Two small faith-based groups lose tax-exempt status

WASHINGTON — The Internal Revenue Service has revoked the tax-exempt status of two small faith-based organizations in Utah and Missouri.

Prayer Works, of Branson, Mo., and America’s Faith Centered Education Foundation, Inc., of Huntsville, Utah, will no longer be listed as nonprofit charities, according to a June 2 IRS announcement.

That means donations to the organizations will no longer be tax deductible, among other IRS regulations.

IRS spokesman Robert Marvin said federal law prohibits the tax agency from commenting on tax-payer matters.

Pastor Howard Boyd, an Assemblies of God minister who headed Prayer Works, said his organization will no longer operate and will not fight the IRS ruling.

Working with local banks and real estate agents, Boyd said Prayer Works helped 185 families in southwest Missouri buy homes. A home seller would donate money to Prayer Works to be used a down payment for people needing financial assistance, he said.

Prayer Works received a finder’s fee when a home was sold, Boyd said. Loan officers and banks received a commission as well, he added.

“We were not doing anything illegal, but nonprofits have strict guidelines, and we violated that,” he said.

A call to America’s Faith Centered Education was not immediately returned. Glenn Kimber, a Utah educator familiar with the company, said it raised funds for students “to be educated in an environment where Judeo-Christian values are integrated into the learning process.”

For instance, the organization arranged trips for students to Israel, said Kimber, of Cedar City, Utah.

— RNS