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Ministries Defy Senator's Request For Financial Data

By BAIRD HELGESON and MICHELLE BEARDEN, The Tampa Tribune

Published: December 6, 2007

Memo From Sen. Grassley's Office | Special Report

TAMPA - The founders of Without Walls International Church and Paula White Ministries are among four ministries that have failed to comply with a request for information by a U.S. senator questioning their tax-exempt status.

Iowa Sen. Chuck Grassley, ranking member of the Senate Finance committee, gave six ministries until Thursday to turn over detailed information about finances, board oversight and perks for pastors and staff.

Randy and Paula White, founders of Without Walls in Tampa, declined to comment. A defiant Randy White, however, addressed his congregation at the Thursday night service, indicating he was ready for a fight.

"You hear me, and you hear me well," he said. "When the enemy wants to attack the church, he attacks the character and the finances. The devil is a liar."

White told the congregants there have been "no laws broken and no misappropriation of money" regarding his church.

"We walk in integrity. We have checks and balances, checks and balances," he insisted. Many of his comments were met with applause.

Grassley staff members said the Whites' attorneys contacted their office for the first time on deadline day and promised to be in touch later. They did not specify when.

"It's good that some of the ministries are cooperating," said Grassley, a Republican. "I'm willing to give ministries more time if that's needed, as long as they're cooperating and in contact with my office. It'd be very unusual if they don't cooperate."

One ministry expressed defiance, setting the stage for a possible legal fight.

An attorney for Creflo Dollar of World Changers Church International in suburban Atlanta has asked Grassley to refer the matter to the Internal Revenue Service or get a subpoena.

Dollar attorney Marcus Owens wrote to Grassley and Sen. Max Baucus, the committee chairman, on Nov. 27, notifying them that the church would comply with a "proper" request from the IRS, according to a copy of the letter obtained by The Associated Press.

"A referral would permit Senator Grassley and the Senate Finance Committee to discharge their obligation to oversee federal tax administration without running the risk of government entanglement in the Church's religious beliefs and practices," wrote Owens, former director of the IRS's exempt organizations division.

The ministries are not legally obligated to respond to Grassley's inquiry. Churches hold a special place in tax law that allows them to keep finances a secret, unlike other tax-exempt organizations.

Grassley said he targeted certain ministries after complaints and media reports that congregants' donations might be bankrolling pastors' lavish lifestyles. The ministries preach "prosperity gospel," a teaching that wealth is a sign of God's blessing.

David and Joyce Meyer of Joyce Meyer Ministries of Fenton, Mo., met the deadline.

"We are deeply respectful of the senator's efforts and are confident that the information presented to his office will exceed the senator's high standards of review and the truth will be revealed," Delanie Trusty, CFO of Joyce Meyer Ministries, said in a statement.

Attorneys for Kenneth and Gloria Copeland of Kenneth Copeland Ministries dropped off documents Thursday at the senator's office. The Copelands, of Newark, Texas, could not be reached for comment.

A spokesman for Benny Hinn of World Healing Center Church of Grapevine, Texas, said the ministry notified Grassley's office that it will turn over information by Jan. 30.

"World Healing Center Church is in full compliance with government agencies duly authorized to oversee churches and charitable organizations," said Ronn Torossian, a spokesman for Benny Hinn Ministries.

Megachurch pastor Eddie Long of New Birth Missionary Baptist Church of Lithonia, Ga., initially said he would comply with the request, but later described Grassley's inquiry as intrusive and an attack on religious freedom. He did not meet the deadline.

Rod Pitzer of ministrywatch.com, a donor advocacy organization, said if nothing else, the ministries have a moral obligation to explain how they spend their money.

"Just because they've been asked to be open and transparent doesn't mean they're relinquishing control to the state or government," he said.

Pitzer doesn't agree with those who say the investigation violates church-state separation.

"There's an intersection where government and church do meet, and this is it," he said.

Kenneth Behr, president of the Evangelical Council for Financial Accountability, an accrediting agency, said some ministries sought his support if they chose not to comply with Grassley's request.

"We believe full disclosure is the best thing for all ministries, whether they are under a microscope or not," Behr said.

He fears refusal to cooperate could create a public backlash resulting in broader disclosure requirements for all religious organizations.

"We are trying to avoid government regulation," Behr said.

The ministries that ignore Grassley's request could face even bigger problems, predicted Ole Anthony, founder of Trinity Foundation, a Dallas-based nonprofit that monitors televangelists.

"They're inviting the IRS to get involved," he said. "My sense is that subpoenas will be issued, hearings will be held. Their worst nightmare will be realized."

Pitzer and Behr said the case could land in the Supreme Court.

The inquiry is about money, not faith, Grassley said.

"It has everything to do with the tax exemption of an organization." he said in a separate statement. "Is that tax exemption being used according to the law, and is the money that's donated under the tax exemption being used for legitimate, nonprofit purposes?"

In Grassley's letter to the Whites, he sought detailed information on 28 areas of church and personal finances, including an explanation of the compensation paid to the Whites and the reported tax-exempt purchase of a Bentley convertible for Paula White's spiritual adviser, T.D. Jakes.

In early November, the Whites issued a statement saying they think they comply with all tax laws.

Reporter Baird Helgeson can be reached at (813) 259-7668 or bhelgeson@tampatrib.com. Reporter Michelle Bearden can be reached at mbearden@tampatrib .com or at (813) 259-7613.

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