Televangelist builds $4 milllion home while employees lose jobs
Filed under: Extracurriculars
Senator Charles Grassley, the crotchety, plain-speaking Republican from Iowa, has been trying for a couple of years to pry open the books of televangelists he suspects of living decidedly unhumble lives on the donations they receive. He questions whether they deserve the tax exemption they enjoy. A recent report that Inspiration Network's CEO David Cerullo spent around $4 million on his new mansion could provide more fuel for this smoldering investigation. Cerullo's new 9,000 square-foot home and 2,000 square-foot porch overlook Lake Keowee. Meanwhile, Inspiration and its subsidiaries have laid off a number of workers, frozen wages, stopped 401K contributions, and turned the thermostat in its headquarters down to 65 degrees last winter.
According to the Charlotte Observer, Cerullo's network will bring in close to $100 million this year, much of it donations. It has also received up to $26 million in incentives over the past few years from the state of South Carolina. These were given to lure the network from its former home in Charlotte. Cerullo receives over $1.5 million a year in salary.
Grassley launched an investigation of six noted televangelists in 2007, challenging them to defend their expenditures and justify their tax exemptions. Included were the ministries of Paula White, Joyce Meyer, Creflo Dollar, Eddie Long, Kenneth Copeland and Benny Hinn. Several have cooperated fully, a couple partially. Creflo Dollar continue to hold out. Kenneth Copeland Ministries pulled a clever dodge, offering to cooperate with the IRS should it choose to investigate the ministry. IRS investigations are not made public.
Grassley points to the tax code language prohibiting not-for-profit organizations from paying unreasonable compensation to the executives. What is reasonable, he asks? In this case, I think the people to answer that question are those who donated to the Inspiration Network. Are you content that some of your money went for a $4 million home for Cerullo?
Reader Comments (Page 1 of 14)
7-07-2009 @ 1:25PM
Rick said...
I've said for years that nearly all of the Televangilists are crooks. People are so easily led and duped by these crooks & hypocrites. Just look at all the idiots who have been busted for drugs, public sex, soliciting prostitutes, etc.
When will people ever learn? A sucker is born every day.
It doesn't take a genius to look at these crooks on TV soliciting money - just watch their eyes and body language. But I guess there are not too many geniuses out there !!!!
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7-08-2009 @ 10:51AM
Cara said...
The mark of a successful televangelist is the ability to talk retirees out of their Social Security checks so that they can buy fuel for their private jets. Flying private takes them closer to G-D
7-08-2009 @ 12:03PM
nurse said...
That's why God tells us to watchful and careful not to follow everyone that claims to be sent from him. Too many get fooled and loose everything they own to these men and women. God is not mocked
8-06-2009 @ 9:30PM
Elijah said...
Uh, Rick... have you even taken the time to listen to just 1 or 2 sermons from any of these people? Where were you when these people were just starting their ministry 20+ years ago? Creflo Dollar started in a school cafeteria with 8 people attending! They have all worked quite a bit more than this biased article makes it appear. These ministers preach that anyone can have over-flowing prosperity in their lives! Senator Grassley is a Baptist who has had a grudge against these ministers and the Word-of-Faith movement, thus the reason he is opening up an "investigation". I used to be on the other side of the fence. Even as a Christian, I thought these people were "crooks" too at one point. But now that I've listened to them, I've found I was very misled.
7-07-2009 @ 1:54PM
jan said...
I think these people should pay taxes like any others. Certain things should be exempt, but not everything. They do not deserve the big fine mansions, the huge salaries and all the benefits they receive. If only the government cared enough to investigate many of them, the would find out most are not deserving. Least of all the tax breaks they are getting.
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7-08-2009 @ 12:14PM
veritas said...
Jan,
the televangelist DO pay taxes on income they personally recieve from the ministry. Just like us we pay income tax so do they. They ministry is not taxed because it is a non-profit. just like every other non-profit, non faith based organization that pays employess. the employes must pay income tax.
7-07-2009 @ 3:40PM
Dr. Jones said...
There may be some televangelists who are exceptions, and I don't like to overgeneralize, but most of them appear not to meet the criteria for BOTH tax exempt status and for being ministers of Christ. To use tax exempt donations for personal enrichment rather than for the charitible work intended by the donors and the government is fraudulent and illegal. To be a minister of Christ requires both humility and not loving money. It is time that televangelists be held accountable for their misrepresentations and lack of qualifications, by both legal AND religious authorities.
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7-08-2009 @ 1:24PM
Valerie said...
We are not tax exempt. A minister is considered self employed because a non-profit organization (the church/or any kind of "ministry") cannot call them employees for whatever reason. A church can have other employees, but cannot consider a pastor one. I am a pastor's wife... My husband makes $42,000 a year, and what they are talking about in this article is that our housing allowance, which is about $15,000 a year, is not taxed. It is the only benefit a minister has on our taxes. Past that we pay 25% on all our income earned other than our housing costs. And we have to prove how much money we put into our housing costs. Sounds like this rotten guy has put way too much money into his housing costs to try to keep that away from being taxed. But if he is being honest, and worked hard and saved that money for a long time to build that house, then what he is dong is completely legal.
7-08-2009 @ 3:09PM
Jeanette Seiber said...
That is the best and only acceptable thing I have heard. I personally have always disliked the fact that anyone would be underserving of God's teaching or awareness to something ( a book or Cd of some kind ) unless they have a large " love gift" to send, often even a designated amount. Unfortunately I find my own Pastor beginning to falter under the pretense of television evanulism. There are 1000's of other lost , starving and dying peoples to reach. We have enough television evanulists to simply get SAVED. He like everyone else just thinks OUR church is the only one.
7-09-2009 @ 9:58AM
Bob Handley said...
You are absolutely right Dr. Jones - I'm in total agreement with your assessment. Being a retired IRS criminal investigator, I can't believe that these charlatans continue to rip off their supporters. And too, I find those who support such ministries should be held responsible. From what is going on today, we know for sure that we are in the very last days. Lawlessness is spreading like wild fire - and the present administration is pouring fuel on it as fast as they can. We're living in very corrupt days, and it will only get worse. Yes, the IRS Tax Exempt Section should examine these psuedo ministries, but I'm sure that these ministries retain very expensive attorneys who do everything to block an examination/investigation.
7-08-2009 @ 8:35AM
Jet said...
I can't believe after Oral Roberts, Jim Bakker, Jimmy Swaggart, Ted Haggard, and all the other teleconartists have fleeced millions of dollars from millions of their followers, normally poor, elderly people living on fixed incomes, and screwed every man, woman, and farm animal they could mount, that there are still people in this world stupid enough to give them a damn dime. For being that stupid they deserve to lose their money to this jackoff to build his four million dollar house while he pulls in $100 million a year and screws or fires his employees. Good job, dumbasses, you keep killing my faith in the intelligence of my fellow man.
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7-08-2009 @ 4:14PM
FlyboyB4 said...
Well said. Now if only you could convince the IRS, Congress, the Senate, and Govt. Investigators.
7-08-2009 @ 10:49PM
sandra said...
well said!!
7-09-2009 @ 6:18AM
jjoekiker7 said...
Destroy your faith??? That your fellow man is generous to a fault, tries to give to God the best way they know how, dont blame your fellow man, and forgive the evangilists also, wouldnt you also take the money if you had the ability to preach, to ask and people would give to you ? I would. I would probably feel that the money is mine to do with what makes me feel good, I could probably find somewhere in the bible a great excuse for me to live like a fat pimp, for the good of God.but remember what goes around comes around and they always seem to fall from grace, if you believe in God, or a higher power, you better believe when a person trys to get over on their fellow man, they get their just rewards in the end.......
7-08-2009 @ 8:47AM
dfc4385 said...
Yes, those people should be held accountable. Seems to me I remember reading that the love of money is the root of all evil.
Wait a minute! I remember! It's found in the Scriptures! Maybe those televangelists forgot to read the New Testament?
Seriously folks, why support their life style? Join a church right in your area. Support their ministries. When you find that you need help, is that televangelist going to knock on your door?
If their organization calls you on the phone, you better believe they want your money! God does not charge for His assistance.
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7-08-2009 @ 3:40PM
Michele said...
well said...I agree...find a local church and become involved. A good church will have transparency in their financial expenditures, where members of the church are kept informed and has access to that information. It's all about accountability. televangelists cannot meet the needs that a local church can. it's really sad that people who are supposedly Christians, are just putting up fronts to take in the money...really sad...
7-08-2009 @ 1:42PM
Betty said...
AMEN AND AMEN !
The Bible does warn us of wolves in sheeps clothing, and false prophets. John wrote it so correctly in Revelations.
Find a church in your neighborhood, tithe to it and it alone.
These tel-evanlgelist are self serving, greedy, satan followers.
and should be banned from TV.
Senior citizens are so vulnabal to false statements.
No, I haven't had a bad experience with any of them, because I've never donated to ANY of them. I put my faith and trust in God and God alone.
Anybody remember Jim and Tammy Baker?? A man I adored, Jimmy Swaggert fell to the devil also. So disappointed.
God favor us all with His blessing as we struggle through this sinful world.
7-08-2009 @ 8:51AM
dfc4385 said...
That's why Jet, you put your faith in God not in man. When we put folks up on those pedestals, there is only one way to go and that (of course) is down.
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7-08-2009 @ 8:55AM
Sunday said...
I agree with the other writers 100%, that these so call televangelist, minsters, other religious gru need a check and balance on how they defined there so call moment of praisng god. I was in N.C. the fourth for a family member furneal and ever one in the pull pit and choir was dressed as a Minster and calling themselves one. It was sad to see how they were taking advantage of the old and un-educated members. They were pimping them for dollars. I asked other people there what were
this Minster thing about because I belive most of them had bad intent because some of the were high and jail birds. I was told this is the latest cam going now it's call "Pimping the Church" and all you had to do to get over is say you love the lord and you have been born again and people will give you money. There need to be a law passed to determine how people become "Minsters, ETC.". Make them register in a data base, check their criminal pass and all of them should not be tax excempt. Like everthing else this too will end up becoming a major investigation and people will see the light. I do not like faking for "Christ" one should be for real.
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7-08-2009 @ 11:15PM
veritas said...
Yes, I had thought before that ther emust be some criteria that ministers must meet before being able to practice. However I ran flat into the constitution of the United States that prohibits the government from having a government sponsored religion.
you know freedom of religion works both ways.
who would we get to regulate and make these decision the ungodly senators and representatives we have today, who do not pay taxes, live outlandish lifestyles and are poor stewards of the money that we are required to pay in taxes. Noone is required by law to donate to an evangelist. we should rather investigate the congress, these are the real crooks.