Evangelical Council for Financial Accountability

Evangelical Council for Financial Accountability is a nonprofit organization that promotes financial accountability and transparency among Christian ministries and evangelical churches, such as Saddleback Church, Willow Creek Community Church, and Lakewood Church. The organization was founded in 1979 by Billy Graham, Ralph Winter, and the Demoss Foundation, with the goal of establishing standards for financial integrity and accountability among evangelical organizations, including World Vision, Compassion International, and Cru. The council's members include a wide range of Christian organizations, such as Focus on the Family, The Salvation Army, and Catholic Charities USA, as well as Christian universities like Wheaton College and Biola University. The organization is affiliated with the National Association of Evangelicals and the Christian Leadership Alliance, and works closely with other organizations, including the Better Business Bureau and the American Institute of Certified Public Accountants.

Introduction

The Evangelical Council for Financial Accountability is an important organization in the Christian nonprofit sector, providing a framework for financial accountability and transparency among its member organizations, including Habitat for Humanity, Samaritan's Purse, and Food for the Hungry. The council's standards and certification process help to ensure that Christian ministries and evangelical churches are operating with financial integrity, and provide a level of assurance for donors and supporters, such as Bill Gates, Warren Buffett, and Mark Zuckerberg. The organization's work is closely tied to the Internal Revenue Code and the Tax Reform Act of 1969, which govern the tax-exempt status of nonprofit organizations in the United States. The council also works with other organizations, including the Federal Trade Commission and the Securities and Exchange Commission, to promote transparency and accountability in the nonprofit sector.

History

The Evangelical Council for Financial Accountability was founded in 1979 in response to concerns about financial accountability and transparency among Christian ministries and evangelical churches, including Jim Bakker's Praise the Lord ministry and Oral Roberts's Oral Roberts Evangelistic Association. The organization's founders, including Billy Graham and Ralph Winter, were motivated by a desire to promote financial integrity and accountability among evangelical organizations, and to provide a framework for donors and supporters to make informed decisions about their giving, such as Giving USA and GuideStar. The council's early work was influenced by the National Association of Evangelicals and the Christian Leadership Alliance, and the organization has since become a leading voice in the Christian nonprofit sector, working with organizations like Convoy of Hope and Mercy Corps.

Membership and Accreditation

The Evangelical Council for Financial Accountability has a membership of over 2,000 Christian organizations, including World Vision, Compassion International, and Cru. To become a member, an organization must meet the council's standards for financial accountability and transparency, which include requirements for audited financial statements, independent boards of directors, and conflict of interest policies, as outlined by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board. The council's accreditation process involves a thorough review of an organization's financial practices and policies, and is designed to provide a level of assurance for donors and supporters, such as The Pew Charitable Trusts and the Bill and Melinda Gates Foundation. The organization also works with other accrediting agencies, including the Better Business Bureau and the Accreditation Council for Business Schools and Programs.

Standards and Certification

The Evangelical Council for Financial Accountability has established a set of standards for financial accountability and transparency, which include requirements for financial reporting, governance, and fundraising practices, as outlined by the Securities and Exchange Commission and the Federal Trade Commission. The council's standards are designed to promote financial integrity and accountability among Christian ministries and evangelical churches, and to provide a framework for donors and supporters to make informed decisions about their giving, such as Charity Navigator and GiveWell. The organization's certification process involves a thorough review of an organization's financial practices and policies, and is designed to provide a level of assurance for donors and supporters, such as The Chronicle of Philanthropy and the Nonprofit Times. The council also works with other organizations, including the National Association of State Charity Officials and the Independent Sector, to promote transparency and accountability in the nonprofit sector.

Governance and Leadership

The Evangelical Council for Financial Accountability is governed by a board of directors that includes leaders from a variety of Christian organizations, such as Dan Busby of the Christian Leadership Alliance and John Ashmen of the Association of Gospel Rescue Missions. The organization's president, Michael L. Coleman, has played a key role in shaping the council's standards and certification process, and has worked closely with other leaders in the Christian nonprofit sector, including Rick Warren of Saddleback Church and Bill Hybels of Willow Creek Community Church. The council's leadership team also includes experts in financial management and nonprofit governance, such as Terry Austin of the Better Business Bureau and James D. Anderson of the American Institute of Certified Public Accountants. The organization is headquartered in Winchester, Virginia, and has a staff of professionals who work to promote financial accountability and transparency among Christian ministries and evangelical churches, such as Luis Palau and Franklin Graham.

Category:Non-profit organizations