In a mailing just received today, Gospel for Asia’s fund solicitation still carries the Evangelical Council for Financial Accountability seal. The letter is dated October 15, which is nearly two weeks after the ECFA board voted to terminate GFA’s membership.
Here is the pledge card with the seal and “Enhancing Trust” slogan (click to see letter and other materials):
Along with the ECFA charter member seal, the pledge card carries the meaningless ICA “Best in America” Seal.
According to the ECFA standards, this GFA mailing violates Standard 7.1 which relates to “Truthfulness in Communications.” According David Carroll, GFA’s COO, GFA will seek membership in the future. Continuing to violate a standard doesn’t seem like the best way to make a case for reinstatement.
By continuing to claim membership in the ECFA, GFA is in violation of ICA standards and the standards for qualification as a charity for inclusion in the Combined Federal Campaign.
The ICA requires truthful and non-deceptive fundraising materials (see the next to last bullet point in the image below):
The Office of Personnel Management’s standards also require truthful materials.
Tag: David Carroll
Believers’ Church Constitution Contradicts K.P. Yohannan’s Claim that He Has No Legal Authority in Indian Church
In a May 14, 2015 staff meeting, K.P. Yohannan and David Carroll disclosed to the Gospel for Asia staff that in 2013 Believers’ Church in India gave $19.8 million toward the construction costs of the new Wills Point. TX headquarters. When the gift came in back in 2013, GFA leaders told staff that the money was given by an “anonymous donor.”
For those new to this story, Believers’ Church is the church started by Gospel for Asia founder K.P. Yohannan. Yohannan is CEO and International Director at Gospel for Asia and he is the supreme Metropolitan Bishop in India for the Believers’ Church. Although undisclosed in their 2013 audit, GFA sent just over $20 million to Believers’ Church in 2013. Believers’ Church in India received far more than Gospel for Asia India which was not disclosed in the audited financial statements.
Within the last year, questions arose among staff about the accuracy of the “anonymous donor” story and Carroll and Yohannan addressed those questions during the May 14 staff meeting. In that meeting, Yohannan asserted that he had nothing to do with the Believers’ Church’s decision to send nearly $20 million back to Texas. A major part of his defense was his claim that he does not sit on boards or trusts in India and has no legal authority in Believers’ Church. Yohannan claims he didn’t have authority to direct the donation and didn’t have anything to do with it.
Here is what Yohannan said about his membership on boards and trusts in India and his legal authority.
Transcript:
And by the way, just so you know, I am not legally on any boards, any trusts, anything in any of these countries. I have no powers to make decisions or sign money, or release money, or make decisions, I am completely legally…why? Because anybody who work in the United States or overseas countries have a board membership or have legal membership should not be part of their legal entities in India. It’s a conflict of interest and therefore we send the funds and it is immediately under the government watch care and the government of India is responsible and investigative agencies and tax divisions to make sure that is carried out within the time frame or whatever they do, that is a public thing.
In previous posts, I have shown government and church documents which contradict his claim. Today, I provide portions of the Believers’ Church Constitution which describe the massive authority and power of the Metropolitan Bishop, His Grace the Most Reverend K.P. Yohannan. It is clear that Yohannan misled his staff. If Believers’ Church follows the church Constitution, there is no way Yohannan did not approve the gift to help complete headquarters construction.
Click the link for the first two chapters of the Constitution, and this link for chapter three. Images describing the power of the Metropolitan are below. See the boxes for especially relevant sections:
Yohannan is President of all church trusts, he has discretionary power over governance of the church, he is the final authority of spiritual and administrative matters and he is the managing trustee of the church. It is inconceivable that Believers’ Church could spend $19.8 million dollars without his approval. Sections from chapter three make this even clearer. Buying and selling movable and immovable property and any management matter can be overruled by Yohannan. Committees can suggest actions but they must be cleared with Yohannan first.
Yesterday, Gayle Erwin said this about the transfer of $19.8 million from India to GFA-US:
If you read the ECFA report, you discover what we (board members–USA) had begun to know–we were kept in the dark and limited to pedantic decisions. As I saw this, I began intense confrontations with KP which I thought were gaining traction. The surprise revelation of foreign deposits and monies returned from the field (and previously described as from an “anonymous donor) pushed some of us over the edge and made our board membership untenable.
David Carroll and K.P. Yohannan told staff that the transfer of funds was completely legal and there was no conflict of interest since Yohannan had no control over the decision. He also said the $19.8 million was not a related party transaction.
DC [David Carroll] – It’s completely legal, thank you. There’s a board member, board documents as I understand it, I don’t live in Asia, but there’s board documents on the other side. The whole thing was done in complete legality.
By the way, one question, one part of that question was, is this a related party transaction? And the answer is no. It is not a related party transaction because the board members here, they’re not the same board members as there. In other words, the leadership here did not influence that decision there. Brother KP mentioned it but it was not his decision. He had to get permission, actually they told…
KP [K.P. Yohannan]– I think David, it is important for people to know the person I am. It’s like Paul said in one place he’s a doulos, he’s a servant, another place he’s an apostle, another place he’s a brother, and my role is being a spiritual father of right now about 2.7 million people scattered throughout all these nations and I do not have any legal say or decision about legal matters. My role is a spiritual leadership. You may not have asked that but there are hundreds of trusts and entities in all these countries. I don’t sit on any of those things. There are their own people. And my role is the spiritual leadership. And I hope to some extent that is here also.
It is hard for me to understand how David Carroll could make this statement:
It is not a related party transaction because the board members here, they’re not the same board members as there.
I publicly ask David Carroll: Have you ever read the Believers’ Church Constitution? You are ordained in that church. Is this like Mars Hill Church and the officers and clergy don’t have access to the Constitution? You told staff on May 14 that Yohannan wasn’t on a board under the Believers’ Church umbrella. Carroll told staff:
And so, what the people in Asia did, and it is a board that is under Believers’ Church umbrella, but Brother KP’s not on that board, it wasn’t his decision.
K.P. Yohannan is CEO and leads the Gospel for Asia board here and he is by Constitution the managing trustee and President of Believers’ Church and all other Believers’ Church trusts.
I can’t see how these claims by Yohannan and Carroll and the Believers’ Church Constitution can be true at the same time.* David Carroll said there are “board documents on the other side.” Well, the board documents that I have seen don’t support what they told staff in May. Might be time for GFA leaders to produce those documents. It is already too late for three board members who quit over this matter.
*I suppose it is possible that Believers’ Church approved a new Constitution prior to the 2013 gift. However, my source denies that and tells me that this Constitution was binding at that time and is binding currently. I am certainly open to hearing from GFA and BC with new information.
More Evidence K.P. Yohannan Was Wrong When He Told Staff He Isn't On Trusts in India
In the context of explaining why Believers’ Church in India gave $19.8 million to Gospel for Asia for construction of headquarters at Wills Point, TX, GFA CEO K.P. Yohannan said this:
And by the way, just so you know, I am not legally on any boards, any trusts, anything in any of these countries. I have no powers to make decisions or sign money, or release money, or make decisions, I am completely legally…why? Because anybody who work in the United States or overseas countries have a board membership or have legal membership should not be part of their legal entities in India. It’s a conflict of interest and therefore we send the funds and it is immediately under the government watch care and the government of India is responsible and investigative agencies and tax divisions to make sure that is carried out within the time frame or whatever they do, that is a public thing.
Yohannan said these things at a staff meeting held at GFA’s office complex on May 14, 2015. The audio is embedded at the end of the post.
When I posted the audio in August, I also posted images of court cases involving Believers’ Church which refer to Yohannan as the managing trustee of Believers’ Church. Even though Yohannan said it was a conflict of interest to be on the board in India and the CEO in America, court documents dated in 2015 refer to Yohannan as the managing trustee of the entity (Believers Church) that “decided” in 2013 to send $19.8 million to another entity (Gospel for Asia) run by Yohannan in order to build a new campus.
Recently, I have been given two documents which establish beyond doubt that Yohannan’s statement to staff was misleading. The first document is a 2005 letter from BC Bishop Samuel Mathew to all Believers’ Church Bishops regarding the proper way to file land deeds. The church Constitution requires all land to be in K.P. Yohannan’s name since he is the highest legal authority in the church.
Read the entire letter here.
At this time, by Consitution, all land was to be registered to “the Most Rev. Dr. K.P. Yohannan.” Why? As Metropolitan Bishop is the legal authority on everything that belongs to the Church. Presumably, at one time, $19.8 million belonged to the church but after the “anonymous gift to GFA,” that money belonged to the other entity controlled by Yohannan, GFA.
Regarding the claim that Yohannan doesn’t sit on any boards of trusts in India, I offer this 2010 deed of trust for the Bridge of Hope (entire document), a program run by Believers’ Church. Yohannan is not only on the trust but he signed on behalf of Believers’ Church as “Executant.”
BOH – Trust Deed 
Also, note that four of the six board members are Yohannan and his family (Siny Punnoose – niece; Sarah Johnson – daughter; Daniel Johnson – son-in-law).
These documents along with the court papers filed by Believers’ Church paint a completely different picture than drawn out by Yohannan in the May 14 staff meeting.
I invite GFA and/or Believers’ Church to submit evidence to the contrary. If BC’s Constitution has been changed or trust deeds have been amended, I will gladly publish those if they are supplied.
Of late, Yohannan has been unavailable for comment. Perhaps, David Carroll or John Beers can provide explanation or proper documentation.
K.P. Yohannan at the May 14 staff meeting:
A Story of Intimidation and Control at Gospel for Asia
An aspect of the Gospel for Asia story that I have not explored much is the claim of controlling actions on the part of GFA leaders. Today, I want to bring out one such claim. Before I tell this story, I want to alert readers that I reached out to GFA through their PR firm InChrist Communications. I told InChrist Communications that I wanted GFA leaders to have a chance to address these serious claims. I received no answer.
On the GFA Diaspora website, a former male employee named Nick tells about his experience about a decade ago of expressing romantic feelings toward a female staffer at GFA. One would think such sentiments would be encouraged in a Christian ministry, but according to Nick and the girl who was the object of his feelings — Nicole — GFA leaders went out of their way to end the relationship.
Nick attended Bible college and had interned in a Calvary Chapel before coming to GFA. Nicole had led mission trips and was a worship leader with GFA. Nick was 25 and Nicole was 22. Their interest in one another was age-appropriate and they seemed to be heading in the same direction.
On the Diaspora website, Nick wrote:
In a friendly conversation with David C., I told him I was interested in a girl who was on staff (we were just friends at the time). I was called into K.P.’s office and told that I was not allowed to continue to like this girl, and that I was not even allowed to pray about getting married for at least 2 years. I was surprised that I was being told not to pray, but my heart and intention was to do all that I could to comply with the wishes of the leadership. Shortly thereafter, all of the newer young single people on staff were called into a meeting where we were told that we had entered the ministry single, and so that is how we should remain.
After the scolding, Nick did not tell Nicole about his feelings. However, his disclosure seemed to change his standing at GFA. According to Nick, the GFA leaders subjected him to what can only be described as harassment:
The 3 leaders (K.P. Yohannan, John B., and David C.) would call me into K.P.’s office, and KP would proceed to tell me all sorts of terrible things about myself. He told me that I probably wouldn’t be a Christian in 10 years. He called me a mad man and said that he was glad that there was no one else like me at GFA, because he couldn’t imagine what I might go out and do. I loved the children at GFA, and would always volunteer in the kid’s ministry. Knowing this, K.P. said “There are 72 children here at the ministry, and you are going to ruin the lives of every one of them.” (That is a direct quote. I will never forget those words.)
Nick tried hard to be a good staffer and did not tell Nicole about his feelings. Nicole was unaware that GFA leaders had warned Nick about pursuing a relationship with her.
According to Nicole, who was then serving as one of Yohannan’s writing assistants, Yohannan began to ask her if she thought Nick liked her. Nicole described these initial questions as being delivered in a “friendly, fatherly way.” Gradually, the questions became more persistent and Nicole decided to talk to Nick. Nick acknowledged his feelings but didn’t have an intention to pursue a relationship in order to honor the dictates of leadership.
Not knowing that Nick had been warned about talking to her, Nicole told Yohannan that Nick liked her. According to the couple, Nick was kicked out as a consequence. Nick wrote on the Diaspora website:
The next day I was called into K.P.s office and told that I was being fired and kicked out of the ministry. The girl was then told that she was not allowed to communicate with me ever again in any way.
Despite Yohannan’s warning, Nicole later contacted Nick and told Yohannan that she did. According to Nicole, Yohannan turned from fatherly and friendly to mean and intrusive. She added that Yohannan became increasingly critical of her. According to at least two former staff, the mistreatment became obvious to others (see the testimony of Bernard and Jena on the Diaspora website for their account).
According to the couple, Nick was told to leave the campus immediately without any of the money he had raised in his staff account. He had to find money to live on without the funds he had raised while at GFA.
According to Nicole, GFA also told remaining staff that Nick left due to psychological problems and that GFA was going to pay for counseling. According to the couple, none of that was true.
The story does have a happy ending. Both Nick and Nicole left GFA and are now happily married with a child.
Although not all staff and students have bad experiences, Nicole told me that she believes concern for current staff and students is warranted. She worries for the students, often just out of high school, who sign up for the School of Discipleship. Nick and Nicole are telling their story with the hope that students will be wary of GFA’s approach to mentoring youth and find another way to learn about ministry.
As noted at the beginning, I asked GFA for their side of this story but got no response. I have, however, interviewed numerous former staff and several current staff and students in the School of Discipleship. Many, although not all, have echoed concerns similar to those expressed by Nick and Nicole.
Gospel for Asia Responds to ECFA but Fails to Address Troubling Questions
Earlier this evening, Gospel for Asia leadership posted a response to the Evangelical Council for Financial Accountability after the ECFA voted on October 2nd to terminate GFA’s membership.
The statement:
Our Response — ECFA
October 5, 2015
For more than 30 years, Gospel for Asia Inc. has been a member of Evangelical Council for Financial Accountability (ECFA). Gospel for Asia values and respects both the high standards of ECFA and the good advice they have given us.
This past year GFA had four extensive meetings with ECFA representatives about fiduciary matters. Although there were no findings of money missing, ECFA felt that some of our procedures and practices did not line up with their Seven Standards of Responsible Stewardship. GFA was grateful for ECFA’s input and put into practice every suggestion that was mentioned in these meetings. We were not always in agreement with ECFA’s conclusions, but were glad to continue in our relationship and make the adjustments that they advised.
Nevertheless, on October 2, 2015 the ECFA Board of Directors terminated our long-time membership. Although this is disappointing, Gospel for Asia accepts the decision with regret and sadness.
Our greatest concern is for our friends and donors who deserve an explanation as to why this cancellation happened. This will be given in due time through our regular communication channels. In the meantime, we thank our supporters for not jumping to conclusions until those explanations have been made and for continuing to cover us with their prayers.
The expansion of any organization is always filled with growth pains, and we look at these issues questioned by ECFA as a time to learn and grow, increasing our understanding in areas where we have been unintentionally negligent. While we will be working to improve our reporting of financial matters to donors, we will always be cautious about disclosing anything that may jeopardize the safety of ministry partners working in areas hostile to the Gospel. We continually look to the Lord for His wisdom and guidance in often complicated international financial and political environments. We believe that much of the conversation we have had with ECFA has indeed been part of the Lord showing us the way and how to walk in it. We are truly grateful for this part of our journey in learning how to better serve our Lord Jesus, our donors and sponsors, and our field partners as we go forward.
Gospel for Asia Leadership
Yes, GFA, your friends and donors deserve an explanation. Instead, GFA has again delayed and deflected donors with promises but no substance.
Essentially, GFA is claiming they did everything ECFA asked but ECFA dropped them anyway. Given that ECFA has no recent history of dropping organizations where leaders seek compliance after a period of non-compliance (e.g., Mars Hill Church), this is not a credible response and does nothing to inspire confidence in their stewardship.