Nonprofit Media-Based Ministries

Congress, as reported by the Senate Committee on Finance, is beginning to look more closely at the activities of these groups and what develops could also impact other nonprofit churches and nonprofits in general.

An excerpt.

“WASHINGTON -- Sen. Chuck Grassley, ranking member of the Committee on Finance, today released a staff review of the activities and practices of six media-based ministries and reports concerning other churches and religious organizations referred to the committee. He pursued this review as part of an ongoing effort to strengthen the tax-exempt sector. The review contains a summary of findings and identifies key issues for discussion by stakeholders.

“The tax-exempt sector is so big that from time to time, certain practices draw public concern,” Grassley said. “My goal is to help improve accountability and good governance so tax-exempt groups maintain public confidence in their operations.”

“Grassley said tax-exempt policy involving churches and religious organizations is an area Congress hasn’t looked at in decades. Then-Senator Mark Hatfield’s 1977 request to evangelical groups to be more transparent caused the formation of the Evangelical Council for Financial Accountability (ECFA). Joining this organization has become like a Good Housekeeping seal of approval for those in the evangelical community.

“According to the ECFA, Hatfield issued his request in response to legislation introduced by Rep. Charlie Wilson that would have required certain disclosures by organizations soliciting funds. Similarly, Grassley expects that the issues raised as part of the staff review will generate discussion about increasing accountability among all types of churches and religious organizations, not just evangelical groups. “The staff review sets the stage for a comprehensive discussion among churches and religious organizations. I look forward to helping facilitate this dialogue and fostering an environment for self-reform within the community,” Grassley said.

“Grassley wrote to six media-based ministries in November 2007, based on requests for review from members of the public who wrote to him because of his previous tax-exempt oversight work. In addition, these ministries had received media coverage and attention from watchdog groups. One of the six ministries, Joyce Meyer Ministries, responded fully to Grassley’s inquiry and joined the ECFA in March 2009
. Benny Hinn of World Healing Center Church also provided complete answers to all questions. Both ministries wrote to Grassley to explain they have undertaken significant internal governance reforms. “I appreciate these efforts,” Grassley said. “Self-correction can be more effective than government action. It’s something that’s worked with other entities I’ve looked at, such as the Nature Conservancy and the Smithsonian Institution and some top colleges that were amassing large endowments without increasing student aid.”