THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, July 19, 1995 TAG: 9507190453
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY ESTHER DISKIN, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 68 lines
After a yearlong examination of its finances, Pat Robertson's Christian Broadcasting Network has been admitted to a financial accountability organization for Christian charities.
The $186 million network was admitted to the Evangelical Council for Financial Accountability, founded in 1979 by the Rev. Billy Graham and others. Charities must meet seven standards for responsible stewardship, which include oversight by an independent board and willingness to send an independent, certified audit to anyone who writes to request one.
``It's an important sign . . . that we consider financial accountability to be paramount,'' said Gene Kapp, vice president of public relations for the network. ``It was just a logical move for us.''
Admission to the council - which includes more than 800 charities with a combined revenue of $4 billion - is a significant step for CBN. For years, it has declined to respond to requests from leading financial accountability groups for information about how it spends millions in donations.
Kapp said it took almost a year for the organization to complete the membership process because the network's operations are so complex. ``We get to know our members very well,'' said Paul D. Nelson, the council's president. ``We are quite intrusive in the questions we ask.''
The major benefit for charities that meet the evangelical council's standards is the opportunity to use its seal of approval in fund-raising efforts. ``There are a number of donors, particularly in the evangelical public, that look for the ECFA seal,'' Nelson said. Among those who can use the seal are James Dobson's Focus on the Family, a $101 million Colorado-based ministry, and Regent University, where Robertson is chancellor.
That seal tells donors that the charity has an independent board of directors, which means that a voting majority are not employees or family members of the organization's leader. CBN's eight-member board includes Robertson, his wife Dede Robertson, and the network's president, Michael D. Little.
The evangelical council checks to make sure that donations are spent for the cause used to solicit them, Nelson said. For example, a charity can't raise money to fight hunger and spend those funds on church construction.
It requires charities to perform an independent, certified audit and mail it to people who write to request one. Since 1989, CBN has provided a financial audit to its donors. Although the network declines to mail copies of its informational tax returns to the public, it does allow them to be inspected at corporate headquarters.
This week, the network faced a minor flap for soliciting donations in West Virginia without first registering in the state.
The network mailed fact sheets about the ``Contract with the American Family,'' an agenda for political action prepared by the Christian Coalition, a 1.5 million-member grass-roots organization also founded by Robertson.
The sheets included a request for a donation to the network, specifically Robertson's weekday program, ``The 700 Club,'' said Cathy Frerotte, executive assistant for the West Virginia secretary of state.
Frerotte said her office sent the network a letter Monday, asking it to fill out registration papers and pay a $50 fee. ``I don't think this is real serious, unless they refuse to register,'' she said.
Kapp, who hadn't seen the letter yet, said a refusal isn't likely. ``The bottom line here is, CBN complies fully with all the rules and regulations of the states,'' he said.
The Evangelical Council for Financial Accountability will provide a profile of member charities and a donors guide, with suggested questions for charities seeking your donation. For more information, call 1-800-323-9473. by CNB