Bill proposes churches disclosing finances

[paineinthearse]

There are 32 co-sponsors of an unprecedented proposed law which would require the Archdiocese of Boston and other Massachusetts churches to make their financial statements public.

http://www2.townonline.com/weymouth/localRegional/view.bg?articleid=301273

Bill proposes churches disclosing finances
By Robert Aicardi/ [e-mail]
Wednesday, August 10, 2005

<snip>

A legislative hearing concerning "An Act Relative to Charities," also known as Senate Bill 1074, is scheduled to be held today (Aug. 10) on Beacon Hill. The controversial measure, filed by Sen. Marian Walsh (D-West Roxbury), would require religious organizations to file annual financial reports and certificates of solicitation with the attorney general; file a corporate certificate with the secretary of state; and require all public charities to list each parcel of property owned anywhere as part of their annual financial report.

The bill is opposed by the Catholic Church and major Protestant denominations, which contend that it would violate the separation of church and state. During a Monday press conference, Gov. Mitt Romney did not endorse the bill, but pledged to closely review what he called "a very important area of inquiry," according to a published report. The legislation is intended to ensure that charities are meeting donors' expectations; charitable donations are not diverted or wasted; and charities are acting as responsible stewards of their assets.

Current state filing requirements mandate that all public charities, whether incorporated or not, file an annual financial report with the attorney general. Religious organizations are exempt from the annual report requirement. The form of the report and required information are determined by the attorney general's office, but if a charity has received more than $500,000 in gross revenues for the fiscal year, an audited financial statement must be prepared and must be examined by a certified public accountant (CPA). However, if the organization's gross revenues for the fiscal year are more than $100,000 but less than $500,000, a financial statement accompanied by a CPA's "review statement" may be submitted.

Before soliciting financial contributions in Massachusetts or having contributions submitted on its behalf, a public charity must obtain a certificate of solicitation from the attorney general's office, and this certificate must be renewed on an annual basis. Religious organizations are exempt from the certificate requirement. Nonprofit organizations are required to annually file a certificate with the secretary of state indicating the name of the corporation, its address, and the names and addresses of its officers. Religious organizations are exempt from this requirement. The charities' financial reports are public records, and public viewing files are kept. Prior to the 1950s, law review articles show that most state attorneys general did not supervise or regulate the administration of public charities by statute, according to a three page summary of the bill provided by the office of state Sen. Michael Morrissey (D-Quincy).

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[pilgrimm]

1. It will be interesting to see how this pans out

I wonder how this will stand up in court, because if it passes that’s where it’s going. I’m no fan of the church, but I personally don’t like this. There’s just no need for it.

[JDPriestly]

2. Any organization that accepts government funds

for any reason should have to bare its assets and debts. Anyone who gets a student loan or some other government guaranteed loan or a government grant has to do the same. I do not think that churches should have to report on their assets and debts if they are not receiving any money from the government. The Catholic Church and the major protestant churches in certain areas of the country already received government money (I know of FEMA grants) since before this Bush administration, going back at least until the early '90s. Think about all the government money for Head Start programs. The churches that receive that money should have to report on their assets and debts as well as on what they do with the government money. If a church respects the separation of church and state, the government should respect the church's privacy. So I agree and disagree.

[pilgrimm]

3. good point

I agree