Faith-filled Fundraising Transforming Generosity

In 1989, philanthropist and entrepreneur John Bennett, Jr. launched the Foundation for New Era Philanthropy (New Era), promising nonprofits a groundbreaking opportunity—he would double their investments. But behind the scenes, New Era was nothing more than a Ponzi scheme. Over five and a half years, this fraudulent operation deceived hundreds of organizations, ultimately collapsing into what was then the largest financial scandal in American charitable history. Ministries, churches, and some of the largest evangelical organizations in the country were among those who lost a staggering $135 million.

How did so many Christian ministries fall for the scam?

Rebekah Basinger and Thomas Jeavons began asking hard questions about the deeper issues concerning fundraising practices.

• What was missing in these ministries' financial oversight and discernment with senior leadership and board governance that allowed them to overlook clear warning signs?
• Why did fundraising teams fail to detect corrupt schemes and motives?

The New Era scandal serves as a sobering reminder that faith-based organizations must prioritize financial wisdom, accountability, and a biblical approach to stewardship. Even well-intentioned ministries can be vulnerable to deception.

I invited Rebekah Basinger the co-author of "Growing Givers Hearts," a book based on a three-year nationwide study of six Christian organizations whose efforts were successful both in raising needed financial or material resources and in encouraging the spiritual development of their donors.

Listen now to our podcast conversation.

The authors identified six necessary conditions for a successful fundraising program: raising needed financial and material resources while encouraging donors' spiritual development.

Organizations where fundraising is understood as ministry exhibit the following characteristics:

1. Confidence in God's abundance: The organization operates with an assumption of the abundance of God's resources and grace.

2. A holistic perspective on Kingdom work: The organization reflects a holistic perspective on God's work, recognizing the value of various ministries.

3. Clarity about core theological beliefs: The organization is clear about the essential theological tenets of its own tradition and how that tradition should shape the work of raising money.

4. Giving donors opportunities for participation: Organizational leaders seek to involve donors with the ministry in ways that help hearts grow rich toward God.

5. Integrated organizational planning: Organizational leaders recognize the importance of integrated planning and include the development staff in the process of shaping larger goals.

6. Spiritually mature leadership: Organizational leaders seek out spiritually mature and reflective leadership for the fundraising program.

You can learn more by following the Generous Matters blog.

25 years ago, senior leadership and board governance of many great Christian ministries were scammed due to a lack of financial oversight and discernment. Is your ministry characterized by the six characteristics identified in "Growing Givers Hearts"?

If you have read this informative book, "Growing Givers Hearts," please share your comments and ideas with the author Rebekah Basinger!