Evangelical Council for Financial Accountability
Encyclopedia
The Evangelical Council for Financial Accountability (ECFA) is an accreditation agency to promote fiscal integrity and sound financial practices among member organizations. Founded in 1979, it comprises over 2,000 evangelical
Christian
organizations which qualify for tax-exempt, nonprofit status and receive tax-deductible contributions. As of 2006, the total income of ECFA member organizations is reported to be approximately $15 billion.
The organization has, since its inception, been based in the Washington, DC area with offices presently in Winchester, Virginia
.
, who was since 1973 a member of the board of World Vision
, told evangelicals that they needed to formalize some means for financial accountability or government legislation would be required. At the same time, Texas Congressman Charles Wilson had drafted a bill that would have required ministries to disclose "at the point of solicitation." A group of representatives from more than thirty evangelical groups met in December of that year to formulate a plan. At that meeting, Hatfield's chief legislative assistant told them that "a voluntary disclosure program" would "preclude the necessity of federal intervention into the philanthropic and religious sector." The call for more regulation was also a reaction to public pressure caused by several media reports about scandals related to misuse of funds in charities
Two years later, in 1979, the ECFA was founded by the Billy Graham Evangelistic Association
and the US branch of World Vision (World Vision International
is not member of ECFA). World Vision's president Stan Mooneyham stated, "There is no denying that this threat of government action was one of the stimuli" for the founding of the ECFA.
ECFA was founded with the establishment of seven standards of accountability that covered board governance, the requirement for audited financial statements, the requirement for public disclosure of the audited financial statements, the avoidance of conflicts of interest, and standards regarding fundraising activities. It was believed that the proposed standards of accountability generally exceeded the requirements of law. Charities that met those standards and paid the membership fee were granted a seal of approval. Membership fees were based on donated income. Evangelical charities could apply for accreditation and were required to submit information that would be reviewed and evaluated against those standards. Those meeting the standards would be accredited and granted a seal of approval
s to gain and maintain the public respect and confidence in the operations of the respective charity through the compliance with the Standards, and to protect the donor public from possible unethical conduct in the management of the affairs of the charities. There was a religious witness component to the mission statement that served as a motivation for member compliance with the Standards.
The mission statement adopted by the ECFA is as follows: "ECFA is committed to helping Christ-centered organizations earn the public's trust through developing and maintaining standards of accountability that convey God-honoring ethical practices." Commentary on the mission statement can be found on the ECFA Website.
. ECFA members are located across the U.S. and U.S. territories and range from the very large national ministries to smaller local ministries and churches."http://www.ecfa.org/?PageName=GeneralFAQs
Members are required to submit annually a renewal document which includes the recent copy of the audited financial statement and answers to a number of questions related to the membership standards. Field reviews are conducted on a regular basis by ECFA employees and representatives typically on location.
Evangelicalism
Evangelicalism is a Protestant Christian movement which began in Great Britain in the 1730s and gained popularity in the United States during the series of Great Awakenings of the 18th and 19th century.Its key commitments are:...
Christian
Christianity
Christianity is a monotheistic religion based on the life and teachings of Jesus as presented in canonical gospels and other New Testament writings...
organizations which qualify for tax-exempt, nonprofit status and receive tax-deductible contributions. As of 2006, the total income of ECFA member organizations is reported to be approximately $15 billion.
The organization has, since its inception, been based in the Washington, DC area with offices presently in Winchester, Virginia
Winchester, Virginia
Winchester is an independent city located in the northwestern portion of the Commonwealth of Virginia in the USA. The city's population was 26,203 according to the 2010 Census...
.
History
In 1977, Senator Mark HatfieldMark Hatfield
Mark Odom Hatfield was an American politician and educator from the state of Oregon. A Republican, he served for 30 years as a United States Senator from Oregon, and also as chairman of the Senate Appropriations Committee...
, who was since 1973 a member of the board of World Vision
World Vision
World Vision, founded in the USA in 1950, is an evangelical relief and development organization whose stated goal is "to follow our Lord and Saviour Jesus Christ in working with the poor and oppressed to promote human transformation, seek justice and bear witness to the good news of the Kingdom of...
, told evangelicals that they needed to formalize some means for financial accountability or government legislation would be required. At the same time, Texas Congressman Charles Wilson had drafted a bill that would have required ministries to disclose "at the point of solicitation." A group of representatives from more than thirty evangelical groups met in December of that year to formulate a plan. At that meeting, Hatfield's chief legislative assistant told them that "a voluntary disclosure program" would "preclude the necessity of federal intervention into the philanthropic and religious sector." The call for more regulation was also a reaction to public pressure caused by several media reports about scandals related to misuse of funds in charities
Two years later, in 1979, the ECFA was founded by the Billy Graham Evangelistic Association
Billy Graham Evangelistic Association
The Billy Graham Evangelistic Association is an organization started by Billy Graham in 1950. The main focus of the BGEA is to spread the gospel of Jesus Christ to as many people as possible...
and the US branch of World Vision (World Vision International
World Vision International
World Vision International, founded in the USA in 1977, is an evangelical relief and development umbrella organization whose stated goal is "to follow our Lord and Saviour Jesus Christ in working with the poor and oppressed to promote human transformation, seek justice and bear witness to the good...
is not member of ECFA). World Vision's president Stan Mooneyham stated, "There is no denying that this threat of government action was one of the stimuli" for the founding of the ECFA.
ECFA was founded with the establishment of seven standards of accountability that covered board governance, the requirement for audited financial statements, the requirement for public disclosure of the audited financial statements, the avoidance of conflicts of interest, and standards regarding fundraising activities. It was believed that the proposed standards of accountability generally exceeded the requirements of law. Charities that met those standards and paid the membership fee were granted a seal of approval. Membership fees were based on donated income. Evangelical charities could apply for accreditation and were required to submit information that would be reviewed and evaluated against those standards. Those meeting the standards would be accredited and granted a seal of approval
Mission
The mission of ECFA was to assist religious charitable organizationCharitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...
s to gain and maintain the public respect and confidence in the operations of the respective charity through the compliance with the Standards, and to protect the donor public from possible unethical conduct in the management of the affairs of the charities. There was a religious witness component to the mission statement that served as a motivation for member compliance with the Standards.
The mission statement adopted by the ECFA is as follows: "ECFA is committed to helping Christ-centered organizations earn the public's trust through developing and maintaining standards of accountability that convey God-honoring ethical practices." Commentary on the mission statement can be found on the ECFA Website.
Membership
The ECFA members are organized charities in the US, typically 501(c)3 and 501(c)4 Evangelical organizations. Members range "from evangelism in foreign jungles to race car driver evangelism, from ministry to the elderly, children, the impaired, to those in the military, those on the streets, and to many in between. All members are fulfilling a calling to reach a lost world for ChristJesus
Jesus of Nazareth , commonly referred to as Jesus Christ or simply as Jesus or Christ, is the central figure of Christianity...
. ECFA members are located across the U.S. and U.S. territories and range from the very large national ministries to smaller local ministries and churches."http://www.ecfa.org/?PageName=GeneralFAQs
Members are required to submit annually a renewal document which includes the recent copy of the audited financial statement and answers to a number of questions related to the membership standards. Field reviews are conducted on a regular basis by ECFA employees and representatives typically on location.
Integrity Standards
As an accrediting organization, ECFA attempts to protect the integrity of its seal. ECFA has taken action against member organizations who are unable or unwilling to comply with the Standards for Responsible Stewardship. Typically, members are allowed to resign but in some cases are suspended for a period of time that the ECFA determines is sufficient to put "affairs" back in order. The ECFA learns of Standards violations both through results of field audits which are conducted on a regular basis by ECFA employees as well as complaints received directly from the public.Commission on Accountability and Policy for Religious Organizations
In January 2011, Senator Charles Grassley (R-IA), a member of the Senate Finance Committee, asked ECFA to facilitate responses from the ministry community concerning a series of legislative proposals prepared by his staff. ECFA formed the Commission on Accountability and Policy for Religious Organizations to assist in this process.External links
- Evangelical Council for Financial Accountability official web site