October 2, 2015 * ECFA Terminates GFA Membership

The Evangelical Council of Financial Accountability is an organization that many Christian groups are affiliated with to prove their financial trustworthiness. According to their site, the “ECFA enhances trust in Christ-centered churches and ministries by establishing and applying Seven Standards of Responsible Stewardship™ to accredited organizations.” On October 2nd, the ECFA removed Gospel for Asia from its list of members. This removal was not voluntary on GFA’s part. The ECFA lists the reasons for GFA’s removal as the following (taken directly from the ECFA’s list of former members):

Terminated for failure to comply with Standard 2 Governance, Standard 3 Financial Oversight, Standard 4 Use of Resources, Standard 6 Compensation-Setting and Related-Party Transactions, Standard 7.1 Truthfulness in Communications, and Standard 7.2 Giver Expectations and Intent

“Terminated for failure to comply with Standard 2 Governance, Standard 3 Financial Oversight, Standard 4 Use of Resources, Standard 6 Compensation-Setting and Related-Party Transactions, Standard 7.1 Truthfulness in Communications, and Standard 7.2 Giver Expectations and Intent”

GFA had been a member in good standing with the ECFA for over 32 years and posted the ECFA’s seal of approval prominently on the financial integrity page of their website (the link is a record of what GFA’s page looked like on September 15th, 2015). A closer look at the ECFA’s reasons for terminating GFA are quite revealing.

Standard 2 – Governance
“Every organization shall be governed by a responsible board of not less than five individuals, a majority of whom shall be independent, who shall meet at least semiannually to establish policy and review its accomplishments.”

Standard 3 – Financial Oversight
“Every organization shall prepare complete and accurate financial statements. The board or a committee consisting of a majority of independent members shall approve the engagement of an independent certified public accountant, review the annual financial statements, and maintain appropriate communication with the independent certified public accountant. The board shall be apprised of any material weaknesses in internal control or other significant risks”

Standard 4 – Use of Resources
“Every organization shall exercise the appropriate management and controls necessary to provide reasonable assurance that all of the organization’s operations are carried out and resources are used in a responsible manner and in conformity with applicable laws and regulations, such conformity taking into account biblical mandates.”

Standard 6 – Compensation-Setting and Related-Party Transactions
“Every organization shall set compensation of its top leader and address related-party transactions in a manner that demonstrates integrity and propriety in conformity with ECFA’s Policy for Excellence in Compensation-Setting and Related-Party Transactions.”

Standard 7 – Stewardship of Charitable Gifts

7.1 Truthfulness in Communications
“In securing charitable gifts, all representations of fact, descriptions of the financial condition of the organization, or narratives about events must be current, complete, and accurate. References to past activities or events must be appropriately dated. There must be no material omissions or exaggerations of fact, use of misleading photographs, or any other communication which would tend to create a false impression or misunderstanding.”

7.2 Giver Expectations and Intent
“Statements made about the use of gifts by an organization in its charitable gift appeals must be honored. A giver’s intent relates both to what was communicated in the appeal and to any instructions accompanying the gift, if accepted by the organization. Appeals for charitable gifts must not create unrealistic expectations of what a gift will actually accomplish.”

In two years, only two other organization have been terminated by the ECFA for reasons other than failing to renew their membership, resigning membership voluntarily, or merging with another entity. Donors should be made aware of the seriousness of this action that the ECFA has taken.