Wednesday, November 07, 2007

Greater Scrutiny for Non-Profit Abuses

It may be troubled times ahead for many of the highest paid leaders of megachurches. Senator Chuck Grassley has sent letters to six highly visible televangelists requesting a detailed explanation of how funds are being accounted for. You can read the letters here.

I think this is a good thing. It may result in jail time for abusers of the public trust, the attorneys and financial advisors who helped facilitate the unethical and illegal behavior.

The problem of using non-profit organizations as personal ATM machines is so vast that I am sure many abusers will continue to get away with squandering resources that were intended for ministry or public good type charitable actions.

But if there is not greater transparency and a restoration of public trust, I fear an outcome will take place in the next 20 years that will not be positive for those who desire to give financially to the work of Christian ministries:

The tax code may be changed and religious institutions will no longer enjoy tax-free status. This would mean that contributions to churches and ministries will be no longer be tax-deductible. An increasingly secular nation will encourage lawmakers to take away the tax-free status of all religious organizations. There will be plenty of examples to point to where tax breaks are given and the money is used in a similar fashion to a country club.

Right now, believers have an unprecented opportunity to get resources in the hands of good stewards- and there are many out there who do things the right way. The amazing wealth generation of the United States economy over the last 100 years and the favorable tax code treatment of contributions to Christian-based work have given Christians an opportunity to influence people by showing Christ's love through financial generosity.

Hopefully, the inquisition by Senator Grassley will lead to sweeping reformation in the non-profit sector. Hopefully, there will be greater transparency and less waste. Hopefully, there will be enough evidence of more good than harm coming from the use of tax-free status. If that happens, perhaps the tax code will be left alone for a while. God is in control of all of that and will use whatever means He desires to accomplish His purposes. But the help from Uncle Sam certainly doesn't hurt.

For His Glory,

Ashley Hodge