## Facts

- American Guidance Foundation, Inc. (AGF) was formed in 1972 as a Pennsylvania nonprofit and received tax-exempt status under I.R.C. § 501(c)(3).
- In 1974, AGF amended its governing documents to declare itself an “independent church” for purposes of I.R.C. § 170(b)(1)(A)(i).
- AGF’s governance and membership were essentially limited to Robert Seyfried and his immediate family; at times only Seyfried, his spouse, and their minor child were members, directors, and officers.
- Seyfried, trained in biblical studies and employed as a public-school teacher, served as AGF’s only commissioned “Christian Worker” and led worship.
- Religious services and observances were held in the Seyfried family apartment and were attended only by family members.
- AGF maintained modest outward activity (e.g., local directory advertising and a recorded religious message), but did not meaningfully seek to expand membership or establish a broader body of worshipers.
- The IRS continued to recognize AGF as a § 501(c)(3) religious organization but classified it as a private foundation under § 509(a), refusing to recognize AGF as a “church” under § 170(b)(1)(A)(i).
- After exhausting administrative remedies, AGF filed a declaratory judgment action under I.R.C. § 7428; the case was decided on cross-motions for summary judgment on the administrative record.

## Issues

1. Whether AGF qualified as a “church” within the meaning of I.R.C. § 170(b)(1)(A)(i) rather than a tax-exempt religious organization treated as a private foundation.

## Decision

- The court granted summary judgment for the United States.
- AGF was held not to qualify as a “church” under I.R.C. § 170(b)(1)(A)(i).
- The IRS’s refusal to reclassify AGF as a church was upheld, leaving AGF treated as a private foundation despite its § 501(c)(3) exempt status.

## Legal Principles

- The Internal Revenue Code does not provide a comprehensive definition of “church”; courts and the IRS may evaluate objective indicia commonly associated with churches.
- Multi-factor criteria (often referenced as a “fourteen points” set of characteristics) may be used as a guide, but church status does not turn on counting how many factors are met.
- At a minimum, a church entails a meaningful congregation: a body of believers that assembles regularly for worship.
- Church-status determinations in this context must rely on objective organizational and functional characteristics rather than theological judgments.

## Conclusion

Because AGF’s worship activities and “congregation” consisted only of the founder and his immediate family, with minimal institutional development or outreach, it failed the minimum congregational component required for classification as a “church” under I.R.C. § 170(b)(1)(A)(i), and the IRS’s denial of church status was sustained.


Am. Guidance Found., Inc. v. United States, 490 F. Supp. 304 (D.D.C. 1980)