Rev. Rul. 54-546

Articles falling within the classification of jewelry and having religious significance, such as Cross and Crown pins, buttons, and medals, when sold to churches or other religious organizations for use as awards in connection with religious programs of such institutions, are considered to be sold for religious purposes within the meaning of section 2400 of the Internal Revenue Code of 1939. The retailer is entitled to the exemption from tax with respect to sales of such articles provided he obtains a statement from the clergy or other leaders of the various religious denominations or organizations to the effect that the articles are to be used as awards in connection with their religious program. Sales of these articles to individuals are subject to tax.