The June 2008 Christianity Today issue carried a small report in the US about the Kenneth Copeland ministry’s refusal to cooperate with a financial investigation launched by a senator. Charles Grassley, the ranking member of the Senate Finance Committee, had last November asked for detailed information about the spending practices of the ministry.
According to christianpost.com (22 June), the senate probe was prompted by reports of alleged lavish spending and possible abuse of non-profit status.
To avoid the senate inquiry, the Copeland ministry has instead invited the Internal Revenue Services (IRS) to conduct its own inquiry. The move has been described as “deceptive and misleading” by Rusty Leonard, founder of North Carolinabased watchdog organisation MinistryWatch.com because any IRS investigation would be confidential.
Explaining its move to ask the IRS to investigate, Kenneth Copeland Ministries of Network CEO John Copeland said, “The church desires to protect its and all other churches’ First Amendment rights, and by this action, we believe we are doing just that.”
Meanwhile, on Malaysian soil, the public has called Petronas to open its accounts and explain how vast revenues from the nation’s oil exports have been spent. Penang Chief Minister Lim Guan Eng has accused Petronas of wasteful spending and its bosses of “living like kings”. “The company has operated behind such a thick smokescreen of secrecy that it rates as one of the least financially transparent and accountable oil producers in the world,” according to Dean Johns’ Malaysiakini report “Living in a fuels paradise” (June 11).
Petronas is reported to have recorded a profit of RM570 billion, of which RM336 billion has been paid to the government since its set-up in 1974. The government has countered that the money had been used to finance development projects and subsidies, while Petronas has replied that its accounts are made public annually. However, the public is not satisfied with these. Increasingly, people are demanding a detailed accounting of how the money is being spent.
Just like the public expect Petronas and other government-owned corporations to be transparent about their finances, non-governmental organisations (NGOs), – including para-church organisations (PCO) – are also expected to readily open their books when requested. In fact, NGOs ought to lead the way in financial accountability as a model of uprightness and integrity. Unfortunately, we sometimes hear stories of contributors or donors questioning organisation’s management about financial fraud or dubious spending. Some of the “questioning” have even evolved into full-blown confrontation and investigation with much mud-slinging. Occasionally the police are called in to probe, and one can be sure the press will not let this go unreported. This is indeed sad, especially if PCOs are involved as the good name of the Christian community is then negatively cast. Society is quick to pounce on such stories, especially if they involve PCOs since we preach so much about morality.
PCOs, therefore, owe it to all and sundry, and most especially God, to be exemplary financial managers – transparent, accountable and above reproach.
“But we are only accountable to God”, some may respond to the demand for public transparency. Indeed, accountability to God is vital, but people form their impressions of both people and organisations at the outward appearances, according to accreditation agency ECFA Standards and Best Practices.
ECFA – Evangelical Council for Financial Accountability – based in the US, serves Christian ministries by helping them earn the public’s trust through the adherence to seven Standards of Responsible Stewardship.
Founded in 1979, ECFA aims to provide accreditation to Christian nonprofit organisations that faithfully demonstrate compliance with established standards for financial accountability, fund-raising and board governance.
ECFA’s Standards of Responsible Stewardship focuses on board governance, financial transparency, integrity in fund-raising, and proper use of charity resources. In addition, it has developed a series of practical undertakings, called Best Practices, which encourages members to strive for the highest levels of excellence in the accountability process.
The organisation works like an audit firm, only much more as its members have to stringently subscribe to its Seven Standards, which are “pass-fail” Standards – if a member fails in even one of the Standards, its membership is struck out.
While Malaysian PCOs do not have such an agency to attach to, they can nevertheless employ ECFA’s stringent standards on financial accountability to safeguard their good name and that of the Lord’s.
(For more, check out ECFA)
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