, Portuguese, Russian, and Spanish. 

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Becket is a non-profit, public-interest law firm dedicated to protecting the free expression of all religious traditions and has a 100% win-rate before the United States Supreme Court. For over 20 years, it has successfully defended clients of all faiths, including Buddhists, Christians, Jews, Hindus, Muslims, Native Americans, Sikhs, and Zoroastrians (read more here). 

WASHINGTON, D.C. – Religious leaders of all faiths are fighting for equal treatment while serving some of the nation’s poorest communities. In Gaylor v. Mnuchin, an atheist-led lawsuit threatens a 64-year-old tax provision that enables pastors, rabbis, imams, and other faith leaders to live in the communities they serve. Represented by Becket, pastors on the South Side of Chicago and other religious leaders today appealed to the U.S. Court of Appeals for the Seventh Circuit, after a ruling last year authorized almost $1 billion in new taxes each year on them and other houses of worship across the country (hear their story in this 3 min. video).

For over 60 years, the federal tax code has allowed pastors, rabbis, imams, and other faith leaders to receive housing allowances that are not taxed as income—just like military service members, overseas workers, and thousands of other professionals. But in April 2016, the atheist group Freedom From Religion Foundation (FFRF) sued the IRS to deny this treatment to ministers alone. On October 6, 2017, a federal district court ruled that housing allowances for ministers unconstitutionally establishes religion, breaking with nearly 70 years of precedent and threatening ministers with almost $1 billion in new taxes each year.

“Our congregation’s mission is to serve this city; to fight against injustice and oppression, to be a shoulder to cry on, and to give encouragement to folks in need,” said Pastor Chris Butler of the Chicago Embassy Church. “It would have a devastating impact on small churches if suddenly a pastor had less time to devote to the community.”

Pastor Chris Butler is the leader of a predominantly African-American congregation, whose ministry includes mentoring at-risk youth, decreasing neighborhood crime, and caring for the homeless in Chicago’s neediest neighborhoods. Ending the housing allowance would discriminate against religious groups by treating them worse than many other secular employees who receive the same tax treatment. It would also harm poor communities by diverting scarce resources away from essential ministries. It could even force some small churches to close.

“The same group of atheists claimed it was unconstitutional to put Mother Teresa on a postage stamp, so it’s no surprise they’re trying to sic the IRS on churches,” said Luke Goodrich, deputy general counsel at Becket. “Treating ministers like other professionals isn’t an establishment of religion; it’s fair tax treatment.”

Becket intervened in the case in January 2017 on behalf of Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia. The Seventh Circuit is expected to hold oral argument and issue a decision later this year.

For more information or to arrange an interview with a Becket attorney, please contact Melinda Skea at media@becketlaw.org or 202-349-7224.  Interviews can be arranged in English, Chinese, French, German, Portuguese, Russian, and Spanish.

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Becket is a non-profit, public-interest law firm dedicated to protecting the free expression of all religious traditions and has a 100% win-rate before the United States Supreme Court. For over 20 years, it has successfully defended clients of all faiths, including Buddhists, Christians, Jews, Hindus, Muslims, Native Americans, Sikhs, and Zoroastrians (read more here). 

WASHINGTON, D.C. – Religious leaders of all faiths received a devastating blow late Friday following a court ruling that would end the “parsonage allowance,” a longstanding tax provision. The ruling in Gaylor v. Mnuchin breaks nearly 65 years of precedent and threatens churches across the country with nearly $1 billion in new taxes. It states that the parsonage allowance “violates the establishment clause because it does not have a secular purpose or effect and because a reasonable observer would view the statute as an endorsement of religion.”  

For nearly 100 years, pastors, rabbis, imams and other faith leaders—whose jobs require them to live close to their church or in an underserved community—have been eligible for the parsonage allowance. This tax provision ensures that faith leaders like South Side, Chicago-based pastor Chris Butler receive the same tax treatment as other employees who must live in the communities they serve—like military service members, teachers, and overseas workers. In 2014, the Freedom From Religion Foundation (FFRF), an atheist group, sued the IRS to prevent faith leaders from receiving equal tax treatment, threatening the viability of hundreds of thousands of churches and the communities they serve. 

“This decision is crippling to the equal treatment of our nation’s faith leaders—but it will not stand,” said Pastor Chris Butler of the Chicago Embassy Church. “Our job and our life’s purpose are one and the same: to serve our congregations and our communities 24/7. Living close to our faith communities is vital to our missions, and we should not face discriminatory tax penalties for doing so.” 

The leader of a predominantly African-American congregation, Pastor Butler devotes his life to serving his community by mentoring at-risk youth, decreasing neighborhood violence, and feeding and clothing the homeless in Chicago’s poorest neighborhoods. In this lawsuit, Becket argued that ending the parsonage allowance would discriminate against religious groups by treating them differently than many other secular employees who receive similar tax treatment on their housing allowances. Getting rid of the parsonage allowance would also harm their religious mission by diverting scarce resources away from vital ministries and would force leaders like Pastor Butler to move further away from his congregation or take up a second job, robbing the community that needs him. It would also force other churches to close altogether.  

“It’s not unconstitutional for the federal government to treat faith leaders the same as other secular employees in their housing allowances. In fact, treating them differently would be discrimination against religion, pure and simple,” said Hannah Smith, senior counsel at the non-profit religious liberty law firm Becket.  

Becket intervened in the case in January 2017 on behalf of Pastor Chris Butler and Bishop Edward Peecher of Chicago Embassy Church, Father Patrick Malone of Holy Cross Anglican Church, and the Diocese of Chicago and Mid-America of the Russian Orthodox Church Outside of Russia. The churches will appeal this decision to the Chicago-based United States Court of Appeals for the Seventh Circuit, with a decision expected in 2018. 

For more information or to arrange an interview with a Becket attorney, please contact Melinda Skea at media@becketlaw.org or 202-349-7224.  Interviews can be arranged in English, Chinese, French, German, Portuguese, Russian, and Spanish.   

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Becket is a non-profit, public-interest law firm dedicated to protecting the free expression of all religious traditions and has a 100% win-rate before the United States Supreme Court.  For over 20 years, it has successfully defended clients of all faiths, including Buddhists, Christians, Jews, Hindus, Muslims, Native Americans, Sikhs, and Zoroastrians (read more here).