A three-year investigation into financial improprieties at six Christian ministries whose television preaching bankrolled leaders' lavish lifestyles has concluded with the formation of an independent commission to look into the lack of accountability by tax-exempt religious groups.

Senator Charles E. Grassley, an Iowa Republican and the ranking member of the Senate Finance Committee, issued a report saying that "self-correction" by churches and religious groups is preferable to legislative or regulatory solutions.

Money, Money, Money...

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
- The Bible, 1 Timothy 6:3-10 NIV

Research resources on Prosperity Teaching

Comments & resources by ReligionNewsBlog.com

But his report found that only two of the six ministries cooperated with his investigation and volunteered to institute reforms. The others continued to hide behind tax laws that allow religious organizations to operate tax-free with little transparency or public accountability — a status that sets them apart from other nonprofit groups and charities that must file detailed annual reports of expenditures to the Internal Revenue Service.

"The challenge is to encourage good governance and best practices," Senator Grassley said in a statement, "and so preserve confidence in the tax-exempt sector without imposing regulations that inhibit religious freedom or are functionally ineffective."
[...]

The inquiry began at the request of evangelical Christians who shared their alarm with Senator Grassley about how the six ministries appeared to be using donations from the faithful to buy airplanes, lavish homes and jewelry, and to run profit-making businesses for leaders and their family members.

All six are "prosperity gospel" ministries, which teach that believers will themselves become prosperous by donating generously to the ministry. The preachers flaunt their opulent lifestyles as evidence that their teaching is true.

The two ministries that responded fully to Mr. Grassley's investigation and indicated they had reformed their practices were Joyce Meyer Ministries and Benny Hinn Ministries.

The four ministries that provided incomplete or no information, according to the Finance Committee investigators, were Kenneth and Gloria Copeland of Kenneth Copeland Ministries; Randy and Paula White of Without Walls International Church; Creflo and Taffi Dollar of World Changers Church International; and Bishop Eddie L. Long of New Birth Missionary Baptist Church. (Bishop Long was recently sued by four young men who accuse him of luring them into sexual relationships. Bishop Long has denied the allegations.)
[...more...]

New panel formed to examine issues around church finances

A new commission has been formed to address issues raised in an investigation into the financial operations of six media-based mega-ministries, including two in Georgia.
[...]

The Commission on Accountability and Policy for Religious Organizations will be led by Michael Batts, an expert in board governance, financial reporting and tax compliance for nonprofits.

[youtube https://www.youtube.com/watch?v=YfVZnrg7e_E?fs=1&hl=en_GB&rel=0&w=425&h=344]

In an interview Friday, Batts said he hopes solutions can be identified that don''t involve "burdensome legislation." I would not say categorically that legislation would be bad, but certainly harsh, adverse or burdensome legislation would not be welcome." He said solutions could include self-regulation for churches and faith-based nonprofits or improved enforcement.
[...]

Three ministries provided incomplete information. They were Randy and Paula White of Without Walls International Church; Long's New Birth Missionary Baptist Church/Eddie L. Long Ministries; and Kenneth and Gloria Copeland of Kenneth Copeland Ministries.

World Changers was called the "least cooperative." To date, the review said, the committee staff has been unable to determine the names of the ministry's board members or any information regarding compensation. A spokeswoman for Dollar could not be reached for comment.

As a result, information about those churches was gleaned from public sources and current or former officers, directors, key employees, watchdog groups and current and former members. The staff, for a variety of reasons, decided against issuing supoenas. In some cases, informants said they were warned by churches that they would be sued if they violated confidentiality agreements. Some informants would only speak anonymously and some were too frightened to do even that, according to a staff memo to Grassley.

The investigation report issued this week details the ministries' luxury homes and cars, trips on private jets and expensive gifts, including two Rolls Royces that a third party reported was given to the Dollars as a gift from the church.
[...]

The fact that some of the targeted ministries failed to provide complete or any information to the committee was particularly troublesome, said Riggins Earl, a professor of ethics at Interdenominational Theological Center.

"Something in the culture has obviously gone out of control in terms of a church's corporate accountability and transparency," he said.

"I'm all gung ho for church and state separation but I don't think the church should have the power that Mr. Dollar and Mr. Long want to give themselves."
[...more...]

See Also

• Grassley Releases Review of Tax Issues Raised by Media-based Ministries
• Research resources on Prosperity Teaching

Full story: Tax-Exempt Ministries Avoid New Regulation

The New York Times covered the Southwest Believers' Convention, but probably not the way its organizers, Ken and Gloria Copeland, would have liked.

The Copelands are proponents of so-called Word-Faith theology, a collection of teachings ranging from aberrant to heretical -- with a particular emphasis of the so-called Prosperity Gospel, a get-rich-quick scam they try to justify with twisted interpretations of the Bible.

It is this teaching that the New York Times article rightly focuses on:

Believers Invest in the Gospel of Getting Rich

FORT WORTH — Onstage before thousands of believers weighed down by debt and economic insecurity, Kenneth and Gloria Copeland and their all-star lineup of "prosperity gospel" preachers delighted the crowd with anecdotes about the luxurious lives they had attained by following the Word of God.
[...]

Even in an economic downturn, preachers in the "prosperity gospel" movement are drawing sizable, adoring audiences. Their message — that if you have sufficient faith in God and the Bible and donate generously, God will multiply your offerings a hundredfold — is reassuring to many in hard times.

The preachers barely acknowledged the recession, though they did say it was no excuse to curtail giving. "Fear will make you stingy," Mr. Copeland said.
[...]

Many in this flock do not trust banks, the news media or Washington, where the Senate Finance Committee is investigating whether the Copelands and other prosperity evangelists used donations to enrich themselves and abused their tax-exempt status. But they trust the Copelands, the movement's current patriarch and matriarch, who seem to embody prosperity with their robust health and abundance of children and grandchildren who have followed them into the ministry.
[...]

Small wonder. The Prosperity Gospel, in a nutshell, works as follows: God wants you to be rich, but He can not bless you unless you first send money (also known as a "seed-faith offering") to whichever televangelist or teacher tells you about this scheme.

You reap what you sow, the preachers -- many of them 'televangelists' -- claim, with some promising a 'hundred-fold return."

Many of their followers don't realize that if this scam worked as advertised, televangelists would be sending them money.

Meanwhile these same followers tend to defend the oppulent lifestyles of their heroes. To them it shows what they themselves may one day reach, if only they get good at Positive Confession and have enough faith that God will bless their offerings with a windfall.

The New York Times article quote Jonathan L. Walton, a professor of religion at the University of California, Riversie, who has written about the movement. [See Walton's articles on the subject at Religion Dispatches. See also his recent book, Watch This!: The Ethics and Aesthetics of Black Televangelism, which also discusses the gospel of greed.]

He refers to prosperity preachers as "spiritual pickpockets."

The Copelands refused an interview request, but one of their daughters, Kellie Copeland Swisher, and her husband, Steve Swisher, who both work in the ministry, spoke for them.
[...]

The ministry has resisted providing the Senate investigation with all the documents requested, she said, because the Copelands did not want to publicly reveal the names of the "partners." The investigation, which could result in new laws, is continuing, a committee spokeswoman said. Among those being investigated is Creflo Dollar, one of the ministers at the Copelands' convention.
[...]

At the convention, the preachers — who also included Jesse Duplantis and Jerry Savelle — sprinkled their sermons with put-downs of the government, an overhaul of health care, public schools, the news media and other churches, many of which condemn prosperity preaching.
[...more...]

Full story: Kenneth and Gloria Copeland continue to peddle Prosperity Gospel

Kenneth Copeland may have to reveal his salary

A Kenneth Copeland Ministry jet worth $3.6 million has been denied tax-exempt status by the Tarrant Appraisal District, setting the stage for a battle that could require the minister to reveal his salary if he wants the jet to be tax-free.

Jeffery D. Law, Tarrant chief appraiser, said the jet was denied tax exemption because the ministry failed to disclose salaries of directors as an application requires. Law said the ministry, based in Newark, northwest of Fort Worth, will protest the denial at a hearing Monday morning.

"The application requires that they submit to us a list of salaries," Law said. "They have not given it to us, and as a result we have denied their exemption."

Compensation paid Copeland and other members of his family has been the source of a U.S. senator's inquiry, but the televangelist has been unwilling to disclose the information publicly.

If the ministry gives the compensation information to the appraisal district, it would be open to public disclosure, Law said.

The jet in question is a 1998 Cessna Bravo 550 that was given to the ministry last year.

The Cessna 550 has a maximum cruising speed of 400 mph and seats nine. Last year, the ministry said it owned five aircraft, including the Cessna 550 and a $17.5 million Citation X. At the time, it was selling a 1973 Cessna 421.
[...]

In a July affidavit, ministry accountant John Ratliff responded to an appraisal district request for information by stating that the ministry "is operated in a way that does not result in accrual of distributable profits, realization of private gain resulting from payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered…"

He stated that the ministry, also known as Eagle Mountain International Church, uses its assets only in performing the organization's religious functions.

However, the ministry said last year that from November 2006 to November 2007, the board approved personal use of aircraft 10 percent of the time.

"Individuals are all charged for personal use of the planes," it said in a statement.

The application for a tax exemption requires organizations to attach a list of salaries and other compensation for services paid in the last year, Law said. It requires a list of any funds distributed to members, shareholders or directors in the last year. In each case the recipient's name, type of service rendered or reason for payment, and amounts paid must be included.

Members and directors of the ministry include Kenneth Copeland, his wife, Gloria, and several ministers, according to documents provided to the appraisal district.
[...]

Full story: Televangelist’s $3.6 million jet not tax-exempt, appraiser says

Relatives of televangelist prosper

NEWARK, Texas Here in the gentle hills of north Texas, televangelist Kenneth Copeland has built a religious empire teaching that God wants his followers to prosper.

Over the years, a circle of Copeland's relatives and friends have done just that, The Associated Press has found. They include the brother-in-law with a lucrative deal to broker Copeland's television time, the son who acquired church-owned land for his ranching business and saw it more than quadruple in value, and board members who together have been paid hundreds of thousands of dollars for speaking at church events.

Church officials say no one improperly benefits through ties to Copeland's vast evangelical ministry, which claims more than 600,000 subscribers in 134 countries to its flagship "Believer's Voice of Victory" magazine. The board of directors signs off on important matters, they say. Yet church bylaws give Copeland veto power over board decisions.

While Copeland insists that his ministry complies with the law, independent tax experts who reviewed information obtained by the AP through interviews, church documents and public records have their doubts. The web of companies and non-profits tied to the televangelist calls the ministry's integrity into question, they say.

Money, Money, Money...

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
- The Bible, 1 Timothy 6:3-10 NIV

Research resources on Prosperity Teaching

Comments & resources by ReligionNewsBlog.com

"There are far too many relatives here," said Frances Hill, a University of Miami law professor who specializes in nonprofit tax law. "There's too much money sloshing around and too much of it sloshing around with people with overlapping affiliations and allegiances by either blood or friendship or just ties over the years. There are red flags all over these relationships."

Copeland, 71, is a pioneer of the prosperity gospel, which holds that believers are destined to flourish spiritually, physically and financially - and share the wealth with others.

His ministry's 1,500-acre campus, behind an iron gate a half-hour drive from Forth Worth, is testament to his success. It includes a church, a private airstrip, a hangar for the ministry's $17.5 million jet and other aircraft, and a $6 million church-owned lakefront mansion.

Already a well-known figure, Copeland has come under greater scrutiny in recent months. He is one target of a Senate Finance Committee investigation into allegations of questionable spending and lax financial accountability at six large televangelist organizations that preach health-and-wealth theology.

All have denied wrongdoing. But Copeland has fought back the hardest, refusing to answer most questions from the inquiry's architect, Republican Sen. Charles Grassley of Iowa.

Copeland's church also has invited an Internal Revenue Service audit, which would keep information private, and has launched a sophisticated Web site, Believers Stand United, to "help set the record straight."

The Senate committee didn't set out to determine whether Copeland or the others broke the law, although it could provide information to the Internal Revenue Service if something seems flagrantly wrong, a committee aide said. The main goal, Grassley has said, is to figure out whether existing tax laws governing churches are adequate, which could carry sweeping implications for all religious organizations.

The committee could subpoena Copeland if he remains uncooperative. Neither he nor John Copeland, his son and the ministry's chief executive officer, responded to interview requests.

But Lawrence Swicegood, spokesman for Kenneth Copeland Ministries, said in written responses to questions that no Copeland family members receive improper benefits through their ties to the church.

All revenue from the church's business interests - including an oil and natural gas company it owns - go into the church, Swicegood said.

He said that Kenneth Copeland has never exercised his veto power over board decisions, a provision meant for emergency use. Even so, Swicegood said, the board is scheduled to meet in August to vote on taking away that ability.
[...]

Full story: Prosperity gospel works… for relatives of televangelist Kenneth Copeland

Television ministry challenges probe

Washington, D.C. — A statement Monday from televangelist Kenneth Copeland's ministry says it is "simply untrue" that the church has not cooperated with an ongoing investigation by Republican Sen. Charles Grassley of Iowa.

Kenneth Copeland Ministries, based in Newark, Texas, also said in a lengthy response to the top Republican on the Senate Finance Committee that he should go through the Internal Revenue Service to get information on the media ministry's financial operations.

Any government inquiry into the affairs of a church "raises serious constitutional issues," and the church "firmly believes that it must be given the protections from disclosure afforded by the federal tax laws" and the IRS, the ministry added.

Grassley sent letters in November to six ministries active on radio, television and the Internet. He was seeking information about possible misuse of donations, based on information from news reports, whistle-blowers and critics.

All the ministries are tax-exempt.

The strongest reaction has come from Copeland, who has vowed he would go to prison before he would comply with a congressional subpoena, should one be issued.
[...]

The Copeland ministry said in its statement that in April, it pledged cooperation to the IRS should the agency undertake a tax inquiry of the church.

But Kozeny said the Grassley inquiry is not related to enforcement, which is the job of the IRS, and the IRS is not under any obligation to investigate the Copeland ministry.

Press Release by Kenneth Copeland Ministries

NEWARK, Texas, July 14 /Standard Newswire/ -- Eagle Mountain International Church/Kenneth Copeland Ministries (the "Church") has reviewed Senator Grassley's July 7, 2008, "Memorandum to Reporters and Editors" on the status of the responses and level of cooperation received from the six church ministries who are the subject of the Senator's investigation that began in November 2007.

The Church's position continues to be that it has responded to the request of Senator Grassley in good faith and to the greatest extent possible without compromising the privacy, confidentiality, and freedom of association rights and protections afforded to the Church by the United States Constitution and the Internal Revenue Code (the "Code").

As stated in the Church's letters of December 6, 2007, and March 31, 2008, to Senators Grassley and Baucus, and in discussions with Committee staff members, the Church continues to believe that the most timely and efficient way for the Committee to obtain the requested confidential information -- without compromising the universally recognized fundamental constitutional and statutorily based rights of this Church and all religious institutions -- is for the IRS to request and obtain the information through a "church tax inquiry" under section 7611 of the Code. At the completion of the 90-day inquiry period provided by section 7611 of the Code, the IRS would have in its possession and available for disclosure to Senator Grassley all of the confidential information, including financial data, Senator Grassley is seeking from the Church.

Through this well-established statutory process, Senator Grassley and his staff could then obtain all of the information they seek through a request made under section 6103 of the Code, which would provide the Church with the confidentiality protections to which it is entitled. Had the Senator pursued this course suggested by the Church back in December, he would have the information he is seeking available to him at this time. The Senator's suggestion that the Church or its attorneys are being uncooperative or seeking to prolong the process is simply untrue.

Indeed, in an effort to expedite the process, in April the Church took the unprecedented step of pledging its cooperation to the IRS should the IRS undertake a church tax inquiry of the Church. Church and KCM CEO John Copeland said in a statement following his delivery of the letter to IRS offices in Dallas: "We told the IRS that we welcome them to come and make inquiry of us and we will provide answers to the IRS regarding questions that Senator Grassley has. The Church desires to protect its and all other churches' First Amendment rights, and by this action, we believe we are doing just that."

The Church respects the oversight role of the Senate Finance Committee and specifically the many efforts of Senator Grassley to provide oversight of tax-exempt organizations. Indeed, the Church has voluntarily adopted and adheres to policies and procedures that the Senator has publicly suggested over the years are appropriate governance practices for tax-exempt organizations.

However, the Church respectfully disagrees with Senator Grassley's position that churches are no different from any other tax-exempt organization. Any government inquiry into the affairs of a church raises serious constitutional issues that must be carefully balanced against the government's need to evaluate the effectiveness of the laws of the land. To ensure its constitutional rights are not unnecessarily infringed upon, the Church firmly believes that it must be given the protections from disclosure afforded by the federal tax laws and the benefit of the processes and procedures that apply to inquires of churches made by the IRS. Without such confidentiality and due process of law, the potential exists for the information to be used in an effort to damage or attempt to embarrass the Church, its pastors, and its members. Any such use of the information provided interferes with, and ultimately threatens, the religious liberties of this Church, the thousands of other Pentecostal and Charismatic Churches who preach the "Word of Faith" message, and all other churches -- irrespective of their particular doctrine or faith.

Money, Money, Money

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.

Full story: Kenneth Copeland challenges probe into televangelist finances

Grassley won't give up on televangelists' reports

WASHINGTON - Media-based televangelists benefiting from tax code exemptions are warned — Sen. Chuck Grassley is a terrier-like congressional inquisitor with time and a big stick on his side.

"I am not threatening them, at this point," the Iowa Republican said.

Grassley, since late 2007, has sought financial information from six televangelist ministries that watchdog sources told the senator may be enjoying lavish benefits not allowed under their tax-exempt status.

Grassley has asked the groups to open their books to aides on the Finance Committee, which oversees the tax code and the Internal Revenue Service. Some have fully cooperated; others, so-so. And then there is Kenneth Copeland Ministries of Fort Worth, Texas.

A Grassley spokesman said Copeland's financial analysts grudgingly gave limited information, and then stopped. Copeland was quoted that he was willing to go to prison before divulging information that may violate the constitutional separation of church and state.

Grassley, in the Senate since 1981, routinely cruises to re-election; and intends to stay in office until the voters or God recall him.

"I am in this investigation for the long haul," Grassley said in an interview.'

In addition to time and taxpayer-funded investigators, Grassley has the power of a subpoena to force the groups to divulge their records.

"I may not have to do that," he said. "There is no deadline to get this." Yet.

Churches are generally exempt from income taxes and are eligible to receive tax-deductible contributions. Grassley is investigating whether the televangelist groups intended to save souls are doing so through luxurious means that enrich their financial bottom line at the expense of taxpayers.

Ministers, as Copeland, still must pay individual income taxes, Social Security, and Medicare taxes. Taxes are due on any "excess benefits" resulting from their organization.

A spokesman said the preliminary investigation shows there are nearly 100 groups associated with the six ministries; it is not clear if they have or should have not-for-profit tax status.

Some of the churches have significant offshore operations that involve major cash contributions; their tax status is not clear.

Investigators said:

Joyce Meyer Ministries and Benny Hinn of World Healing Center Church provided extensive answers to all questions.

Randy and Paula White of Without Walls International Church responded to general questions and others regarding "real and personal assets" and Senate investigators are seeking more information.

Eddie Long of New Birth Missionary Baptist Church/Eddie L. Long Ministries offered general but incomplete information.

Creflo and Taffi Dollar of World Changers Church International/Creflo Dollar Ministries failed to provide any information, the spokesman said.

Kenneth and Gloria Copeland provided general information but failed to answer questions regarding their compensation, the spokesman said.

"It is not unexpected that some people who are doing something wrong do not want to report it," Grassley said.

Full story: Grassley will not give up on investigation into finances of televangelists

"It is not yours, it is God's, and you are not going to get it." So saith Kenneth Copeland, the television evangelist, when asked to submit his ministry's private financial records to Washington.

Mr Copeland is one of at least six American "televangelists" facing the scrutiny of a senate investigation for alleged financial wrongdoing. The Eagle Mountain International Church - otherwise known as the Kenneth Copeland Ministries - preaches a doctrine of financial prosperity, with the promise that God can make a follower both healthy and wealthy. The faithful are encouraged to dig deep and give to the Church, where donated dollars will provide a one hundredfold return in happiness and wealth.

As Mr Copeland's televised congregation listen to their minister boom, "You are not created for poverty," they deposit cash in a donation envelope across which is written: "I am sowing $____ and believing for a hundredfold return."

Mr Copeland certainly practises what he preaches. According to a report into the pentecostal charismatics, commissioned by the Senate, the ministry built Mr Copeland and his wife Gloria a mansion "the size of an hotel" and enabled him to acquire a $20 million ( £10 million) Cessna Citation to help him to spread the word of God across the US.

Speaking to his assembled congregation on the runway by his new aeroplane, Mr Copeland said: "The Lord spoke to me and said 'you're gonna believe for a Citation 10, right now'." He also promised that the jet, one of four owned by the Church, "will never ever be used as for anything other than what is becoming of you Lord Jesus".

The ministry also owns an airport capable of accepting jet landings, leases land for Mr Copeland's cattle and horses and also leases land to the family so that it can operate oil and gas wells.

Money, Money, Money...

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
- The Bible, 1 Timothy 6:3-10 NIV

Research resources on Prosperity Teaching

Comments & resources by ReligionNewsBlog.com

Last year Senator Charles Grassley, a Republican member of the Senate Finance Committee, began an inquiry into at least six televangelists and commissioned a report by the Trinity Foundation, a firm of private investigators who specialise in religious fraud. The Senate has requested financial information from the churches, and broadly, they have refused to comply.

Mr Grassley is worried that the church ministers may be over-compensating themselves, diverting church funds, or trying to use a non-profit organisation to run an ordinary business. While the churches have complained that they have been unfairly singled out for scrutiny and have accused Mr Grassley of McCarthyism, the real row centres not around religion, but around tax. Under US law, there are many institutions which enjoy tax-exempt status, such as private charities, certain academic foundations and religious institutions. Most of them are required to disclose details of their finances, such as executive compensation, annual revenues, profits, assets and total operating costs. Churches however, are not required to disclose any details of their finances.

When Mr Grassley launched his investigation, he quipped that Jesus rode into Jerusalem on a donkey, not in a Rolls-Royce, but insisted that the purpose of his inquiry was to make sure that the churches were behaving as non-profit organisations and that they were complying with tax laws.

He said: "They are non-profits, like anybody else I have looked into. I have sent them some letters because I want some information."

While a spokesman for Mr Grassley told The Times at the end of last week that the senator is hoping that the inquiry will force the churches to adopt "self-governance reforms", the tone of the Trinity Foundation report is more extreme.

In the report, its author, Ole Anthony, writes of these types of churches: "Simply put, a massive amount of money given by well-meaning donors is intercepted by the organisation's hierarchy and often never reaches the people who were to benefit according to the non-profit charter. The problem ...is exacerbated by a lack of disclosure and transparency as well as understaffing with the exempt organisations division of the IRS [Internal Revenue Service]." The report also asserted that "in most of these cases only a miniscule part of the organisation is related to religious worship".

While Shane Hamilton, the lawyer representing Mr Copeland and his church, declined to comment, the ministry insists that it has done nothing wrong and has pointed out that other than demands from the senate committee, it is facing no other allegations or inquiries regarding any financial irregularities.

Mr Copeland has instead invited the US tax authorities to conduct an audit. It is not yet known whether the IRS intends to conduct its own inquiry. One advantage of an IRS audit is that all such tax inquiries are strictly confidential, and would prevent details of the churches' finances becoming public.

In a television interview last month, Mr Copeland's son John hit back at allegations of financial impropriety:

"The jet is a tool. It is just a tool to use in ministry. Where in the Bible does it say you should have watchdogs and judgment groups that watch over ministries?"

Full story: Televangelist Kenneth Copeland refuses to render unto taxman

DALLAS — The son of a Christian televangelist targeted by a Senate committee investigation into possible financial wrongdoing is defending the church and preacher's spending in an interview with a Dallas-Fort Worth television station.

"How can you reach the world if you don't have money to do it?" asked John Copeland, chief executive of Newark, Texas-based Kenneth Copeland Ministries, in an interview with KTVT-TV.

Money, Money, Money...

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
- The Bible, 1 Timothy 6:3-10 NIV

Research resources on Prosperity Teaching

Comments & resources by ReligionNewsBlog.com

His father, Kenneth Copeland, is among six well-known evangelical ministries under scrutiny over their preachers lifestyles, funded with donors' generosity. The top Republican on the Senate Finance Committee, Sen. Charles Grassley of Iowa, said he wants to know if tax breaks given to churches were being abused.

Televangelist Kenneth Copeland is one of the founders of the modern prosperity gospel movement, which holds that God wants his faithful followers to be rewarded spiritually and financially.

"There's a lot of doctrine that teaches that you're not a good Christian unless you're poor. But that's not our doctrine, that's not what we believe," the younger Copeland told KTVT-TV.

His father has a personal jet and lives in an 18,000-square foot, multi-million dollar mansion.

"A lot of people may see that as a luxurious lifestyle, but when you hit 19 countries in 12 months, what are you going do that with. The jet is a tool. It's just a tool to use in ministry," John Copeland said.

The Copelands say the Senate committee investigation is singling out Pentecostals and maintain the requests for financial review are a violation of the church's first amendment rights.

"Where in the Bible does it say you should have watchdogs and judgment groups that watch over ministries?" asked John Copeland.

Grassley contends the investigation is a review of non-profit tax policy "like the numerous others that I've conducted since 2001. I'm not interested in church doctrine. I'm interested in the adequacy of tax-exmpt laws and the protection of federal taxpayers."

Attorneys for Kenneth Copeland Ministries sent a letter to the IRS' Office of Examinations in April saying the church was willing to cooperate with a tax inquiry by the agency. Leaders of the television ministry contend dozens of questions about expenses, executive compensation and amenities asked by Grassley are similar to those posed in an IRS church tax inquiry.

The IRS requires that pastors' compensation be "reasonable," a figure set by collecting comparable salaries and weighing factors such as church size and a pastor's value to the congregation.

IRS rules prevent pastors and other insiders from excessive personal gain through their tax-exempt work.

• Original title: Televangelist's son defends church and preacher's spending

Full story: Son of televangelist Kenneth Copeland defends church and preacher’s spending

North Texas preacher Kenneth Copeland is leading a counterattack against the U.S. senator who is investigating alleged lavish spending by six high-profile televangelists.

Some of Mr. Copeland's backers question whether Sen. Charles Grassley, an Iowa Republican, is biased against the Pentecostal televangelists because of his Baptist faith.

Mr. Copeland, a subject of the investigation, recently launched a Web site called believersstandunited.com.

Money, Money, Money...

If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, {4} he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions {5} and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain. {6} But godliness with contentment is great gain. {7} For we brought nothing into the world, and we can take nothing out of it. {8} But if we have food and clothing, we will be content with that. {9} People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. {10} For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
- The Bible, 1 Timothy 6:3-10 NIV

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He said the senator's investigation is "aimed at publicly questioning the religious beliefs of the targeted churches, their ministers, and their members while ignoring televangelists of other denominations."

Mr. Grassley, the top Republican on the Senate Finance Committee, said he bears no ill will toward Pentecostals.

"Doctrine is not a part of this committee's review," he said.

Mr. Copeland, who is based in the Wise County town of Newark, is backed by almost two dozen leaders of conservative secular and religious organizations.

Some of them recently sent a letter to the Finance Committee suggesting that the televangelists were targeted for sharing "the same branch of evangelicalism."

All six targets preach the "prosperity gospel," which teaches that God will grant financial and spiritual wealth to the faithful.

Their ministries include hundreds of thousands of worshipers who watch their TV shows, buy their products and donate to their churches.

Watchdog groups have complained for years that the ministries' charismatic leaders fund extravagant lifestyles with their followers' donations.

Some evangelicals say the investigation could alienate some of the Republican Party's religious supporters.

"You've got a Baptist senator attacking six Pentecostals," said Doug Wead, a conservative blogger who was former President George Bush's liaison to the evangelical community and an informal adviser to the current President Bush.

Mr. Grassley, whose committee has authority over tax-exempt organizations, sent letters in November to the six ministries, asking detailed questions about their financial operations and seeking credit card records, as well as information about executive compensation and amenities.

After initial resistance, four of the televangelists — Grapevine-based Benny Hinn, Joyce Meyer of Missouri, Bishop Eddie Long of Georgia and Paula White of Florida — are cooperating, Mr. Grassley said.

The remaining two, Mr. Copeland and Creflo Dollar, who operates out of Georgia, have provided only documents to the committee, the senatorsaid.

Mr. Copeland has suggested that the devil is behind Mr. Grassley's effort.

"Satan has an agenda," he said in a recent broadcast.

"He is looking for a way to drive a wedge and get strife between one another."

• Original title: North Texas' Copeland sees bias in televangelist inquiry

Full story: Kenneth Copeland sees bias in televangelist inquiry

As the Televangelist Kenneth Copeland continues to defy a Senate Finance investigation, internal ministry documents shed new light on how Copeland runs his $100 million church.

Church bylaws obtained exclusively by CBS News say Copeland is "empowered to veto any resolution of the Board" concentrating all key decision-making power in the televangelist.

The bylaws indicate the president of the board is Copeland but Copeland's family members also play a critical role. His wife is the vice president. The senior pastor, secretary and treasurer roles are filled by Copeland's son-in-law. The operations vice president and CEO slots are both filled by Kenneth Copeland's son, John. Other documents previously obtained by CBS indicate in addition to family members there are ten other members of the church's board.

"My first reaction was that Kenneth Copeland was a control freak," says William Josephson, the former head of New York State's Charities Bureau after reviewing the Kenneth Copeland Ministries bylaws.

"Because control is vested in him and his family to the exclusion of any alternative source of authority and it is very unusual," Josephson tells CBS News.

And the many donors to Copeland's ministry have no say in how the ministry functions. According to the bylaws the church "shall have no class of membership entitled to vote." Josephson says that with the exception of Catholic parishes, this is also unusual. "Most churches are congregational and the authority comes from the congregation. They are the ones who approve who becomes the pastor and who succeeds the pastorate."

Another ministry document filed with officials in Tarrant County, Texas, indicates the church spent $28 million on salaries in 2006. $13.3 million went to administrative staff. Former employees tell CBS News the Copelands have about 500 employees on staff at their sprawling Ft. Worth, Texas, compound. In a prior broadcast Copeland said his ministry takes in about $100 million a year in revenue, leaving the unanswered question of what the church does with the remaining cash flow.

Copeland has refused to provide Senate investigators with any of these financial details.

Kenneth Copeland Ministries CEO John Copeland recently went to the local IRS office to offer cooperation should the IRS conduct a church-tax inquiry. Copeland has said repeatedly that it is the responsibility of the IRS to police church-tax issues and not the business of Congress.

Full story: “Control Freak” Televangelist