[Tony Cox:] Now, here to talk more about the nature of non-profits is Alan Judd. He is an investigative reporter with The Atlanta Journal-Constitution. Alan, welcome.
[Mr. Alan Judd:] Thank you very much.
[Tony Cox:] The first issue seems to be well, there are several. One is whether or not this inquiry is legal, which was one of the headlines in your own paper yesterday. But perhaps we should start by establishing this point because in the letters that Senator Grassley sent out here's a line I'm going to read directly to you. Since your organization is not required to file Form 990 with the IRS, I am requesting that you answer the following questions. Now, Form 990 is something that churches have to fill up as far as their non-profit status. So what is required of churches legally with regard to their non-profit status and reporting?
[Mr. Alan Judd:] Not a lot when it's compared to other non-profit organizations. A typical foundation or non-profit would have to file an annual tax return called the Form 990 with the IRS, and that's available for public inspection. In fact, it's specifically required by federal law that they make that available, and there are a number of Internet sites where people can look those up. Religious organizations are a little different. They have some protection under a 1984 federal law that largely prevents the IRS from using any kind of aggressive auditing techniques or really looking at them very thoroughly.
[Tony Cox:] The one of the issues seems to be the issue of salaries and compensation for the ministers of these churches. Is that different, the reporting requirement, for them as churches? Does it differ from what would be required of someone in, let's say, a community non-profit organization?
[Mr. Alan Judd:] Yeah. Yes, it is. It's, again, it goes back to what's reported on the tax return. A typical foundation would report, I think, the top five salaries for employees or board members, as well as the top five the highest paid contractors. The church, of course, does not have any kind of obligation publicly. Whether they report that to their own congregation, of course, would be up to them.
[Tony Cox:] Is there a limit on those salaries as far as you know?
[Mr. Alan Judd:] No.
[Tony Cox:] There's not?
[Mr. Alan Judd:] No.
[Tony Cox:] If these if the end of this investigation shows that there has been spending that the committee feels is inappropriate or illegal, what would happen next?
[Mr. Alan Judd:] That's a that's a really good question. I think the only step that they really could take would be to refer this to the IRS and really question the non-profit status of those churches or religious organizations essentially to say that they are abusing their legal status to enrich certain people with the the head of the church or other individuals.
[Tony Cox:] Do you know whether or not, Alan, there's a precedent for this? I know that Charles Grassley has been involved in this kind of legislation before, but can you point to a specific precedent?
[Mr. Alan Judd:] Not involving the religious organizations, as Senator Grassley said, there have been a number of pretty high-profile investigations of other non-profits, even, you know, the Smithsonian Institution being a very prominent one recently. But as far as religious organizations, they've mostly gone without a lot of scrutiny at that level.
[Tony Cox:] Final thing is this: Is there such a thing as a for profit church? Are you aware of that?
[Mr. Alan Judd:] Never heard of one.
[Tony Cox:] Okay. Alan, thank you very much.
[Mr. Alan Judd:] Sure. Thank you very much.
[Tony Cox:] Alan Judd is an investigative reporter for the Atlanta Journal-Constitution. Now, earlier, we read from the statements of three ministries that the Senate Finance Committee had singled out. Here are two more statements now.
[A Spokesperson For Hinn Ministries Wrote This:] At this time, the church's board of directors and legal counsel is determining the best course of action to best cooperate with the committees' inquiry. We regard this as an important matter and will not respond until further information becomes available. And this from a spokesperson from Eddie from Bishop Eddie L. Long: Bishop Long has received a request for information from the United States Senate. He plans to fully comply. New Birth has several safeguards put in place to ensure all transactions are in compliance with laws applicable to churches.