Category: Warren Throckmorton

On October 7, I reported that evangelist Joyce Meyer claimed to have an earned PhD in theology from Life Christian University. She claimed to be a graduate on a promotional video still housed on the LCU website (this video has been removed – Meyer’s picture remains) and said the degree was earned on her website. On October 11, I filed a complaint with the Missouri Attorney General’s office in keeping with MO law which forbids the use of false and misleading degrees in connection with one’s business or profession.

Sometime after the initial post and the AG complaint was filed, Joyce Meyer Ministries changed the designation of the LCU degree from “earned” to “honorary.” I know the change happened after the complaint was filed because the degree was described as “earned” on October 15, 2016 (from the Wayback Machine on Oct. 15). I discovered the change in November.

Until recently, I did not know why Joyce Meyer Ministries changed the designation from “earned” to the more accurate “honorary.” A few days ago, I received an email from the MO AG office indicating that action had been taken on my complaint. Attached to email was a March 29, 2017 letter from an attorney for Joyce Meyer Ministries to the MO AG’s office indicating that the designation had been changed on the website because the description was inaccurate. About LCU’s description of an earned degree, the spokesman for Joyce Meyer Ministry wrote:

While we are aware that this is the verbiage that Life Christian University uses on their own website and literature, we simply felt it did not accurately reflect the information correctly. Because of this we took the initiative to change the wording on our website and literature from “earned” to “honorary” before this complaint was filed.

While it is a small point, the initial post was public and the complaint was filed before the change was made. Nevertheless, I commend Joyce Meyer Ministries for this change and for acknowledging the truth about the situation. This is much more than David Barton or other so-called “earned degree” holders have done. I now call on her to remove her endorsement of LCU which she has acknowledged incorrectly reflects information about the degrees given to LCU’s “distinguished degree holders.”

Missouri’s law is one of the toughest in the nation on false and misleading degrees. Other LCU “distinguished degree holders” from MO include Billye Brim and Larry Ollison.

On Tuesday, I reported that Dallas-Fort Worth megachurch Gateway Church is laying off staff while spending millions on undisclosed non-operating expenses. In addition, the fourth largest church in America may have spent millions more than revenues for the second year in a row. According to former Big 4 accounting firm auditor Jason Watkins, Gateway’s expenditures have exceeded revenues by nearly $23-million. The image below was supplied by Watkins.

You can read Gateway’s annual reports for 2012, 2013, 2014, 2015, 2016 by clicking the links. However, the losses are not apparent at first glance. Watkins told me that the format of the annual reports obscures the true picture. The image below compares actual revenues and expenses.

Total revenue for 2015 includes the actual giving to the Heart for the Kingdom campaign and general fund revenue ($147,455,568). Expenses include the Heart for the Kingdom expenses, operational expenses, capital expenditures and debt retirement ($160,653,068). According to Watkins, Gateway spent just under $13.2-million more than the church took in.
In 2016, the church spent $9.6-million more than revenues. In the image below, compare the “non-operating expenditures” line ($13,123,084) with the “revenue over expenses – operational” line ($3,505,562). The difference is a loss of $9,617,522 for 2016. With the previous year’s deficit, Gateway has spent nearly $23-million more than received, according to Watkins.

Since there is so little detail in the report and since Gateway has declined to respond to questions, it is not possible for me to be dogmatic about the financial picture. However, I think Watkins makes a good case that Gateway’s spending has exceeded what members have supplied. His conclusions seem quite consistent with what Gateway’s spokesman Lawrence Swicegood told the Star-Telegram about cuts in both staff and expenses.
Gateway wouldn’t be the first church to cut staff and expenses but the situation is noteworthy for at least two reasons. One, the size of the cut back is substantial — as many as one-third of 900 positions. Two, the lead pastor of Gateway Robert Morris is famous for his teachings about tithing and the promises that tithing will bring prosperity and success. Since the members have no input into how money is spent, the responsibility falls squarely on the leaders at Gateway.

Earlier today, the Fort Worth Star-Telegram published a story with a statement from Gateway Church confirming the staff reductions I reported on Tuesday.  According to the statement from Lawrence Swicegood, executive director of Gateway Media, the church is going to “prune” staff to prepare for growth. I suppose that is one way to look at it, although I also suppose that the staff to be pruned might see it differently.
The Star-Telegram report said that the church planned to reduce staff by 10-15% but gave no time frame. My sources maintain that the plan is to eventually cut as many as one-third of 900 positions.
The Star-Telegram article may have misstated Gateway’s financial status for 2016. As I read the annual report, it appears that Gateway experienced a deficit. More about that in a future post.
To me, a curious note is that the Star-Telegram said the church confirmed the staff layoffs but did not say what initial report had been confirmed. You can read that report first published here on Tuesday.
 
 

Today, on the second hour of his radio show, Glenn Beck spoke briefly about the charity he founded, Mercury One. Listen:

Transcript:

We’re just going through an audit and I said to, Mercury One, I want the toughest auditors you can possibly find. Now that’s Mercury One, I’m not even on the board of Mercury One but I went to the board and said, ‘you guys should have the toughest audit and I want to see every page ’cause I’m raising most of the money for you. I want to see every page. And if there’s something wrong, I want the audience to know. If there’s something right, I want the audience to know. I think they should publish it on the website. We have to be transparent in everything we do and that means you too.

The audit may be in part a reaction to my recent articles about changes at Mercury One. Mercury One changed their donation allocation policy to avoid designated funds. Now all donations go into a general fund which may be spent as the leadership decides.
An issue which may have raised the need for an audit is the question about what David Barton did with the $104,000 given to him by Mercury One while Barton served as board chairman. Mercury One gave Wallbuilders (Barton’s charity) $204,000 in 2014 and 2015 combined.  The IRS 990 reporting form for one of those years said Barton used the funds to help people with “unforeseen disasters.” Historically, Wallbuilders has not been engaged in disaster relief.
On transparency, I have asked Mercury One several questions but there has been no response.
If Glenn Beck wants to be transparent, he could start by getting David Barton to acknowledge academic fraud. Over six months ago, Barton claimed on camera that he had an earned degree. As it turns out, the degree was given by a diploma mill.
He could also have Barton admit that he never played Division One NCAA basketball for Oral Roberts University.
If Beck really wants transparency, he could start with Mercury One’s chairman of the board.

It is Spring Pledge Drive time at K-LOVE, and so far, the Christian mega station is just asking for money.
During past campaigns, K-LOVE has used other non-profits to provide a misleading incentive to give. One year, donors were told a $40/month donation would trigger a the gift of a pair of shoes for a poor child. Another drive, the hook was a warm coat.  However, as it turns out, those shoes and coats would have been given anyway.
So far this year, as far as I can tell, the pitch has not included a misleading marketing partnership. Watch:
[youtube]https://www.youtube.com/watch?v=j8IFxh8x9Z8[/youtube]
Also, the K-LOVE website doesn’t mention a marketing partnership.

About the only gimmick I see is the contests for a vacation and an Apple prize pack. While it may be a little tacky, it isn’t dishonest. I assume someone will win those things.
While I continue to believe donors should carefully assess whether or not K-LOVE really needs pledge drive funds to remain on the air (as opposed to using them to expand), so far the station has avoided the troubling marketing gimmicks of past campaigns.
If you hear any changes, let me know…