Televangelist's family prospers from ministry

Kenneth Copeland Ministries
Whatever the venture — whether buying TV time or striking land deals with a church executive — Kenneth Copeland Ministries points to its board of directors as an important check that helps to maintain the organization's integrity.

Kenneth Copeland serves as board chairman, and his wife is a board member. Records show other members include or have included fellow televangelists Jesse Duplantis, Mac and Lynne Hammond, and Jerry and Carolyn Savelle; Oklahoma architect Loyal Furry; retired Texas pastor Harold Nichols; and Arkansas businessman John Best.

As chairman, Copeland has veto power over any resolution he deems "not in the best financial or operational interests of the Church or not in furtherance of the nonprofit religious purposes of the Church," church bylaws say.

Such veto power is highly unusual, say academics who study nonprofits. The provision was meant to give Copeland emergency powers to prevent the church from doing anything "repugnant to its Christian purposes and mission," Swicegood said.

Swicegood said that although the power has never been exercised, the church board is scheduled to meet in August to vote on removing it and adopting new provisions that "reflect contemporary best practices in nonprofit governance."

Board member Best, in a written response to questions, said he's received "100 percent accessibility to anything I wanted to see and have always seen the highest level of integrity and honesty."

Other board members either declined comment, did not respond to interview requests or could not be located.

Perks and benefits
Some board members, however, receive a perk that experts like Hill, of the University of Miami, said undermines their independence. While board members don't get salaries, some who are ministers get paid for speaking at church events through offerings and honorariums, Swicegood confirmed.

The sums involved are usually kept secret. But in seeking tax exemption for its aircraft in the late 1990s, the church revealed it paid board members a total of $87,000 in "cash contributions" and almost $1 million in honorariums and "benefit purposes" in 1996 and 1997 combined.

Swicegood said the church's independent compensation committee approves all payments to board members.

Marilyn Phelan, a Texas Tech University law professor and author on nonprofit law, said the practice could pose problems. Both the IRS and Texas state law prohibit benefits beyond reasonable compensation for insiders, including board members, she said. If violations are found, nonprofits can lose their tax-exempt status and board members can face penalty taxes.

As the Senate Finance Committee considers its next step, Copeland is not backing down. His ministry is portraying the inquiry as an attack on religious liberty.

At the same time, it is moving forward with a big fund-raising project: soliciting donations for new television equipment so Copeland can be broadcast in high-definition.

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