The WTBTS and Money. Three questions, please!

by Gill 17 Replies latest watchtower scandals

• 

  JeffT

  Comments (I'm an accountant).

  The WTBS in the United States is a private enterprise and has no legal obligation to make its records public, even if it is claiming charitable status. The IRS has traditionally left religions alone as it runs afoul of the 1st amendment right of the people to freely practice their religion. If a division of a relgious entity makes a profit and gives those profits to the church it is still required to file a tax return as a profit making entity. There is still no requirement for a privately held business to make its records public.

  I believe the Swaggart case involved state sales tax on the sale of literature. The court ruled that sales of literature qualified as business not charity and was a taxable event. This of course would have screwed the WTBS if they had not gone to the donation arrangement, meaning they were not "selling" literature. It would be interesting to see what could happen if somebody can document a case of the Society telling a Congregation that no more literature would be shipped if they didn't make the required "donation."

  Gary, if you want, e-mail that PDF to [email protected]. When I have a minute I'll take a look at it, and give an analysis to the board.
• 

  Gill

  JeffT - My parents go to a congregation that along with another congregation had to pay the society for the literature account of a third congregation as the Society said there would be no more literature until the account was settled. It never came to that as they were bailed out BUT it goes to prove that the WTBTS is running a magazine franchise coorporation and nothing else.
• 

  JeffT

  Gil: is somebody in a position to forward that information (even in a general way) to the IRS? They have a line dedicated to reporting possible fraud. I don't know how much information they actually need to start an investigation. I'll see if I can find out.
• 

  Gill

  Jeff T ! - This event was in the UK about two years ago. I don't know whether it works the same way in the US. BUT, it does prove the point that, and one that was generally accepted as it was known by all of us, (and I'm sure by many here who also gre up as JWs) that if the literature was NOT Paid for then the literature would NO LONGER ARRIVE.

  Now I thought that once the literature was supposed to be FREE, it meant FREE to the congregations as well. But of course, it was only FREE in theory when it reached a KH. The WTBTS demanded the same cut as before. Now if someone had those letters from the Society, that WOULD prove that in writing. However, it also seems that these little facts are left out of the Kingdom Ministry. They cleverly suggest contributions, but the demans for payment for literature only come later on when the money stops coming in and they threaten to pull the plug.

  Funny thing was, that my parents thought it was more than acceptable for the WTBTS to demand money for its literature and could not see why it was wrong and that it made it just another book publishing company. Their view was, 'surely they deserved the money or they wouldn't be able to print more.' They had no idea and still cannot accept that the WTBTS runs at a massive profit....or at least used to. Maybe not so massive anymore.
• 

  Gill

  Thanks DB74!

  I must admit I need the finances explaining to me but the information was very interesting and probably deserves a thread on its own.

  I thought that the Interest Free Loan from the WT of UK to the International Bible Students Association of £3 500 000 to reduces its indebtedness to bankers was interesting.

  Tax free Giving arrangement to the WT was now available on line. Something I hadn't realised.

  The WTBTS of Uk gave £151,783 to the Tsunami appeal.

  It gave £313, 400 to the Caribbean Hurrican appeal.

  It gave £60, 428 towards African Food.

  It spent £4 610 284 building Kingdom Halls.

  I didn't see anything about its loans to local KH and the interest it made on that but I may well have just missed that.

  This was interesting:

  'Furthur tot he note in the Review of the Year and Financial Development for the Year ending 31 Aug '04, the Charity agreed to a reduction in the charge for the production and Supply of printed matter by 25 % to the IBSA.. Taking into account various factors affecting production over the year this has resulted in a 12 % reduction in income from the sale of literature and magazines to the Internation Bible Students Association.'

  This was also intersting:

  'A major activity of the Charity, continues to be the printing and distribution of Bibles and Bible Study Aids primarily for the IBSA. The literature is distributed free of charge by the IBSA to congregations of Jehovah's Witnesses and then to the public in general. (bare faced lie if ever there was one!) The Society administers the work of the Jehovah's Witnesses in Britain and notes that in the year under review 18 000 000 hours were spent by Jehovah's Witneseses in Britain working in their communities helping people morally and spiritually. The Bible study aids printed by the charity offers practical advice on law abiding citizenship , targeted workable family values for modern living and advises Christian tolerance in multi cultured society. (I take it they were not discussing their 'End of False religion' tract then) Information on such values has a wide appeal as can be seen for the request for more Bibles and Bible study Aids by both Jehovah's Witnesses and members of the public'

  Interesting 'spin' on their activities I thought!.

  Perhaps Jeff T will be able to explain the finances?!
• 

  Gill

  I'd like to recommend that anyone who has the time request from DB74 these files and have a little read.

  It really is fascinating to see the WT say one thing and yet do another.

  I noted also that it specifically does say in these files that it only helps Jehovah's Witnesses and so am suspicious on how it is claiming to give so much in charitable aid. Not that other charities do not only help 'specific' people but since it claims no casualties in the Tsunami, how come it gave so much in Tsunami aid?

  Also it claims to invest only with companies that do not go against their Christian Principles. Is this the same as in the UK where the WT has shares with Rand Corp and Tobacco firms?
• 

  rebel8

  The wts has filed these papers and they have been made available online in the past. This is not a tax return, it is a different form. Not all the wts legal entities are exempt from filing.

  It even says so at guidestar.org:

  Watchtower Bible and Tract Society of New York, Inc. 2236 NW 20TH ST OKLAHOMA CITY, OK 73107

  ---

  GENERAL INFORMATION

  • This organization is a 501(c)(3) Public Charity.
  • This organization is required to file an IRS Form 990 or 990-EZ.
  • Contributions are deductible, as provided by law.

  The law does allow for citizens to get copies of them.

  I spent hours researching this last yr and talked to the IRS myself about it, as well as the NY State Department of Taxation. They both said the papers exist and I am entitled to the papers. I found documentation of this legal right online. I have the print outs at home.

  I then filed the requests to get their papers and no one ever responded, even though I've followed up.

  I recently filed for nonprofit status for my charity in NY as well as with the IRS, and those applications also say any 990s are available to the public upon request, and if my annual revenue is over a certain amount, then I must file financial statements with the IRS.
• 

  Gerard

  In the USA, charities and non-profits have to have their books open, but a RELIGIOUS charity/non-profit does not have to. It is the law and the WT milks it well:

  Exceptions to Disclosure Statement

  A church or religious organization is not required to provide a disclosure statement for quid pro quo contributions when: (a) the goods or services meet the standards for insubstantial value ; or (b) the only benefit received by the donor is an intangible religious benefit . Additionally, if the goods or services the church or religious organization provides are intangible religious benefits (examples follow), the acknowledgement forcontributions of $250 or more does not need to describe those benefits. Generally, intangible religious benefits are benefits provided by a church or religious organization that are not usually sold in comme rcial transactions outside a donative (gift) context.

  http://www.irs.gov/pub/irs-pdf/p1828.pdf