Church leaders miss deadline

Several ministries were ordered to reveal their finances.

By SHERRI DAY, Times Staff Writer
Published December 7, 2007

ADVERTISEMENT [Zach Boyden-Holmes | Times] Randy White told his congregation Thursday night that time was "on our side," pointing out that other religious groups have begun to lobby against the investigation. Republican Sen. Charles Grassley is scrutinizing ministries' finances. Church leader Randy White failed to meet the Grassley's deadline. [AP photo]

Leaders of Tampa's Without Walls International Church and Paula White Ministries failed to comply Thursday with a demand to release documents in a federal inquiry into whether the televangelists and their multimillion-dollar enterprises misused tax-exempt status to fund lavish lifestyles.

In a letter to Sen. Charles Grassley, R-Iowa, attorneys for the Whites said they had recently been retained by the ministries and could not yet advise their clients on how to respond, officials in the senator's office said.

But Randy White told his congregation Thursday night that time was "on our side," pointing out that other religious groups have begun to lobby against Grassley's investigation.

"This is our religious right and freedom that's being attacked," said White, 49. "This is a freedom of speech. ... If this is what we believe and this is the way we see the word of God, then we have a right to live the way that we believe as long as it's in the guidelines of the law."

The Whites are among six ministries nationwide being investigated by Grassley, the ranking member of the Senate Finance Committee. The senator wants information about executive compensation, expenses and board governance.

Three other ministries failed to meet Thursday's deadline: One has declined to cooperate barring a subpoena, and another appears poised to do the same. The final ministry asked for an extension. Two ministries are co-operating.

All those being targeted have televangelism components and are aligned with megachurches. Many also preach the prosperity gospel, presenting their wealth as testimonies of successful adherence to the doctrines they teach.

"I want you to hear your pastor," White told his flock Thursday. "We sincerely are winning this battle. That's not a lot of hype. That is sincere gospel truth that we're winning this battle."

Church members applauded.

Since Grassley launched his investigation last month, support for the ministries has come from more conservative corners. Evangelical groups ranging from the Alliance Defense Fund, which promotes religious freedom, to the National Religious Broadcasters have expressed concern about the inquiry. They fear the precedent it could set for religious groups.

"Our concern is that he's considering launching hearings on nonprofit religious groups and considering new legislation that would impact the religious freedom of religious broadcasters," said Craig Parshall, senior vice president and general counsel of the broadcasters group.

None of the ministries in Grassley's investigation are members of Parshall's group.

Kenneth Behr, president of the Evangelical Council for Financial Accountability, said he has talked to several evangelical leaders in Washington who look askance at the Senate inquiry. Chief among their concerns, Behr said, is whether the information Grassley wants would remain confidential, specifically data regarding ministry leaders' salaries.

The six ministries also have been deluged with advice from activists warning that complying with the senator's request would endanger the separation of church and state, Behr said.

"That hasn't been our advice," said Behr, who represents more than 2,000 groups including the Billy Graham Evangelistic Association.

"We would think that organizations would do better to comply with the request, find out if there are any areas where they may not be in compliance with IRS guidelines, pay any necessary fines and move on."

Late Thursday, Grassley said he was pleased with the cooperation so far. He expected everyone to eventually cooperate.

"I've looked at a lot of non-profit groups over the last five years, and they've all cooperated," Grassley said in a statement. He said he would grant extensions.

Benny Hinn, who runs a ministry in Grapevine, Texas, and a church in Orange County, Calif., plans to respond by Jan. 30.

Through his attorney, the Rev. Creflo Dollar said he would not participate in the inquiry unless he was subpoenaed or was investigated by the Internal Revenue Service.

Dollar and his wife Taffi, lead World Changers Church International in College Park, Ga.

Lawyers for Bishop Eddie Long, pastor of New Birth Baptist Church in Lithonia, Ga., sent Grassley a letter saying that the church regarded the inquiry as "informal and a not a subpoena or formal inquiry by the Senate Finance Committee."

Only Joyce Meyer, who leads a ministry in Fenton, Mo., and Kenneth Copeland, who heads one in Newark, Texas, complied with Grassley's request. Their responses were not made public.

Without Walls, which has about 23,000 members, was founded in 1991. Recently, leaders have had to deal with controversy surrounding finances and the ministry's integrity.

The Whites also rocked the congregation in August with news of their divorce.

Thursday night, Randy White devoted about a half-hour to the federal investigation. He urged the congregation to trust him.

"There has been no laws broken," said White. "There has been no misappropriation of money. We walk in integrity in this church. We have checks and balances and checks and balances. We have two former IRS agents who watch over everything we do. We have auditors who audit the auditors. The enemy wants to attack because of what we believe, but the devil is a liar. We're going to get through this battle. ... We're going to be stronger than ever before."

Information from the Associated Press was used in this report. Sherri Day can be reached at sday@sptimes.com or (813) 226-3405.

[Last modified December 7, 2007, 00:55:56]