Mars Hill Member Wants Accounting of Global Fund Donations

In late June, Mars Hill Church admitted that leaders took money designated for the church’s Global Fund and funneled those donations into their General Fund. On July 1, the church’s website disclosed that “the preponderance of expenses” were allocated to “church plants and replants in the U.S.” as opposed to mission efforts in India and Ethiopia. The church plants were Mars Hill Church branches  in the United States.
Then in their July 11 newsletter, Mars Hill briefly addressed a petition at Change.org requesting an accounting of the amount of money spent on missions and the amount spent toward expansion of Mars Hill Church in the U.S. In that newsletter, they also claimed that letters were sent to 6,000 Global Fund donors offering them the opportunity to direct (again) their donations to missions work outside the U.S. While this may be true, not all Global Fund donors received this letter.
Recently, a Mars Hill member (I will call him John since he doesn’t want his identity revealed) contacted me to say he did not get a letter from Mars Hill about his donations to the Global Fund. He also provided a page of his online giving records to me. You can see a portion below with his name redacted.

While Mars Hill has now admitted that the Global Fund existed and was separate from the General Fund, this record provides additional evidence that members could designate their donations to the Global Fund. This evidence is in contrast to the following statement on the Mars Hill Global FAQ page:

Since 2009, we have used the term “Global” to help us distinguish between donors who attend our churches and donors around the world who follow us online.

That is only partly accurate. Indeed, on the Mars Hill giving website, donors are asked to designate whether or not they attend a Mars Hill church or not. Those who don’t attend a Mars Hill church are supposed to designate “global” as a location. However, until May of this year, donors could also designate a fund for their contribution. They could give to the General Fund, the Global Fund, or a Foundation designed to support church plants. Members and non-members alike could designate money to the Global Fund. The person above is a member of Mars Hill and designated his donations to the Global Fund.
See this video for a demonstration of how the website worked prior to the changes done in May.
[youtube]https://www.youtube.com/watch?v=a4EFX3-RXyg[/youtube]
It should be a simple matter for Mars Hill Church accountants to run a report showing the amount given by non-members and members to the Global Fund and the General Fund. Likewise, a report could be generated to show where the Global Fund money was spent. However, despite the petition and the many requests for this information, Mars Hill has not provided it.
I asked John where he thought his money was being spent. He said, “It seemed pretty clear to me that the money was going to help out Pastors in Ethiopia as they received resources, training, and monetary assistance to plant churches abroad.” He added, “I had no reason to not believe it was going there until recent issues and events have come to light.”
I asked him what prompted him to donate to the Global Fund and he told me that the videos shown each Sunday before Mark Driscoll preached (e.g., this one) “were the most compelling part” of his decision to donate to the Global Fund.  I asked John’s reaction to finding out that all of his donated money was not going to mission efforts. He said he had been eager to give time and money to Mars Hill, but now he said, “I no longer trust that Mars Hill will steward my tithes or others well and have begun giving my tithes to other church plants and missionaries.”  He added, “There is no reason to hide from this unless they have either forgotten or choose to ignore the truth and freedom that comes from the Gospel of Jesus.”
John plans to discuss how to redirect or have his donations returned with his pastors in the near future.

Mars Hill Church Says A Little More But Not Enough About the Global Fund Changes

In this week’s email newsletter to members (dated 7/11/14), Mars Hill Church leaders mentioned the Change.org petition asking for financial accountability regarding the former Mars Hill Global Fund. Mars Hill has now admitted that money given to the Global Fund actually went in the church’s General Fund and mostly was spent on expanding Mars Hill video sites. Despite the fact that Mars Hill leaders admit there was a separate fund, they are requiring donors to contact the church and specifically designate (again) that their donation should go to missions (See the Global FAQs for more information). From the newsletter:

Update on Mars Hill Global

We are very thankful for what Jesus has done through our global family since 2009, with many disciples made and churches planted in the US, Ethiopia, and India.
As we strive to communicate the vision of Mars Hill Church, there has been an outside petition asking questions of Mars Hill. However, of the nearly 400 signers, only four have ever given to Mars Hill Global. We sent letters this past week to over 6000 Global donors giving them the option to designate their funds solely for international work if they wish. We received many replies of encouragement, as well as a few people who asked to change their designation, and we have gladly made those changes.
If you have any questions regarding Mars Hill Global, we have recently posted updates to our Global FAQ online page that you might find helpful.

I have heard from donors who did not get a letter or email from the church. In fact, I have not heard from any donors who did get a letter. Obviously, I am not in touch with 6,000 donors and so I am not saying a letter was not sent. However, some donors did not get a letter. Also, I would say it is a little early to quantify the reaction to Mars Hill’s change of public position (for a somewhat different reaction see Wenatchee the Hatchet). They just changed their Global FAQs on July 1.
I don’t understand what this sentence is trying to communicate: “We received many replies of encouragement, as well as a few people who asked to change their designation, and we have gladly made those changes.” Change designation from what to what?
The Global Fund was clearly designated as separate from the General Fund on the online giving page, as well as in Mars Hill documents. If donors wanted to designate their funds to Mars Hill Church’s General Fund, they had the option to do so. Thus, Global Fund donors were designating their money to what Mars Hill Church said was “how we as a church participate in the worldwide mission of Jesus” (see below from the FY 2013 Annual Report). Now Mars Hill is making their donors jump through another hoop to redesignate their money to missions. So when Mars Hill says they are changing the designations for gifts, I don’t understand. Are they really claiming that there was no designation before?

The petition (which is still open for signatures from anyone who wants to encourage disclosure in accord with ECFA guidelines) says:

Mars Hill Church has solicited millions of dollars for its “Global Fund” which, now that questions have been asked, has disappeared. It seems that most of the money was not spent on global or international outreach and that the money simply went into the general fund. Donors and those with a close interest or tie to Mars Hill Church ought to know exactly how much of what they gave was spent on international outreach. This is a part of a greater call for financial transparency from the leaders at Mars Hill Church.

Every time a person signs the petition, a letter is sent to the boards of Mars Hill Church and the Evangelical Council for Financial Accountability:

Mars Hill Church, please tell us how much “Global Fund” money was spent on “international” outreach. We donors, members, ex-members and the broader Christian community deserve transparency from the leadership at Mars Hill Church.

This is a question Mars Hill could answer easily. They know how many donors gave money, they certainly know how they spent the donor’s contributions. Mars Hill Church leaders already said the preponderance of the funds went to fund the expansion of Mars Hill video sites in the United States. Surely, they can tell us the actual numbers. Sources within Mars Hill have told me the percentage of Global Fund actually spent on missions is low, perhaps 5% or less. There is potentially quite a windfall for Ethiopia and India if Mars Hill donors would contact Mars Hill to stress they want those funds spent on missions. The amount would likely more than double the annual budget of Mars Hill’s partner for Ethiopia, New Covenant Foundation.
For all stories on Mars Hill Global, click the link.

With Questions Unanswered, Mars Hill Church Keeps On Pushing Mars Hill Global

Last week, Mars Hill Church admitted that they had caused confusion regarding donations to the Mars Hill Global Fund. While answering some questions, they left some unanswered. One big question: How much money was actually spent on Ethiopian and Indian evangelists between 2012 and 2014? Mars Hill offered to direct donations made to the Global Fund to mission purposes if requested. However, I wonder how most donors will ever know they are doing that. How many former/current members who donated to Global are going to be cruising the Mars Hill website and stumble on the Global FAQs? If ever donors find out, they could trigger a windfall for Ethiopian and Indian missions if they request the money go where they thought it was going to go.
Shouldn’t Mars Hill Church alert the donors to the Global Fund about how the money was used? ECFA guidelines require it.
As if we need any more confirmation that Mars Hill portrayed Mars Hill Global as a means to help the international missions, I present this You Tube video of a former Mars Hill member who looked up a Looney Tune segment and got a Mars Hill ad before the cartoon started. The ad was for Mars Hill Global and was filmed in Ethiopia with no mention of any application to the United States. Watch:
[youtube]https://www.youtube.com/watch?v=60mm4GOwGZ8[/youtube]
In fact, the ad was this video which asked Mars Hill members to give more than their tithe to Mars Hill Global:
[youtube]http://youtu.be/XcseC6KpSBk[/youtube]
I recently learned of an older lady who donated a substantial sum to Mars Hill Global thinking it would go to Ethiopian missions who is now bewildered by the recent message from the church. She doesn’t want to give her name but she used to attend Mars Hill and sat through many of the videos filmed in Ethiopia before giving her gift. Another individual who doesn’t want to be named also gave in 2012 thinking his money was going to missions. The several donors I have spoken with are afraid to go public.
 

Mars Hill Church Admits Fault in Confusion on Mars Hill Global; Still No Report of Donation Amounts

In a change of course, Mars Hill Church leaders admitted they caused confusion, and have offered to direct Mars Hill Global donations to international missions. They still have not clearly provided a specific accounting of the funds but they have come closer. Here are the new questions and answers added which are significant admissions:

WHERE HAVE PAST GIFTS BEEN USED?

During fiscal years 2009-2014, over $10MM dollars has been given to Mars Hill Church by the Mars Hill global family. During that same time period $22.48MM has been spent on church planting in the US, India and Ethiopia. In 2009-11 over 80% of funds given by the Mars Hill global family went to Acts 29 church planting and funds were consistently spent in India for church planting in each of those years. In 2012- 2014 expenditures for church planting efforts in India and Ethiopia were increased with the preponderance of expenses related to church plants and replants in the U.S.

I GAVE AND THOUGHT THAT MY MARS HILL GLOBAL GIFT WAS SOLELY USED FOR CHURCH PLANTING OUTSIDE OF THE UNITED STATES. WHAT DO I DO?

If you gave previously and were intending that your gifts would be used solely for international efforts, we sincerely apologize for the confusion caused by a lack of clarity on our part. If you still want your previous gift(s) to be directed to our international work, please email [email protected] and we will make sure that your previous gift(s) will be used to support making disciples and planting churches specifically in Ethiopia, where we are currently supporting 40 evangelists, or in India, where we support 33 church planters. From July 2014, we have clearly communicated that donations to Mars Hill Global go to making disciples and planting churches in the United States, Ethiopia, India and wherever else around the globe Jesus calls us into his mission.

Let’s take the first question and answer. Mars Hill Global was first discussed in 2009 as a means of connecting with people who were not attending a Mars Hill Church. Eventually, it became a fund that supported Mars Hill church planting, Acts 29 Network of churches, and the Resurgence training center. However, in late 2011, that changed with the elevation of Sutton Turner as executive pastor. Gradually, the description of Mars Hill Global changed to make it into a way that Mars Hill Church could help international mission efforts. At times, the description was confusing in that Global sounded like both a source of donations (“the podcasters”) and a destination for assistance (Ethiopian evangelists and Indian church planters). By the FY 2013 annual report, the transition to Mars Hill Church’s way to “participate in the worldwide mission of Jesus” was complete. All accomplishments listed on this page were about Ethiopia and India with no mention of U.S. church planting, Resurgence, of Acts 29.

Now Mars Hill has come a step closer to admitting that they misled the congregation:

I GAVE AND THOUGHT THAT MY MARS HILL GLOBAL GIFT WAS SOLELY USED FOR CHURCH PLANTING OUTSIDE OF THE UNITED STATES. WHAT DO I DO?

If you gave previously and were intending that your gifts would be used solely for international efforts, we sincerely apologize for the confusion caused by a lack of clarity on our part.

This statement vindicates my reporting on this subject and the petition on Change.org. Of course, people thought their gifts were going to efforts outside the United States. The church told the congregation that Global had changed and all of a sudden videos of Ethiopian evangelists were leading off nearly every service. We really don’t have to debate that anymore.

Regarding disbursements, the statement provides specifics where they weren’t requested and general statements where specifics were requested. After telling us how much was raised during the early years when Global didn’t mean what it meant between 2012-2014, then the statement becomes vague:

In 2012- 2014 expenditures for church planting efforts in India and Ethiopia were increased with the preponderance of expenses related to church plants and replants in the U.S.

Expenditures were increased over what? What does a preponderance of expenses mean? This is spin and an insult to the requests that members, former members, other donors and the public have made. However, one fact is established: the church spent most of the money given for international missions to domestic expansion.

That established fact aside, the church still should provide specific information. According to Evangelical Council for Financial Accountability guidelines, project reports need to provide more than is now included on the FAQ page:

The project report should include the amount of donated income, the costs related to administering the project, and the amounts that went directly to the project for which the solicitation was held. Any unusual items related to income or disbursements should be identified and explained. Though audited financial statements provide overall financial data for the reporting period, they are not intended to provide data on specific projects. So, in addition to financial reports, project accomplishments should be shared with the donor. This may include both short-term and long-range results of project gifts.

This FAQ statement doesn’t come close to satisfying the ECFA requirement. This failure to comply with ECFA guidelines again raise questions about Mars Hill Church’s accreditation.  How long will ECFA give Mars Hill Church to correct the situation? It seems clear now that the executive elders know the numbers but won’t disclose them. I hope this will be the next addition to the FAQ page.

The offer to direct gifts to international efforts probably comes at a bad time for Mars Hill as giving is down and staff are being dismissed. However, the offer is necessary in light of ECFA Guideline 7.2:

Giver intent. The organization is obligated to use a gift as directed by the giver or, alternatively, to choose not to accept the donation. Once the giver has indicated the intent for which the gift was given and the organization has accepted the gift, it is the organization’s responsibility to fulfill that intent, whether or not the gift fulfillment is required by law.

I know some donors who will probably take them up on this promise.

Even this promise, as nice as it sounds, raises concerns. Since Mars Hill still has not engaged in full disclosure regarding the disbursement of funds, then how will any donor know that the church will honor this new promise? Since changes have come as the result of public pressure, what is to assure donors that any future promises will be kept? Only financial transparency as requested by the Mars Hill Walk in the Light petition can begin to repair the erosion of trust.

For all posts on Mars Hill Global, click here.

Facing Financial Pressures, Mars Hill Steps Up Solicitations, Lays Off Staff

In the face of financial concerns, Seattle mega church Mars Hill Church has laid off staff and stepped up efforts to collect donations as the end of the fiscal year passed yesterday. According to ex-staff and sources inside Mars Hill church, on June 20, nine staff were let go amid concern about a sudden “budget crunch” from the church’s executive elders.
Mars Hill wrote about the action yesterday in their weekly communication to members:

Last week we had to make the very tough decision to transition a number of people off of staff from our ministry support departments, as well as some staff at a few of our local churches. These are all faithful people who served and worked hard for the church, and we regret that we had to make these changes. If you know any of them, please reach out to offer your prayers and support during this transition, and please continue to pray for the church as we navigate through a tough season.
At this week’s Staff Chapel, we had the opportunity to invite these friends back so that we could honor them and pray over them. It was a meaningful time of worship and reflection as a church family. We are so thankful to have had the opportunity to show these staff members how deeply we care about them and appreciate the contribution they have made toward Jesus’ mission at Mars Hill. While they may no longer be on staff, we love them and they are still a part of our church family.

One staff who was laid off told me that the budget crunch caught the executive elders by surprise and was related to a dramatic decline in attendance and giving.
A current member told me that he received 5 solicitations within the space of three days requesting year end donations. Ex-members and those who have not attended in many years have also received multiple requests for gifts to assist the church raise giving levels. Internal documents supplied to me showed that per member giving was down at all but one of the 15 Mars Hill campus locations.
In one solicitation, executive pastor Sutton Turner said about the church’s situation, “We are ending our fiscal year at one of the most trying times for our church in recent memory.”
Meanwhile, Mars Hill leaders continue to be under pressure over their use of moneys designated the Global Fund over the last two years. A petition at change.org calling for Mars Hill to disclose how much of the Global Fund was spent on international missions has now reached 342 signatures.