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Although churches, church-based ministries, and organizations that gross less than $25,000 in annual donations aren't legally required to make financial statements available, they are morally obligated to do so. Private companies have some allowances for being opaque. Nonprofits receiving tax breaks and other public benefits do not.

Many church-based ministries (which, granted, are not legally required to send out Form 990) don't understand this. "We are certainly accountable to our members and our God," said the Potter's House, led by T.D. Jakes, in response to its inclusion on the Transparency Watch list. Joyce Meyer Ministries similarly dismissed its inclusion, saying it might send out copies of its annual report—but not audited statements. Or it might not. "If our management does not want to release that, then that is their choice," said accounting manager Delanie Trusty. "We feel our donors are very informed."

Such a response demonstrates shortsightedness, and ignores reality. As Wall Watchers founder Rusty Leonard says, "We are asking them to [send this information] because they are receiving money and, frankly, they are not acting as churches but are acting more like parachurch ministries."

In the end, it doesn't matter whether the law considers a ministry a church or a parachurch. Every Christian ministry has a higher obligation—to be transparent in all its doings, so in these especially suspicious times, no one will have reason to suspect it of walking in darkness.

Copyright © 2003 Christianity Today. Click for reprint information.

Previous coverage of the Wall Watchers list includes:

Wall Watchers Admits Error in Ministry Critique | In addition, three other organizations removed from group's Transparency Watch list (November 22, 2002)

45 Ministries 'Failed to Demonstrate Financial Transparency,' Says Watchdog Website | List may have financial consequences, but several named groups say ratings are wrong. (November 15, 2002)

Wall Watchers operates the Ministry Watch website which provides ministry profiles, efficiency ratings, and comments on ministries to aid donors. In November, the ministry monitor released a Transparency Watch study with originally 45 organizations given a failing grade.

The Evangelical Council for Financial Accountability has posted online its list of seven standards to which members must subscribe. Number 5 is financial disclosure.

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January 2003, Vol. 47, No. 1