Baptist Children’s Home President Retires After Release of Financial Investigation
The investigation, commissioned by BCH’s Executive Committee, found Blackwell had misused ministry funds for personal expenses, including a car for his wife.
The Baptist Children’s Home of North Carolina (BCH) announced Tuesday (Sept. 19) that President Michael Blackwell has retired, effective immediately. Leaders made the announcement at the end of a regularly scheduled board meeting of the BCH Board of Trustees.
Dr. Michael Blackwell / Video screengrab
The announcement comes on the heels of a closed door meeting held last week by the Board’s 36 members, in which they discussed the findings of an ongoing investigation into Blackwell’s use of ministry funds.
In May, BCH hired law firm Schell Bray to conduct the investigation, giving Blackwell the option to take a leave of absence with pay or be suspended with pay. He chose the former.
Schell Bray’s investigation looked into Blackwell’s use of a ministry AMEX card over the course of three years, and an account of BCH funds known as Account 2695, originally created as a presidential discretionary fund.
According to Schell Bray’s report, during the three year examination period, Blackwell charged $95,970.78 to the AMEX card with expenses that were personal in nature and did not serve BCH purposes. Those charges included purchases of snacks, drinks, nutritional supplements, clothes, health care costs and stays at Structure House, a self-improvement center where program participants stay in luxury apartments. BCH funds were used to pay those expenses and were not reimbursed by Blackwell or deducted from his paycheck.
The investigation also found instances in which Blackwell directed accounting staff to transfer donations from major donors to Account 2695 without the donors’ knowledge. One of the donations had been labeled “where it’s needed most” and another “as you determine is the best use in general operations of BCHNC.” Blackwell transferred part of those funds into Account 2695 where he used them for “non-charitable personal expenses.”
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Blackwell also used BCH funds to purchase a brand new 2022 Nissan Altima, valued at over $30,000, for his wife. This was done without Board awareness or approval. According to the report, Blackwell approached a BCH donor, asking for funds to buy his wife a car “to reward her sacrifice over the years.” He then funneled the money through the nonprofit in the purchase of the car.
When members of the Board became aware of the situation, it acted swiftly with the guidance of legal counsel. Blackwell has agreed to repay personal expenses made with BCH funds.
The Board has already begun implementing changes in governance, personnel and policy to provide more financial oversight in the organization moving forward.
BCH Chief Operating Officer Keith Henry and Executive Vice President for Development and Communications Brenda Gray have been sharing executive leadership responsibilities since Blackwell began his leave. They will continue in that role until the Board reaches a long term solution.
