Investigative Filmmaker Reveals Churches Legally Report Nothing to IRS Unlike Other Nonprofits
"Churches, religious institutions do not have to file that document. And so what that does is it means there's no legal document a religious organization could be held to account on. They report nothing to the IRS."
About this episode
On this episode of the Danny Jones Podcast, host Danny Jones sat down with Nathan Finochio, creator of the investigative documentary series The Religion Business, for an explosive three-hour conversation exposing systemic corruption, financial abuse, and alleged child sexual abuse within American religious institutions. Finochio, a lifelong Christian turned reformer, detailed how churches exploit a legal loophole allowing them to operate with zero financial transparency, collecting $550 billion annually in the U.S. while reporting nothing to the IRS—unlike every other nonprofit. He alleged churches use donor funds to silence rape victims with NDAs, cited one megachurch pastor with over $16 million in tax-free real estate funded by housing allowances, and projected the Mormon Church will become a trillion-dollar entity by 2040 despite donating only 2% of profits to charity. Finochio was arrested in Texas for attempting to question a pastor about finances and has been escorted off church properties nationwide. The conversation expanded into biblical scholarship, with Jones and Finochio discussing contradictions in scripture, the role of psychedelics in ancient religion, and contested Gospel passages. Finochio announced his series has partnered exclusively with Tucker Carlson's network and that Season 2, Episode 1—dropping in late 2024—will feature testimonies from individuals alleging ritual child abuse, blood oaths, and murders inside LDS temples in Salt Lake City. He called on pastors to adopt transparency, warned that the fusion of Christianity and politics under the Trump administration mirrors historical theocracies, and urged congregants to demand financial accountability as the only path to reform. The episode closed with Finochio's thesis that institutional religion in America has been deliberately 'kneecapped' by IRS regulations designed to remove its transformative power and convert faith into consumerism.
Key takeaways
- Finochio alleged churches use donor money to pay settlements and silence child rape victims with NDAs, a practice Trey's Law aims to ban.
- Religious institutions are exempt from IRS Form 990 filing, meaning $550 billion in annual U.S. church revenue is reported to no federal authority.
- One Dallas megachurch pastor allegedly has a $3.6 million annual tax-free housing allowance funding $16 million in beachfront and luxury homes.
- The Mormon Church controls $350 billion in assets, made $25 billion in market profits last year, but donated only 2% to humanitarian aid.
- Finofico's Season 2 will feature testimony alleging ritualistic child abuse and blood oath ceremonies in LDS temples in Salt Lake City, with named perpetrators.
- Finochio was arrested in Texas for standing on church property with a sign asking a pastor to disclose his salary and housing allowance.
- Only 13% of American Christians have read the entire Bible, yet 62% of the U.S. identifies as Christian, enabling pastors to weaponize out-of-context scripture for political and financial gain.