Gospel for Asia and Compliance with ECFA’s Standards: The 2015 Letter, Part 4

In CEO and founder K.P. Yohannan’s recent “exclusive personal response” to the fraud lawsuit settlement involving Gospel for Asia, Yohannan traces GFA’s problems to a “confidential letter from a financial standards association we were part of, and of which we were a charter member.” That letter was from the Evangelical Council for Financial Accountability and outlined 17 potential violations of ECFA financial standards. In October 2015, ECFA evicted GFA from membership. To help donors understand the nature of the concerns ECFA had about GFA, I am posting one of the concerns each day. You can read all of the posts by clicking this link.

Read the entire ECFA letter on GFA’s compliance issues here.

From that letter, here is the fourth compliance issue:

4. The level of urgency communicated in GFA donor appeals contrasted with reserves held by foreign field partners and delays in sending funds to the field. In light of the significant cash balances held by field partners and the delay in sending funds to the field, ECFA staff raised concerns about the appropriateness of communicating urgency in many donor appeals. This includes appeals indicating “When we share with you about the urgency to reach the untold, lost millions—and the opportunities to win them to Jesus—it is not done to produce feelings of guilt or manipulate.” One appeal we reviewed indicated “One blanket, like the one Hetaksh received, will literally make the difference between life and death for them and especially for their small children and elderly relatives.”

The delay between when a donor gives a gift and when the funds are actually made available for designated purposes on the field is inconsistent with the level of urgency in many appeals and the timeliness of using donor-restricted funds as required by ECFA Standards 7.1 and 7.2. On August 12, GFA staff indicated that despite the delay in making foreign contributions available to carry out programmatic work, at least some designated funds were disbursed on a timely basis through the use of field-generated income.

Our review of the board minutes did not indicate the GFA board had approved, or even been notified, of GFA’s practice of soliciting funds based on urgency with a corresponding delay in disbursing funds to the field.

GFA Recycles Urgency

Even after being called out for this in 2015, GFA used this same urgent appeal in 2017. In a 2017 Patheos article, an anonymous GFA staff person recycled this appeal as follows:

To Hetaksh’s surprise, God answered his prayer for financial breakthrough in a very practical way—and just before winter started, too: He and his family received a thick, warm blanket!

This blanket came as a gift through Pastor Mrithun’s church during a blanket distribution to the poor—a distribution sponsored by our dear Gospel for Asia friends around the world. The blanket was big enough to keep the whole family warm at night, night after night, throughout the entire cold season.

This visible sign of God’s love and care greatly encouraged Hetaksh. No doubt the Lord will continue to care for this precious family and make them a powerful witness to others.

Urged to Give

Every winter, our partners in Asia feel the urgency of those around them, and we do, too. They pray for means and opportunity to distribute thousands of blankets and articles of winter clothing among those who lack adequate shelter and clothing to survive the freezing cold temperatures. They know that one blanket, like the one Hetaksh received, can make the difference between life and death for a family, especially for small children and the elderly.

It’s crazy to realize what a blanket can do. They are so small, but they work. For those who don’t have extra blankets for every family member, like we may, one blanket can mean a whole lot.

This recycled story (who knows if it is true) of Hetaksh  is presented as if it is current and represents an urgent need. In fact, GFA has had millions sitting in accounts and could have provided thousands of blankets. Instead, some of that money eventually went to other projects and some went to complete the Wills Point headquarters.

It is hard to believe that GFA was called out for this very appeal in 2015 and then reused it in 2017. So few people know about the ECFA report that apparently the GFA marketers believe it won’t matter.

Gospel for Asia Asks Donors to Give Back Settlement Money

After settling the $37-million fraud lawsuit with new board member Garland Murphy, Gospel for Asia now wants donors to regift their settlement funds back to Gospel for Asia. According to an appeal letter sent to me by a former donor, GFA is spending promotional money in an attempt to recapture their losses. Take a look:

This isn’t the first time GFA has attempted to collect these funds from former donors.

Where are the audits?

In the first image above, GFA boasts about their clean annual audits. Prospective donors should know that GFA refuses to release those audits to the public. One of the initial red flags about GFA came from the last publicly available audit. In that audit, GFA said the nearly $20-million to complete their Wills Point, TX headquarters in 2013 came from an anonymous donor.  However, now we know that those funds actually came from donor funds given to Believers’ Church in India as a related party transaction. GFA acknowledged this to the Evangelical Council for Financial Accountability which was one of the reasons for GFA’s expulsion from that group.

Since that time, GFA has kept their audits in house. Why should we believe them? GFA told the world the 2012-2013 audit was clean and accurate. Trust has to be earned and GFA has not shown any ability to step into the light. They do not answer questions about these audits, their loss of charity registration in India or their practices in Believers’ Church. It long past time for GFA to address these issues for the sake of the mission they claim to uphold.

 

Gospel for Asia Issues Takedown Notice for Video of K.P. Yohannan and Francis Chan

I was informed by YouTube on August 31 that Gospel for Asia issued a takedown notice to my YouTube account for a video clip of K.P. Yohannan and Francis Chan discussing Believers’ Church.

Due to a copyright takedown notice that we received, we had to take down your video from YouTube:

Video title: K.P. Yohannan and Francis Chan discuss Believers Church customs
Video url: http://www.youtube.com/watch?v=QVbGMDcP1Sw
Takedown issued by: Gospel for Asia

That seems odd since the clip was K.P. Yohannan and Francis Chan talking. However, maybe they didn’t want to make it easy for readers to see just the part where they discuss Believers’ Church customs. Well, readers are resourceful, they can still find out things from this post:

Some Questions for Francis Chan, K.P. Yohannan, & Gospel for Asia about Believers Church and Ring Kissing

In that post, I showed this picture and asked why K.P. Yohannan said that people didn’t kiss his ring when it sure seems like that is what is happening in this picture.

And then even though I don’t have the video clip posted on my YouTube account any more, K.P. Yohannan has it posted on YouTube and I can embed it at just the location in the video where Francis Chan asks him about people kissing his ring. Watch:

Now you could watch the whole rest of the video or stop at about 8:50 if you want to just get the two claims I wrote about. In this video, K.P. Yohannan says there isn’t a ring kissing practice and he says he isn’t any more powerful than the other 30 bishops in Believers’ Church.

I invite you to click the link to the article below to see evidence counter to those claims.

Some Questions for Francis Chan, K.P. Yohannan, & Gospel for Asia about Believers Church and Ring Kissing

For the record, I believe my use was fair use but because Gospel for Asia seems to have a lot of money to spend on lawyers, I am concerned that they might sue me just for sport. And because GFA has the same material embedded at YouTube, you can still compare what the Metropolitan said to what the Constitution of his church says and what your own eyes tell you in this video.

Some Questions for Francis Chan, K.P. Yohannan, & Gospel for Asia about Believers Church and Ring Kissing

Francis Chan and K.P. Yohannan are out with press releases and a video conversation designed to rehabilitate Gospel for Asia’s reputation. Francis Chan is investing his substantial reputation in this effort and I hope it is worth it to him. The men are hoping to convince donors that it is safe to trust Gospel for Asia now that the mission giant has settled a fraud lawsuit with Garland and Phyllis Murphy.

In the Chan-Yohannan conversation, several questions are raised which demand answers if they expect to be trusted. In this post, I will take two issues which pertain to K.P. Yohannan’s (or as he is known in the Believers Eastern Church “Moran Mor Athanasius Yohan Metropolitan“) status as Metropolitan of the Believers Eastern Church in India. First, here is the segment of the video where he claims he is equal to the other bishops, and that nobody kisses his ring.*

Yohannan and His Power

Yohannan says “I have no greater power than the 30 other bishops.” I have questions for Chan and Yohannan about that statement.

According to the Believers Church constitution (see also chapter three), the Metropolitan is the “final authority” on all matters ecclesiastical and temporal.  Yohannan serves until he wants to leave and is the head of all bodies in the church. He can’t be removed. None of the other 30 bishops have that kind of power. The Metropolitan can appoint and disband committees and clergies, consecrate Bishops, and when he decides there is not a consensus of bishops he can exercise his “discretionary power.” No one else can do that.

According to the Constitution, the Metropolitan also is co-owner with Believers Church of all property maintained by the church. From Chapter three:

In 2005, local church pastors were reminded to register property in Yohannan’s name. This letter was sent to make sure they did it according to church policy.

And then finally, there is the 2015 email from former GFA Chief Operating Officer David Carroll to K.P. Yohannan which asked Yohannan how he could explain Yohannan’s claim not to be in charge of things in India. Click here to read a transcript of the email which came to light as a part of discovery in the Murphy v. GFA case. The relevant segment is when Carroll wrote to Yohannan:

We can say all we want that we don’t have anything to do with the Believers Church or the field and that you are only the spiritual head of the church and that finances are handled by others but you, but as a practical matter, that will not hold up.

As many former staff members and at least one former board member (Gayle Erwin) acknowledge, K.P. Yohannan has much more power than the other 30 bishops. Now, Metropolitan and Rev. Chan could you please explain why these documents tell a different story than you all told on the video?

Ring Kissing

Yohannan told Chan, “We do not have a practice of people kissing my ring.” Then what is this from K.P. Yohannan’s birthday video:

Yohannan wears his Metropolitan ring on his right hand.

Now review this video of an ordination ceremony. One can’t see lips to ring but it doesn’t really look like a hand to the forehead either. It appears to me that the priests are kissing his right hand.

While these matters are not as large as where millions of dollars went (see David Carroll’s email for more about that), they do make me question credibility. Chan and Yohannan want the public to believe every word they say. However, here is direct evidence my eyes can see which contradicts what they are telling me on this new video. What am I supposed to believe?

Since 2015, I have repeatedly asked GFA for answers to these kind of questions. I have asked them why K.P. Yohannan’s name is all over legal documents in India and why the Believers Church constitution says he is the supreme authority when at the same time. he tells American audiences that he isn’t. I have gotten no answers. Sorry Rev. Chan and Metro Yohannan unless you provide some answers that make sense, I will believe my eyes.

*On September 2, 2019, YouTube issued a take down notice of my fair use video clip of Yohannan’s and Chan’s conversation. Although I believe the clip was fair use of that material for the purpose of commentary, I am not going to fight it at this point because I can simply embed their YouTube version which starts at the point in the conversation where they discuss Yohannan’s role in The Believers’ Church.

Statement from Gospel for Asia’s Board of Directors on ECFA, Fraud Lawsuit, and a Blogger

Just today, the Gospel for Asia Board of Directors placed the following statement on the GFA website.

STATEMENT FROM GOSPEL FOR ASIA BOARD ON RECENT DEVELOPMENTS

Wills Point, Texas – February 12, 2016: In the fall of 2015, the Evangelical Council for Financial Accountability (ECFA) revoked Gospel for Asia USA’s membership, after a 36-year relationship. ECFA is an organization that provides accreditation to Christian nonprofits in the U.S. based on their “standards for financial accountability, transparency, fundraising and board governance.” ECFA accreditation entitles a ministry to use the ECFA seal, but the loss of accreditation does not mean that the organization is guilty of illegal or unethical behavior. It simply means the organization no longer meets the standards chosen by ECFA to entitle an organization to the ECFA endorsement. Gospel for Asia was a founding member of ECFA, so an endorsement by ECFA is and remains a great honor to us. However, many very reputable organizations are not members of ECFA because they do not meet their rules for membership or they have chosen not to meet them, but Gospel for Asia has always valued our endorsement by ECFA and therefore made efforts to remain in good standing for 36 years.

Our change in status with ECFA caused concern by some and raised questions about financial accountability of Gospel for Asia. ECFA’s decision was made after conducting a special review of Gospel for Asia, and we respect ECFA’s evaluation. Our response was to begin a focused review and to implement the ECFA’s recommended improvements.

For more than 30 years, Gospel for Asia has served in some of the most complex environments in the world. Some of the questions raised relate to measures Gospel for Asia felt forced to take to continue our work in hostile environments where very real threats exist to Christians of all kinds, new believers and international humanitarian organizations. Gospel for Asia has always had “enemies” who didn’t want our mission to continue, but sometimes our biggest challenges have related to managing the complex economic and political environments within which God has called us to serve.

Most of ECFA’s issues resulted from us growing more quickly than our processes and procedures were able to accommodate while we were simultaneously navigating unbelievably complicated circumstances in sometimes dangerous and confusing environments. Over the course of these challenges, we made some good decisions and some bad ones and sometimes we didn’t have the right counsel or any counsel at all.

We willingly accepted—and appreciated—ECFA’s concern because our processes and procedures needed improvement, and in some cases, we were still operating like a small organization as opposed to an organization of our size and influence. We have always welcomed ECFA’s efforts to help us improve.

We learned of the lawsuit when reporters began to call us. It’s worth noting, the first to post anything related to the lawsuit was a blogger who has leveled a relentless attack on Gospel for Asia for months.

We appreciate the role and responsibility—and often good intentions—of journalists in the “new media” and in traditional media, but we have been grieved to discover that too many of them have chosen to consider us “guilty until proven innocent” as opposed to “innocent until proven guilty.”

We must take the time to fully understand the nature of the accusations being leveled against us, and then we will respond accordingly. The issues surrounding our change in status with ECFA have been misunderstood, but regardless of viewpoint, we have taken and will continue to take a focused approach to implement suggested changes to our operations.

We will fully cooperate with the law and are in the process of securing specialized legal counsel to help us and our other legal advisors navigate this new challenge.

We consider it a blessing to finally have the opportunity to bring this matter to full resolution through an impartial arbiter, and you can rest assured that in the meantime we will continue operating on behalf of some of the world’s most desperate people in some of its most complex environments. We hope you will pray for us, for these ongoing challenges are certainly also challenges and distractions to our mission.

The staff leadership of Gospel for Asia are working diligently to handle all of this responsibly and with integrity. We will come out of this stronger.

We thank our committed staff, our donors, prayer partners and friends, for walking with us all these years, especially during this challenging season.

As the Board of Directors, we take our responsibility seriously and we have full confidence in the ministry of Gospel for Asia.

—Board of Directors of Gospel for Asia

This statement mentions “a blogger.” Note to GFA board: I have a name. Furthermore, I have an email address. GFA’s David Carroll has it. He stopped answering my emails in May 2015. Is that what you wanted him to do? I just sent an email to Taun Cortado asking for comment on the allegations in the lawsuit. Instead, you respond to me via other sources.
I have sent many emails to board member Francis Chan with questions about the unaccounted for funds. Chan has not replied. Why not? Is it easier for you to accuse bloggers of misrepresenting facts or having bad motives? This is a losing strategy. Most people can see through it when you answer a charge with an ad hominem attack. Instead of attacking me, you should try talking.

If there is information you believe I am missing, please do what a responsible organization would do — contact me and let’s talk. It is unseemly for you to continue to blame the messenger. If there are answers to the many unanswered questions, then you are to blame for failing to communicate them.

You fail to mention the testimony of your former colleague Gayle Erwin. Remember him? He was on the GFA board and pulled back the curtain.
Former donors are speaking out. Former Canadian board members are speaking out after being improperly dismissed.  The Office of Personnel Management found you guilty after an investigation.

The ball is in your court.