Evangelical Baptist Mission (EBM) Dissolution

It is with a heavy heart and much prayerful consideration that I, on behalf of the EBM Board of Directors, write this letter. Following extensive objective assessment and the advice of legal counsel, we are beginning action to dissolve EBM. The organization will be in the process of shutting down over the next week and a half. Funds to continue are not available. On September 2, 2011, the EBM home office will close its doors. See attached PDF

Discussion

EBM and Beracha had become business partners. The following quote is from the EBM website.
EBM is partnering with the BERACHA Foundation to provide world-class websites through a program called Share.net.gain. BERACHA is the non-profit foundation of TQI net that provides web services to many Fortune 500 companies. With your annual donation to EBM for technology, you will receive free website hosting and development. Find out about this incredible opportunity on the EBM website www.ebm.org and click on Share.net.gain on the left side of the home page.
I have seen a number of church and christian group websites with the copyright at the bottom saying EBM and The Beracha Foundation.

Not only had EBM and Beracha become business partners, the president of Beracha as well as some other Beracha employees had served on the board of EBM and also in administrative, financial, decision-making positions at EBM. The following quote is from Beracha’s website.
Beracha’s services to this ministry partner had been thorough and expansive. Beracha was asked in 2005 to provide 100% of their IT, IT infrastructure, and data center needs. We had provided them with 100% of their IT workers, management and support. Additionally, we had provided systems which enabled them to utilize up to 1,000 web sites to be used by them, their missionaries and mission church plants throughout the world. This included custom web designs, e-Newsletters, network, donor management, e-commerce, accounting, and secure portals, as well as, marketing and communications services.

Beracha had also served this ministry partner by providing, at their request, their Chief Financial Officer (CFO), their Chief Information Officer (CIO), their Chief Security Officer (CSO), and other accounting professionals through our Forte Group, which provides senior level consulting programs at highly reduced prices through our subsidies.

In addition to providing all their IT requests, Beracha also provided opportunities by which our ministry partner could benefit from several new revenue streams designed to provide funding for all of their stated Information Technology, communications and marketing needs.
It seems there were not too many areas of EBM where Beracha did not have their hand in it.

Perhaps I should have stated it this way: The relationship was not the cause of the insolvency. The seeds that grew into insolvency were planted long before the relationship existed, and the relationship was originally intended to help address the problems before they grew further. Unfortunately, the business relationship could not address the problems quick enough.

The legal dispute between EBM and Beracha was dropped. It shouldn’t have occurred in the first place, but it did to the detriment of both parties.

I don’t usually comment here, and I probably should have kept my thoughts to myself again today. Knowing several of the principals involved on both sides, I felt compelled to offer some general direction to the conversation without betraying too many details. I’ll drop back out of the conversation now. :)

It seems there were not too many areas of EBM where Beracha did not have their hand in it.
I should have added “since 2005.”

Beracha began filling these administrative, financial roles at EBM in 2005 (as per Beracha’s website), but they state that they didn’t realize there were financial troubles until five years later.
Beracha recognized their [EBM] financial issues as early as May, 2010. Since then, Beracha has worked tirelessly to resolve the financial issues facing their ministry.
I had read that the lawsuit was dropped. It is curious, then, that Beracha still has on their website a letter stating that EBM is suing them, but yet they don’t mention their own countersuit.

http://www.abwe.org/news/article/abwes-offer-to-assist-transitioning-of…
We recently we learned with sadness that a sister missionary organization has determined that it is necessary to dissolve its ministry. Our hearts have been heavy since hearing this news regarding Evangelical Baptist Mission. (http://www.ebm.org) The decision affects more than 200 servants of God with ministries in 22 countries.

Our heart goes out to all of them, especially those faithful missionaries serving around the world. ABWE has always had great respect and admiration for the efforts of our EBM colleagues fulfilling the Great Commission.

As we partner in the gospel, we desire to be ready to serve, help, and assist them at this critical time. We thank God for His grace, which allows us to offer members of the EBM family immediate administrative and financial services. It is our hope that this offer allows them to continue in their ministries, while providing them time to discern their next steps.

Please join us in praying for the EBM family.

Sorry to hear the mission is closing. For many years, they were headquartered in our town, Kokomo, IN.

I wish all the missionaries God’s blessing as they transition.

"The Midrash Detective"

…my brother-in-law and sister-in-law were accepted by EBM to go to France as missionaries. They never got there as the Lord took them in a different direction.

CanJAmerican - my blog
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Some new information about this situation:

http://christiannewswire.com/news/6026417638.html

Beracha Foundation Responds to Evangelical Baptist Missions (EBM) Bankruptcy

MAINEVILLE, Ohio, August 29, 2011 /Christian Newswire/ — It is with great sadness that we at the Beracha Foundation have learned of Evangelical Baptist Mission’s decision to file bankruptcy. Our prayers go out to all the missionaries, their families, supporters and churches who are impacted by this decision.

As the situation continues to unfold, we would like to clarify some statements which have been made regarding the relationship between the Beracha Foundation and EBM, particularly concerning lawsuits filed against Beracha by EBM leadership.

To understand the recent news, one must understand that the current issues leading to the bankruptcy of EBM started long before its relationship with Beracha. Unfortunately the lawsuit brought by EBM leadership against Beracha—and the demand of Federal Law that Beracha defend itself through a countersuit—has clouded the real issues.

After many months of compelling testimony and evidence showing that EBM leadership was wrong to have damaged Beracha’s reputation by filing suit, EBM leadership dropped their suit and asked to open a discourse toward mediation. The EBM Board even issued a signed apology addressing this matter. In later meetings it was admitted by board members that EBM’s problems started as early as 2001. Remorse was expressed by the Chairman of the Board for having purchased a large facility without the financial means to adequately provide for EBM’s future. Statements of regret for not holding its President and Treasurer accountable for their actions were also expressed.

Beracha was EBM’s largest donor. This was possible because our subsidies to them exceeded $4.32 for every $1.00 they paid for IT services. Additionally, we brought them many tens of thousands of dollars of donations from corporate sponsors we sought on their behalf. Any accusations that Beracha is the cause of EBM’s financial problems and current state could not be further from the truth.

Where are we now? Like you, we are watching and waiting to see how this scenario plays out. We can only ask that fervent prayer be lifted up for the missionaries who are affected by this and that their vital ministries throughout the world will be able to continue unimpeded. We hope and pray for an outcome that brings honor and glory to our Savior’s name.

The Beracha Foundation of Ohio exists to emancipate, enable, empower and educate the non-profit ministries, organizations and foundations of the world through our expertise, our resources and our experience.

Josh Montez, Digital Media Producer, Beracha Foundation

Josh,

Do you think any one of us would recommend your organization to a non-profit ministry after this? EBM probably made all kinds of mistakes. But to let website fees topple an organization is at very best, bad client management.

I get that this wasn’t completely your fault, but please spare the damage control. If I were to recommend a web group for a ministries, it would be one that didn’t let a ministry get in over its head.

Shayne

After many months of compelling testimony and evidence showing that EBM leadership was wrong to have damaged Beracha’s reputation by filing suit, EBM leadership dropped their suit and asked to open a discourse toward mediation. The EBM Board even issued a signed apology addressing this matter. In later meetings it was admitted by board members that EBM’s problems started as early as 2001. Remorse was expressed by the Chairman of the Board for having purchased a large facility without the financial means to adequately provide for EBM’s future. Statements of regret for not holding its President and Treasurer accountable for their actions were also expressed.
I’d say that goes a little further than just some unpaid website hosting fees. Did you see the part in bold?

"Our task today is to tell people — who no longer know what sin is...no longer see themselves as sinners, and no longer have room for these categories — that Christ died for sins of which they do not think they’re guilty." - David Wells

[Shaynus] Josh,

Do you think any one of us would recommend your organization to a non-profit ministry after this? EBM probably made all kinds of mistakes. But to let website fees topple an organization is at very best, bad client management.

I get that this wasn’t completely your fault, but please spare the damage control. If I were to recommend a web group for a ministries, it would be one that didn’t let a ministry get in over its head.

Shayne
Not sure how you can blame Beracha Foundation for EBM getting in over its head

From these statements above:
  • “…issues leading to the bankruptcy of EBM started long before its relationship with Beracha.
  • … it was admitted by board members that EBM’s problems started as early as 2001.
  • … Statements of regret for not holding its President and Treasurer accountable for their actions were also expressed.
  • …Beracha was EBM’s largest donor.
I place the blame ONLY ON EBM:
  • No transparency in financial reporting (I know I harp on this a lot on S/I but really why cant these ministries be more public with their finances! Fundamentalist organizations won’t submit to the standards of the http://en.wikipedia.org/wiki/Evangelical_Council_for_Financial_Accounta…] Evangelical Council for Financial Accountability (there are some exceptions .. ABWE is a member for example). Pillsbury is another example if fiscal mismanagement. Someone should write a book on these fiscal fiascoes so that the next generation doesn’t repeat these mistakes
  • Pastors make great church leaders but poor financial leaders. They don’t have the education or the experience for the task

I wouldn’t trust this company to manage a client. I’ve been an outsourced IT consultant in all kinds of circumstances, and it should never have gotten this far. Part of that is the provider’s responsibility.

More of my thoughts on EBM folding

There are leaders that were in the board-room that should hang their head in shame for driving that storied 90 year old mission board into the the dirt

And to give their missionaries 8 DAYS to find a new mission board! SHAME on them!

This is not just internet rhetoric .. I would say it to their faces!

[Shaynus] I wouldn’t trust this company to manage a client. I’ve been an outsourced IT consultant in all kinds of circumstances, and it should never have gotten this far. Part of that is the provider’s responsibility.

Part of it? Maybe…Maybe Beracha should have walked away at some point rather than taking the money of an organization that was being run into the ground by its management.

I work in an office where we use a very expensive and Windows based database program. When our Executive Director was hired, she decided to add Macintosh computers to our network. I recommended that she not do this and enumerated several solid reasons why this was a bad decision, including extra cost, increased overhead, and system incompatibilities. I was overruled and had to deploy the Macs anyway. Now the staff hate the program and are frustrated that it doesn’t work properly. Should I just accept responsibility that the DB program doesn’t work when my recommendations (that were also supported by the db manufacturer and our IT vendor) were flatly overruled by my boss?

If not, then why should Beracha accept responsibility for EBM’s poor management? As someone who handles IT consultants, you and I both know that overriding recommendations is unwise at best.

"Our task today is to tell people — who no longer know what sin is...no longer see themselves as sinners, and no longer have room for these categories — that Christ died for sins of which they do not think they’re guilty." - David Wells