Senator plans crackdown on televangelists -- Could the SEC follow?
Republican Senator Charles Grassley of Iowa is taking a hard look at some of the best-known televangelists in America, and wants to know whether it's right that they avoid paying any taxes while their ministries contribute immensely to their personal wealth.
According to The Wall Street Journal(subscription required), "Mr. Grassley said his investigation was prompted by complaints from watchdog groups and others that the ministers live in multimillion-dollar homes, travel on private jets and engage in profit-making ventures from their ministries. He said the complaints raised suspicions, "but I would not make a final judgment until I get the story from the ministries."
Among the ministries that Grassley is seeking investigation from are faith-healer Benny Hinn, Creflo Dollar, Joyce Meyer, and Kenneth Copeland.
Hinn may be the least defensible. According to an interview with Florida Magazine in 1991, Hinn replied to a question about his ostentatious display of wealth this way: "What's the big deal, for goodness sake? What am I supposed to do, drive a Honda? ...That's not in the Bible. ... I'm sick and tired about hearing about streets of gold in heaven. I don't need gold in heaven. I got to have it now!"
For an in-depth profile of Mr. Hinn, check out this article from D Magazine.
But having watched a few of these late night ministrimercials, I wonder if the SEC should be taking a look to. Many of these ministers who preach the prosperity doctrine urge viewers to send in money, and promise that they will be rewarded. According to the Associated Baptist Press, "The most manipulative TV evangelists present a simple formula as well, saying God will multiply and return to the giver whatever amount is given to a particular ministry."
Isn't that kind of like selling an unregistered security? Is there any material difference between that and a boiler room broker telling someone an obscure penny stock is going "to da moon"?
In 1982, the Supreme Court stated in Marine Bank v. Weaver, 455 U.S. 551, that a security could be a stock, bond, option, etc., "along with the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits."
Based on that, a strong a case could be made that some of these televangelists really are selling a security when they ask viewers to "plant a seed of faith".
And if these donors (I would argue they're really investors, if they're sending money based on the promise of a return -- Isn't that what an investor is?) don't receive the promised "return", are they victims of investment fraud?
I'd like to see the SEC take a look at some of these infomercials -- It might be a new way to crack down on these charlatans who prey on desperate people.
According to The Wall Street Journal(subscription required), "Mr. Grassley said his investigation was prompted by complaints from watchdog groups and others that the ministers live in multimillion-dollar homes, travel on private jets and engage in profit-making ventures from their ministries. He said the complaints raised suspicions, "but I would not make a final judgment until I get the story from the ministries."
Among the ministries that Grassley is seeking investigation from are faith-healer Benny Hinn, Creflo Dollar, Joyce Meyer, and Kenneth Copeland.
Hinn may be the least defensible. According to an interview with Florida Magazine in 1991, Hinn replied to a question about his ostentatious display of wealth this way: "What's the big deal, for goodness sake? What am I supposed to do, drive a Honda? ...That's not in the Bible. ... I'm sick and tired about hearing about streets of gold in heaven. I don't need gold in heaven. I got to have it now!"
For an in-depth profile of Mr. Hinn, check out this article from D Magazine.
But having watched a few of these late night ministrimercials, I wonder if the SEC should be taking a look to. Many of these ministers who preach the prosperity doctrine urge viewers to send in money, and promise that they will be rewarded. According to the Associated Baptist Press, "The most manipulative TV evangelists present a simple formula as well, saying God will multiply and return to the giver whatever amount is given to a particular ministry."
Isn't that kind of like selling an unregistered security? Is there any material difference between that and a boiler room broker telling someone an obscure penny stock is going "to da moon"?
In 1982, the Supreme Court stated in Marine Bank v. Weaver, 455 U.S. 551, that a security could be a stock, bond, option, etc., "along with the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits."
Based on that, a strong a case could be made that some of these televangelists really are selling a security when they ask viewers to "plant a seed of faith".
And if these donors (I would argue they're really investors, if they're sending money based on the promise of a return -- Isn't that what an investor is?) don't receive the promised "return", are they victims of investment fraud?
I'd like to see the SEC take a look at some of these infomercials -- It might be a new way to crack down on these charlatans who prey on desperate people.
Brian Hassett i think that you nailed it... the bible says that a man should be worth his wage. Paul worked making tents, jesus was a carpenter, they both were mightly used by God. But i never heard of either asking for money, and then saying that they will be reimbursed for it later, with interest. Yes in the real world these ministries need some money to be able to go around and minister, but when they start to pocket money that is designated for other areas, that is when they cross the line. Jesus told the desciples when He sent out the 72, the laborer is worthy of his wages (Luke 10:7). God wants us to prosper, but not by lying and manipulating other people into giving, for there own gain. In 1 Thessalonians 2, Paul is reminding the church about how he had come to them. Not with elegant, or flattering, speach, nor with a pretext for greed. But instead they proved to be gentel, and worked hard so as not to burden any of the believers there. He says that they worked night and day. Because this church had become so dear to them. Paul later adressses the people that decided to live like them, in 2 Thessalonians 3, but the difference was they were not working, or trying to make up for what they took. In verse 10 he reminds the believers there that if a man isn't willing to work then he will not eat! He is very clear and blunt about it. I don't know about these ministers & ministries in question, at least not much about them, but i do know that Man is a fallen creature and prone to greed, and sin. I only pray that God will strengthen His bride so that she doesn't fall into sin and make compromising decisions.
Tony Lee
Posted by: tony | November 14, 2008 at 10:17 PM
truthfully this whole conversation reminds me of a certain Pensacola based person who ummm taught on dinosaurs.. who um is now in jail due to not paying taxes on his employees. Now I don't know all the ins and outs and I'm not trying to be harsh but that to me seemed real wrong. Especially when people who worked for him as "missionaries" for his ministry, which were defined as employees were asked to sign a waiver they would not speak to the IRS if they should come asking questions.
Posted by: Vicky | November 10, 2007 at 10:37 PM
Great Blog!!! Thanks Bobby!!!! The cash cow that poses itself as the Church is an easy target for those who want to fund their programs...such as, universal health care. The Church will lose its tax free status in this generation. We as God's people must look to God for His provision for us, not to the world's. We give because God tells us to, not for tax free status. Financial Accountability is just plain being honest! Scripture tells us to Dwell in the land and cultivate faithfulness. Are we faithful with what God provides for us? That, is what the world witnesses. Oh, and Yes, NoBody gets by with Anything. Everyone of us, including these guys WILL reap what they sow. Everything hidden will be revealed. And God will be Glorified. You can take that to the bank.
Posted by: Bob Holmes | November 08, 2007 at 09:53 PM
Televangelists.... my favorite?
Let me start with this. Any person who is on T.V and is a millionare asking for money for their church loses my respect. It just doesnt add up.. Now, do I think it is wrong for preachers to make money? or To become wealthy? No. But even Paul made his own living. He built tents i think. It supposrted his life style. Some pastors maybe... play stocks? flip houses? Work at Baskin Robins? Cut hair? All examples of pastor's at harvest. For someone to get rich off the church they started just doesnt sound right. Because everytime someone does get rich from their church they are either on their way to jail, or should be on their way. I believe that sometimes on T.V when televangelists ask for money they put it in a way as if selling blessings... Im just saying...
HA Beny Hin, I have no comment on that man.
: )
Posted by: brian hassett | November 07, 2007 at 11:40 PM
great article. i hope they do go after these con artist. do these (preachers) think that they will not have to stand before GOD one day and explain there crimnial acts here on earth and were using GOD as a way to rip the needy off ? i do not see how they can sleep @ night. to quote neil young: a greedy man will never know what evil he has done. i know i may step on a few toes here and iam not stepping on my soap box but there are a few members of our church who really need to be carefull about who they support ie. td jakes , etc. seems they are always coming out w/ books about the same thing that telepreachers are talking about every night. iam not saying he (td jakes)and others are not of GOD iam only saying saying that it seems to close together. for that last statement let the lashes begin. just my 2 cents worth. p.s ..i have a right to express my thought's within good taste as all of you do, so in saying that you can reply or what ever just do not get in my face about it @ church. if you support the above, then do so @ you're own risk. but iam just offering a bit of friendly advice, do what ever w/ it.
Posted by: jeff wise | November 07, 2007 at 01:44 AM