Author(s): James R. Walker
Published: 03/17/2008
For five years, the United States Senate Finance Committee has aggressively investigated charities and nonprofit organizations. Under Senator Charles Grassley’s leadership, the Finance Committee’s "oversight" work has exposed charitable payments for lavish perks, excessive compensation, insider loans, and even tax-deductible African safaris.
In fall 2007, Senator Grassley expanded the Finance Committee’s review of tax-exempt organizations to include a small number of media-based ministries. Based upon reported allegations of wrongdoing, Senator Grassley sent written inquiries to six televangelist ministries asking for detailed financial records, including minister and staff compensation, housing allowances, personal use of church assets, board governance practices, and income reporting.
The Senate’s Finance Committee opened its focus on six prominent evangelistic Christian ministries, some of which are proponents of the "prosperity gospel"—a teaching that God will reward believers who open their hearts and wallets to Him. The targeted ministries include Kenneth and Gloria Copeland and Kenneth Copeland Ministries, Creflo Dollar and World Changers Church International, Benny Hinn and World Healing Center Church, Inc., Eddie Long and New Birth Missionary Baptist Church, Joyce Meyer and Joyce Meyer Ministries, and finally Randy and Paula White and Without Walls International Church.
When questioned about this Finance Committee inquiry, Senator Grassley remarked that "Jesus comes into the City on a simple mule and you got people today expanding his gospel in corporate jets. Somebody ought to raise questions about is it right or wrong." With Senator Grassley’s encouragement, the Senate’s Finance Committee is doing just that.
The Finance Committee’s inquiry and oversight work will continue into spring 2008 and may conclude with a high-profile Senate hearing. With such a conclusion, the financial practices, corporate jet usage, mansions, and large salary and perks of these ministries may be widely reported in the popular press and likely exposed with a very public, negative light.
As with previous congressional oversight inquiries, federal legislative efforts may follow. Such future legislation could have a broad impact upon the financial practices of all religious institutions.
RJ&L’s Religious Institutions Group is carefully monitoring the Finance Committee’s inquiry. If your church, denomination, school, or other religious institution has questions regarding this congressional activity and its possible impact upon your organization, please contact Jim Walker in our Denver office.
James R. Walker is RJ&L’s senior tax partner and a Fellow of the American College of Tax Counsel. He regularly represents taxpayers before federal and state administrative agencies, including the IRS, the Justice Department, and the Colorado Department of Revenue. He can be reached at 303-628-9510 or by e-mail at jwalker@rothgerber.com.