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United States Senate inquiry into the tax-exempt status of religious organizations


The United States Senate inquiry into the tax-exempt status of religious organizations was an investigation of six 501(c) religious organizations conducted by the United States Senate Committee on Finance lasting from 2007 until 2011.

On November 5, 2007, United States Senator Chuck Grassley announced an investigation into the tax-exempt status of six ministries under the leadership of Benny Hinn, Paula White, Eddie L. Long, Joyce Meyer, Creflo Dollar, and Kenneth Copeland by the United States Senate Committee on Finance. In letters to each ministry, Grassley asked for the ministries to divulge specific financial information to the committee to determine whether or not funds collected by each organization were inappropriately utilized by ministry heads. By the December 6, 2007 deadline, only three of the ministries had shown compliance with the Finance Committee's request. On March 11, 2008, Grassley and Finance Chairman Max Baucus sent follow-up letters to Kenneth Copeland, Creflo Dollar and Eddie Long, explaining that the Senate reserved the right to investigate the finances of their organizations under federal tax laws. The Associated Press reported that Grassley said the investigation was a response to complaints from the public and news media. Grassley stated, "The allegations involve governing boards that aren't independent and allow generous salaries and housing allowances and amenities such as private jets and Rolls Royces." IRS guidelines require that pastors' compensation be "reasonable" and net earnings may not benefit any private individual.

Responses from these Ministers included Constitutional arguments about Congressional power to oversee such matters. They claim that only the IRS has the authority to request such information, and should the IRS request it or pursue an investigation, the ministries involved would gladly comply.

In a letter to Benny Hinn Ministries, Grassley asked for the ministry to divulge financial information to the Senate Committee on Finance to determine if Hinn made any personal profit from financial donations, and requested that Hinn's ministry make the information available by December 6, 2007. On December 6, 2007, Hinn told the Associated Press that he would not respond to the inquiry until 2008. Hinn's ministry has since responded to the inquiry, and Senator Grassley commented that, "... Benny Hinn [has] engaged in open and honest dialogue with committee staff. They have not only provided responses to every question but, in the spirit of true cooperation, also have provided information over and above what was requested."


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