Transparency: What’s a 990?

Our website now has a link to the easy to operate 990 finder here…

https://trinityfi.org/non-profit-lookup/

Donors would like to believe their money is going to organizations that take the least amount of money out for administrative purposes and utilize the majority of it to directly meet real charitable needs.  How can we know?

The IRS form 990 is a good start.  Among its good points:  donors can know the salaries of all of the board members and the highest paid individuals in the organization, how much the highest paid independent contractors are making, what countries grant money may be going to, whether or not the organization is funded by public donations or just a few wealthy individuals, how much they are spending on travel, how much on housing, etc., the detail list is long.

Every non-profit in the country except churches and church related organizations have to file the 990.  Traditionally, mainline denominations have maintained reasonable oversight over their member churches for the most part, but as religious non-profit organizations run by a single person or family at the top have multiplied, there is little to no accountability and zero transparency.

 

Where opacity exists, the temptation also exists to bend and break IRS guidelines.  Independent mega-churches and ministries calling themselves churches in this single person/family category have spread around the globe and as they proliferate, the large mansions, private jets, luxury cars, and opulent lifestyles have mushroomed.

 

Opacity comes in many different forms:  shell corporations, gated communities, requiring staff to sign non-disclosure agreements, for-profits feeding off of non-profit orgs owned by the same ones running the non-profit, and the most ironic—church status.

 

Not having to file a form 990 or reveal any other financial information of any significance (except salaries to the IRS privately) is a huge opportunity for profiteering, luxurious living using the organization as one’s own piggy bank, and even money laundering.

 

We could provide hundreds of examples but one will suffice to illustrate the piggy bank scenario.  When she was alive, Trinity Broadcasting Network (TBN) vice-president Jan Crouch resided a long while at #1 Yorkshire, Newport Beach, CA, an opulent mansion purchased for $5.6M by the Trinity Christian Center of San Marcos  (TCCSM), listed as the TBN corporation’s church— but in reality, another shell company operated by TBN’s founding family (we tried for years to find an actual church with that name but never could).

 

Churches have the privilege of providing tax-free housing for their pastors, who traditionally have received more meager incomes than most and could use the extra boost, but it’s unknown whether the palatial mansion was used as Jan’s “parsonage” (tax-free housing) and no public financial information is available, because the actual owner, TCCSM is a church.

 

Believers might do well to remember what Jesus said about transparency, “For nothing is hidden that will not be revealed, and nothing concealed that will not be made known and brought to light.”[1]

Forbes Magazine’s Peter Reilly recently reported on a petition and a book by Reverend Frank B Jones the pastor of Pentecostal Temple in Compton, CA calling for churches to start filing the IRS form 990, which exposes salaries and where the money goes in general. The book, Stop the Prosperity Preachers, takes aim at the lack of financial transparency by churches.

Filing the 990 can be a difficult task that can take weeks to complete but it’s a step toward transparency that we encourage larger churches and ministries to take.

 

 

 

[1] NET version, Luke 8:17

OVER $ 1.2 BILLION: FCC allows Christian NON-PROFIT Television Stations to sell…

How would you like to own a slice of air and suddenly it’s worth tens of millions?

The cost for Americans’ insatiable demand for instant internet use just went up a few notches, or maybe more than just a few… The various “airwaves” licensed to television broadcasters and purchased for millions decades ago are now worth billions.

In recent years, the Federal Communications Commission (FCC) has recognized a need by AT&T, Verizon, T-Mobile, and other large cell phone or internet service providers to gain larger slivers of a rapidly disappearing spectrum “pie” for portable and non-portable cellular device usage. Consequently, the FCC has organized and conducted a number of heavy-duty auctions enticing TV station owners to sell portions of spectrum they own and use for broadcasting.

The US public was largely uninformed and, for the most part, left out of this process; a process which, no doubt will show up as an increase in our phone and internet bills soon enough. “Christian” television providers—think private jets, multiple large mansions with Italian marble floors, five-star European hotels and restaurants, expensive rare wines, yachts, etc.—have profited hugely to the tune of $1.2 BILLION.

The ubiquitous Trinity Broadcasting Network (TBN) has profited far above a slew of others, such as as Lesea, Morning-Star, Maranatha, Good life, Daystar, etc. TBN and its affiliates have taken in a whopping $634.3 million dollars so far from its own sale of television broadcast spectrum.

In the process, they’ve actually lost few if any of their TV stations in audience markets around the country due to the large increase in the number of digital slots made available with the switch from analog to digital, high-definition television. Viewers will simply change channels.

Now, what are they going to do with the money? Will any of it go to real charity—such as homelessness, hunger, and medical needs?

Here’s a list our volunteer investigator Barry Bowen compiled from the FCC:

WCLJ-TV – Indianapolis, IN – Trinity Broadcasting of Indiana, Inc. — $18,759,808 (TBN)

WHMB-TV – Indianapolis, IN – LeSEA Broadcasting of Indianapolis, Inc. — $18,325,111

WKBS-TV – Johnstown-Altoona, PA – Cornerstone Television, Inc. — $10,361,255

WAGV – Knoxville, TN – Living Faith Ministries, Inc. — $7,536,418

WTLW – Lima, OH – American Christian Television Services, Inc. — $7,697,376

WVCY-TV – Milwaukee, WI – VCY America Inc. — $76,342,409

WTBY-TV – New York, NY – Trinity Broadcasting of New York, Inc. — $162,402,181 (TBN)

WACX – Orlando-Daytona Beach-Melbourne, FL – Associated Christian Television System, Inc. — $20,310,061

WTGL – Orlando-Daytona Beach-Melbourne, FL – Good Life Broadcasting, Inc. — $20,394,122

WFMZ-TV – Philadelphia, PA – Maranatha Broadcasting Company, Inc. — $140,482,163

WGTW-TV -Philadelphia, PA -Trinity Christian Center of Santa Ana, Inc.– $80,807,629 (TBN)

WDWL – Puerto Rico – Teleadoracion Christian Network, Inc. – $7,780,506

WHFL-CD – Raleigh-Durham, NC – Free Life Ministries, Inc. — $2,721,376

WRAY-TV – Raleigh-Durham, NC – Radiant Life Ministries, Inc. — $62,419,828

WFFP-TV – Roanoke-Lynchburg, VA – Morning Star Broadcasting, LLC — $23,182,528

WNYI – Syracuse, NY – word of god fellowship, inc. — $2,319,390

WFGC – West Palm Beach-Ft. Pierce, FL – Christian Television of Palm Beach County, Inc. – $3,359,483

Total amount: $1,223,872,598

Postscript: We regularly illustrate the wealthy lifestyles of televangeslists, Christian TV broadcasters, etc. For a small example of how the money gets spent, read these 2 Orange County Register articles to view 1) a mansion belonging to TBN and occupied by the late Paul Crouch, Sr. which is currently on the market for $4.35M and 2) a separate mansion belonging to TBN and occupied by the late Jan Crouch which sold for $5.15M in December 2016.

Bizarre Church We Investigated is Accused of Slavery

The Word of Faith Fellowship (WOFF) we investigated in the 90’s has recently been accused of enticing Brazilian nationals here to be used as slave labor.  16 Brazilians told the AP (read herethey were lured here with promises of learning English, gaining a college education, seeing a bit of the US, and improving their relationship with God, yet were forced to work as slaves.
Our investigator, who spent months undercover inside this church during the mid 90s and underwent 11 exorcisms while there, also remembers that fellow congregants were required to work for senior church leaders.
Ex-members interviewed during that time period by the Trinity Foundation related similar stories of being packed into suburban homes turned into communal compounds and forced into minimum-wage jobs, working for church leaders.
A local policeman, interviewed by Inside Edition at the time, told of helping a foreign national escape and being met at the airport by church leaders attempting to prevent the youngster from leaving the country.
This Wednesday, March 29, 2017 photo shows Ana Albuquerque, 25, during an interview in Belo Horizonte, Brazil. Albuquerque traveled to the Word of Faith Fellowship church in Spindale, N.C., from Brazil 11 times over the course of more than a decade, starting at age 5 with her parents. Over time, she said she witnessed so much screaming and shoving to “expunge devils” that she began to see the behavior as normal. Silvia Izquierdo AP Photo

 

This undated photo provided in 2017 by a former member of the Word of Faith Fellowship from Brazil shows founder Jane Whaley with children at the church in Spindale, N.C. Members visit the Spindale compound from around the world, but Brazil is the biggest source of foreign labor and Whaley and her top lieutenants visit the Brazilian outposts several times a year, the Associated Press has found. AP Photo)
This Wednesday, March 29, 2017 photo shows people at the Word of Faith Fellowship church in Sao Joaquim de Bicas, Brazil. An Associated Press investigation has found that Word of Faith Fellowship used its two church branches in Latin America’s largest nation to siphon a steady flow of young laborers who came on tourist and student visas to its 35-acre compound in rural Spindale, N.C. Silvia Izquierdo AP Photo

 

In this Wednesday, March 29, 2017 photo, Ana Albuquerque explains how she was spanked during an interview in Belo Horizonte, Brazil. Bent over a desk, Albuquerque says church founder Jane Whaley and another member repeatedly spanked her with a flat piece of wood while screaming that she was “unclean” and possessed by the devil when she was 16. Silvia Izquierdo AP Photo

 

This February 2016 photo shows Andre Oliveira in Spindale, N.C. When Oliveira answered the call to leave his Word of Faith Fellowship congregation in Brazil to move to the mother church in North Carolina at the age of 18, his passport and money were confiscated by church leaders _ for safekeeping, he said he was told. Trapped in a foreign land, he said he was forced to work 15 hours a day, usually for no pay, first cleaning warehouses for the secretive evangelical church and later toiling at businesses owned by senior ministers. Mitch Weiss AP Photo

TODD COONTZ INDICTED

 

Channel Nine News of Charlotte, NC recently broadcast the news that Todd Coontz has been indicted by the federal government on several charges of tax fraud.  The Trinity Foundation began working with investigative reporter Jim Bradley in December 2012 to help provide information on Todd Coontz and his ministry.  Bradley’s March 2013 report on Coontz features a brief interview with Ole Anthony, President of the Trinity Foundation(view video here).  Recently Ole was interviewed by the Christian Post about our work with Bradley on that investigation and Ole’s response to the indictment (read article here).

Channel 9 June 23 news clip about Coontz’s indictment can be viewed here.

The federal indictment by the US Secret Service includes items mentioned in Bradley’s 2013 report on Coontz: that he owned a $1.38 million condo, a Ferrari, and a Maserati under his ministry’s name; and used ministry funds to pay for more than $227,000 in clothes and $140,000 at restaurants; in addition to taking luxury vacations. According to the government, Coontz owes a surplus of $326,000 in tax payments from the years 2010-2013.

Carra Crouch Lawsuit Outcome Ruled To Be Complete Responsibility of TBN

Carra Crouch received a favorable outcome in court on Monday on a case which took eleven years to go to trial!  On June 5th the court awarded Carra $2 million dollars for her pain and suffering after a sexual assault by a TBN employee.  Although initially they ruled that Jan Crouch was only 45% responsible for her pain and suffering, assigning the remainder to her mother and the assailant, that was overruled based on the fact that California law only apportions accountability in negligence claims. 

 

This was initially ruled as an intentional infliction of emotional distress because of the way that Jan Crouch reacted to her granddaughter when she told her about the assault.  Now, TBN is responsible to pay Carra the entire $2 million in damages, as reported by the Orange County Register here.

TBN’s lawyers, who have filed a total of 22 lawsuits against Carra’s sister Brittany, were once called “vexatious litigants” by a federal judge.  Having been given a chance to correct their behavior, they (view our post here) have indicated that they reserve the right to fight the decision by the judge.

TBN Found Liable for Damages to Jan Crouch’s Granddaughter

 

The granddaughter of the late TBN founder Jan Crouch was just awarded $2 million dollars in damages for emotional pain incurred from an alleged molestation and rape in 2006.  The court ruled that TBN is responsible to pay Jan Crouch’s portion of that ($900,000) because of Jan’s mishandling of her granddaughter’s claim of abuse that happened at a telethon by a TBN employee.  We are deeply disturbed to see this family involved in so much litigation with one another and saddened to see them in so much pain.  (Read the New York Times Article on the Trial here)

 

 

Who’s Counseling Who? The “President’s Pastor” threatens retaliation…

 

U.S. President Donald Trump, Vice President Mike Pence (R), Pastor Paula White (C), and Pastor Jack Graham (Getty Images)

Paula White-Cain claims she can walk into the president’s office and pray for him any time she wishes, but before the prosperity preacher would answer Heat Street reporter Jillian Melchior’s list of questions, Ms. Melchior, Heat Street and owner Dow Jones were all threatened with a lawsuit by Paula’s lawyer—so much for “turn the other cheek”.  Ms. Melchior’s lengthy article illustrates how Ms. White-Cain asks for money—lots of it—and ends with a brief interview with Ole Anthony and our warning to the Trump administration about Mrs. White-Cain—read it here.

Our International Investigations aid South Africa’s fight against spiritual pornography—this month we focus on “Major/Prophet/Papa” Shepherd Bushiri

Major Prophet Shepherd Bushiri coming out of his jet

We recently engaged in discussions providing information and assistance to the South African Secular Society, who are attempting to help their fledgling democratic government develop legislation and case law to combat religious fraud and excess in South Africa—and there’s loads of it.  It’s sad to say, but the US has exported the “name-it, claim-it” gospel around the world—to the poorest people of the world.  Ole Anthony calls it spiritual pornography—self-seeking in the name of God which soon becomes spiritual cancer.

Nowhere is this bald-faced lie more glaring and destructive than in Africa where the great majority of workers earn less than a dollar a day.

“Planting your seed” is nowadays generally taught to mean donating your money into a ministry to get some sort of blessing, either financial success or physical healing.  It never works for the poor but quite like a fraudulent pyramid scheme, it only enriches its prosperity preacher proponents at the top of the pyramid who live in luxury and use donor funds as their personal bank account.

Think “spiritual porn” is a bit of an exaggeration?  Watch Malawi born mega-church pastor Shepherd Bushiri’s arrival and reception to the adulation of tens’ of thousands and some of his parlor trick performances here.  Among other pseudo miracles, Bushiri claims he can walk on air, photograph angels with a “random” IPAD, and prophesy the future.

Bushiri’s first name is ironic—a shepherd is supposed to care for his flock and place his charge’s interests over his own.  QZ.com, a Global Online newspaper whose main office is in New York, reports Mr. Bushiri recently acquired a Gulfstream III jet and claimed on Facebook it’s “My third jet in two years”. [1]

Bushiri is pastor of the Enlightened Church Gathering (ECG) with its largest congregation in Pretoria and branches across the African Continent.  It claims to have over 300,000 registered members.

Also president of Shepherd Bushiri Investments (SBI) and the Bushiri Consultancy in Dubai, he claims massive wealth.  According to Malawi’s Nyasa Times, Bushiri is a billionaire entrepreneur whose ventures include gold mines, oil exploration and production, SB Airways which charters private jets in South Africa, a mobile phone service provider called PSB Network in South Africa, hotels in South Africa and Mauritius (a small island west of Madagascar), producing and selling an energy drink called “Favor”, as well as several other companies in Dubai, Ethiopia, Cyprus, and Zambia.

Bushiri is not alone among African pastors who own or whose ministries own corporate jets.  The largest concentration of private preacher jets is located in Nigeria.  We intend to report more on this in future posts.

inside Bushiri’s jet

 

More from South Africa:  Last month we reported that Pastor Timothy Omotoso of the Jesus Dominion International ministry was arrested and charged with sex trafficking April 20 by a South African law enforcement organization similar to the FBI.   More here… 

[1] Lily Kuo, ANNOINTED—Malawian pastor defends buying a third private jet by saying, “I am what God says.. I was born a winner”, QZ.com, Quartz Media, January 2016

Feds Investigate Benny Hinn’s Headquarters

Numerous agents from the Criminal Investigation Division of the IRS and Postal Inspectors wearing POLICE jackets raided the nerve center of Hinn’s ministry, the World Healing Center Church in Grapevine Texas to carry out an extensive search warrant. One reporter estimated as many as 50 agents were inside the ministry gathering boxes and boxes of evidence and loading it onto trucks for two days beginning Wednesday April 26th. One IRS agent mentioned that their job was to investigate financial crimes.

Three television crews dropped by our Trinity Foundation offices on Wednesday to interview our president Ole Anthony, ask about our investigations of Hinn for the US Senate Finance Committee from 2005 through 2010, and see what else we knew. On Thursday, we helped WFAA News 8 find a young man who Hinn claimed to be healed of blindness when he was a boy back in 2001. Watch both segments here.

If you have any undisclosed information about Benny Hinn or his ministry, please send it to our contact email trinity@trinityfi.org or call our office at 214-827-2625. Your identity will remain confidential as long as you wish.

Following the Money Trail of Extravagant Televangelist Salaries…

We discovered recently that Frank Wright, then-president of the National Religious Broadcasters (NRB), sent a letter in 2007(here) to Senator Grassley telling him they were “saddened” by his thorough investigation into financial impropriety of six different televangelists.  One of Mr. Wright’s complaints—he was distressed that the Senate Committee would want to know the names of the people who had recommended salary compensation values for these televangelists.

Our evidence presented to the Senate showed that many of the persons on these “independent” compensation committees recommending multi-million dollar salaries were anything but.

When the IRS sees a multi-million dollar salary, they look to see if there is a compensation study conducted by unrelated and non-disqualified (independent) individuals with nothing to gain or lose when they make their salary recommendation.  However, the Trinity Foundation uncovered a trail of suspicious studies and committees in the early 2000’s.  In one case, we discovered that Robert Tilton’s compensation of $1.5 million was voted on by Tilton’s own lawyer’s employees, hardly an “independent” committee.

In one compensation study cited by the Senate Finance Committee’s staff, a televangelist’s compensation was compared with CEOs of for-profit corporations and media personalities like Oprah Winfrey, Britney Spears, Madonna, Rosie O’Donnell, and David Letterman.

Televangelists are obtaining massive wealth through extravagant salaries base on compensation committee reports using compensation data from for-profit corporation CEOs. David Cerullo of the Inspiration Network (INSP) total was compensated almost $5.7 million in 2013.

According to an interview in the Herald Online (here) “David Cerullo’s compensation is and always has been established by a fully independent executive compensation committee,” the statement said. “This committee compares Mr. Cerullo’s compensation with other executive compensation of similar organizations … including cable television network CEOs, senior media company executives, CEOs of faith-based national ministries, and pastors of churches.”

“Many philanthropy experts say it’s unfair to compare salaries in nonprofit organizations with those in the for-profit world. That’s because nonprofits get substantial tax breaks – a form of public subsidy. In exchange, they’re expected to keep salaries at reasonable levels.”

The consulting company used data obtained by a 2004 Southern Baptist Convention compensation study of ministers’ salaries as a baseline to justify high salaries for their client minister (televangelist) by counting the estimated television audience of millions as “persons reached” (i.e. church members of a sort).

This particular study, first picked a highly paid Baptist pastor of a congregation of 1,000+ paid over $200,000 per year and then used that figure as part of a justification to recommend paying the TV preacher roughly ten times what the pastor was earning—a total of $2 million.

One such consulting company—the law firm of Winters and King, claims they have conducted hundreds of compensation studies. The initial question on its website compensation page (view here) is, “Are you being paid enough?”—a question to be exploited by pastors with an appetite for largess.

Winters and King brags on its website that its compensation evaluations “have proven a valuable tool (i.e., of protection) for clients undergoing IRS audits and inquiries by the Senate Finance Committee”.  The day after Senator Grassley announced in November 2007 that the Senate was investigating six televangelists, Winters and King founder Thomas Winters wrote a press release for “Grassley Six” televangelist Joyce Meyer—that her “ministry fully funds and operates more than 50 orphanages around the world” —a claim we still find impossible to believe.

In light of Winters’ representation of televangelists during the Senate investigations into religious non-profit fraud (2007-2010) we should note his inclusion on Evangelical Council for Financial Accountability’s task force,  the very task force charged by the Senate Finance Committee to help solve the misuse of religious non-profit donor money. It’s a textbook case in conflict of interest—it’s a case of the fox helping design the henhouse.

Thomas J. Winters’ personal website, the Winters’ Publishing Group, claims to have represented more than 30 New York Times best sellers, and to have licensed the movie rights to several works under representation. These authors include a “Who’s Who” of the folks we’ve investigated over the years, including Gloria Copeland, Joyce Meyer, Ed Young, Steve Furtick, and others.

In 2011 the Senate Finance Committee released a report on their investigation’s findings, quoting testimony from a congressional hearing following the infamous Jim Bakker scandal—23 years earlier.  Fundamentally, nothing has changed legislatively.  Government officials then AND now realized one of the main reasons that abuses at some TV ministries go undetected is the total lack of transparency of religious non-profits claiming to be churches.

They quoted now-deceased Dr. D. James Kennedy, “I would think that if a person is going to give money to something, that they have … a responsibility to learn where it is going.”  They also quoted Congressman Dorgan’s response, paraphrased:  BUT HOW CAN THEY if no churches, televangelists, or religious non-profits claiming to be churches are required to submit an IRS form 990? (our emphasis)  No public financial information is available.