Kenneth Copeland's IRS Problem

On Saturday, April 12, Kenneth Copeland Ministries (KCM) issued a statement criticizing Sen. Charles Grassley's investigation into the finances of six televangelists. Copeland said Grassley had no constitutional basis for many of the 42 requests he originally made last November.

Copeland's statement also said he "would be willing to fully cooperate with the IRS to ensure that the requested information is provided in a timely and efficient manner."

However, Rusty Leonard, the founder and president of MinistryWatch.com, said the response from Copeland was "deceptive and misleading."

According to Leonard, "Copeland is trying to create the impression that he is being cooperative, when in fact he failed to comply with 25 of the 42 requests for information from Sen. Grassley. Now, he wants the IRS to continue the investigation, but only because IRS investigations are confidential. Copeland doesn't want the public or his donors to see what he's been doing, and that's alarming. It screams that he his hiding something from KCM donors and the public."

Leonard said that Copeland was clever by asking for the IRS to intervene, because it is his best chance to hold Grassley and the media at bay. "For many years the IRS has been under-resourced when it comes to this kind of investigation," Leonard said. "An IRS investigation could take years, will be completely out of the public eye, and may result in nothing more than fines for KCM. Copeland has made a business decision that it's far better for him to deal with the IRS in secret than to face Sen. Grassley or '60 Minutes' in public. One can only wonder what he might be trying to hide from his donors."

Copeland should "come clean," Leonard said, and fully disclose all requested information to both Grassley, to the donors to KCM, and to the public. "The idea that Copeland is standing on some constitutional principle is simply a diversion," Leonard said.

Leonard added: "Copeland's complaint about Sen. Grassley's right to ask for this information is nothing more than a sideshow. KCM donors themselves have every right to ask for this information and Copeland has a moral obligation, that overrides any constitutional issue, to provide it. Donors are fortunate that Grassley is using his position to act on their behalf. We would have no problem with Copeland not giving the information to Sen. Grassley as long as he made the information public. Hiding behind the veil of the IRS, however, is unacceptable."

"Grassley is not the issue, it is the lack of accountability and transparency at KCM," Leonard said.

11 comments:

lesli said...

I don't believe that the Constitutional facts that Copeland is standing on is simply a diversion. I believe that Copeland has every right to hold on to his rights, and request that his organization be treated fairly as set out by our laws. If we allow the Senator this kind of power, what might he think of next? Check out this read - might make you think... http://dougwead.wordpress.com/2008/04/12/kenneth-copelands-jet/

Shaun Pierce said...

I don't think anyone is being asked to give up right. A non-profit ministry should be tranparent to avoid these type of charges. The complaint was brought by the Trinity Foundation and Grassley took the lead.

The jet is not the issue. It's how donated money is spent. If no laws are being broken then Copeland and ll the others have nothing to worry about. If they are frauds, then they should be exposed as such.

Anonymous said...

Of course there is more here than the Jet issue - there is the issue that no one congressman should have that much authority himself to call for investigations of groups he finds necessary or may not philosophically agree with. Here is an interesting article...
www.americanchronicle.com/articles/60222

Anonymous said...

There are similar concerns among very different religious persuasions:

http://www.southernappeal.org/index.php/archives/2613

http://www.bpnews.net/bpnews.asp?id=26970 - sent a letter
The National Religious Broadcasters expressed concern about Grassley's investigation in early December, even though none of the six ministries is an NRB member. NRB President Frank Wright said in a letter to Grassley he was worried about the "broader implications," saying the senator's letter "goes far beyond a mere request for financial records necessary to scrutinize the charitable nature of [an] organization's operations."

Craig Parshall, NRB's senior vice president and general counsel, criticized Grassley's letter, arguing that "more than three decades ago the U.S. Supreme Court upheld the wisdom of tax exemptions for non-profit religious organizations."

"The court held that such a framework reinforced the required 'insulating' of church groups from excessive government oversight," Parshall said, "but unfortunately Senator Grassley's overly broad approach utilizes an axe rather than a scalpel in this delicate constitutional area, and also oversteps the IRS audit procedures which are designed for handling these kinds of issues."
-------------------------
Christianity Today carries similar articles, one entitled "Oversight Overstep." A Baptist Press article registers chill over elements of the “investigation.” There are others, seeing the red flag and awakening to the fact that they have a dog in this race.

The comment in the NRB letter about Grassley using an axe instead of a scalpel describes his treatment of this. It is unprecedented as many are noting, but I understand this tactic is not new to the senator - hook in with the media and get them to help get the hooks in whomever he is after. Then contact the target after he has laid the mines. What’s up with that?

The senator’s high toned statements do not match his low blow actions. If you've got evidence, then use the evidence. Instead, he has laid this open to a religiously adverse media and the buffoonery do-nothings delight in. If he has anything like what is claimed, that volkswagon full of stuff, then why haven't the IRS or the Justice Department swooped down on anyone by now?

I see Copeland taking high ground with this, rather than hiding something, There is something to protect. It’s a pay now or pay later situation with freedoms.

Anonymous said...

Some info on the Trinity Foundation:

http://www.dallasobserver.com/2006-08-03/news/the-cult-of-ole/

Anonymous said...

It's great to see that other Christian leaders have banded together behind Copeland. There is a bigger picture here that they have recognized.

Anonymous said...

I think it's also important to notice that the leaders that signed the letter supporting Copeland cross denominational lines. The implications will affect EVERYONE not just the denomination targeted in this invetsigation.

Anonymous said...

Whether or not one agrees with the lifestyles of these ministers and ministries, the fact is that they feed many, many people spiritually. That is still a freedom in this country. And, we have to remember that almost sixty years ago, America went through a horrible misuse of senatorial power that terrified all citizens from speaking their truth because they would be next in line for the inquisition. My favorite president, Harry Truman, had the guts (as always) to speak against this abuse. "Real Americanism means fair play. It means that a man who is accused of a crime shall be considered innocent until he has been proved guilty. It means that people are not to be penalized and persecuted for exercising their constitutional liberties." Senator Grassley's investigation seems to me to be pushing the boundaries of Senator McCarthy's infamous witch hunts.

Anonymous said...

Harry Truman I have to agree with your comment. Great one! I do not agree with Copeland's teachings completely either, but I do know that this is a much more serious situation than people may realize. It will affect ALL of us in the future if the wrong decision is made.

Anonymous said...

Some good comments on the side of this issue that we are not hearing in the mainstream media. I understand why they feel the way they do just looking at the situation from the surface. However, I am just anxious to see what finaly decision is made. Hopefully the future of our rights will not be affected.

Anonymous said...

Grassley should have considered his options when he went about starting this extravaganza. Had he sought the guidance of the IRS, he would have avoided much of the criticism that has come to the surface. Granted Copeland is getting it too, but Grassley's procedures and actions are to be questioned.