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
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[JohnBrian] With all of this information it seems that bankruptcy would be the correct option instead of dissolution, as that would give them protection against creditors like Beracha.
I agree. A http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code] Chapter 11 filing would give them the leeway and time to reorganize and get out of some of their debts. Does anyone know why they chose this route?
This looks like yet another poor EBM decision from the outside. So far we’ve got:
* litigation against a creditor and vendor
* no notice of closing on their webpage
* the decision to give 8 days to current missionaries to find a new agency
* admission of some kind of poor financial management starting as far back as ten years ago, including the admission of purchasing property that was far in excess of what was needed.
At what point can we say it’s not everyone else’s fault, it’s the agency’s?
"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
[Jim Peet]FIM is also an ECFA member in good standing. I’d also note that FIM has a variety of skills on the board.
- 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
At the end of the day this issue really isn’t about some IT contract gone bad. At the end of the day it all boils down to this: Simply awful financial leadership on EBM’s part.
It is reckless negligence at best and going down the road of criminal conduct at worst.
I have worked in the past for a non-profit organization as a controller. The organization had operational revenue and expenses and then some designated funds revenue and expenses. Both parts of the organization would sort of help to fund each other and all the bills were paid on time.
However, in EBM’s case it is an organization that consists of almost entirely of designated funds including missionaries’ personal savings. Just last night I heard of two EBM missionaries who are at or close to retirement and they both say that all of their money may be gone. We’re talking about savings accounts & monthly support that they need to pay their mortgage. Granted, these two instances may not be indicitive of the over-all EBM missionary population, but you get my point.
EBM was hugely responsible for the financial well being of numerous families. Fail people, fail!
How in the world could they allow themselves to let their operational needs put at risk their designated funds? Why would they obligate cash from these designated funds to pay for operational needs?
This makes me sick!
Peet above is correct that good pastors make great church leaders, but all too often poor financial ones. At the end of the day, you simply can not run your ministry without money and that handled poorly …
It is reckless negligence at best and going down the road of criminal conduct at worst.
I have worked in the past for a non-profit organization as a controller. The organization had operational revenue and expenses and then some designated funds revenue and expenses. Both parts of the organization would sort of help to fund each other and all the bills were paid on time.
However, in EBM’s case it is an organization that consists of almost entirely of designated funds including missionaries’ personal savings. Just last night I heard of two EBM missionaries who are at or close to retirement and they both say that all of their money may be gone. We’re talking about savings accounts & monthly support that they need to pay their mortgage. Granted, these two instances may not be indicitive of the over-all EBM missionary population, but you get my point.
EBM was hugely responsible for the financial well being of numerous families. Fail people, fail!
How in the world could they allow themselves to let their operational needs put at risk their designated funds? Why would they obligate cash from these designated funds to pay for operational needs?
This makes me sick!
Peet above is correct that good pastors make great church leaders, but all too often poor financial ones. At the end of the day, you simply can not run your ministry without money and that handled poorly …
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