In God We Trust, But In Securities We Invest

The U.S. government allows religious groups to use their tax-exempt status to invest in stocks and bonds.  The churches are taking millions of dollars and using them to buy shares of stock of worldly businesses for profit.  Millions more are given to investment companies in the form of loans or bonds in exchange for the original investment plus interest on the money.  

The churches have taken advantage of this tax-free investment “privilege” and are taking huge risks in hopes of enjoying great profits. God’s “sacred” offerings are being invested in utility stocks, industrial stock, insurance stock, preferred stock, US treasury notes, federal agency bonds, federal government bonds, and in industrial and utility bonds.  All of it virtually tax free with a 1031 Exchange transaction—an arrangement used to avoid paying taxes.

One of the common arguments put forth by those who support investing church money in stocks is: “There is nothing dishonest or immoral about aspiring a substantial return on investing.  The farmer hopes to be paid well for his crops, the factory worker seeks a good wage for his labor, and the merchant tries to sell his goods for more than he paid for them.  Therefore, it is not wrong to try to better the church economically by investing in securities.” 

Some may even argue that in Jesus’ day there was no modern stock market, and so we don’t really know what position He would have taken.  However, the concepts of greed, selfishness, the love of money, and the desire to get rich fast are familiar concepts that exist in every generation. 

Christians, on the other hand, are already rich.  Jesus says, “Buy of me gold tried in the fire, that thou mayest be rich” (Rev. 3:18).  He also warned against the danger of trusting in riches:  “So is he that layeth up treasure for himself, and is not rich toward God” (Luke 12:21).

No one can deny that the investment and security markets are dominated by one goal—to make lots of money and become rich.  Most of today’s day traders and investors take wild risks in hopes of making a great of deal money.  People get into the stock business with the hopes of gaining something personally—for profit.  And even non-profit organizations want to make profits from their investments, tax free.

Every year the U.S. Security and Exchange Commission [(202) 942-8088], whose job is to protect investors and maintain integrity in the securities market, initiates between 400-500 lawsuits against investment advisors, stock-exchangers, broker-dealers, and corporate leaders for breaking security laws such as insider trading, accounting fraud, or for providing false or misleading information.

Today, the so-called “prudent investing” has become no different from the Las Vegas-style gambling casinos.  Many CEOs and CFOs have carried out their pursuits for profit too far, consequently causing harm to others—Enron and WorldCom being two notable examples.     

“How long will the Lord suffer oppression of the poor that rich men may hoard wealth? These men are heaping together treasures for the last days. Their money is placed where it does no one any good. To add to their millions, they rob the poor, and the cries of the starving are no more to them than the barking of a dog. But the Lord marks every act of

oppression. No cry of suffering is unheard by Him. Those who today are scheming to obtain more and more money, putting in operation plans that mean to the poor starvation, will in the last great day stand face to face with their deeds of oppression and injustice.” Manuscript Releases, vol. 7, p. 57.

No doubt the hearts of men are clinging to this world’s goods as if the earth with all its glory was never going to pass away. 

  The Moneychangers

Much greed and selfishness permeated the Jewish temple in the days of Christ.  Jewish and non-Jewish pilgrims from all over the world would come to Jerusalem to seek after God during Passover time at the Temple.  Once they arrived, the foreigners would have to deal with the moneychangers.  Since there was no acceptance of foreign money, the moneychangers would either sell “temple coinage” at a very high rate of exchange plus a fee for their services, or sell sacrificial animals at highly inflated prices.  With over a million pilgrims flocking the Temple during Passover, the moneychangers would cash in on and overcharge the worshipers.  The priests also greatly profited from the moneychangers.

“Every Jew was required to pay yearly a half shekel as ‘a ransom for his soul;’ and the money thus collected was used for the support of the temple. Ex. 30:12-16. Besides this, large sums were brought as freewill offerings, to be deposited in the temple treasury. And it was required that all foreign coin should be changed for a coin called the temple shekel, which was accepted for the service of the sanctuary. The money changing gave opportunity for fraud and extortion, and it had grown into a disgraceful traffic, which was a source of revenue to the priests.”  Desire of Ages p. 155.

When Jesus arrived, He “overthrew the tables of the moneychangers” (Mark 11:15) and called the temple a den of thieves and a house of merchandise.

The Seventh-day Adventist Church is not immune from this practice and has its own stake in securities.  In the 2002 Annual Report given by the General Conference’s Treasurer, we see how carefully the churches are watching the world markets in order to assess the holding they have invested there: 

“As of the end of August, GC investments totaled $82.6 million. Of this approximately $16.8 million is in stocks that would generally track with the Standard & Poor 500 index. To help the delegates perceive the impact of the stock market...one point change in the S&P 500 stock index means approximately a $20,000 change to the value of the GC's investments. So far there has been a $6 million decline.” —2002 Annual Council Report by GC Treasurer Robert Lemon “GC Faces Major Financial Challenges” paragraph 6 [http://www.adventistreview.org/2002-1541/council4.html].

In other words, the church is closely watching the markets because when the S&P 500 goes up one point the church makes $20,000.  If it goes down 10 points the church looses $200,000 and so on. Just remember this the time that you put money in the offering plates on Sabbath.  Millions of those dollars are being diverted to worldly businesses that are open on the Sabbath—so that those offerings can be multiplied though secular commerce. 

It’s important to note that these figures do not include any securities owned or invested by the individual conferences from each division, nor the securities owned by Adventist health institutions, schools, fraternal organizations, associations, subsidiaries, charities, special ministry, and so on.  Every department has its own investment portfolios.   How large are these tax-free investments?  No one knows. It is almost impossible for any one person, including church officials, to find out just how much money Seventh-day Adventist institutions have invested in securities because of the diversity of names used to conceal church portfolios.  It is a common practice for organizations and individuals to put their investment holdings under different names. Thousands of accounts handled by banks have code names that even expert investigators have often been frustrated in trying to establish identities. 

Notice Sister White’s counsel on this subject with regards to the Lord’s money:  “My brother, will you make an investment to secure the heavenly pearl of great price?...This is mining stock, in which you may invest without running a risk of disappointment. But, my dear friend, we have not a dollar of the Lord's money to invest in mining enterprises in this world.” Counsels on Stewardship, p. 243.

“The church cannot measure herself by the world...” Testimonies, vol. 5, p. 83.

If God, through His prophet, stated that not even “a dollar” of His money should be invested in worldly enterprises, why then should we risk millions of dollars of God’s money in the secular markets of finance? To seek a profit?  Has God run out of money?  Is the church’s financial success dependent upon the financial success of the world?  Are we going to give all our profit earnings to Jesus as a gift when He returns the second time?

How many missionary workers could be sent throughout the world if these funds were invested for the Lord’s work?  How many people would benefit from the true medical missionary work?  How many Earth’s Final Warning messages containing the truth for this hour could be placed so that the world could be warned, Christ can come, and we can finally go home and inherit our true riches!

“If every watchman on the walls of Zion had given the trumpet a certain sound, the world might ere this have heard the message of warning. But the work is years behind. While men have slept, Satan has stolen a march upon us.” Testimonies, vol. 9, p. 29.

Because non-profit organizations are not required to disclose their investment portfolios, it is almost impossible to know the extent of their losses due to the accounting improprieties in the securities market when major corporations file for bankruptcy. 

Enron, WorldCom, Tyco, and a host of other companies that have recently experienced a financial fallout are just a collection of assets owned by shareholders and managed by executives [most corporations are created this way]. In between the shareholders and executives are the stockbrokers and day traders that buy and sell portions of the company.  We see just a glimpse of the greed, the selfishness, and the conflicts that exist between these complex relationships when the inner workings are brought to light in federal court systems through lawsuits. 

For example, the Securities and Exchange Commission in Washington, D.C. initiated a lawsuit [Litigation Release No. 15307 / March 26, 1997] against David I. Namer, a financial advisor based in Memphis, Tennessee.  He was accused of selling fraudulent notes from a corporation called Northstar Leasing. These notes were not insured and were sold to hundreds of investors across this nation.  He was convicted in August 20, 2002 of 93 felony counts for securities fraud, mail fraud, wire fraud, and money laundering.  One of his victims was the General Conference of Seventh-day Adventists.  In the 37-page indictment, David I. Namer’s overt acts of fraud #134 states: “Between on or about May 31, 1996 and August 6, 1996, DAVID I. NAMER caused the General Conference of Seventh Day Adventists to purchase $2,500,000 in Northstar notes.”

“Who can bring a clean thing out of an unclean?” Job 14:4.  Because the hearts of men are filled with selfishness and greed, we should not be at all surprised when the church is defrauded by the world in business. In fact, what business does the church have in owning shares of worldly corporations that are open on the Lord’s day and violate God’s commandments?  What business does God’s church have with the merchants of the world if not to preach the three angels’ messages? God says, “Bring ye all the tithes into the storehouse, that there may be meat in mine house.”  Mal. 3:10

In Where? The Lord says in “My [mine] house,” and not into worldly businesses.  Remember this the next time you give your tithes and offerings: millions of those dollars are being diverted to worldly business in order to make profit.  In Amos 8:5-6 we read about how the children of Israel couldn’t wait until the Sabbath was over so that they could once again engage in buying and selling.  The Lord’s response is very fearful:  “The LORD hath sworn by the excellency of Jacob, Surely I will never forget any of their works. Shall not the land tremble for this.”  Amos 8:7-8.  Yet today Adventists don’t have to wait for the Sabbath to be over because they now own shares of worldly businesses that can make them money during the Sabbath!  “For my thoughts are not your thoughts, neither are your ways my ways, saith the LORD.  Isa. 55:8. 

In Jeremiah’s day (Jeremiah 17:20-27) one of the reasons for Israel’s captivity in Babylon was for breaking the Sabbath day.  “If the admonitions to obey the Lord God of their fathers and to hallow His Sabbath day were not heeded, the city and its palaces would be utterly destroyed by fire.”  Prophets and Kings, pp. 412-413. 

Is it possible that we are getting ready to become captive by Spiritual Babylon today for violating the Lord’s Sabbath day?  Despite the economic profit, do we really secure the Lord’s blessing by profiting from those who violate the Sabbath day, or by partnering with them? The desire to get rich quickly through high-risk investing drowns out the biblical voice that counsels us to work hard like the humble ant, which despite its insect intelligence, it has the intellect to sustain itself for future needs.  “Go to the ant...consider her ways, and be wise: Which having no guide, overseer, or ruler, Provideth her meat in the summer, and gathereth her food in the harvest.”  Prov. 6:6-8.  Matthew recorded Jesus’ parable [Matt. 25:14-30] of the talents primarily to illustrate that the leaders of Israel would be held accountable to God for their stewardship of the nation.  Many used this parable to justify investing, but notice, he uses this as an illustration for Spiritual Investments.  The punishment that the wicked steward received implies that doing nothing is as bad as thievery or reckless waste. Yet the master in the parable applauded the other two stewards for their faithfulness.  We must remember that God remains the owner, and that His church’s talents must be put to work in His kingdom.  

The Editors

Rediscover and Fully Experience

Sunday as the Lord’s Day

VATICAN CITY, JAN 21, 2005—Vatican Information Service (VIS)  This morning, the Pope received members and counselors of the Pontifical Commission for Latin America, who are participating in their plenary session on the theme: "Sunday Mass, center of Christian life in Latin America."

"Participation in Sunday Mass," said the Pope, "is not only an important obligation, as the Catechism of the Catholic Church (no. 1389) makes quite clear, but above all a profound need of each faithful individual. It is not possible to experience faith without participating regularly in Sunday Mass: the sacrifice of redemption, the shared banquet of the Word of God and of the Bread of the Eucharist, heart of Christian life."

John Paul II underlined the "renewed efforts" by pastors of the Church to "raise awareness of the centrality of Sunday in the ecclesial and social life of the men and women of today...To this end it is necessary to concentrate efforts on a better and more careful education and catechesis of the faithful about the Eucharist, and to ensure that the celebration is dignified and decorous, so that it inspires true respect and authentic piety in the face of the greatness of the Eucharistic mystery."

"Sunday Mass," he went on, "must be correctly prepared by the celebrant, with a spiritual disposition which is then revealed in his words and gestures, just as the homily must be prepared in an appropriate way." On this subject, the Pope referred to the importance of choosing and preparing "the hymns, symbols and other elements that enrich the liturgy, always showing due respect for established norms, taking advantage of all the spiritual and pastoral richness of the Roman Missal and the directives proposed by the Congregation for Divine Worship and the Discipline of the Sacraments."

The Holy Father concluded by asking the bishops, in collaboration with priests, religious and faithful, to give "the maximum commitment to reflecting on and deepening this essential dimension of the sacramental life of the Church," and to work "to awaken an ever greater love for the Mystery of the Eucharist in their dioceses."

Pope Tells Media They “Have Enormous Potential for Promoting Peace”

VATICAN CITY, Vatican, January 24—Catholic News Agency (CNA) The Pope made public today his message for the 39th Day of Social Communications which is due to be held on May 8, 2005, on the theme: "The Communications Media: at the service of understanding among peoples."

The event will be held on the Feast of St. Francis of Sales, patron saint of journalists.

Extracts from the message - which was published in Italian, English, French, German, Spanish and Portuguese - are given below:

"The theme chosen for the 2005 World Communications Day - "The Communications Media: at the service of understanding among peoples" - addresses an urgent need: to promote the unity of the human family."

"One important way of achieving this end is through education. The media can teach billions of people about other parts of the world and other cultures. ... Accurate knowledge promotes understanding, dispels prejudice, and awakens the desire to learn more. ..."

When others are portrayed in hostile terms, seeds of conflict are sown. ... Instead of building unity and understanding, the media can be used to demonize other social, ethnic and religious groups, fomenting fear and hatred."

Those responsible for the style and content of what is communicated have a grave duty to ensure that this does not happen. Indeed, the media have enormous potential for promoting peace and building bridges between peoples."

"If such a contribution to peace-making is one of the significant ways the media can bring people together, its influence in favor of the swift mobilization of aid in response to natural disasters is another."

It was heartening to see how quickly the international community responded to the recent tsunami that claimed countless victims."

"The Second Vatican Council reminded us: 'If the media are to be correctly employed, it is essential that all who use them know the principles of the moral order and apply them faithfully."

Evangelical Leader Threatens to Use His Political Muscle Against Democrats

New York Times

January 1, 2005

By David D. Kirkpatrick

Colorado Springs, Colorado—James C. Dobson, the nation's most influential evangelical leader, is threatening to put six potentially vulnerable Democratic senators "in the 'bull's-eye' " if they block conservative appointments to the Supreme Court.

In a letter his aides say is being sent to more than one million of his supporters, Dr. Dobson, the child psychologist and founder of the evangelical organization Focus on the Family, promises "a battle of enormous proportions from sea to shining sea" if President Bush fails to appoint "strict constructionist" jurists or if Democrats filibuster to block conservative nominees.

Dr. Dobson recalled the conservative efforts that helped in the November defeat of Senator Tom Daschle of South Dakota, the Senate minority leader who led Democrats in using the filibuster to block 10 of Mr. Bush's judicial nominees.

"Let his colleagues beware," Dr. Dobson warned, "especially those representing 'red' states. Many of them will be in the 'bull's-eye' the next time they seek re-election."

He singled out Ben Nelson of Nebraska, Mark Dayton of Minnesota, Robert C. Byrd of West Virginia, Kent Conrad of North Dakota, Jeff Bingaman of New Mexico and Bill Nelson of Florida. All six are up for re-election in 2006. In an interview in his office in Colorado Springs, Dr. Dobson acknowledged that his plunge into partisan politics had

irrevocably changed his public image. "I can't go back, nor do I want to," he said. "I will probably endorse more candidates. This is a new day. I just feel a real need to make use of this visibility."

He said that despite initial concerns, his political activities did not appear to have diverted donations from Focus on the Family. He created a sister lobbying organization during the last election, and the two organizations' combined budgets grew to a projected $146 million in 2004, from about $130 million in 2003, with a target of $170 million for 2005.

Dr. Dobson said he was prepared for some disappointments from Mr. Bush. For example, he said, when the president says the country is not ready to overturn the Supreme Court precedents supporting abortion rights, "it bothers me a lot." But Dr. Dobson said he was confident that the president would appoint socially conservative nominees for the courts.  He said of Mr. Bush, "He does not take the bully pulpit and use it effectively." He added, "But when the chips are down, he does the right thing."

Dr. Dobson said he was concentrating his political activities mainly on the court. "The next battle will be over the replacement for Rehnquist," he said, referring to Chief Justice William H. Rehnquist, who is being treated for thyroid cancer. "That is not something we can just yawn about."  He said he was hoping that Mr. Daschle's defeat would scare other Democrats. Dr. Dobson said he had been working for Mr. Daschle's defeat since August 2003, when he attended a rally to support Roy S. Moore, then chief justice of the Alabama Supreme Court, in his unsuccessful legal battle to keep a monument to the Ten Commandments in his courthouse. The crowd's reaction demonstrated the depth of popular resentment of liberal court decisions, Dr. Dobson said.

Adventists to Pay $20 Million to Settle Fraud Charges

The Washington Times

October 28, 2004

Florida Health Care Firms to Pay $20 Million

Miami, FL, Oct. 28— A group of Florida health facilities has agreed to pay $20 million to settle allegations it overcharged Medicare, the Justice Department said Thursday.

Winter Park, Adventist Health System, Sunbelt Healthcare Corp., three affiliated hospitals and a management company that administered ambulance operations at the three hospitals agreed to the settlement. The government alleged they charged for ambulance transports for patients that were not medically necessary.

The government further alleged that Regional Emergency Services and the hospitals created false physician certifications for the medical necessity of ambulance transports operated by the hospitals, and submitted or caused to be submitted claims to Medicare.  The suit alleges that the false claims were submitted during 1993 through 2000 in the case of Florida Hospital Waterman and Metroplex Adventist Hospital, and 1993 through 1997 in the case of Huguley Memorial Medical Center.

Two employee whistleblowers will receive a total of $2.4 million.

Letters

Dear Brother Perez, On behalf of Berean Company Church, we are so delighted to have received your Earth’s Final Warning publication today!  We are co-laborers together in this work, which will hopefully take a bit of pressure off you.  It was a pleasure having you stay with us when you spoke here in Indianapolis.  Teresa and I consider you our brother and friend.  Jesus made it clear that our “true friends” are those who are about the work and will of the Father.  God bless, Sincerely, Elder J. R. Ryder, Indiana.

Faithful Eternal Gospel Workers:  Hello from cold, wintry Indiana.  I’m so glad Spring is right around the corner.  Thank you so much for the newsletter and for keeping us aware of world events.  This is not a good time to be found unaware.  We are praying for your continued faithfulness.  Please pray for us.  Jack & Barb Loudermilk, Indiana. 

Dear Pastor Perez:  The Eternal Gospel Herald really is a voice that needs to be heard.  I remember just a few years ago the denomination had you in court suing you over the name “Seventh-day Adventist.”  Now I am hearing that the denomination has made a complete about face!  They are considering to drop the name “Seventh-day” and we only retain “Adventist.”  Some seem to believe that they may vote on it at the General Conference Session in St. Louis.  Continue the good work with your billboards.  Keep working and praying.  Bill Allen, Alabama.

Dear Sirs, I read a recent issue of The Eternal Gospel Herald.  I like it very much.  I believe that the truths that you bring out need to come to light everywhere, regardless of any consequences.  I had heard of the word “proselytism” but I didn’t understand it until I read about it in your newsletter.  Now I understand that if the church doesn’t want to engage in “proselytism” then it should also give up the name Seventh-day Adventist, because it would have become like the other apostate worldly churches.  When I give a Bible study, my purpose is to show them the truth and help to come out of Babylon.  If we are going to leave people in darkness, then why are we called to be the light of the world? Please continue with your publication.  Someone has to give a warning message to this world in confusion [Babylon]. Please send me five extra copies of your issue to my address.  May God bless you in your work, Marina Romero, Puerto Rico.

Eternal Gospel Church, Please send me additional information on the changing of the Sabbath day to Sunday.  Thank you for the knowledge.  Archie Porter, Kentucky.

Dear Rafael Perez,  Just wanted to say thanks for your publication.  I love the one you sent me several months ago entitled, “New Adventist Billboards” Dropping the Distinctiveness of our message.  The message in your publication is so timely and true and the way you convey it is sharper than a two edged sword.  The SDA Church is truly yielding our peculiar and fearful warning message in order to be in the good graces of a world lost in sin.  I was really surprised that you were actually bold enough to name the names of those that have such a high profession of faith and yet are embracing a peace and safety message, and are turning their backs on the present truth.  I believe that the listed names and organizations have slipped “unconsciously into the work in Satan’s lines.”

“I would caution all believers to learn to maintain a godly jealousy over yourselves, lest Satan shall steal your heart away from God and you slip unconsciously into work in Satan’s lines, without perceiving that you have changed leaders, and be found in the treacherous power of a tyrant.” Selected Messages, vol. 3, p. 19. 

Thank you for your boldness in this time of universal cowardice. John Vega, California.