By The Power Of God …
Through The People For God … For The Glory Of God.
WorldServe Ministries USA has been a member of the Evangelical Council for Financial Accountability (ECFA) since 2002 and faithfully adheres to its established standards for fiancial accountability, fundraising and governance. ECFA's Seven Standards of Responsible Stewardship focus on board governance, financial transparency, integrity in fundraising and proper use of charitable resources:
Accountability to God is vital, but people form their impressions of both people and organizations by looking at the outward appearances (1 Samuel 16:7). The basis for establishing ECFA and developing Seven Standards of Responsible Stewardship is stated clearly by the Apostle Paul in 2 Corinthians 8:21 (NIV): “For we are taking pains to do what is right, not only in the eyes of the Lord but also in the eyes of men.” Or, as the New American Standard puts it in verses 20 and 21, “taking precaution that no one should discredit us in our administration of this generous gift, for we have regard for what is honorable, not only in the sight of the Lord, but also in the sight of men.” The Standards, drawn from Scripture, are fundamental to operating with integrity.
The ECFA Standards are seldom changed, providing members a steady baseline for consistent application of the Standards. The brief statements included in the Standards have significant implications; the Standards are simple but not simplistic. These are not Standards that allow for grading on the curve. Rather, they are pass-fail Standards. If a member fails even one of the Standards, it is disqualified from ECFA membership.
Standard 1 - Doctrinal Statement
Every member shall subscribe to a written statement of faith clearly affirming its commitment to the evangelical Christian faith and shall conduct its financial and other operations in a manner which reflects those generally accepted biblical truths and practices.
Standard 2 - Board of Directors and Financial Oversight
Every member shall be governed by a responsible board of not less than five individuals, a majority of whom shall be independent, which shall meet at least semiannually to establish policy and review its accomplishments. The board or a committee consisting of a majority of independent members shall review the annual financial statements and maintain direct communication between the board and the independent certified public accountants.
Standard 3 - Financial Statements
Each member is required to submit complete and accurate financial statements as defined by ECFA policies.
Standard 4 - Use of Resources
Every member shall exercise the management and financial controls necessary to provide reasonable assurance that all resources are used (nationally and internationally) in conformity with applicable federal and state laws and regulations to accomplish the exempt purposes for which they are intended.
Standard 5 - Financial Disclosure
Every member shall provide a copy of its current financial statements upon written request and provide other disclosures as the law may require. The financial statements required to comply with Standard 3 must be disclosed under this Standard. A member must provide a report, on request, including financial information, on any specific project for which it is soliciting gifts.
Standard 6 - Conflicts of Interest
Every member shall avoid conflicts of interest. Transactions with related parties may be undertaken only if all of the following are observed: 1) a material transaction is fully disclosed in the financial statements of the member; 2) the related party is excluded from the discussion and approval of such transaction; 3) a competitive bid or comparable valuation exists; and 4) the member's board has acted upon and demonstrated that the transaction is in the best interest of the member.
Standard 7 - Fundraising
Every member shall comply with each of the ECFA Standards for fundraising:
7.1 Truthfulness in Communication
All representations of fact, description of financial condition of the member, or narrative about events must be current, complete, and accurate. References to past activities or events must be appropriately dated. There must be no material omissions or exaggerations of fact or use of misleading photographs or any other communication which would tend to create a false impression or misunderstanding.
7.2 Communication and Donor Expectations
Fundraising appeals must not create unrealistic donor expectations of what a donor's gift will actually accomplish within the limits of the member's ministry.
7.3 Communication and Donor Intent
All statements made by the member in its fundraising appeals about the use of the gift must be honored by the member. The donor's intent is related both to what was communicated in the appeal and to any donor instructions accompanying the gift. The member should be aware that communications made in fundraising appeals may create a legally binding restriction.
7.4 Projects Unrelated to a Ministry's Primary Purpose
A member raising or receiving funds for programs that are not part of its present or prospective ministry, but are proper in accordance with its exempt purpose, must either treat them as restricted funds and channel them through an organization that can carry out the donor's intent or return the funds to the donor.
7.5 Incentives and Premiums
Members making fundraising appeals which, in exchange for a contribution, offer premiums or incentives (the value of which is not insubstantial, but is significant in relation to the amount of the donation) must advise the donor of the fair market value of the premium or incentive and that the value is not deductible for tax purposes.
7.6 Financial Advice
The representative of the member, when dealing with persons regarding commitments on major estate assets, must seek to guide and advise donors so they have adequately considered the broad interests of the family and the various ministries they are currently supporting before they make final decisions. Donors should be encouraged to use the services of their attorneys, accountants, or other professional advisors.
7.7 Percentage Compensation for Fundraisers
Compensation of outside fundraising consultants or a member's own employees based directly or indirectly on a percentage of charitable contributions raised is not allowed.
7.8 Tax-deductible Gifts for a Named Recipient's Personal Benefit
Tax-deductible gifts may not be used to pass money or benefits to any named individual for personal use.
7.9 Conflict of Interest on Royalties
An officer, director, or other principal of the member must not receive royalties for any product that the member uses for fundraising or promotional purposes.
7.10 Acknowledgement of Gifts-in-Kind
Property or gifts-in-kind received by a member should be acknowledged describing the property or gift accurately without a statement of the gift's market value. It is the responsibility of the donor to determine the fair market value of the property for tax purposes. The member may be required to provide additional information for gifts of motor vehicles, boats, and airplanes.
7.11 Acting in the Interest of the Donor
A member must make every effort to avoid accepting a gift from or entering into a contract with a prospective donor which would knowingly place a hardship on the donor, or place the donor's future well-being in jeopardy.