From the current issue of Living Church News:
Estates and AccountingIn the last couple of years, God’s Work has been particularly blessed by the estate donations it has received. Those who can make such donations are indeed leaving a lasting legacy that can do great good for those whom God calls and to whom He wants to send a message of witness. So we are very grateful for these donations as they come. Of course, this brings some accounting challenges, as those of you familiar with generally accepted accounting principles will recognize. For instance, our auditors last year required that some estate donations that were made in 2013, but not yet received in full until 2014 or even 2015, would be booked as “income” for 2013, because they were considered to be “receivables.” As a result (as you may remember from the article accompanying the 2013 audit, published in the September-October 2014 Living Church News, p. 20), this had the effect of “overstating’’ our 2013 income. Also, some estate receipts in 2013 were held over so the funds could be spread out for additional TV stations in 2014 and 2015. This had the effect of increasing our stated 2014 expenses and creating an operating deficit for that year. So, even though we were blessed in 2014 with about a 5 percent real increase in regular income over 2013, the auditors’ statement for 2014 will show a paper decrease in income of about 9.1 percent in total income, largely because of these generous estate donations. The good news is that the reported income decrease and operating deficit will be due largely to established accounting rules.Update and "Thank You" from the Business OfficeLCG Business Office
A reader here writes:
Ok, wait, I'm confused. So you lied about how much tithe money you brought in in 2013 to make the numbers look good and to profess your all so important "growth" thereby "proving" that LCG is being blessed as God's one and only true church so the deficit that you are running in for 2014 isn't really as bad as it looks because 2013 wasn't really as great as you said it was? And then you "held receipts" so you could spread out TV stations in 2014 and 2015? And the takeaway is supposed to be the income is down 9.1 percent on paper but it's really up 5 percent?! Sounds like deception to me but what do I know.
As usual, it's likely that a large number of sleeping sheep won't even question this insanity because if headquarters says it, it must be real.
It certainly sounds like spin. Often, accountants can be just as devious in their practices as lawyers, and also just as articulate in "explaining" their activities. My guess would be that even these figures are still inflated.
ReplyDeleteRegardless, it would appear that LCG is in no way self-sustaining soley through the income from their tithe farming. Anyone from the so-called glory days of WCG remembers the 30% annual growth rate which was proclaimed to be the sign of God's validation.
BB
I never was good at guessing which of the three shells at the pea under it. I guess that's why I couldn't keep up with the shell accounting either.
ReplyDeleteThere's no accounting for LCG's perceptions....
ReplyDeleteAren't "estate donations" largely from the estates of members who have died?
ReplyDeleteI know a member who died a year or so ago, and family members told me he left everything to the LCG.
And, I'm sure that is a fairly common occurrence in cults which holds such a tight psychological grip on it's members- a category which fits the LCG like a glove.
I doubt that the LCG Business Office has issued a statement about "The Truth" that the LCG is in it's "End Times" (because it's membership is comprised mostly of elderly people who have one foot in the grave).
-Norm
PS: Who will succeed Meredith as grand pooh-bah?
The grieving decendents of those who pass away who where slaves to armstrongism are hit in the face with the news that their inheritance has been willed to a armstrongism cult.
ReplyDeleteThe leaders of these armstrongism cults are despicable blood suckers who prey on the gullible members who buy into this B.S..
It's not surprising, since the Armstrongist cults don't know up from down.
ReplyDeleteThey took in 9.1% less and Lil' NCIS Jimmy spent and spent and spent....
ReplyDeleteSomething smells like crap in the "purest church ever"!
I am a Finance MBA, and didn't understand their voodoo accounting explanation. It sounds like a chapter taken straight out of Enron and the WorldCom accounting fraud - except their are no stockholder's to defraud- just the dumb sheep tithe slaves!
ReplyDeleteRichard
I know that Rod Meredith's estate is not going to the Church. It is divided up among his children. With David and John getting most of it.
ReplyDeleteSo why does his estate not go to the church? It has been an income from the people of God... so it should return to the people...
And how about the other ministers? Do their estates go to the church? Have you ever heard of a minister leaving his inheritance to the church?
I know that Rod Meredith's estate is not going to the Church. It is divided up among his children. With David and John getting most of it.
ReplyDeleteAre you sure? Rod has put it in print that a good LCG member should give "much" or "most" of his estate to LCG upon death. If he fails to do so, this will be a permanent stain on Rod's reputation for as he is remembered.
Wouldn't a vain narcissist like Rod Meredith care very deeply about his reputation? If not, the only reasonable conclusion is that he is really an atheist and doesn't believe there will be any sort of judgment waiting for him, nor that other people's opinion of him matter as much as his family's prosperity. Not much of a Christian.
I do not know if the claims of 30% growth was true, but what is definitely true is that any growth at all came from HWA laying guilt trips on the members every month hammering away at how the members were called to support the work and not to do so, was rebelling against God.
ReplyDeleteThis is the only reason and none other, if finances increased. An in depth study on tithing would show that there was only one tithe used for three different purposes. This tithe was for the support of the temple and only the Levites had the rightful authority to collect and receive it. The assembly/church was NEVER given this right. Anyone that says otherwise makes them a liar and a thief.
The tithe of the O.T. was always given in the form of cattle,produce and crops from the field. Cash was never given to the Levites. This was to feed the Levites because they did not have an inheritance of the land. Also the gentiles where not required to tithe.
ReplyDeleteThe Christian churches of today totally pervert a practice that is clearly outdated and in no way is required of Christians today.
When I worked for a major chemical company they brought I a Forensic Accountant to examine all of the expense accounts. Many salesmen had to answer some difficult questions and a few were fired. I wonder what such an accountant would find if they examined LCG books. Of course, LCG might have a "friendly" accountant do the audits, etc. to cover up for the leaders. Is there a Stanley Rader in the LCG? Perhaps an insider will leave and write a book about what is really going on in the church.
ReplyDeleteWhat the numbers imply is that about 14% of the income for last year came from estates leaving inheritances granting them to LCG.
ReplyDeleteLCG is approximately a $15 Million dollar a year operation. This means that more than $2 Million was donated from estates in the last year alone.
Well LCG has two sets of books... and the incompetence of the financial staff is astounding.
ReplyDeleteJerry Ruddlesden, who is their financial person in charge, does not have a Masters in Finance. But did go to AC... And he has had to take Bankruptcy 4 times. And then you add to that Jim Meredith who has had to take Bankruptcy 4 times.
Did you know that they have about 6 or 7 people how work for the Finance Dept? Why would it take that many people for such a small company?
Sounds like they are hiring people who don't know what they are doing. So they can look good and a very small proportion of the people who work there really know what they are doing.
Just like Global just before it blew up.
Voodoo math?
ReplyDeleteThe average age in Living is about 80 so it's a dying church anyway you slice it. The income will cease to exist once all the members all croak. They don't really draw younger people. It's an old church. Expect to see the numbers get smaller every year. Once the old man dies and NCIS Jim takes over there will be a mass exodus (likely to COGWA). Factor that in with Lil Jimmy's extravagant expenditures and all the commercial properties they've mortgaged and you'll see LCG is a sinking ship.
LCG members (like me) are withholding tithes because it looks like the church is off track and the ministry in Charlotte have become power drunk. That is why the income is down.
ReplyDelete