Whereas, it is recognized that religious institutions, such as churches, schools and hospitals, and welfare agencies are exempt from Federal, State and local taxes on the ground that they are of a non-profit nature, and on the moral principle that such institutions should be encouraged as vital to the general welfare of society and the perpetuity of sound government;

BE IT RESOLVED that the National Association of Evangelicals believes that such tax exemption for churches and religious institutions is in keeping with the principle of separation of Church and State as set forth in the First Amendment to the Constitution of the United States, but this should not be construed as including the operation of secular enterprises not directly related to the function of the church or religious institution.