Baptist News Global
Sections
  • News
  • Analysis
  • Opinion
  • Curated
  • Podcasts
    • Stuck in the Middle With You ↗
    • Madang with Grace Ji-Sun Kim ↗
    • Highest Power: Church + State ↗
    • Non-Disclosure: The Silenced Stories of Kanakuk Kamps Survivors ↗
    • Change-making Conversations ↗
  • Storytelling
    • Faith & Justice >
      • Charleston: Metanoia with Bill Stanfield
      • Charlotte: QC Family Tree with Greg and Helms Jarrell
      • Little Rock: Judge Wendell Griffen
      • North Carolina: Conetoe
    • Welcoming the Stranger >
      • Lost Boys of Sudan: St. John’s Baptist Charlotte
      • Awakening to Immigrant Justice: Myers Park Baptist Church
      • Hospitality on the corner: Gaston Christian Center
    • Signature Ministries >
      • Jake Hall: Gospel Gothic, Music and Radio
    • Singing Our Faith >
      • Hymns for a Lifetime: Ken Wilson and Knollwood Baptist Church
      • Norfolk Street Choir
    • Resilient Rural America >
      • Alabama: Perry County
      • Texas: Hidalgo County
      • Arkansas Delta
      • Southeast Kentucky
  • More
    • Contact
    • About
    • Donate
    • Associated Baptist Press Foundation
    • Planned Giving
    • Advertising
    • Ministry Jobs
    • Subscribe
    • Submissions and Permissions
Donate Subscribe
Search Search this site

Grassley targets ministries’ alleged abuse of tax laws

NewsReligious Herald  |  March 5, 2008

WASHINGTON (ABP) — Sen. Chuck Grass-ley insists that he's not trying to impose his Baptist theology on Pentecostal and Charismatic ministries; he simply wants them to obey the tax laws.

The Iowa Republican has drawn fire for using his position as ranking minority member of the Senate Finance Committee to investigate six ministries — most of them embracing so-called “prosperity gospel” theology — for their financial habits.

The ministries already drew scrutiny from former followers or media outlets for spending habits that some would consider indulgent or inappropriate. In an echo of the televangelist scandals of the late 1980s, the charges include using ministry funds to purchase private jets, multi-million dollar homes for ministers and a $23,000 marble-topped chest.

Grassley's office sent letters to the ministries Nov. 6, asking them for information on their receipts, expenditures and holdings. He set a Dec. 6 deadline for response. While all of the ministries produced statements saying they complied with all tax laws, only the St. Louis-area Joyce Meyer Ministries provided the information Grassley sought.

At a Feb. 1 press conference following his appearance at a Baptist meeting in Atlanta, Grassley said his office is planning to send a second round of letters to the ministries that were not cooperating, asking again for the information and threatening further action. However, the senator said at the time, “It would be awhile before I would think about a subpoena.”

But leaders of several of the targeted organizations have vowed to fight Grassley, with some even going so far as to say they'd go to jail rather than answer a congressional subpoena.

“You can go get a subpoena, and I won't give it to you,” said Texas-based evangelist Kenneth Copeland at a January pastors' conference. “It's not yours; it's God's, and you're not going to get it, and that's something I'll go to prison over. So, just get over it. … And if there's a death penalty that applies, well, just go for it.”

Copeland and other targeted evangelists have said the investigation is violating their religious freedom. While most nonprofits organized under Section 501(c)(3) of the federal tax code have to file information about receipts and expenditures with the Internal Revenue Service, churches do not.

Religious organizations under investigation might claim a First Amendment violation based on a theory of excessive entanglement in church affairs or discrimination based on religion — if they could show they were being targeted on the basis of their religious beliefs, said Holly Hollman, general counsel with the Baptist Joint Committee for Religious Liberty.

“Of course, the stated purpose of the investigation is congressional oversight for the tax laws that govern nonprofit entities. The First Amendment certainly does not provide a blanket exemption from the tax laws that govern nonprofits, including many religious entities,” she added.

Grassley stressed he is not targeting churches, per se, but simply investigating whether they are complying with laws that apply to them.

“Here's the bottom line: The tax laws that apply to nonprofits, there's no difference between those tax laws as a nonprofit or ABC church as a nonprofit. The only difference between the Red Cross as a nonprofit and the church is that” churches don't have to report in the same way to the IRS, he said.

Presidential candidate Mike Huckabee, who is close to Copeland, also criticized the investigation. In a Feb. 10 appearance on NBC's Meet the Press, the former Baptist pastor said it was “a little chilling” to him. “Is Congress going to start going after nonprofit organizations?” he asked. “And if so, are they going to do all nonprofits? Are they going to start looking at MoveOn.org?” MoveOn is a liberal group.

But Grassley has repeatedly investigated secular nonprofits, including the Nature Conservancy and the Red Cross. At the press conference, he said he had previously almost always gotten cooperation from nonprofits whose finances he's investigated.

“Except for Jack Abramoff and his nonprofits — and he's in prison now — every time I asked nonprofits for information, I got it,” he said, referring to the disgraced former GOP lobbyist.

A former religious adviser to President Bush has said Pentecostals and charismatics will view the investigation as an assault by more mainstream evangelicals like Grassley — potentially driving a wedge between Republicans and part of their conservative Christian base.

Doug Wead, in a Feb. 16 Des Moines Register story, said, “The Grassley probe, by the time it is full-blown and the media does its job of attacking these ministries, will have Pentecostals feeling demeaned and helpless and dirty and targeted.”

Wead, a former board member of one of the targeted ministries, also said the investigation will cause Pentecostals to feel that the media had been “used by a Baptist to settle a score.” In a blog entry, he accused Grassley and other mainstream evangelicals of elitism in pursuing the investigation.

Grassley, for his part, has repeatedly denied that he has a theological agenda in the investigation. “I'm not interested in what they're preaching; they can call their gospel anything they want to,” he said in Atlanta. “This nonprofit investigation is … about obeying the tax laws and being a trustee of the money of the people that contribute.”

He's received some backing from at least one prominent charismatic source. Lee Grady, editor of the flagship magazine for charismatic and Pentecostal Christians in the United States, used his February column to call on such ministries to be transparent.

“Perhaps the Lord is offended that our beloved gospel of prosperity has created a cult of selfishness,” he wrote in Charisma magazine. “If so, our best response is to open our account ledgers and welcome correction.”

Share this:

  • Share on X (Opens in new window) X
  • Share on Threads (Opens in new window) Threads
  • Share on Facebook (Opens in new window) Facebook
  • Print (Opens in new window) Print
  • Email a link to a friend (Opens in new window) Email
  • Share on Bluesky (Opens in new window) Bluesky
  • More
  • Share on LinkedIn (Opens in new window) LinkedIn
  • Share on Reddit (Opens in new window) Reddit
  • Share on Tumblr (Opens in new window) Tumblr
  • Share on Pinterest (Opens in new window) Pinterest
  • Share on Telegram (Opens in new window) Telegram
  • Share on WhatsApp (Opens in new window) WhatsApp
Tags:Associated Baptist PressRobert Marus2008 Archives
More by
Religious Herald
  • Get BNG headlines in your inbox

  • Check out our podcasts

     

     

    Stuck in the Middle
    With You

     

    Madang
    With Grace Ji-Sun Kim

     

     

    Highest Power
    Church+State

     

     

    Non-Disclosure:
    The Silenced Stories
    of Kanakuk Kamps Survivors

     

    Change-making
    Conversations

     

     

  • Politics • Faith • Resistance: by Greg Garrett

    BNG interview series on the state of faith, politics and resistance in our nation.

    See also Greg’s series on Politics, Faith and Mission

     

  • Featured

    • Islamophobia is the next bogeyman

      Opinion

    • The Black Church cannot remain America’s emergency moral infrastructure

      Opinion

    • We are manna

      Opinion

    • Webinar explores religious context of America’s Founders

      News


    Curated

    • Staunch Israel critic and Gaza trauma surgeon Adam Hamawy wins NJ-12 primary

      Staunch Israel critic and Gaza trauma surgeon Adam Hamawy wins NJ-12 primary

    • Elderly Christian Among 31 Sentenced In China Church Crackdown

      Elderly Christian Among 31 Sentenced In China Church Crackdown

    • In U.F.O. Files, Some Christians See Vexing Questions — and Demons

      In U.F.O. Files, Some Christians See Vexing Questions — and Demons

    • Christian theologians react to the pope’s ai warning

      Christian theologians react to the pope’s ai warning

    Conversations that Matter.

    © 2026 Baptist News Global. All rights reserved.

    Want to share a story? We hope you will! Read our republishing, terms of use and privacy policies here.

    • Facebook
    • Twitter
    • Instagram
    • LinkedIn
    • RSS
    • 129