The
Watchtower Society places high demands on its followers. All adherents to the
Watchtower religion must spend many hours each month selling the Society’s
literature, without compensation.
As noted in my last message, the Society
expects its members to forgo education and career to pursue “kingdom
interests,” actually the interests of the Watchtower Bible and Tract Society.
At the same time, it demands considerable financial support from
believers.
I don’t
think it is unfair to say that Jehovah’s Witnesses make huge personal
investments in the Watchtower Bible and Tract Society. Does the Society deserve
this investment? Although Witnesses do not expect a financial return on their
time and money, I’m going to look at the Society from the perspective of financial
investment. I am an accountant, so it’s a natural line of inquiry for me, and I
believe it sheds some light on the Society’s moral leadership.
The
Society’s finances are a closely guarded secret. This is in sharp contrast to
normal investment principles, and contrary to best practices for nonprofit
organizations. Although not required to
do so, many churches (those organizations the WTBS constantly maligns) do
release reports, and many belong to voluntary associations such as the
Evangelical Council for Financial Accountability. The ECFA issues two relevant
standards for its members:
Standard
3 Financial Oversight
"Every
organization shall prepare complete and accurate financial statements. The
board or a committee consisting of a majority of independent members shall
approve the engagement of an independent certified public accountant, review
the annual financial statements, and maintain appropriate communication with
the independent certified public accountant. The board shall be apprised of any
material weaknesses in internal control or other significant risks."
Standard
5 Transparency
"Every
organization shall provide a copy of its current financial statements upon
written request and shall provide other disclosures as the law may require. The
financial statements required to comply with Standard 3 must be disclosed under
this standard.
An
organization must provide a report, upon written request, including financial
information on any specific project for which it sought or is seeking
gifts." http://www.ecfa.org/Content/Standards
In
contrast to these excellent standards, the Watchtower Society’s record of
financial disclosure is nonexistent. Once a month, each congregation provides
its members with an accounts report that discloses its financial status.
Circuits provide a general (but flawed as we will see) accounting report. Above
that level, the Society is silent in matters involving money, except when
asking for more. Districts do not release financial reports even for
conventions. Branch offices in some locations outside United States are legally
required to provide financial reports.
But the
Society’s headquarters is in the United States, which has no requirement for
private organizations to release financial information. Consequently, no overall
financial statements for the Watchtower organization as a whole are available
to the public.
Recently
the Watchtower’s instructions for circuit assembly accounting was leaked on the
internet. This provided some additional insight on its accounting practices. It
has been known the “expenses” for the assemblies (as announced partway through
the session) include a per attendee charge paid to the society. Many Witnesses
do not know about this calculation, I certainly did not hear of it until long
after I left. Here is an excellent video:
https://www.youtube.com/watch?v=APb1RpfjCrA
In
addition, I noticed this in the instructions:
“Funds-on-deposit
arrangement: The funds on deposit
arrangement is not a banking arrangement. Rather, it is an arrangement wherein
circuits are encouraged to send excess, or presently unneeded, circuit funds to
the branch office instead of setting up a savings account, money market bank
account, or certificate of deposit. Doing so makes such funds available for use
in promoting Kingdom interests while the circuit is not using using these
funds. No interest is paid on such funds sent to the branch office.”
Note
“this is not a banking arrangement”. If it was, they couldn’t get away with the
following:
“It is
understood that whenever a need arises for these funds, the assembly overseer
and the accounts overseer may request that they be returned. A brother
authorized to transfer circuit funds can log in to the jw.orgWeb site, view the
current balance, and request an amount to be returned.”
Think
about that for a minute. If you want to transfer a thousand dollars from your
savings account to your checking account, do you need to tell your bank what
you need it for and request that they move the money? No, you just go in and do
it, it’s your money. So, just as they did with extra funds at the
congregations, the Society is now seizing control of loose funds at the circuit
level. I doubt most Witnesses are aware of these transfers.
Incidentally,
in my years as an accountant I had several jobs working with multiple
interlocking companies. It was my experience that intercompany transfers were
frequent sources of error and mismanagement. With the Watchtower’s reliance on
unskilled labor, this problem gets worse.
It is
natural to wonder what they are doing with all this money. The only answer we
get involves the nebulous “kingdom interests.”
As one example, they’ve built a massive new headquarters complex in
rural New York. Nobody knows what it cost. Lacing real information, we can only
speculate as to the true nature of the Watchtower Society’s financial affairs.
It is perhaps human nature to question the legitimacy and integrity of the
organization’s finances, when leadership deliberately hides the information.
The
ECFA website makes an excellent scriptural point.
“The
financial statements (and the disclosure of the financial statements) are key
components of transparency, both within the ministry and to donors and the
public. This flows directly from biblical principles: “This is the
verdict: Light has come into the world,
but men loved darkness instead of light because their deeds were evil. Everyone
who does evil hates the light, and will not come into the light for fear that
his deeds will be exposed” (John 3:19–20 NIV).
Transparency
serves to deter improper diversion of funds and other misdeeds. It also
provides a defense to critics and a witness to both believers and nonbelievers.
When Jesus was arrested, He said to the crowd, ‘Am I leading a rebellion, that
you have come out with swords and clubs to capture me? Every day I sat in the
temple courts teaching, and you did not arrest me’ (Matthew 26:55 NIV). The
openness of His public actions revealed a significant contrast to His
middle-of-the-night arrest.”
If the
Watchtower Bible and Tract Society handles donated funds properly, it could end
all speculation and clear its name easily: release an audited financial
statement.
While
we’re on the subject of financial transparency, you may notice I’ve added a
“donate” button to the website. Within the next few weeks, I will start
serializing a JW related novella (“Armageddon’s Slaves”) on this website. Your
feedback will be very useful to me. After a final edit, I intend to publish it
through an online print on demand service, if you would like to contribute
something to get that project off the ground, please throw something in the tip
jar.