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Pressure Added In Ministries Probe

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By MICHELLE BEARDEN and BAIRD HELGESON, The Tampa Tribune

Published: March 13, 2008

TAMPA - The chairman of the U.S. Senate Committee on Finance has joined the effort to get Randy and Paula White, founders of Without Walls International Church, and three other ministries to turn over information about possible violations of their tax-exempt status.

Sen. Max Baucus, D-Mont., added his signature to letters sent out this week to the Whites and the others, indicating that pressure is intensifying and subpoenas are possible in the investigation launched by Sen. Chuck Grassley, R-Iowa.

"We have an obligation to oversee how the tax laws are working for both tax-exempt organizations and taxpayers," Grassley said in a statement Wednesday.

Amid the growing scrutiny, a longtime board member of Without Walls submitted his resignation Wednesday.

Alick Clark, a California businessman, expressed concern the Whites had not notified him about major church developments. For instance, he said he was alerted by the news media - not the couple - about their divorce last year and their recent decision to put the sanctuaries in Tampa and Lakeland up for sale.

"If I could not contribute to the betterment of what they're doing, then they need a smarter individual than me to get what they want accomplished," he said.

Agreement Could Bring Subpoenas

Congressional watchers said Baucus' decision to sign on to Grassley's letters adds heft to the inquiry. Grassley is the ranking minority member of the committee and a longtime watchdog over nonprofit organizations. "That's a significant development," Jack Siegel, a consultant for nonprofit groups, said of Baucus.

All that is required for subpoenas to be issued is a vote by the full committee or an agreement between the committee chairman and ranking minority member.

"Hopefully, these organizations will work with us," Grassley told The Associated Press recently. "I don't think I've had to issue a single subpoena in the five years that I've been trying to get cooperation from organizations."

The other ministries under review are Joyce Meyer Ministries, Benny Hinn Ministries, Creflo and Taffi Dollar of World Changers Church International, Eddie Long of the New Birth Missionary Baptist Church, and Kenneth and Gloria Copeland of Kenneth Copeland Ministries.

All of the ministries preach varying degrees of what is called prosperity gospel, a belief that material wealth is proof of God's blessing.

On Nov. 5, Grassley sent letters to the evangelists giving them a month to answer questions about their ministry expenses, use of donations and business practices.

Meyer has answered most of the questions. Hinn provided answers to five of the 28 questions. Representatives of the Whites told Grassley's staff that they will begin sending documents next week.

The Whites declined to comment for this story.

According to Grassley's staff, the remaining three have not cooperated, citing concerns about privacy or questioning the committee's right to the information.

Churches hold a special place in federal tax law and are not required to reveal any financial information or pay taxes. Some atheist groups want religious nonprofit organizations to be taxed.

"It's a business," said Joe Reinhardt, a member of Atheists of Florida, a Tampa-based group. "So they should pay taxes like any other group."

Bud Press, director of the North Carolina-based Christian Research Service, is among conservative Christians who relish the involvement of Grassley, a Baptist.

"We've been speculating that the government would eventually step in and say, 'Wait a minute,'" said Press, a critic of prosperity gospel. "This really isn't a surprise."

Accountants 'Firing' Ministries

Some accountants are now leery of working for certain megaministries, said Ken Behr, president of the Evangelical Council for Financial Accountability, an accrediting group for churches and other religious nonprofit organizations.

"I did hear the comment that more than just a few of the more respected CPA firms are firing their clients this year," Behr said. "They don't, of course, say it as such; there is a lot of downside for a CPA firm that is representing a client that goes south."

Lewis, Birch and Ricardo LLC, an accounting firm in Tampa and Clearwater, audited Without Walls in 2005 and 2006. The latest report showed that the church had about $26 million in debt.

Senior partner Ronald Ricardo said the church did not ask the company to audit its 2007 financials, which generally must be shown to lenders to verify fiscal health.

Although Grassley has said he prefers organizations to "self-correct" and be accountable to oversight groups such as the Evangelical Council for Financial Accountability, not everyone agrees that's the best course of action.

Bill Keller, founder of liveprayer.com, a Christian Web site, said he would not pay thousands of dollars to join the council. All nonprofit groups should be transparent about their finances, but donors must take more responsibility, he said.

"If people want to buy into this Lotto mentality in hopes of hitting the big religious jackpot, and giving blindly to someone who is a self-appointed messiah, then have at it," Keller said. "You can't legislate stupidity."

Grassley's increased pressure comes at a time of great change for Without Walls.

The Tampa and Lakeland churches are on the market for $30 million each.

Scott Thomas, pastor and the head of the Lakeland ministry, said his church is negotiating to buy the building and separate from Without Walls. Thomas told the San Antonio (Texas) Express-News that John Hagee, founder of Cornerstone Church in San Antonio, will provide "spiritual oversight" for the church, which means he will serve as an adviser.

Reporter Baird Helgeson can be reached at (813) 259-7668. Reporter Michelle Bearden can be reached at (813) 259-7613.

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