2008 Christian Executive Pay: ECFA Falls Short (Part 4 of 10)

by Bernie Dehler

I recently published the 2008 salary survey for the biggest 20 (self-described) Christian media ministries (click here to see). In this article I want to share some of my insight regarding ECFA (The Evangelical Council for Financial Accountability), which is supposed to be an organization which encourages good fiscal practice amongst Evangelical Christian ministries.

A couple of weeks ago I spoke with Ken Behr, the President of ECFA. I expressed my great dissatisfaction with his group's performance, especially the fact that they don’t require that a member organization's Form 990 (tax return) be completely filled-out. The example I refer to is Hank Hanegraaff’s “Bible Answer Man” ministry (I previously wrote about this; click here to read). Hank put his wife Kathy in a significant position with a high salary, but when the form asks for “How many hours worked per week?” they simply put in “as needed.” That is the same as writing nothing.

This is very upsetting to me. It is "The Bible Answer Man" basically telling the government and donors that they don't have to answer the question. I strongly told Kenh Behr, President of ECFA, "The very least you could do is demand that the tax forms are filled out completely. It's not a matter of having correct data or checking the data, but a matter of just simply checking to make sure the form is filled-out!"

This is why it matters. Hank's wife has a significant position with a high salary. Does she work over 40 hours a week? If so, one may wonder who is taking care of their kids, since they would both be claiming to work overtime (Hank has said that that they have 8 or 9 kids). If she says she is working part-time, then it makes the pay look worse, because per hour it is even more. So which is it? I think either way they think they are in trouble, so they simply dodge the question altogether.

Ken’s response was that he doesn’t care if that field in the tax form is filled-out. He doesn't care how many hours people work. He says it is insignificant, regarding how much time people put into their jobs, especially executives and CEO's. He said the only thing that matters is that they do a good job, and if they can do it by working 5 hours per day, that's ok. Time is irrelevant.

We were at an impasse, so I decided to get some more advice from two Christian friends I have. One is a senior VP of one of the world’s largest computer chipmakers, and the other is a former VP from the same company and a current CEO of a start-up company. I explained the situation to these VP’s, and they agreed with me; against ECFA’s Ken Behr. After talking to them, we came up with additional reasons why it is important that Hanegraaff (and others) fill-out the tax form completely, in reference to "number of hours worked":

1. Some CEO's have more than one CEO job. For example, Franklin Graham is CEO of both BGEA (Billy Graham Evangelistic Association) and Samaritan's Purse, and he gets more than one paycheck. If each is really a part-time job, they should be paid accordingly. For another example, on the left side-bar, you can see the "Open Letter to Pastor John Hagee." Pastor John Hagee does this same thing to pull-in over $1 million annually from his TV and church ministries. Someone told me of another Pastor who heads three ministries, and tried to do a fourth (I won't mention the name, because I don't have time to verify it), drawing a paycheck from each.

2. In Hanegraaff's case, Hank's wife, Kathy, is not a CEO. Her position is not described as either salary or hourly. Because of possible claims of nepotism (preferential treatment to family), Hank should be above-board and actually over-document the case, to show that he is operating in the light (if he is).

3. Nonprofit companies take in donor money, and because of that fact, they owe much more explanation for their behavior than do private-sector CEO's.

I have sent this to Ken Behr before posting. He is welcome to add a comment in the comment section, and I will change the article if there's something I said that was wrong. As it is, I'm very disappointed with ECFA for not at least demanding that their members fill-out their tax forms completely. It is a no-brainer. And I think if they did this, it would make the CEO's be more careful, since they will be more accountable. And Ken, if you want to have a three-way phone discussion with me and the VP's I mention, I will set it up; just let me know.

I really wish I could say I was proud of ECFA for what they do. They do some very good work, but Ken's mindset on this issue really spoils it all. I think it is shameful that Ken Behr thinks he can determine what is reasonable for the government to ask on a tax form, and defend an incompletely filled-out tax form. After all, ECFA is supposed to be making sure these ministries are following the law! As I wrote previously (click here to see), I think one of the best role-models for Christian stewardship is Dr. Dobson and Focus onthe family. I wish ECFA had this kind of common sense and integrity.

As I told Ken Behr, my mian ministry really lies elsewhere... not in financial accountability. The only reason why I'm spending time on this is because those who should, like ECFA, aren't doing their job. So that also bothers me that I have to drop my main work to sound the alarm which others should be doing, if they were doing their job correctly.

By the way, FreeGoodNews.com is not a member of ECFA. The reason being is that it is too small. Since the organization income is under $25,000, we are exempt from filing a tax form. However, we publish ALL our finances on the web, so anyone can see it, and all financial details (click here to see). There are no salaries here; it is all volunteer work.

Comments

[A.D.]

While I do believe it is Biblical that God "desires above all things that we may prosper and be in health", and I realize that some of these large ministries contribute to good works, I couldn't agree more that their salaries are out of line with what God would approve of. I would like to see them using those funds to feed thousands of starving people in African nations. I understand their struggles because I'm a missionary and have reached out to many for years. Your research has opened my eyes and it has caused me to loose respect, and to discontinue giving to these ministries. I appreciate your bringing this to the attention of the body of Christ. God bless you for your efforts!

-A.D.

[Bernie of FreeGoodNews.com]

Thanks A.D.-

I often think that the reason why we have people abusing church finances is because their eyes are not open to see the global perspective-- starving in Africa as you note. How can a minister take such a big draw in pay knowing of dying, starving people? It makes no sense. I think their conscience is seared.

...Bernie

[Rory Moore]

The church was mandated to meet the needs of needy brethren. What passes itself off as "ministry" is more in line with 2Peter 2
BTW, there is not a single verse of scripture in the NT instructing Christians and churches to tithe. The NT is about giving, and Jesus said the gospel was to be "freely" given...
...rory
www.preparehisway.com