There were some groups conspicuous by their absence from the list of creditors, and others embarrassingly included. When the “double your money in six months” Foundation for New Era Philanthropy filed for bankruptcy on May 15, they listed $551 million in liabilities and $80 million in assets. Much of the money came from well-meaning donors who had sent gifts to about 100 religious ministries whom they thought were in need of their funds. Or so they had been told.
Evidently in most cases this was not true. Tens of millions of dollars are floating around the evangelical world, and apparently even that isn’t enough. The Christian groups holding these assets–including International Teams, Moody Bible Institute, Intervarsity Christian Fellowship, Wheaton College, Youth for Christ, World Vision, Scripture Union, and Compassion International, to name a few–obviously were looking for more. Enter, John G. Bennett, Jr.
It’s hard to believe that so many savvy financiers could believe Bennett’s story that he could double their money in six months. Albert J. Meyer, the accountant who blew the whistle on the scheme, tried and failed to convince people at Moody, Wheaton, and his own college at Spring Arbor that this was a classic scam. His inches-thick file was labeled, “Ponzi-file: If it quacks like a duck, walks like a duck, and looks like a duck, could it really be a duck?” Eventually he went to the SEC.
The Wall Street Journal which ran a series of articles on the story, quoted Mr. Carnes, a member of the International Research Institute on Values Changes, who tried to discourage colleges from participating in New Era’s program. He had little success: “They could just taste the money. I’ve never seen anything like it,” he stated. “The weakness around the mouth, the desire in the eyes. I’ve always heard the expression, ‘You can see greed written,’ but I’ve seen the reality.”
Not all these investors were motivated by greed. Although the reasoning of Wesley Willmer, board chair of the Christian Stewardship Association, rings hollow: “Greed suggests that organizations wanted more than they needed,” he says (Christianity Today, July 17, 1995). Have we stopped believing that “My God shall supply all your need…”? If we need it, God will supply it.
Some blame a trusting attitude in the evangelical community, fostered by Bennett’s associations and by word of mouth testimonies of others who had received paybacks. But it is a dangerous combination when our trust is mixed with promises of large amounts of money. “If a promise of return on an investment sounds too good to be true,” reminds the Canadian Council of Christian Charities newsletter, “it probably is.”
What are the lessons to be learned by rank-and-file believers who take their financial stewardship seriously?
A little healthy skepticism is a helpful thing. The Bible calls it discernment. Don’t assume that everyone with a nice letterhead and a Christian-sounding name is doing “God’s work God’s way.” Do a little checking. Albert Meyer says there is simply no substitute for financial statements. Ask godly Christians for recommendations.
Consider giving to ministries who follow the New Testament pattern for the Lord’s work. Are they building up local assemblies? Or do they see local churches as handmaidens of para-church organizations, rather than the other way around? Do they solicit funds, promoting themselves, rather than simply looking to the Lord for His provision?
If the New Era scandal causes Christian empire builders to reassess what they are doing, and causes believers to realign their giving to match their biblical convictions instead of greasing the squeaky wheels, it will have provided a worthwhile, though costly, lesson.