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Evangelical Finance Probe Concluded By Senator

First Posted: 01/08/11 01:03 PM ET Updated: 05/25/11 07:25 PM ET

Senator Charles Grassley

By Adelle M. Banks
Religion News Service

WASHINGTON -- Sen. Charles Grassley of Iowa has concluded a three-year probe into alleged lavish spending at six major broadcast ministries, and asked a prominent evangelical group to study ways to spur "self-reform" among religious groups.

Since 2007, Grassley, the outgoing top Republican on the Senate Finance Committee, has pursued allegations of high salaries and the use of private jets and Rolls Royces by some of the nation's most prominent TV ministers.

On Thursday (Jan. 6), he released a final 61-page review that said evangelists Benny Hinn of Texas and Joyce Meyer of Missouri had made "significant reforms" to their operations, but four others provided incomplete or no responses.

Grassley asked the Evangelical Council on Financial Accountability to conduct a formal study of issues raised by his staff, including whether churches, like other nonprofits, should be required to file detailed financial disclosure forms to the Internal Revenue Service.

"The staff review sets the stage for a comprehensive discussion among churches and religious organizations," Grassley said in a statement. "I look forward to helping facilitate this dialogue and fostering an environment for self-reform within the community."

Both Grassley and ECFA officials said they hope to resolve issues in ways that do not involve new legislation.

"Less government is better, and I think both ECFA and the senator espouse that philosophy," said Michael Batts, an ECFA board member and certified public accountant who will chair the ECFA's new Commission on Accountability and Policy for Religious Organizations.

Although the association has worked primarily on certifying the financial integrity of evangelical groups, the commission's work will include a range of religious organizations and other nonprofits, he said.

"These issues are the types of issues that transcend theology and doctrine and actually relate to the freedoms and the practices of all religious organizations," he said at a Friday news conference.

There is no timetable set for how long the new commission will work before sending Grassley a report, but ECFA President Dan Busby said it would be "a robust process" of more than a few months.

Among the issues they will consider are:

  • whether there should be limits on clergy housing allowances
  • whether tax rules about "love offerings" received by clergy should be clarified
  • whether current laws that prohibit partisan politicking in churches should be changed
  • whether the IRS should create an advisory committee of churches and other religious organizations.

Americans United for Separation of Church and State criticized the report's recommendation of repealing the prohibition of church electioneering.

"If these multimillion-dollar ministries are already misusing their donations for personal gain, imagine how much more dangerous they would be operating in the world of partisan politics," said the Rev. Barry Lynn, executive director of Americans United.

Grassley staffers determined that they did not have "time or resources" to issue subpoenas to the four ministries that did not completely respond to their inquiries. They instead issued reports based on public records, third parties and insiders.

Among their findings:

  • Insiders in Kenneth Copeland Ministries in Fort Worth, Texas, said they were intimidated from speaking with committee staff, with one former employee saying they were told "God will blight our finances" if they talked.
  • Georgia pastor Creflo Dollar's ministry was called the "least cooperative," with staffers unable to determine the names of board members.
  • The majority of questions asked by Grassley staffers of Bishop Eddie Long's megachurch in Lithonia, Ga., remained unanswered, including the amount of his salary.
  • Several former staffers at Paula White's megachurch in Tampa, Fla., wanted to speak with staffers but "were afraid of being sued by the church," and at least one was reminded by a church lawyer of a previously signed confidentiality agreement.

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By Adelle M. Banks Religion News Service WASHINGTON -- Sen. Charles Grassley of Iowa has concluded a three-year probe into alleged lavish spending at six major broadcast ministries, and asked a promi...
By Adelle M. Banks Religion News Service WASHINGTON -- Sen. Charles Grassley of Iowa has concluded a three-year probe into alleged lavish spending at six major broadcast ministries, and asked a promi...
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Larry Motuz
More prayers, fewer preyers.
05:56 PM on 01/16/2011
This report by Sen. Charles Grassley of Iowa is 'triply' blessed. It shows a keen eye, an agile mind, and a wolverine's scruples.
KennebunkportIndependent
Back in my day, we had NINE planets.
05:37 PM on 01/11/2011
I have a simple solution.

Rewrite the tax code so that all income must be declared to the IRS by churches and religious organizations, and have those group claim deductions which the IRS must approve.  Drop the 'tax exempt status' from all churches.

I caught Jim Bakker's show the other night - does his 'church' tax emempt?  The whole show was selling some bracelet and goods on the website as 'love gifts'.  What's going on?
10:39 AM on 01/11/2011
Televangelism is to God what professional wrestling is to sports.
KennebunkportIndependent
Back in my day, we had NINE planets.
05:38 PM on 01/11/2011
But professional wrestling is occasionally entertaining.
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HUFFPOST SUPER USER
flyjet787
Really?........REALLY?
06:11 PM on 01/19/2011
"Televangel­ism is to God what profession­al wrestling is to sports."

Except sports is REAL.
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10:04 AM on 01/11/2011
http://www.religionnewsblog.com/17633/kenneth-copeland-jet
Grassley's writing a thank you note to the 'ministry' of Kenneth and Gloria Copeland for the use of the 'ministries' new Cessna Citation . Just kidding. The family jet whose destination is the ski hills of Utah or wherever. Yes kids the Lord is good...and Grassley is seriously becoming an evangelist after retirement from government, just kidding.
09:40 PM on 01/10/2011
Most evangelical churches are small ( < 100 people) and are run at an operational loss. You wouldn't get much tax revenue out of them anyway. The mega-churches are few and far between, and even many of them are losing money. The ones that do make money often distribute much of it out as debt payments to pay off their large buildings.
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OneTop
Uh, is that a beer hall?
09:18 PM on 01/10/2011
"Evangelical Council on Financial Accountability"

Oxymoron

Word Origin & History

oxymoron
1657, from Gk. oxymoron, noun use of neut. of oxymoros (adj.) "pointedly foolish," from oxys "sharp" (see acrid) + moros "stupid." Rhetorical figure by which contradictory terms are conjoined so as to give point to the statement or expression; the word itself is an illustration of the thing. Now often used loosely to mean "contradiction in terms."
Online Etymology Dictionary, © 2010 Douglas Harper
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Blak
Yes..I know my Micro-bio is empty.
09:16 PM on 01/10/2011
I demand a refund. Three years and countless tax dollars to investigate the very people who's agenda he pushes on a daily basis.
08:09 PM on 01/10/2011
What about all the right wingers at C street?
Why is this always kept hush hush?
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alterego55
Flash your citations or leave!
07:09 PM on 01/10/2011
Thank you very much, now GIVE ME MY THITHE, sorry, I mean political contribution!
Regards,
Charles Grassley
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Deathly Pallor
Shame on us. Doomed from the start...
05:57 PM on 01/10/2011
And where is the fiscal responsibility in a Republican who has spent countless tax dollars to provide a service to specific religious organisations?
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paleoimage
I'm happy to live in a fact based world
04:25 PM on 01/10/2011
Thanks, Chuck... we appreciate you wasting tax dollars on an investigation of corrupt church activities that will, you hope, not produce any new regulatory legislation on the big business of religion. What a fat load of Republican hogwash....
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DevonTexas
Eternal Optimism
01:23 PM on 01/10/2011
What a farce!
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Eddy333
Fantastic claims require fantastic evidence
12:39 PM on 01/10/2011
Three years for that?! A recommendation that they police themselves? Our tax dollars at work I guess.

Why even bother. It's not like it's going to change anything. If frightened, deluded people want to give all their money to scheisters, then so be it. Survival of the fittest.
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Larry Motuz
More prayers, fewer preyers.
05:36 PM on 01/16/2011
...voluntarily police themselves, that is
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Phil Waste
Angry Middle Class American Citizen
12:26 PM on 01/10/2011
I know what this says about the people who run these so called churches but what does it say about those who keep sending them money? I've watched a few of these on TV and can't believe anyone could be that stupid as to believe or follow what these pinheads are preaching and then send them hard earned dollars. The answer is simple.....TAX CHURCHES.
03:22 PM on 01/10/2011
I do believe that the people who send their money to these megachurches are sincere, if somewhat misguided. Yes, I have no doubt that many of them are being exploited but are seeking something that they are willing to pay for.
09:48 PM on 01/10/2011
If you're going to tax evangelical churches then you're also going to have to tax the liberal mainline churches, unitarian universalist churches, mormon temples, mosques, jewish synagogues, hindu temples, etc. The courts won't allow you to aim legislation targeting one specific religious group.
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Phil Waste
Angry Middle Class American Citizen
01:02 AM on 01/11/2011
Tax all churches and religions and while we are at it tax all their property also.

The United States has no business subsidizing religion.
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alterego55
Flash your citations or leave!
12:25 PM on 01/10/2011
When it comes to religious donations, I think everyone should throw all their money up in the air and let God keep what he wants.