World magazine’s Warren Smith has an article out today which provides some additional information regarding the Evangelical Council for Financial Accountability’s termination of Gospel for Asia’s ECFA membership.
According to Smith’s reporting, the lack of disclosure surrounding the $40+ million headquarters was key. As I first reported here, GFA failed to disclose the $19.8 million transfer of cash from Believers’ Church to help complete GFA’s new Wills Point, TX headquarters. This cash was not reported as a related party transaction but as an anonymous donation. GFA’s leaders told staff that the organization would not borrow money for the construction but in fact did borrow money from a U.S. bank in 2014 and then took money which Believers’ Church borrowed from an undisclosed source in India.
GFA’s CFO David Carroll said ECFA changes had been made and hopes to regain membership. I will have more to say about this in coming posts.
According to World, Ministry Watch’s Rusty Leonard has advised donors to halt all donations to GFA due to the extent of the problems.
Look for another article on this news from Christianity Today. Spokespeople for the magazine disclosed via multiple channels that an article is coming.
Month: October 2015
What Termination from ECFA Means for Gospel for Asia
Word out of Wills Point, TX (GFA’s HQ) is that GFA’s leadership is hoping to find a friendly reporter to bring forth a puff piece which will minimize the importance of losing membership in the Evangelical Council for Financial Accountability.
That may be a hard sell.
In the past, GFA has relied on ECFA membership as a means of proving their financial integrity. To illustrate, consider these prior statements:
As members of the @ecfa you can trust us when we say 100% of what you give goes to the field! http://t.co/M0OlOzrFna
— Gospel for Asia (@GospelforAsia) June 7, 2014
When GFA’s CFO David Carroll last wrote to me on May 7, 2015, he defended GFA by claiming that GFA adhered to ECFA’s guidelines:
Warren,
No, Gospel for Asia has not violated the law.
When you first contacted us, I mentioned that we would not be able to respond to every question you put before us. Now, with the increased volume and frequency of your questions, it has become clear that this back and forth has become a distraction from our mission work. For this reason, this will be my final response. We understand that you will continue to explore issues around Gospel for Asia and continue to be fed accusations from former employees, and we accept that.
We continue to remain accountable to all applicable laws and regulations, to the Evangelical Council for Financial Accountability and to independent auditors.
Sincerely,
David
Apparently, ECFA now disagrees that GFA was accountable.
Prior to Friday, the GFA website proclaimed:
What does it say about GFA that the seal may no longer be displayed?
By the way, I don’t look for the other seal to be there much longer.
For all articles on Gospel for Asia, click here.
Evangelical Council for Financial Accountability Terminates Gospel for Asia's Membership
Just today the Evangelical Council for Financial Accountability posted notice that they have terminated Gospel for Asia from ECFA membership due to failure to comply with multiple ECFA standards. GFA was a charter member of the ECFA, having joined in 1982.
The reasons for termination are listed on the ECFA former member page:
This is a major development in this story and represents enforcement action one rarely sees from the ECFA.
GFA told Mark Woods at Christian Today that the ECFA review of GFA would be done sometime in October and that GFA would then answer all outstanding questions.
The lack of compliance involves the following ECFA standards:
Standard 2 – Governance
Every organization shall be governed by a responsible board of not less than five individuals, a majority of whom shall be independent, who shall meet at least semiannually to establish policy and review its accomplishments.
Standard 3 – Financial Oversight
Every organization shall prepare complete and accurate financial statements. The board or a committee consisting of a majority of independent members shall approve the engagement of an independent certified public accountant, review the annual financial statements, and maintain appropriate communication with the independent certified public accountant. The board shall be apprised of any material weaknesses in internal control or other significant risks.
Standard 4 – Use of Resources and Compliance with Laws
Every organization shall exercise the appropriate management and controls necessary to provide reasonable assurance that all of the organization’s operations are carried out and resources are used in a responsible manner and in conformity with applicable laws and regulations, such conformity taking into account biblical mandates.
Standard 7 – Stewardship of Charitable Gifts
7.1 Truthfulness in Communications
In securing charitable gifts, all representations of fact, descriptions of the financial condition of the organization, or narratives about events must be current, complete, and accurate. References to past activities or events must be appropriately dated. There must be no material omissions or exaggerations of fact, use of misleading photographs, or any other communication which would tend to create a false impression or misunderstanding.
VIEW COMMENTARY
7.2 Giver Expectations and Intent
Statements made about the use of gifts by an organization in its charitable gift appeals must be honored. A giver’s intent relates both to what was communicated in the appeal and to any instructions accompanying the gift, if accepted by the organization. Appeals for charitable gifts must not create unrealistic expectations of what a gift will actually accomplish.
VIEW COMMENTARY
I am surprised that Standard 5 was not also mentioned since GFA has not produced an audited financial statement for 2014.
Additional Information:
GFA’s charter member profile on ECFA’s website (Google cache)
GFA’s characterization of the meaning of ECFA membership (Google cache):
The ECFA seal is tangible evidence to donors that a ministry is complying with the highest standards of Christian ethics in its governance, fundraising and financial accounting and reporting.
Warrant Issued for Teen Mania Founder Ron Luce
According to World magazine, a Colorado court has issued a warrant for the the arrest of Ron Luce, founder of Teen Mania.
Read the article for the details but it appears that Teen Mania owes a lot of people a lot of money and doesn’t have any.
Teen Mania has many very high profile endorsers. See this page for the list.
Prosperity Pastors Pray for Protestant Presidential Prospect Donald Trump (VIDEO)
This is not from the Onion.
Trump looks bewildered.
(The embed feature appears to be glitchy right now, so if the video doesn’t show up, click here)
[youtube]https://youtu.be/Yua1a2iHTGk[/youtube]
David (New York Times Best Seller Professional) Jeremiah is doing the praying at the beginning. I think his dad must be turning over in his grave. Did Jeremiah just call Trump the next president of the U.S.? Talk about your Agents of the Apocalypse…
Kenneth Copeland is there.
One of them is trying to mind meld with Trump. I think he must be a Messianic Jew (anyone know who he is?). He thinks America and Israel are the only special nations.
Readers: Supply the caption for Paula White laying hands on the Donald.