Investigation Seeks to Find If Christian Charities are Using Your Money Wisely

charity

Nearly a third of the $373 billion that Americans donated to charity last year went to religious organizations.

The $119 billion that was given to churches, religious charities and parachurch ministries is more than went to groups that specialize in education, human services or any other category, according to a report by Giving USA.

But the cost-effectiveness of the religious recipients varies greatly, as does the transparency of their finances.

“Donors should recognize they have a serious responsibility to give as wisely as they can, as it is not their money they are giving but the Lord’s,” said Rusty Leonard, founder and CEO of MinistryWatch, an accountability group.

The final months of the year can generate a quarter or more of a ministry’s annual donations. So how can prospective donors looking to support Christian organizations figure out which ones deliver the most “ministry per dollar”?

Expenses and overhead costs can vary, depending on the organization’s mission, administrative expenses and the cost of doing business in the areas where they work.

Leonard says donors should do research and “ask tough questions.”

“The world of Christian ministry is lightly regulated,” he said, noting that the Evangelical Council for Financial Accountability “exists primarily to help the ministries, not donors. So, without active donor involvement, it is easy for a ministry to go astray.”

With support from the Fund for Investigative Journalism, RNS looked at 33 major nonprofit Christian ministries to find out:

• What percentage of their budgets do ministries spend on their core ministry programs?

• How transparent are ministries in sharing their financial information?

• And how do charity watchdog agencies rate various ministries?

Some ministries make it easy for donors to access their audited financial statements online. Compassion International, Fellowship of Christian Athletes, InterVarsity Christian Fellowship and Prison Fellowship all offer many financial reports on their websites.

Others offer websites and annual reports that lack detailed financial data or conflict with actual spending.

Some charities, including the nearly $3 billion Salvation Army USA, declined to provide detailed financial information for this article.

Transparency

Not all of America’s million-plus charities and foundations are created equal, as reporters for CBS News and The New York Times discovered last year when they investigated the Wounded Warrior Project.

That nonprofit spent only 60 percent of its income caring for military veterans; the rest went to overhead, salaries, marketing and fundraising.

In the world of Christian ministries, the Evangelical Council for Financial Accountability was founded in 1979 after a series of religious fundraising scandals involving high-rolling televangelists and a Catholic group, the Pallotine Fathers, who spent only two-and-a-half cents per donor dollar on ministry programs.

ECFA’s members include more than 2,100 church and parachurch ministries that receive about $16 billion a year.

The council’s transparency guidelines require member organizations to provide audited financial statements “upon written request.” ECFA says such financial transparency is both a matter of “moral integrity” and “a condition of continued ECFA accreditation in good standing.”

However, four of ECFA’s accredited members — The Navigators, David C Cook, Reach Beyond and Dr. James Dobson’s Family Talk — declined initially to provide audited financial statements despite multiple requests.

They did only after the EFCA, contacted for this article, stepped in and urged them to be forthcoming.

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SOURCE: Religion News Service
Steve Rabey

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