As a part of the settlement in fraud case Murphy v. Gospel for Asia, GFA agreed to set aside $37-million in a Settlement Fund to provide relief for donors as well as cover court costs and attorneys’ fees. GFA also agreed to have plaintiff Murphy join GFA’s board. Murphy and GFA will also work together to designate a replacement for K.P. Yohannan’s wife who will go off of the GFA board. GFA agreed not to appoint any other relative of Yohannan to the board.
The mission organization also agreed to comply with Evangelical Council for Financial Accountability guidelines and seek readmission to membership. GFA was kicked out of the ECFA in 2015 and has never requalified for admission.
Read the Settlement Agreement
In the mean time, GFA is seeking to get some of the settlement money back via donors. The email below comes from a current staff member who asks supporters to seek the funds and redonate them to GFA. Although this is meant to sound spontaneous and individualized, I have gotten word that the same appeal has gone out from several staff members. I can’t corroborate all of the claims in the email except those which are a part of the settlement. Here is the appeal:
I come to you this morning, not in any official capacity or representing anyone else, but expressing my own thoughts as someone who loves and supports Gospel for Asia. I am writing to you about a matter of tremendous importance, for which I request your prayers.
I am sending this communication to all those on my regular prayer email list plus a few others that I thought would benefit to hear this.
As you may know, GFA has been embroiled in a class action lawsuit for the last three years alleging that the ministry has misdirected funds that people donated to the mission field. If you donated to the field any time in the last 10 years, then you are part of the class and you should have recently received a notice from the court informing you about the settlement of this lawsuit and your part in it.
So what does this settlement mean to you and to me? First, some background.
For over three years now, GFA has been in a legal battle to survive this lawsuit, and yet it has not even come to trial. In addition to the immense burden on GFA of carrying on its defense, paying for legal representation, and supporting the onerous demands of the court and plaintiffs for information, the lawsuit has repeatedly been used as fodder for a far-reaching negative public relations campaign which has greatly damaged the reputation and ministry of GFA.
As a consequence, despite having the evidence to demonstrate that “all funds designated to the field were sent to the field and used for ministry purposes” GFA has agreed to settle the lawsuit out of court. As GFA says in its official statement here, “The agreement to settle was, in part, precipitated by a concern that the ministry could continue to bear the weight of defending itself.”
The settlement means that, in return for the lawsuit being dropped and never renewed, GFA must pay 37 million dollars. There is a bit more to it than that of course, but essentially it comes down to money—1/3rd of which (about 12 million dollars) goes to the trial lawyer. You can read One donor’s analysis of the GFA Class Action Settlement for a summary of what the settlement means, or read the 45 pages of legalese in the settlement itself here. GFA also has an official FAQ.
You might well be asking, “If GFA is an organization which primarily exists to connect the American church to the work of believers in Asia, how does it have 37 million to pay this settlement?” The answer: GFA doesn’t have it. GFA’s field partners in Asia have decided to use their locally-raised funds to cover about two-thirds of the settlement cost, and GFA has twelve months to raise the remaining 11 million, none of which will come from donations to the work on the field. If GFA doesn’t come up with the 11 million before the end of that twelve months, it forfeits it’s security collateral—GFA’s International Headquarters campus in Wills Point, TX.
So what does the settlement mean to you and me? The 25 million dollars that remains of the settlement (after the trial lawyer’s cut) is where you and I come in. This money is designated for what is called “Settlement Relief” of the class members. Each of us in the class may claim up to 100% of the amount we donated to work on the field through GFA. Or we can claim nothing, and none of that money will come to us. Any money that is unclaimed after the claim deadline will be divided up by the court between five ministries: Samaritan’s Purse; Friends of Israel; Global Training Network; Heaven’s Family; and Christ for All Peoples. Regardless of whether anyone makes a claim against the settlement fund, GFA will still have to pay the full amount of the settlement.
This brings me to my decision about my response: Because I strongly disagree with this lawsuit and what it represents, because of the great burden it has placed on GFA without any determination of wrongdoing, and because I want to do what I can to help God’s work continue in Asia, ______ and I have submitted our claim in this settlement for 100% of what we are eligible to claim. I plan to take all the money I can from my claim, minus an amount I will need to set aside for taxes, and donate it back to GFA to their general fund to help cover the 11 million dollars it has to raise for the settlement.
If you are also part of the “class,” will you ask God whether He would have you to do the same? And whether or not you are part of the class, will you please join me in praying that God will work a mighty deliverance for His people and for the work of the gospel?
To make your claim, all you have to do is go to this link and fill out the online form. You don’t even have to know how much you are eligible to claim, the settlement administrator already knows that. You will need your “Class Member ID” which is in the settlement notification that you received by email or by postcard.
Regardless of what you decide to do, I hope this information has been useful to you. If you have questions, feel free to email or call me and I will answer to the best of my ability. And if you have found this email helpful, please forward along to anyone else you know who has donated to GFA and you believe might benefit from the information.
And finally, please pray that God will be glorified in this situation, and His will be done. I know that God is mighty and is in control. Many of the Psalms have taken on fresh life and relevance for me over the last couple years.
Those who hate me without reason
outnumber the hairs of my head;
many are my enemies without cause,
those who seek to destroy me.
I am forced to restore
what I did not steal.
Trust in him at all times, O people;
pour out your heart before him;
God is a refuge for us. Selah
If this was written by a staff person, I would guess they work in public relations. I suspect more that this was written for staff by someone hired by GFA.
Clever strategy but I doubt that this is what the court intended. I should add that the settlement isn’t final as yet. It won’t be until June 13 when the Final Settlement Hearing is held. I don’t know if this kind of action by GFA could put the settlement in jeopardy.
It is obvious that GFA’s leaders are unconcerned about any of the issues raised by the ECFA in 2015 or Murphy v. GFA. Despite being chastised multiple times by a federal judge and having to settle this case with a monetary settlement and by giving up a board seat to Dr. Murphy, they have taken no responsibility and show no humility or contrition.
Right now, there are food pantries in every town in America which need funds to keep going. If you donated funds to GFA, consider recovering those funds to help people who need essentials.
If you want to give to something more exotic, consider the Schistosomiasis Control Initiative. The SCI helps protects children from parasitic worms which helps to decrease rates of malaria and HIV transmission. Benefits include improvements in neurological function and overall health. Survival chances increase dramatically when simple and cheap treatments are implemented.
Whatever you do, ask questions. GFA spins and promotes well but they don’t answer questions. For instance, numerous times I have asked, as have others, how they are getting funds into India since they lost their registration as a charity. The only answers given to others have all been false or misleading.