Senate Committee Investigating Six Major Ministires, From Christianity Today Options

[Ozzie]

Senate Committee Investigating Six Major Ministries
Sen. Grassley probes "possible misuse of donations" to Benny Hinn, Joyce Meyer, and others.
Ted Olsen | posted 11/06/2007 08:44AM

Sen. Chuck Grassley, R-Iowa, the ranking member of the Senate Finance Committee, is investigating several major church-based ministries known for their leaders' lavish lifestyles and prosperity teachings.

Related articles and links

"Recent articles and news reports regarding possible misuse of donations made to religious organizations have caused some concern for the Finance Committee," Grassley wrote to the ministries in letters asking for detailed financial records.

None of the ministries targeted—those led by Kenneth Copeland, Creflo Dollar, Benny Hinn, Eddie Long, Joyce Meyer, and Randy and Paula White—are required to file the financial disclosure Form 990 with the IRS because they are are designated as churches.

Grassley "is not just asking them to come in and talk, he is asking them for everything," Kenneth Behr, president of the Evangelical Council for Financial Accountability, told The Tampa Tribune, which in May ran a lengthy investigative report on the Whites' Without Walls church and its finances.

The ministries have until December 6 to submit audited financial statements, compensation reports, records for ministry jet travel, and other documents. The Tampa Tribune has posted the letters to each ministry.

Some of the ministries contacted by news organizations say they will respond to the requests.

Creflo Dollar told CBS News his ministry is an "open book" and said he would comply with any "valid request" from Grassley. But he also warned that Grassley's investigation possibly affects "the privacy of every community church in America."

Joyce Meyer Ministries noted an October letter from the IRS stating, "We determined that you continue to qualify as an organization exempt from Federal income tax." The ministry also said that audited financial statements are available on its website. "JMM is committed to conducting itself with excellence and integrity, choosing to go above and beyond the level of accountability required by law," the organization told the St. Louis Post-Dispatch, which published a series of investigative reports on the ministry in 2003.

Randy and Paula White, who recently announced their divorce, told The Tampa Tribune they found the request "unusual, since the IRS has separate powers to investigate religious organizations if they think it's necessary. So we find it odd that the IRS did not initiate this investigation. It also seems odd that they have asked about areas that have no relationship to the operation of the church."

Grassley's office told the Tribune that the IRS "has been unable to keep up with the exponential growth of all tax-exempt organizations, including churches and ministries."

While Grassley is not proposing any changes to the law or tax code, he's suggesting that he may do so after the investigation. "Based on initial review, the way ministries operate has changed significantly over the last 20 years to 25 years, while the tax laws governing them for the most part have not," his office said.

Copyright © 2007 Christianity Today. Click for reprint information.

Related Elsewhere:

Christianity Today has previously profiled Randy and Paula White's Without Walls.

Joyce Meyer has responded to criticism about her church's finances in the past.

A 2003 Christianity Today editorial said financial transparency was a must, even when not legally required.

Other articles on faith-word churches and fiscal responsibility include:

First Church of Prosperidad | Arlene Sanchez Walsh on the African-style prosperity gospel right in our backyards—in immigrant Latino churches. (July 6, 2007)
Televangelist Report Card | A recent study reveals how religious broadcasters actually use their airtime. (October 22, 2001)


Televangelist Report Card
A recent study reveals how religious broadcasters actually use their airtime
Stephen Winzenburg | posted 10/22/2001 12:00AM

Predictions that the scandals in the late 1980s involving Jim Bakker and Jimmy Swaggart would be the death knell for television ministries have proven wrong. Though the number of viewers and contributions have dropped by almost three-fourths compared to televangelism's peak in the early '80s, dozens of TV ministries from that decade remain on the air today. Even Bakker, during his frequent appearances on Larry King Live and Dallas preacher James Robison's program, shares his plans to return to religious television.

Twenty years ago, under the direction of my graduate professors at the University of Minnesota, I began monitoring how televangelists used their airtime. Seven studies later, I remain fascinated by the virtues and perils of merging ministry and television.

To get a handle on the current state of televangelism, I monitored 150 broadcasts of 22 different television ministries from September to November of 2000. Ministries were selected based on ratings, reputation, and availability via national cable outlets. Whites hosted about 90 percent of the ministries I monitored, and males about 80 percent.

Program segments were categorized and timed by theme in four ways: fundraising (which involves requests for money), promotion (the marketing of free ministry-related items such as gospel tracts or telephone help lines), politics (commentary specifically on the two hot topics of the month, the presidential election, and the peace process in the Middle East), and ministry (including music, prayer, preaching, and testimonies).

Two common criticisms of televangelists are that "they're always asking for money," or "they're always talking about conservative politics." Here is what I discovered about how the televangelists actually use their time.

Money Talks

Whether it's NBC, PBS, or the Trinity Broadcasting Network (TBN), television broadcasting requires huge amounts of money. What I found, though, was that ministries actually do better than commercial TV in direct commercial appeals—using only 7 minutes an hour for fundraising while the broadcast networks use over 15 minutes an hour for ads.

The programs from my 2000 study used an average 11 percent of their airtime to ask for money, 8 percent in promotions, 4 percent to talk politics, and 77 percent in ministry. The "commercial" portions of religious broadcasts (combining fundraising and promotion) averaged 19 percent, compared to network television using 28 percent of its prime-time programming for advertising and promotional announcements (according to a 2000 study by the American Association of Advertising Agencies).

Fundraising appeals covered a wide range of styles. Some ministries, like Paul Crouch's Praise the Lord and Charles Stanley's In Touch, had separate segments offering an item in exchange for a contribution. Others, such as James Robison's Life Today, used larger segments of airtime to raise money for the poor by showing the hosts traveling to a needy part of the world. Some hosts made direct financial appeals to the camera, such as Jerry Falwell (plugging his correspondence school), Robert Tilton (asking followers to "make a vow" for $1,000 so they will be blessed), or Swaggart ("We've given you something. … and now I need your help").

The amount of time used to ask for money also varies dramatically. Some, such as Billy Graham or Catholic TV personality Mother Angelica, barely mentioned the subject. Others, like Falwell, spent more time asking for contributions than ministering to viewers. Oral and Richard Roberts used one-fourth of their telecasts to raise money, while Mart De Haan never asked for a penny on Radio Bible Class's TV show, Day of Discovery.

Most ministries claim to be financially accountable, offering viewers audited financial statements to prove it, but few actually provided the printed material. Updating a mail study I conducted in 1992, I wrote each ministry with a request for the financial information it sends to a typical viewer who would like to investigate the organization's finances before making a donation. The previous study showed that only 20 percent of the TV ministries provided an audited financial statement in response to my mailed request. For this project, I requested the information through each ministry's Web site. Most of the ministries immediately sent a computer-generated e-mail thanking me and letting me know that someone would be back to me soon to respond to my request.

Half of the organizations never responded with any financial information (including Robert Schuller, Pat Robertson, Oral Roberts, Falwell, Swaggart, Robison, Benny Hinn, and Jack Van Impe). About one-fourth replied by sending inadequate pie-chart information that gave no specific details about how much money was spent on salaries and who made up the board of directors. Charles Stanley's In Touch ministry first put me on the fundraising mailing list before sending the requested information two months later, and it took a second request to get Graham's organization to finally send a basic financial statement.

Two of the ministries, Radio Bible Class and Mother Angelica's Eternal Word Television Network, mailed detailed audited financial statements within a week of my request. Radio Bible Class is the industry leader in providing more than enough information for a viewer to make an informed decision to support the ministry financially. A current copy of the organization's IRS form 990 included the addresses for the board of directors and the specific salary of president Mart De Haan—all this from a television program that did not ask for money on air.

In summary: few television ministries are as accountable to contributors as they could be. Few are willing to give detailed information on how your donations are spent, and most will not even give potential contributors specifics regarding who is on the board.

Political Opinions

In the area of politics, two events were of high interest to the television ministries last year: the 2000 presidential race and the escalating crisis in the Middle East. More than half of the broadcasters addressed one of these issues from their video pulpits, with an average 4 percent of airtime being devoted to these subjects. But a few used a relatively large portion of their airtime to discuss political events.

Robertson, in particular, used a substantial portion of his 700 Club to discuss both issues, spending 15 to 20 minutes a day discussing the presidential race with a cohort he called a "CBN political analyst." He repeatedly expressed concern that George W. Bush was not doing enough to win the support of Robertson's Christian Coalition. Political discussions occupied one-third of his program time, which is an increase from 1996 (18 percent) and 1992 (24 percent). In fact, politics takes up as much programming time as it did in the 1980s.

Other ministry leaders encouraged viewers to vote and implied that there was a correct or godly way to cast a ballot. "I'm going to vote for God," said Mike Hayes, a guest host on Paul Crouch's Praise the Lord on TBN. "Don't vote for any other reason except for life," Mother Angelica told her audience. D. James Kennedy said that his followers "should elect Christians to rule over them." And Robison said, "If you're just going to vote for big government, don't vote, because big government is not God."

Some religious broadcasters came close to endorsing George W. Bush for the presidency. "I know I'll probably get in trouble saying it," Mother Angelica admitted, then told viewers to vote prolife. After one of the presidential debates, Robertson concluded, "Bush came through. He passed the test." And Falwell pointed out that though black urban pastors were allowed to endorse Al Gore from the pulpit, "What would happen if Jerry Falwell. … told the pastors to tell the people to vote for George Bush?"

Others used a more subtle approach. Just two weeks before Election Day, Robert Schuller let former Soviet leader Mikhail Gorbachev praise former President George H. Bush from the Crystal Cathedral pulpit (just as Republican Jack Kemp and Persian Gulf War General Norman Schwarzkopf had made appearances at the Crystal Cathedral shortly before the other presidential elections in the 1990s). In October 2000, Hinn said he wrote two letters to the presidential candidate "who believes what I believe," telling the candidate that he would win the election. "Anybody with brains," Hinn added, "knows who I'm talking about."

Despite the half-dozen ministries that used their TV platforms to discuss the presidential election, most religious broadcasters devoted almost no airtime to politics and continued to use only a small amount for fundraising and promotion.

During the past 20 years of conducting these studies, I observed that the commercial portions of the broadcasts were at their lowest average in 2000 and the political aspects were close to the 1996 low. The long-term response by televangelists to the scandals of the 1980s has been an overall reduction in discussing politics and money, while the amount of airtime devoted to ministry has increased.

Though pleas for money and thinly veiled political agendas have become synonymous with televangelism, we should remember that many souls have been touched for the good by TV ministries. Rather than tune them out, we should pray that God uses them, keeps them honest theologically and fiscally, and inspires them with a fresh vision to stay relevant in a media-saturated culture that, like or not, is more inclined to sit in front of a television than a pulpit.

Stephen Winzenburg is associate professor of communication at Grand View College in Des Moines. He hosts a weekly talk show on WHO-AM (www.whoradio.com).

Copyright © 2001 Christianity Today. Click for reprint information.

Related Elsewhere:

The full results and analysis of the study are available on the Grand View College site.

Author Stephen Winzenburg was featured in a 1997 Christianity Today article on research of fundraising practices of television evangelists.

Winzenburg also wrote a 2000 article for Christianity Today: "Whatever Happened to Hospitality? | Even in churches, many believers feel safer ignoring those they don't know." (5/16/00)

Winzenburg hosts a Saturday radio show on WHO-AM.

Official Web sites for televangelists analyzed in the survey include:

Kenneth Copeland
Mart De Haan, Day of Discovery
Creflo Dollar
Jerry Falwell
Billy Graham
Marilyn Hickey
Benny Hinn
D. James Kennedy
Joyce Meyer
Mother Angelica
Fred Price
Oral and Richard Roberts
Robert Schuller
The 700 Club
Charles Stanley
James Robison
Jack Van Impe
Previous Christianity Today articles on televangelists:

Smut Magazine Publishers Convert | Pornography producers convert after watching televangelist James Robison. (April 26, 1999)

The Re-education of Jim Bakker | Back on the streets, this fallen televangelist is preaching good news to the poor and predicting an asteroid-studded Second Coming. (Dec. 7, 1998)

Still Wrestling with the Devil | A visit with Jimmy Swaggart ten years after his fall. (March 2, 1998)

Bakker Bios | Jim, Tammy Faye describe their downfall. (Nov. 11, 1996)

[4reneyonly]

[lurker]

http://new.wittenburgdoor.com/nation-teeming-elmer-gantrys

[simplysaved]

[simplysaved]

I actually like Mother Angelica! She is (was) pretty with GREAT wit...she was very wise.

[simplysaved]

I think this link is a bit more comprehensive....

http://www.cbsnews.com/stories/2007/11/06/...in3456977.shtml

A spokesperson for Joyce Meyer Ministries provided CBS News with an IRS letter to the ministry dated October 10, 2007, that stated: "We determined that you continue to qualify as an organization exempt from Federal income tax." The letter could not be independently verified in time for this story. The ministry also pointed to audited financial statements for the last three years that are posted on the organization's Web site.

In a statement, Benny Hinn's spokesperson, Ronn Torossian, said the ministry is in the process of determining the best course of action in response to the Senate investigation. "World Healing Center Church complies with the laws that govern church and non-profit organizations and will continue to do so," Torossian wrote.

Eddie Long's New Birth Ministries says he has received the request for information from the U.S. Senate and plans to "fully comply. New Birth Ministries has several safeguards put in place to ensure all transactions are in compliance with laws applicable to churches."

In a statement to CBS News, Creflo Dollar called his ministry an "open book" and said he would comply with any "valid request" from Grassley. But he noted that the inquiry raised questions that could "affect the privacy of every community church in America."

Paula White is also expressing concern about precedents that could be set by turning over the requested information.

"We take our financial responsibilities to our partners very seriously and to the best of our knowledge we comply with all tax laws. Our audited financial statements appear on our website," said White, in a statement. "However, we are concerned about the possible precedent and ramifications of this request. We will be reviewing the request and its implications in detail over the coming weeks as we prepare our response."

Because they have tax status as churches, the ministries do not have to file IRS 990 forms like other non-profit organizations - leaving much financial information largely behind closed doors.

The letters sent Monday were the culmination of a long investigation fueled in part by complaints from Ole Anthony, a crusader against religious fraud who operates the Dallas-based Trinity Foundation, which describes itself as a watchdog monitoring religious media, fraud and abuse. "We've been working with them for two years," Anthony told CBS News. "We have furnished them with enough information to fill a small Volkswagen."

Anthony said after twenty years of working with media organizations to expose televangelists, he saw little reform. He says that's why he turned to another tactic, going straight to Grassley. He is confident that Grassley's inquiry will be different, "What we hope is that this will lead to reform in religious nonprofits."

The structure of many televangelist organizations - in which the leadership is often concentrated in one person or one family - has itself been the target of criticism. "Churches like these are ruled as a dictatorship," says Rod Pitzer, who directs research at Ministry Watch in North Carolina, which provides advice for donors to Christian organizations.

Pitzer welcomes the Senate committee investigation. Ministries lacking accountability, he says, "give a black eye to churches and Christians who are trying to do things in the right manner."

[YogusBearus]

Very interesting. I'm struck by the similarities in the excesses and duplicity of these ministries to the 3abn situation. The exception is their very strong pro-life stand. Has anyone ever heard 3abn take a stand on abortion?


-bear

[WillowRun]

Interesting....none of these stories mention this:

Hinn, Kenneth Copeland and Creflo Dollar all sit on the board of regents for Oral Roberts University, which is mired in a financial scandal of its own.

For the rest of the story: http://www.breitbart.com/article.php?id=D8...;show_article=1

Jesus was not rich nor did he live lavishly off his followers....People trust them to do the Lords work and often, it appears, that is not the case. Sad .

Respectfully,

Willow

[simplysaved]

But preachers, ministers, and evangelists are not called to be God.....

Interesting....none of these stories mention this:

Hinn, Kenneth Copeland and Creflo Dollar all sit on the board of regents for Oral Roberts University, which is mired in a financial scandal of its own.

For the rest of the story: http://www.breitbart.com/article.php?id=D8...;show_article=1

Jesus was not rich nor did he live lavishly off his followers....People trust them to do the Lords work and often, it appears, that is not the case. Sad .

Respectfully,

Willow

[4reneyonly]

Bottom line. people have the right to give to and support whom they please. That they make poor choices and support people that live lavishly off their funds is not a legal issue. It's a moral issue. Senators pimp more side money and lavish lifestyles than anyone else, all under the guise of being a public servant. So, what is the problem?

If one drinks, does drugs or gives to Mr Get Your Dollars, in order to feel better or hope for the better, that's their biz-ness. As I told someone who bought Mr Dollar's book about how to improve their finances or whatever, that I could have told her what was in the book for about $29.99 less than the $30 she paid him-work hard, save your money, don't buy anything you really don't need and pay your tithes. Our elders who never had a degree in accounting and never had the education/or jobs that most of us have, had enough common sense to know that back in the day.

[beartrap]

But preachers, ministers, and evangelists are not called to be God.....

You are probably right about that. We all hear that Christians are to be like Jesus, but I have wondered about that. "Be like Jesus this my song, in the home and in the throng. Be like Jesus all day long. I would be like Jesus." And such. I suppose that it is hopeless for any human to try following in the footsteps of Jesus. How can anyone try to be like him, or follow his example? He was God, and we are not. As you say, we are not called to be God.

This post has been edited by beartrap: Nov 8 2007, 03:12 AM

[4reneyonly]

Hmmmm...A friend sent me this little quote the other day: "Do not ask the Lord to guide your footsteps if you're not willing to
move your feet."

[Pickle]

http://new.wittenburgdoor.com/nation-teeming-elmer-gantrys

That claims that 148 televangelists got faxes. Was Danny on the list? How do we find out?

[Statrei]

As I told someone who bought Mr Dollar's book about how to improve their finances or whatever, that I could have told her what was in the book for about $29.99 less than the $30 she paid him-work hard, save your money, don't buy anything you really don't need and pay your tithes.

Since when it payment of tithes a may to improve one's finances? Let's please keep to the facts.

[Denny]

Since when it payment of tithes a may to improve one's finances? Let's please keep to the facts.

Its the Adventist version of the get rich quick scheme pay your tithes and God will bless you aka The Guilt trap....