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Ethics » Money & Giving

Commission suggests ways to keep closer eye on lavish ministries

(RNS) A special commission created by the Evangelical Council for Financial Accountability has called for clearer IRS guidance and greater involvement among donors to address “outliers” among congregations and other nonprofits that are not being financially accountable.

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Senator Chuck Grassley of Iowa. Credit: RNS photo courtesy Sen. Chuck Grassley's offical website.

Its 91-page report was a response to a request for recommendations from Sen. Charles Grassley, R-Iowa, after he concluded a three-year investigation into alleged lavish spending by six prominent broadcast ministries in 2011.

Among the dozens of suggestions of the interfaith commission:

-- compensation for leaders of nonprofits should be “reasonable,” and nonprofits should make such information available to donors who request it.

-- the Internal Revenue Service should clarify forms related to the income tax exclusion for clergy housing – which is being challenged in court by atheists who consider it unconstitutional.

-- the IRS should not create a specific advisory committee for religious organizations, but should allow the religious community to give input as it creates more guidance on tax law.

-- the tax agency should give more advice about “love offerings” -- monetary gifts sometimes given to clergy outside of regular congregational offerings -- to avoid the “mistaken impression that there is 100 percent correlation between deductibility by the giver and taxability to the receiver.”

-- The IRS should modify forms to permit organizations, such as operators of shelters from domestic violence, to redact sensitive information from public disclosure if it would put people at risk.

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Michael Batts said a comparatively small number of organizations are involved in “egregious financial misconduct” and “excessive legislation” is not necessary to address them. Credit: RNS photo courtesy the DeMoss Group

In an introduction to the report, commission president Michael Batts said a comparatively small number of organizations are involved in “egregious financial misconduct” and “excessive legislation” is not necessary to address them.

“We cannot allow the behavior of a few outliers in the religious and nonprofit sector to threaten the freedoms of those who are not the problem -- those who are doing the good work,’’ said Batts, a former ECFA chairman, in an introduction to the report.

Grassley's three-year probe concluded that evangelists Benny Hinn of Texas and Joyce Meyer of Missouri had made "significant reforms" to their operations. Grassley's final report said Texas-based Kenneth Copeland Ministries, Georgia pastors Creflo Dollar and Eddie Long and Florida megachurch pastor Paula White had provided incomplete or no responses.

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(RNS) St. Louis-based televangelist Joyce Meyer was cited by Sen. Charles Grassley, R-Iowa, for making improvements on her financial accountability. RNS file photo courtesy Joyce Meyer Ministries.

Grassley, in a statement, said the new report demonstrates the challenge of trying to prevent abuse without harming “above-board organizations.” He encouraged both donors and the IRS to heed the commission’s recommendations, but noted that Congress could extend the review if it addresses comprehensive tax reform.

“The report gives less attention to resolving some of the thornier questions, such as how to build accountability from entities that exploit vagueness in current laws and regulations for individual benefit rather than the greater good,” he said.

The commission plans to release a report in 2013 with recommendations about political expression of churches and other charities.

KRE/LEM END BANKS

Topics: Ethics, Money & Giving
Beliefs: Christian - Protestant, Evangelical
Tags: benny hinn, bishop eddie long, churches, commission on accountability and policy for religious organizations, congregations, creflo dollar, ecfa, evangelical council for financial accountability, internal revenue service, joyce meyer, kenneth copeland, michael batts, nonprofits, paula white, sen. charles grassley

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Comments

  1. the whole issue of clergy compensation, what is taxable and what is not needs to be addressed. A new pastor is coming to my church in jan., his salary will be $20,000.00, he will not pay any U.S. income tax on that part of income only his portion of SS. He will be
    be receiving approx. $50,000.00 in none taxable benefits, i.e. housing,utilities, travel
    expenses, medical insurance with a deductible paid by the congregation, retirement
    program and maybe more.
    As the country is hurting clergy needs to feel at least some of the pain that their
    congregation is facing, but they are not - IRS reform on the clergy needs to happen.
      Thank you

  2. Apart from the financial one, my other BIG problem with Benny Hinn are his failed prophecies and strange doctrines. Before you shout “Spam”, consider this: Benny claimed Holy Spirit anointing to prophesy that Fidel Castro would die “in the nineties”. At the same time, he prophesied, all the homosexuals in the USA would be executed “by the fire of God”. He publicly cursed his critics, and preached that Jesus was born again, and Adam could fly to the moon. Look it up on YouTube, and read Deuteronomy 18:20-22.

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