SBC Exec.Com Says $6M Dollars- ‘Half Our Assets’-Has Been Paid to Guidepost and SATF in ‘Unsustainable Model’ +Video and Transcript
In a meeting yesterday, the SBC Executive Committee (EC) revealed that over six million dollars of EC money has been spent on Guidepost Solutions and the Sexual Abuse Task Force, while describing the enormous expenditure as “unsustainable.”
Dwight Easler, filling in for Convention Finances and Stewardship chair Archie Mason, told members that the EC experienced a $6,704,285 loss in net assets last year. When questioned about the sustainability of losing half their assets in a single year, Mike Bianchi, interim CFO of the Executive Committee, shared:
With regard to the audit there were a few items that are referred to as an ’emphasism of a matter’. The audit was an unqualified opinion, which is good, that’s the highest, most favorable level you could have. But they did emphasize that the matters of the ongoing sexual abuse implementation issues, the DOJ investigation and then also deteriorating liability of the EC are concerns that they wanted to emphasize.
One of the members asked:
Mike, with your expertise, I looked at the audit report and they recommended I think something very similar to what Willie said yesterday. You know, liquidating assets, asking for more money from the convention.
You know, we just approved our new budget for new allocations, but just going forward, I mean, they literally said it’s ‘not sustainable’. So what is your expertise opinion, recommendation, on what we can do, financially going forward because we are in a very, very unstable position.
Bianchi:
Great question, thank you for that. They did use the word ‘unsustainable’. The challenge is that much is unknown. No one can put numbers on the things that they emphasized at this point. So ‘unsustainable’ is the notion that the EC lost or used six million dollars of liquidity this year, and that is not sustainable.
Management responded to their concerns and said, ‘yes we will look at various options for changing that trajectory including liquidating assets’ without specifying anything. But liquidating assets, changing certain financial arrangements, obtaining other financing, looking to the Convention as a whole to support and guarantee the funding in the future. So all of those things are on the table and being explored and it was discussed with the auditors.
One member identifies that there’s a red flag here and inquired: “Is there a way that we who are not on the finance committee can have better information, more information about how we’re doing financially? Because we we don’t get this information.” Bianchi responds:
For the future, at this point, we’re holding in place to preserve going into any kind of adjustment with any kind of CP in that regard. However, for the future, this trustee board will have to make difficult decisions to avoid going into a direction that cannot be sustained. Does that make sense? At this point the proposals that we brought to you as a committee is ‘hold your own.’
But decisions will have to be made that we do not know what those decisions will have to be, because we have no number on that yet.
The man clarified what he heard, that it is six million dollars and half the assets that has been lost, clearly astonished at the revelation. (Two days ago, the Baptist Press reported that Guidepost was spending $1.5-2M dollars on their database website). Willie McLaurin, the Interim President of the SBC Executive Committee, offered a final word of clarity.
“So one of the things that they asked management to do is they asked management to provide a management response. And so that response is here are some things that we are going to look at.
If I can put it where everybody can understand it: everything is on the table in terms of how we’re going to maintain and move us forward. And so, when I mean everything is on the table, that means everything is on the table. And so we’re monitoring that on a, not a weekly basis, but literally a daily basis. And so as we monitor all of those pieces, we’re working diligently.
Even this morning, Mike and I had a meeting about some options that we are exploring, and as we move forward, we feel really confident that we believe that God’s given us a plan to help make sure that we maintain as much vitality as we can.
And by the way, as we implement these potential plans, that’s simply implementing them with the unknown and the uncertains, our best understanding to date of where we’re at, and making what we believe to be the best decision that will benefit all the Southern Baptists.
Many Southern Baptists were aghast at the news that “everything was on the table”, wondering whether or not money would be taken from the International Missions Board or other entities to continue paying Guidepost, as the funds needed would likely continue to balloon. Rod D. Martin, a former EC member, was especially critical, writing:
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