A "free church" is a Christian denomination or independent church that is intrinsically separate from government. A free church does not define government policy, and a free church does not accept church theology or policy definitions from the government. A free church also does not seek or receive government endorsements or funding to carry out its work. The term is especially relevant in countries with established state churches.
History
The free church model is historically what the Christian church was before the Emperor Constantine legalized Christianity and before the later setting up of the state church of the Roman Empire. There were many thriving Christian communities in the Far East during medieval times, yet none of these communities ever wielded control of a state. Groups like the Waldensians were in practice free churches. In 16th century Europe, within the radical movements such as the Anabaptists were free churches with small exceptions like the Münster Rebellion. Mennonites, the Amish, the Quakers and other churches maintain free church polities into the present date both in Europe and in North America. Free churches also evolved in the USA supported by the official separation of church and state, while much of Europe maintains some government involvement in religion and churches via taxation to support them and by appointing ministers and bishops etc., although free churches have been founded in Europe outside of the state system
Among the Methodist Churches, calling a church "free" does not indicate any particular relation to a government. Rather the Free Methodist Church is so called because of three, possibly four, reasons, depending on the source referenced. The word "Free" was suggested and adopted because the new church was to be an anti-slavery church, because pews in the churches were to be free to all rather than sold or rented, and because the new church hoped for the freedom of the Holy Spirit in the services rather than a stifling formality. However, according to World Book Encyclopedia, the third principle was "freedom" from secret and oathbound societies.
In the United States, because of the First Amendment forbidding the government establishment of religion, all churches are by definition free churches. However, many churches in the United States have requested tax-exempt status under section 501c3 of the Internal Revenue Code. This subjects the churches to certain additional regulations to maintain the tax exemption. Churches that are structured under 501 face restrictions in the area of political speech: no substantial part of the church's activities may consist of carrying on propaganda or otherwise attempting to influence legislation. A 501 organization is also restricted from participating or intervening in any political campaign for or against any political candidate.
Germany
In Germany, Protestant churches outside the Evangelical Church in Germany are put under a common label of, and collectively referred to, as "free churches" or "Protestant free churches". This includes relatively new denominations like Baptists, Methodists, etc., as well as older ones like the Mennonites and Evangelical Lutheran Free Church.