Complaint Review: St. Matthew's Churches - Tulsa Oklahoma

Take a look at this news story: http://www.trinityfi.org/press/ewing04.html Mr. Joyce in Tulsa is quoted as saying it is nobody's business how the money is used. The article also says St. Matthews fought a 17 year battle to be given 501(c)(3) status (in 2000). That should tell you something about the organization right there. And this: Here is info about the man who is lists as president of St Matthews: Rev. James Eugene Ewing The Rev. James Eugene Ewing built a direct-mail empire from his mansion in Los Angeles that brings millions of dollars flowing into a Tulsa post office box. The approach reaped Ewing and his organization more than $100 million since 1993, including $26 million in 1999, the last year Saint Matthew's made its tax records public. Ewing's computerized mailing operation, Saint Matthew's Churches, mails more than 1 million letters per month, many to poor, uneducated people, while Ewing lives in a mansion and drives luxury cars. The letters contain an alluring promise of "seed faith": send Saint Matthew's your money and God will reward you with cash, a cure to your illness, a new home and other blessings. They often contain items such as prayer cloths, a "Jesus eyes handkerchief," golden coins, communion wafers and "sackcloth billfolds." Recipients are often warned to open the letters in private and not discuss them with others. The approach reaped Ewing and his organization a gross income of more than $100 million since 1993, including $26 million in 1999, the last year Saint Matthew's made its tax records public. And while much of the money is spent on postage and salaries, Ewing's company receives nonprofit status and pays no federal taxes. Though Ewing claims it is a church, Saint Matthew's Churches, once called St. Matthew Publishing Inc., has no address other than a Tulsa post office box. It has two listed phone numbers in Tulsa and both are answered by a recorded religious message. "He capitalizes on the isolation of the loneliest and poorest members of our society, promising them magical answers to their fears and needs if only they will demonstrate their faith by sending him money," Anthony said. (Ole Anthony, founder of the Trinity Foundation. a nonprofit religious watchdog group) "He is, quite literally, the father of the modern-day 'seed-faith' concept that fuels the multibillion-dollar Christian industry known as the 'health-and-wealth gospel.' "The only ones becoming rich are the men like Ewing." (Ole Anthony, founder of the Trinity Foundation. a nonprofit religious watchdog group). Ewing's flair for effective, dramatic direct-mail appeals won him jobs writing for evangelists including Tilton, Rex Humbard and "Rev. Ike." In many cases, the letters are identical but contain different signatures. The Trinity Foundation, which obtained copies of the identical letters, has dubbed Ewing "God's Ghostwriter." "We had nine different televangelists essentially sending out the same letter," Anthony said. "He (Ewing) makes most of his money by selling these packages to televangelists." Anthony said one Ewing letter, written for Humbard, brought in $64 for each copy mailed. Another mailing by Humbard contains a "sackcloth billfold" and asks recipients to mail a "seed offering" of $19 to a Boca Raton, Fla., post office box. A similar letter from Tilton also contained a "sackcloth billfold" but encouraged recipients to return a "seed of faith" of at least $709.00. Joyce said Ewing has written for many other evangelists. 1997: St. Matthew Publishing Inc., incorporated at Joyce's Tulsa law office, files documents with the Internal Revenue Service reporting $15.6 million in revenue. Ewing reports receiving $307,187 in salary and benefits while McElrath reports $277,000 in salary and benefits. 1999: St. Matthew Publishing Inc. reports $26.8 million in revenue. Of that, the organization spent $4 million on salaries, $989,140 on legal fees, $817,000 for housing and rent and $649,000 on travel. (From the Tulsa World . 4/27/2003). One of Ewing's letters, written for evangelist Rex Humbard, reportedly brought in as much as $64 per mailing. In 1968, Ewing, an eighth-grade dropout, doubled Oral Roberts' cash flow almost overnight with another mail campaign, sources say. Roberts rewarded him with an airplane, according to former Roberts aide Wayne Robinson. (http://www.dallasobserver.com/issues/1997-11-06/feature2.html/page1.html) [INDEX] And this: Here is what St. Matthews says about its activities on another website called: JustGive.org. http://www.guidestar.org/pqShowGsReport.do?npoId=14865&partner=justgive "SAINT MATTHEWS CHURCHES 515 S Main St Ste 300 Tulsa, OK 74103 GENERAL INFORMATION Contact: J.C. Joyce Who We Are Saint Matthew's Churches is a church that is exclusively religious and files no tax returns of any kind. This organization is a 501(c)(3) Public Charity . [NOTE Why they wanted to be recognized as a church with 501(c)(3) status--they wouldn't have to file a 990 informational return, so now they can do their nefarious business without anyone knowing anything.] This organization is not required to file an annual return with the IRS because it is a religious organization. Financial information in this report is derived from the organization's December 31, 1999 Form 990. Additional narrative information in this report was last supplied by the organization on December 30, 2005. Contributions are deductible, as provided by law. EIN: 73-1020156 Year Founded: Information not available Ruling Year: 2000 Fiscal Year: December 31, 1999 Assets: $3,005,317 (from Dec 31, 1999 Form 990) No. of Board Members: Information not available No. of Full-Time Employees: 0 No. of Part-Time Employees: 0 No. of Volunteers: 0 BOARD OF DIRECTORS Name Title MILTON R. MCELRATH VICE-PRES JAMES E. EWING PRESIDENT DONALD R. LUCE SECRETARY MISSION AND PROGRAMS Mission Saint Matthew's Churches welcomes men and women of all faiths, all nationalities, all ethnic groups and all social stations. It is based firmly on the Holy Bible, God's Holy Word. Our church services are much like those of every other traditional church that worships Jesus Christ as the Lord and Savior of the human race. While Saint Matthew's Churches is ecumenical in scope and nature, our identity and self-understanding is deeply rooted in the Historic Christian Tradition. Our services are informed and shaped by many of the Historic Christian liturgies, which has helped Christians maintain the beauty and dignity of Christian Worship for hundreds of years. In matters of faith and practice Saint Matthew's Churches identifies with many of the doctrinal texts, which have historically guided Christians from many backgrounds. This includes our affirmation of the sufficiency of the Scriptures as containing all things necessary to salvation. We affirm the belief contained in the Apostles' and Nicene Creeds. We affirm the spirit of the Historic Christian creeds that have served as a statement of faith for those in the Historic Christian Tradition since the earliest of times. At Saint Matthew's Churches we believe that the living core of the Christian faith was revealed in Scripture, illumined by tradition, strengthened in personal experience and confirmed by reason. Programs Since it was founded Saint Matthew's Churches has been active in publishing, giving out, and mailing the Gospel, all free of charge, in accordance with the Gospel according to Saint Mark 13:10. GOALS AND RESULTS Accomplishments for Fiscal Year Ending December 31, 2004 Saint Matthew's Mother Church has: the capacity to seat 1,600; three Chapels; 100,000 square feet under roof; air conditioned basketball and volleyball court; and, a lighted soccer and baseball field. [NOTE: and where is this? and if there is really a church, why is the phone for the church never answered by a live person?] Objectives for Fiscal Year Beginning January 1, 2005 Saint Matthew's Churches seeks to continue the vision of its founders "to establish a church that would welcome men and women of all faiths, even those who had no church affiliations." FINANCIAL DATA Revenues and Expenses: Fiscal Year Ending December 31, 1999 [NOTE: Why does it list 1999 financial data when this info was give to JustGive after 2000?] REVENUE Contributions $26,889,631 Government Grants $0 Program Services $0 Investments ($99,033) Special Events $0 Sales $0 Other $0 Total Revenue $26,790,598 EXPENSES Program Services $14,839,087 Administration $9,279,344 Other $0 Total Expenses $24,118,431 Net Gain/Loss $2,672,167 -------------------------------------------------------------------------------- Balance Sheet: Fiscal Year Ending December 31, 1999 Note: The balance sheet gives a snapshot of the financial health of an organization at a particular point in time. An organization's total assets should generally exceed its total liabilities, or it cannot long survive, but the types of assets and liabilities also must be considered. For instance, an organization's current assets (cash, receivables, securities, etc.) should be sufficient to cover its current liabilities (payables, deferred revenue, current year loan and note payments). Otherwise, the organization may face solvency problems. On the other hand, an organization whose cash and equivalents greatly exceed its current liabilities might not be putting its money to best use. ASSETS January 1, 1999 December 31, 1999 Change Cash & Equivalent $1,100,701 $589,587 ($511,114) Accounts Receivable $53,579 $9,872 ($43,707) Pledges & Grants Receivable $0 $0 $0 Receivable / Other $0 $0 $0 Inventories for Sale of Use $0 $0 $0 Investment/Securities $0 $0 $0 Investment/Other $0 $0 $0 Fixed Assets $1,836,036 $2,356,110 $520,074 Other $113,730 $49,748 ($63,982) Total Assets $3,104,046 $3,005,317 ($98,729) LIABILITIES January 1, 1999 December 31, 1999 Change Accounts Payable $2,736,697 $462,243 ($2,274,454) Grants Payable $0 $0 $0 Deferred Revenue $0 $0 $0 Loans and Notes $536,686 $40,244 ($496,442) Tax-Exempt Bond Liabilities $0 $0 $0 Other $0 $0 $0 Total Liabilities $3,273,383 $502,487 ($2,770,896) FUND BALANCE ($169,337) $2,502,830 $2,672,167

Check out the organization's 1999 IRS Form 990 informational return. They spent $12 million on mailings, which they fantastically also catagorize as "Program Services." The other $1.9 million in "program services" look like direct mail-related expenses, except for a mysterious $100,000+ for church and funeral expenses, whatever that could be when the church is more or less "virtual." http://www.guidestar.org/FinDocuments/1999/731/020/1999-731020156-1-9.pdf There also appears to be clear family connections between the officers and several of the highest paid employees. The name of the organization doesn't even include the word "church." Rather they are called: St. Matthew Publishing, Inc. Their largest vendors were Joyce and Pollard (which is the street address of St. Matthews Churches) (nearly $1 million for legal and accounting services); Genesis of Life, Bloomington, CA (promotional expenses); and PriceWaterhouseCoopers (more legal and accounting expenses). It is notable that St. Matthews has two listed "related, non-exempt" organizations: Church by Mail, Inc. and Universal Advertising. Also, St. Matthews was not a 501(c)(3) in 1999. It was a 170(b)(1)(A)(vi). Evidently it became a 501(c)(3) in 2000. I haven't found the 990 forms for that year yet.