Ep. 445: Trump and NPO Resettlement Agencies, 50 Ministries Receiving Gov’t Funds, DOJ Intervenes In Behalf of Churches
On today’s program, the Trump administration cancels grants to refugee aid agencies…despite legal battles. We’ll take a look.
And, a staggering 30 percent of nonprofits don’t survive a full decade—but when they go under, what happens to their assets? Our finance writer Shannon Cuthrell digs into the hidden risks and loopholes of nonprofit dissolutions.
And, we’ve released our MinistryWatch list of the 50 Christian ministries receiving the largest government grants.
But first, the U-S Department of Justice has intervened on behalf of a Pennsylvania church trying to expand.
The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Jack Jenkins, Yonat Shimron, Jessica Eturralde, Shannon Cuthrell, Tony Mator, Bruce Buursma, Brittany Smith, and Christina Darnell.
Until next time, may God bless you.
MANUSCRIPT:
FIRST SEGMENT
Warren:
Hello everybody. I’m Warren Smith, coming to you this week from Charlotte, North Carolina.
Natasha:
And I’m Natasha Cowden, coming to you from Denver, Colorado, and we’d like to welcome you to the MinistryWatch podcast.
Warren:
On today’s program, the Trump administration cancels grants to refugee aid agencies…despite legal battles. We’ll take a look.
And, a staggering 30 percent of nonprofits don’t survive a full decade—but when they go under, what happens to their assets? Our finance writer Shannon Cuthrell digs into the hidden risks and loopholes of nonprofit dissolutions.
And, we’ve released our MinistryWatch list of the 50 Christian ministries receiving the largest government grants.
Natasha:
But first, the U-S Department of Justice has intervened on behalf of a Pennsylvania church trying to expand.
Warren:
On March 3, the Justice Department section for the Western District of Pennsylvania filed a statement of interest supporting the Hope Rising Community Church in its lawsuit against the Borough of Clarion.
The church has outgrown its current facilities and wants to expand using a facility in the city’s commercial district. While Clarion allows nonreligious assemblies in the commercial district, such as theaters, the city would not approve the church’s zoning use variance request. Officials from the city allegedly said they didn’t “need any more churches” because of the loss of property taxes.
Natasha:
Hope Rising Community Church filed its lawsuit in November alleging the city was violating the Religious Land Use and Institutionalized Persons Act (RLUIPA), a federal law that protects houses of worship from discrimination in zoning.
When Clarion filed a motion to dismiss the church’s claim, the Justice Department intervened.
Warren:
The city argued the church had not suffered any concrete injury as a result of Clarion’s actions, the DOJ argued that the city’s zoning code has “stymied [the church’s] efforts to buy and develop the only suitable property for the church in Clarion.”
As of March 2024, the DOJ had opened over 155 formal investigations and filed nearly 30 lawsuits related to RLUIPA’s Religious Land Use and Institutionalized Persons Act (RLUIPA) land use provisions, and had filed 36 “friend-of-the-court” briefs addressing the interpretation and application of RLUIPA in privately-filed lawsuits.
Natasha:
Next, The Trump Administration cancels grants to refugee aid agencies.
Warren:
President Donald Trump’s administration is making moves to shutter a decades-old partnership between the government and a group of mostly religious organizations to resettle refugees, with the State Department abruptly canceling grant agreements with all the agencies despite ongoing legal battles.
On Wednesday (Feb. 26), refugee resettlement organizations, such as Church World Service, Hebrew Immigrant Aid Society, and the U.S. Conference of Catholic Bishops, say they received “termination notification” letters from the State Department.
Natasha:
Myal Greene, the president of World Relief, an evangelical Christian ministry said, “With the cancellation of World Relief and other Resettlement Agency agreements, this is effectively ending a 45 year, bi-partisan, refugee resettlement program with the stroke of a pen.”
Warren:
The letters come as the government is involved in two separate lawsuits over the president’s decision to freeze the refugee program via an executive order signed his first day in office.
On Wednesday, Church World Service, HIAS (Hebrew Immigrant Aid Society), and Lutheran Community Services Northwest won a victory over the Trump administration in their lawsuit, known as Pacito v. Trump, with a federal judge blocking the president’s order and calling Trump’s actions a “nullification of congressional will.”
According to The Associated Press, the judge argued from the bench that the president does not have “limitless” authority over refugee admissions, noting the law establishing the program was passed by Congress.
Natasha:
Later in the program, we’ll take a look at Christian ministries receiving the largest government grants. But now, the wife of slain missionary Beau Shroyer, has officially been charged as a “co-author” in his murder.
Warren:
Jackie Shroyer, who was arrested in October 2024 in Angola, Africa, for the alleged murder of her missionary husband Beau Shroyer, has now been formally charged as a “co-author” in his death.
For three years, Beau and Jackie Shroyer and their five children had lived in the “remote bush” of Angola. On October 25, police found Beau Shroyer brutally stabbed to death in his vehicle outside Lubango, where the family lived in a walled compound.
Jackie Shroyer’s statements at the scene sparked police suspicion that Beau’s slaying was an organized plot involving three men paid to kill him. They began an investigation, alleging that Jackie might have been the mastermind.
Natasha:
What did they uncover in the investigation?
Warren:
During their investigation, detectives gained “strong suspicion” to believe Jackie was having an affair with one of the men—the family’s security guard.
Jackie allegedly offered the men $50,000 to kill her husband by luring him to a secluded location and stabbing him to death.
According to the statement, Jackie will remain in custody and will now face trial before a judge. A court date is expected to take place within the next six months.
Natasha:
Up next, A Kanakuk Kamps sexual abuse survivor can continue his lawsuit, according to a Missouri judge.
Warren:
On February 27, Judge Jessica Kruse denied the motions to dismiss and will allow Andrew Summersett’s case to continue against Kanakuk and ACE Insurance Company.
Summersett filed suit in June 2024 alleging fraud and fraudulent concealment, claiming Kanakuk and its leaders intentionally omitted critical information and made misrepresentations that prevented Summersett from pursuing his claim for bodily injury against them.
Natasha:
Can you give us a little more background to this story?
Warren:
Summersett, now 37, claims he was abused by former Kanakuk camp director Peter Newman in 2001 and 2002. He allegedly told Jamie Jo (Braner) Johnson and Andrew Braner, former directors of Kanakuk Colorado, about the abuse in 2009.
Johnson allegedly told him she did not know about them, while Andrew Braner warned Summersett against making “a mess of this,” and saying “now [was] not a good time to talk.” He also told Summersett to “back off, given the circumstances,” the court filings claim.
Kanakuk asserted that Summersett’s claim for fraud was time barred by the statute of limitations and ought to be dismissed.
Summersett asserted that he is alleging in his lawsuit that Kanakuk concealed its knowledge of Newman’s conduct.
Natasha:
Warren, let’s take a quick break. When we return, when a nonprofit closes its doors, what happens to its funds?
I’m Natasha Cowden, along with my co-host Warren Smith, and we’ll have that story and much more, after this short break.
BREAK
SECOND SEGMENT
Natasha:
Welcome back. I’m Natasha Cowden, along with my co-host Warren Smith, and you’re listening to the MinistryWatch podcast.
Next, the story we promised before the break.
Warren:
Despite amassing billions of dollars in charitable contributions every year, a surprising number of nonprofits (about 30%) don’t survive beyond a decade. With 1.8 million tax-exempt organizations operating in the United States today, this churn amounts to thousands of nonprofits dying on an annual basis.
Natasha:
So what’s the legal framework governing nonprofit dissolutions?
Warren:
Tax-exempt organizations are legally required to follow a structured dissolution process, which includes settling their outstanding debts and filing a final Form 990 tax return detailing their asset distribution plans. In notifying the Internal Revenue Service of their closure, nonprofits must disclose a description and fair market value for each disposed asset, the recipient(s), dates, and transaction fees.
When a nonprofit organization dissolves, IRS Code 501(c)(3) requires that its remaining assets be allocated exclusively to another charitable entity or a federal, state, or local government for a public purpose. Organizations are also prohibited from distributing any property to individuals, including board members, employees, or volunteers, during the dissolution phase. In some cases, nonprofits may pay outstanding salaries or debts to individuals before closure, but surplus assets cannot be distributed as a windfall.
Natasha:
In a recent trend, some Nonprofits are Converting Into For-Profit Businesses
Warren:
Some nonprofits choose to restructure as for-profit entities rather than dissolve, which could create loopholes for financial misconduct.
Although some states require approval before assets can be transferred to a for-profit, enforcement of these regulations varies, and oversight is often minimal. This is particularly troubling when valuable assets like real estate, intellectual property, or financial reserves are transferred to a newly formed for-profit entity.
Natasha:
Can you give us a Positive Example of Dissolutions Handled Responsibly?
Warren:
Most dissolving nonprofits distribute their assets responsibly, with funds continuing to serve the public good. Take Immanuel Baptist Church in North Carolina, which recently shut down after 109 years due to declining attendance. The church sold its 40,000-square-foot property for $1.5 million and distributed the proceeds to more than 70 charities, including mental health services, scholarships, and refugee aid. About 20% of the funds went to the Cooperative Baptist Fellowship, in line with the church’s mission and affiliation.
Natasha:
Next, Warren, can you give us more details?
Warren:
In a move lauded by Evangelical leaders, U.S. legislators have reintroduced the bipartisan Clergy Act.
The act offers a way out for clergy experiencing buyer’s remorse after taking advantage of a special exemption in the tax code.
While most American taxpayers must pay into Social Security whether they want to or not, section 1131 of the Social Security Handbook allows clergy to claim a conscientious objection. Eligible individuals include “any duly ordained, commissioned, or licensed minister of a church, member of a religious order who has not taken a vow of poverty; or any Christian Science practitioner.”
Natasha:
However, re-enrollment advocates say many pastors make this decision—which is generally irrevocable—early in their ministries, when they are young and not thinking about retirement. As they grow older, Social Security’s benefits can begin to seem more important.
Warren:
The act would provide a re-enrollment window, after which a minister would have to pay into Social Security for at least 10 years before becoming eligible for benefits—the same minimum required of all other taxpayers. The last time Congress offered a re-enrollment window was in 1999.
The bill is endorsed by Christian organizations, including the Church Alliance, Evangelical Council for Financial Accountability, and National Association of Evangelicals.
Natasha:
Next, Texas legislators have proposed bills that would make certain nondisclosure agreements in child sexual abuse cases void and unenforceable.
Warren:
House Bill (HB) 748, Senate Bill (SB) 1587 and a similar bill (SB 835) would apply to nondisclosure agreements related to certain “acts of sexual abuse,” including indecency with a child, sexual assault, trafficking of persons, and compelled prostitution.
An NDA would be “void and unenforceable as against the public policy of [the] state,” if, as part of an employment, confidentiality, or settlement agreement, the NDA prohibits a party from notifying law enforcement or a regulatory agency about child sexual abuse or prohibits a party from disclosing facts about child sexual abuse during an investigation or prosecution.
NDAs can often arise as part of an agreement to settle a civil lawsuit about sexual misconduct.
Natasha:
Warren, we’re going to take another break. When we return, our lightning round of ministry news of the week.
I’m Natasha Cowden, with my co-host Warren Smith. More in a moment.
BREAK
THIRD SEGMENT
Natasha:
Welcome back. I’m Natasha Cowden, with my co-host Warren Smith and you’re listening to the MinistryWatch Podcast.
Warren, we like to use this last segment as a sort of lightning round of shorter news briefs.
What’s up first?
Warren:
Martin E. Marty, an eminent church historian, prolific chronicler and interpreter of religion and its role in public life, died at the age of 97 on Tuesday (Feb. 25) in a Minneapolis care facility where he spent his final years.
Marty, who was also a warmhearted friend, mentor and pastor to many, taught for 35 years at the University of Chicago Divinity School and published a constant stream of books, articles, essays, newsletters and columns, with his book “Righteous Empire: The Protestant Experience in America” winning top honors at the 1972 National Book Awards in Philosophy and Religion.
Marty, who published some 60 books in all, served for a half-century as an editor and columnist for The Christian Century magazine and produced a biweekly newsletter, “Context,” for 41 years.
Marty is survived by his wife, Harriet; sons Joel, John, Peter and Micah; foster daughter Fran Garcia Carlson and foster son Jeff Garcia; stepdaughter Ursula Meyer; nine grandchildren; and 18 great-grandchildren. A memorial service will be held at 1 p.m. March 29 at Central Lutheran Church in Minneapolis.
Natasha:
What’s next?
Warren:
Nonprofits are engaging in less policy-oriented advocacy than they did 20 years ago, according to a study in 2023 by Independent Sector.
In 2022, less than a quarter of nonprofits lobbied for any legislation, down from three quarters of organizations five years earlier, according to the survey.
As a follow-up, Independent Sector interviewed 40 nonprofit agencies across the country in an effort to find out why advocacy had diminished so substantially.
Natasha:
What did they descover?
Warren:
The primary reason is a lack of resources or capacity.
Another barrier to engaging in advocacy, according to the study, is a lack of understanding of the rules related to nonprofit advocacy.
Natasha:
What’s our next story?
Warren:
The majority of U.S.-based Christian ministry executives are optimistic about the impact the new administration of President Donald Trump will have on the ministries they lead.
In January’s quarterly survey of Christian ministry leaders, over 54% of respondents told MinistryWatch they expect the Trump administration policies to have a positive impact on their organization or the work they do.
MinistryWatch has been conducting its quarterly survey of leaders of the nation’s 1,000 largest Christian ministries since October 2022.
Almost 70% of the survey respondents are optimistic their revenue will increase over the next 12 months. Of those, about 11% expect revenue to increase by more than 10%, while about 59% expect to see revenue increases between 1-10%.
MinistryWatch also asked a related question about whether ministry leaders believe a recession is on the horizon. Many leaders are optimistic about the state of the nation’s economy, with about 63% responding that they do not think the U.S. will enter a recession in the next year, up from 41% in our October survey.
Over the past 12 months, nearly 61% of ministry leaders say their revenue increased. About 40% said the ministry’s revenue went up between one and 10%, while 21% saw increases of over 10%. Eighteen percent reported their revenue remained flat over the previous 12 months.
About 21% of ministries saw a revenue decrease, with revenue decreasing between one and 10% for 17% of respondents and decreases of greater than 10% for about 4% of those who responded.
Natasha:
Next, a list of 50 Christian Ministries Receiving the Largest Government Grants
Warren:
With the new Trump administration making news with its federal funding freeze proposals, the issue of nonprofits, and specifically Christian ministries, receiving government funding has been in the news and a matter of conversation.
Recently, MinistryWatch added government grant funding information to the ministry profiles in the MinistryWatch 1000 database.
There were 321 ministries in our database that received government grants for a total of $2.35 billion. The smallest grant was just $919 for Bread of Life Mission while the largest grant totaled $661 million for World Vision.
This month’s list is a compilation of the 50 Christian ministries who received the largest government grants based on their I.R.S. Form 990 from 2023.
The top four recipients of government grants were all relief and development organizations.
The recipient of the largest sum of government grants is also the largest ministry in the database: World Vision.
World Vision has annual revenue of over $1.5 billion, $661 million of which came from government grants, about 44% of its total revenue.
Mercy Corps was second with $400 million in grants — 77% of its annual revenue. In third place was World Relief with $126 million of its $163 million in revenue coming from government grants. Church World Service took $114 million in government grants — 75% of its $152 million annual revenue.
Natasha:
Who is in our Ministry Spotlight this week?
Warren:
Seed Company, a Bible translation ministry affiliated with Wycliffe Bible Translators, now has a Donor Confidence Score of 53, “Exercise Caution.”
The organization does not file a Form 990, and it has petitioned the IRS to be classified as “a church.”
According to its 2023 audited financial report, the organization had a revenue of $72.7 million and its expenses were $77.7 million. According to its ECFA profile, its expenses in 2024 were $102.1 million.
The organization’s net assets have also more than doubled from 2019 to 2023, growing from $28.3 million to $80.2 million.
Seed Company’s 2023 Annual Report says they engaged “973 language groups with Scripture” and “135 language communities are translating God’s Word for the very first time” during the 2023 fiscal year.
The organization did not respond to requests for comment.
Natasha:
In Ministries Making a Difference this week, we look at ministries investing in the next generation.
Warren:
A pastor in Bakersfield, California, is ministering to inner city youth through his boxing program. Peter Baker was a competitive boxer before coming to Christ at age 20. Now, as part of the Kern County Sheriff’s Department activity league, Baker runs a boxing gym where 70 kids train weekly. All the assistant coaches have come to Christ since training with Baker, and have brought their families to Alta Vista AG, where Baker pastors. The program’s success prompted the Sheriff’s Activity League to add weight lifting, honor guard, cheer, soccer and crafting to its program options.
Josiah Venture is celebrating its “most fruitful year of ministry to date” in 2024. With its mission to engage young people across Central and Eastern Europe with the Bible and equip them for Christian leadership, Josiah Venture “invested in” 7,749 leaders across 753 local churches in 16 countries. More than 1,000 young people made professions of faith in Christ. In Ukraine alone, the ministry hosted 36 evangelistic camps—its largest number to date—which resulted in 283 professions of faith. Josiah Venture has 4 stars and an “A” transparency grade in the MinistryWatch database, and a donor confidence score of 93.
Natasha:
Warren, any final thoughts before we go?
Warren:
Warren Ad-Lib March Recurring Donor Appeal.
Natasha:
The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Jack Jenkins, Yonat Shimron, Jessica Eturralde, Shannon Cuthrell, Tony Mator, Bruce Buursma, Brittany Smith, and Christina Darnell.
I’m Natasha Cowden, coming to you from Denver, Colorado.
Warren:
And I’m Warren Smith, in Charlotte, North Carolina.
Natasha:
You’ve been listening to the MinistryWatch podcast. Until next time, may God bless you.
Natasha: The next story deals specifically with this, so that makes for a good tie between the two stories.
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