A New Story from Gospel for Asia About Where Millions of Donations Went in 2013

In their 2013 audit, Gospel for Asia said $58.5 million was sent to Gospel for Asia – India in 2013. See below:
RelatedPartyGFAAudit2013

However, in public records in India, only about $6 million was reported received by Gospel for Asia – India. Gospel for Asia Canada reported about $15 million sent to India in 2013. Nothing was reported as coming from Canada in the public records in India. Although unreported in the audit, GFA also sent millions of dollars to NGOs in India, Believers’ Church, Love India Ministry, and Last Hour Ministry. Counting those funds, the total accounted for goes to about $37 million.  Thus, about $21 million is unaccounted for from the U.S. office. The figure grows to $36 million if one adds the Canadian money which doesn’t show up anywhere in India. Another analysis looking at income from all sources worldwide estimates about $47 million unaccounted for in 2013.

The bottom line is that the funds that GFA claimed to send from the U.S. and Canada do not show up in the Indian records available. Despite repeated requests, GFA has never offered an explanation.

Until recently.

A person concerned about GFA spoke to a representative by phone and asked for information about the unaccounted for funds. The GFA representative told the caller that my blog posts had only found and reported the amounts given in the Indian state of Kerala. According to my source, the GFA rep said my figures did not include funds sent by GFA to NGOs in other Indian states.

So I checked the other states. I looked through the reports in every state for donations to Believers’ Church, Gospel for Asia, Love India Ministry, or Last Hour Ministry. I even looked for Bridge of Hope, Operation Mobilization and Good Shepherd Church (OM-India and GSC are friendly to GFA in India and have received small grants from GFA). I found nothing. No funds were sent from GFA-US or Canada to these organizations in any other Indian state according to public records available.

So now, back to you GFA. This really should be easy. You said in your audit that you sent $58.5 million to GFA-India. However, GFA-India reported only about $6 million. Why didn’t you report the related party transactions which went to Believers’ Church, Love India Ministry and Last Hour Ministry? And where are the funds that don’t show up in the records of any of the four NGOs?

This should not be hard. Remember, it isn’t your money.

Gospel for Asia Still Claims Membership in Evangelical Council for Financial Accountability

In a mailing just received today, Gospel for Asia’s fund solicitation still carries the Evangelical Council for Financial Accountability seal. The letter is dated October 15, which is nearly two weeks after the ECFA board voted to terminate GFA’s membership.
Here is the pledge card with the seal and “Enhancing Trust” slogan (click to see letter and other materials):
pledgecareoct15ECFA
 
Along with the ECFA charter member seal, the pledge card carries the meaningless ICA “Best in America” Seal.
According to the ECFA standards, this GFA mailing violates Standard 7.1 which relates to “Truthfulness in Communications.” According David Carroll, GFA’s COO, GFA will seek membership in the future. Continuing to violate a standard doesn’t seem like the best way to make a case for reinstatement.
By continuing to claim membership in the ECFA, GFA is in violation of ICA standards and the standards for qualification as a charity for inclusion in the Combined Federal Campaign.
The ICA requires truthful and non-deceptive fundraising materials (see the next to last bullet point in the image below):
ICA Standards
 
The Office of Personnel Management’s standards also require truthful materials.
CFC Rule Truth
 

Board Members Quit Floundering Teen Mania; Will Gateway Church Continue Support?

World magazine reported on October 17 that half of Teen Mania’s independent board members resigned. I am linking to World’s coverage of TM as an alert to readers that the former high flying ministry is in free fall. TM continues to break commitments and is going deeper into debt to various groups, some of whom are suing.
Top Ten Charities in trouble; note that TM is #5.
I am not sure why anyone would want to be involved with TM after seeing this in 2011:
[youtube]https://youtu.be/OAKGVF3EooA?list=PLDPcYCH6dNUHK5htHOMV5OTqES8u5kUVM[/youtube]
Part two and part three are available on You Tube.
This is required reading as well.
I don’t care how much good TM claims to do (e.g., Acquire the Fire is for the most a big pep rally for God), the mistreatment of teens that is glorified by TM in the msnbc documentary is enough to shut the whole thing down.
Despite light coming to the situation, some groups continue to stand by TM. One such group is Gateway Church and The Kings University.
TKU actually gives academic credit for TM’s Honor Academy. This should be an embarrassment for TKU.
Robert Morris endorses TM, as does K.P. Yohannan.
 
 

Canadian Radio Station Carries News of Gospel for Asia's Loss of ECFA Membership

In this weekly digest of church news (click the link to find the embedded broadcast — it is the first story), the host summarizes Christianity Today’s article on the ECFA’s termination of Gospel for Asia’s membership.
According to a reader who alerted me to the radio broadcast. at least one key Mennonite church in Canada has dropped support for GFA.
churchnews GFA
 
There are more stories like this to come. I am tracking down a couple of them for posting this week.
 

Gospel for Asia's Christmas Catalog Displays ECFA Seal and 100% Pledge

I am aware that the Christmas catalogs were probably printed before the Evangelical Council for Financial Accountability voted to terminate Gospel for Asia’s membership. I know it would been costly to reprint the catalogs. I also know that because GFA leaders decided to mail the catalogs with the ECFA seal, they have misrepresented the situation. Take a look:
gfa-catalog-ecfa
and the 100% pledge lives on…
gfa-gift-catalog-kp-ecfa
Guaranteed. I wonder if that is a money back guarantee.
We now know that administrative expenses are taken out in India. And we know that $19.8 million came back from “the field” to fund nearly half of the costs of construction of the new Wills Point, TX campus.
Based on my investigations last year, I am highly skeptical that GFA uses one person’s donation for a goat or chicken to buy an individual goat or chicken. It doesn’t work that way for World Vision, and I doubt it works that way for GFA (see my series on holiday animal buys – link, link).
What should GFA do now?
Clearly, the ECFA seal of membership gives the wrong impression and hides the fact that ECFA believes GFA has not honored donor intent in giving. A tax court in India has ruled in the same manner. If GFA doesn’t let catalog recipients know, chances are good that most won’t find out. GFA could send a letter to all on the mailing list alerting them to ECFA’s action to terminate membership. GFA leaders could defend the organization but at least donors would be informed. Will they do it?
How GFA leaders handle this problem will tell us something about GFA going forward.
 
 
 

Pastors Endorsement Page Missing at Gospel for Asia's Website; K.P. Yohannan Seems to be Missing Too

On October 7, there were numerous endorsements from pastors on the Gospel for Asia website (see Google cache). For instance:
GFA pastors endorsements
 
 
Now, the address for that page (http://www.gfa.org/mygfastory/pastors/) leads to another page which does not have endorsements. Instead it redirects to this page http://www.gfa.org/mygfastory/:
GFA redirect pastor endorsement
 
Skip Heitzig’s missing endorsement could be significant. Heitzig has been of GFA’s board for many years. If he is backing away from Gospel for Asia, that would be a dramatic about face.
About Yohannan, he is not missing from the webpage but his loud silence continues. It is hard to understand why Yohannan remains quiet in the face of declining confidence in GFA and ECFA’s termination of GFA membership.

Another Calvary Chapel Pastor Expresses Concerns About Gospel for Asia; Any More Out There? Take the Survey


UPDATE: I have created a survey for Calvary Chapel pastors, staff and members regarding Gospel for Asia and church support. Please click through via this link to take the survey.
 
Phoenix Preacher is reporting that Joe Focht, pastor at Calvary Chapel – Philadelphia announced to his congregation on Sunday that it would not be “unreasonable” to suspend support for Gospel for Asia. According to PP, Focht added that donors might reconsider if ECFA membership is restored.
Last week, Calvary Chapel – Oxnard (CA) advised members to stop support. In late September, Calvary Chapel pastor Bill Gallatin rebuked K.P. Yohannan’s Believers’ Church rituals.
Historically, Calvary Chapels have helped sustain GFA. A Google search finds numerous (well over 100) CC’s which support GFA or GFA staff.
Some CC pastors/staff have made blog comments about GFA. I invite others to do so as well. If you are reading and pastor at a CC, consider leaving a comment about GFA with your name and church. If you support GFA, chime in and say why. If you have changed your view, then leave a comment to that effect. Given what has been revealed about GFA’s dealings, I think it would be hard for a church to do nothing. A review of the issues is in order no matter where you eventually land.
 
 

More Evidence K.P. Yohannan Was Wrong When He Told Staff He Isn't On Trusts in India

In the context of explaining why Believers’ Church in India gave $19.8 million to Gospel for Asia for construction of headquarters at Wills Point, TX, GFA CEO K.P. Yohannan said this:

And by the way, just so you know, I am not legally on any boards, any trusts, anything in any of these countries. I have no powers to make decisions or sign money, or release money, or make decisions, I am completely legally…why? Because anybody who work in the United States or overseas countries have a board membership or have legal membership should not be part of their legal entities in India. It’s a conflict of interest and therefore we send the funds and it is immediately under the government watch care and the government of India is responsible and investigative agencies and tax divisions to make sure  that is carried out within the time frame or whatever they do, that is a public thing.

Yohannan said these things at a staff meeting held at GFA’s office complex on May 14, 2015. The audio is embedded at the end of the post.
When I posted the audio in August, I also posted images of court cases involving Believers’ Church which refer to Yohannan as the managing trustee of Believers’ Church. Even though Yohannan said it was a conflict of interest to be on the board in India and the CEO in America, court documents dated in 2015 refer to Yohannan as the managing trustee of the entity (Believers Church) that “decided” in 2013 to send $19.8 million to another entity (Gospel for Asia) run by Yohannan in order to build a new campus.
Recently, I have been given two documents which establish beyond doubt that Yohannan’s statement to staff was misleading. The first document is a 2005 letter from BC Bishop Samuel Mathew to all Believers’ Church Bishops regarding the proper way to file land deeds. The church Constitution requires all land to be in K.P. Yohannan’s name since he is the highest legal authority in the church.
Land Deed Policy BC redacted
Read the entire letter here.
At this time, by Consitution, all land was to be registered to “the Most Rev. Dr. K.P. Yohannan.” Why? As Metropolitan Bishop is the legal authority on everything that belongs to the Church. Presumably, at one time, $19.8 million belonged to the church but after the “anonymous gift to GFA,” that money belonged to the other entity controlled by Yohannan, GFA.
Regarding the claim that Yohannan doesn’t sit on any boards of trusts in India, I offer this 2010 deed of trust for the Bridge of Hope (entire document), a program run by Believers’ Church. Yohannan is not only on the trust but he signed on behalf of Believers’ Church as “Executant.”
BOH – Trust Deed BOH Trust Deed P1
 
Also, note that four of the six board members are Yohannan and his family (Siny Punnoose – niece; Sarah Johnson – daughter; Daniel Johnson – son-in-law).
These documents along with the court papers filed by Believers’ Church paint a completely different picture than drawn out by Yohannan in the May 14 staff meeting.
I invite GFA and/or Believers’ Church to submit evidence to the contrary. If BC’s Constitution has been changed or trust deeds have been amended, I will gladly publish those if they are supplied.
Of late, Yohannan has been unavailable for comment. Perhaps, David Carroll or John Beers can provide explanation or proper documentation.
K.P. Yohannan at the May 14 staff meeting:

 

Things I Think After Reading Christianity Today's Article on Gospel for Asia

Just out today, Bob Smietana penned an article at Christianity Today on the controversies surrounding Gospel for Asia including the Evangelical Council for Financial Accountability board vote to terminate GFA’s membership.  It is a lengthy piece with many quotes from former staff. I hope you will read it and then come back here to discuss.
Where in the World is K.P. Yohannan?
I was struck right away by this sentence:

Founder K.P. Yohannan was not available for comment.

Why not? My sources tell me that staff are saying he is India. I am pretty sure they have phones in India. Probably he has a cell phone. Yohannan is the founder and CEO. He is listed as the International Director. Seems like the buck should stop with him. It is mind boggling that he is “unavailable.”
Smietana writes about the ring-kissing ritual in the article but no one from GFA addresses the obvious deception from Yohannan. This is another mind blowing aspect of this situation. GFA still has no answer to what is right in front of everyone’s face.
Not Skeptical Enough Francis Chan
And then there is Francis Chan, Rev. Skeptical. His endorsement has been removed from the GFA website but he is quoted in CT’s article as saying he is remaining on GFA’s board. He endorsed GFA by saying that he is a skeptical person and that he checked GFA out thoroughly before he endorsed them.  Several months after Chan was first made aware of discrepancies between what GFA said in America and what they reported in India, Chan now says he needs more time to study the situation. On May 21, I alerted Chan to the money smuggling and his assistant Chaz told me that Chan had the information but probably wouldn’t get back to me. I continued sending my posts to Chaz who said he was passing the information along.  I also passed along letters from a GFA supporter who started giving money to GFA on the strength of Chan’s endorsement. No answer.
An Investigation
We also learn in the CT article that Homeland Security may be investigating GFA. I want a little more information on GFA’s denials about the money smuggling. At first, David Carroll said it was all legal and they asked their auditor how to do it. Then later they admitted it was illegal and they sought counsel. In the CT article, we learn that GFA’s attorneys filed late customs reports (is that even possible?).
Did GFA really ask auditor Bland Garvey if money smuggling was legal? Did Bland Garvey really sign off on it? Bland Garvey won’t talk about it and GFA didn’t clear this up. There are many unanswered questions.
No Money Found to Be Missing?
What an odd phrasing – no money was found to be missing. Is it missing or was it found? I think I know what David Carroll means but this is not an answer to the fact that Gospel for Asia’s 2013 audit claims $58.6 million was sent to Gospel for Asia – India but only $6 million was reported by Gospel for Asia there as being deposited. Even if all money to Believers’ Church and two other NGOs is considered, there is still nearly $30 million in 2013 unaccounted for. GFA still has not answered this simple question.
ECFA: Mixed Feelings
After calling on the ECFA to take action, I am pleasantly surprised that the board did. However, I think an even greater service to the donor public would be to describe what GFA actually did which led to their vote. As it is, GFA supporters can imply that the violations were minor and have been corrected. We may never know.
Here are some things we now know
K.P. Yohannan is missing in action, Francis Chan is not as skeptical as he says he is, big boys in the church still take care of their own, and the little people are still on their own to make sense of this scandal.

Calvary Chapel of Oxnard Takes a Stand on Gospel for Asia

Earlier today Calvary Chapel of Oxnard (CA) posted the following notice on their public Facebook page:

Attention People of CCO: We will no longer be supporting Gospel for Asia (GFA) and we encourage you to prayerfully consider ending your support or their missionary sponsorship program & Bridges of Hope. EFCA (Evangelical Council for Financial Accountability) has recently removed GFA due to serious issues of financial mismanagement and activity that removes them form what can be called “Evangelicalism.”
We’ve investigated the charges and spoken to someone high in GFA. The results of that indicated GFA is in serious trouble and is NOT an organization we can continue to support. Please know this isn’t reactionary or a lightly arrived at decision. The issue has been under review for several months.

Today, Christianity Today published an article with more detail about the ECFA action to terminate GFA’s membership. Also, more endorsements were removed from the GFA website.