CharityWatch is unable to provide a letter grade rating of Christian Advocates Serving Evangelism (CASE) for the charity's fiscal year ended December 31, 2024 because the majority of its program expenses consisted of grants to its related organization, the American Center for Law and Justice (ACLJ-National). For the year-ended 12/31/2024, CASE spent $24 to raise each $100 in public support. CharityWatch computed that the charity spent approximately $13.9 million to raise approximately $58 million in cash contributions. CharityWatch is unable to provide a Program Percentage for CASE. In fiscal 2024, CharityWatch calculated CASE's total program expenses as $57,370,605 before adjusting for joint costs, and $45,863,960 after such adjustments. Of the adjusted total, $25,245,412, representing 55% of reported program expenses, consisted of grants to its related organization, ACLJ-National. This same amount represents 44% of program expenses before adjusting for joint costs. These figures are based on Note 13 of CASE’s consolidated audited financial statements. ACLJ-National is not rated separately by CharityWatch at this time. CharityWatch's methodology is not designed to measure how efficiently one legal entity of a charity grants funds to one of its related organizations. For this reason, we do not believe it is fair to publish a Program % for CASE alongside those of other charities that primarily make grants to other, independent charities. For this reason, CharityWatch has assigned CASE a "NR" (Not Ratable) rating for fiscal 2024. According to CASE's fiscal 2024 audited financial statements, Note 13, Related Parties, Grants to Affiliated Organizations): "The Center [together with its affiliate ACLJ Action, Inc.] paid grants to an affiliated organization, the American Center for Law and Justice, Inc. (ACLJ–National) during the years ended December 31, 2024 and 2023. As of December 31, 2024 and 2023, the payments related to these grants totaled $25,245,412 and $23,758,678, respectively. Grants to ACLJ-National are allocated to legal services and supporting services based upon information provided to the Center by ACLJ-National. As of December 31, 2024 and 2023, there were no amounts due to ACLJ-National. In addition, reimbursed expenses of $1,264,500 and $1,233,750 were incurred and paid to ACLJ-National during the years ended December 31, 2024 and 2023, respectively." ACLJ Action, Inc. is not rated separately by CharityWatch at this time. |
According to the Christian Advocates Serving Evangelism (CASE) 2024 tax filing, there is a family relationship among four of the charity's eight board members: Jay, Pam, Jordan, and Logan Sekulow. Additionally, there is a family relationship among the CFO/COO, Gary Sekulow, the President, Jay Sekulow, and the VP of Finance, Adam Sekulow. Outside of the Sekulow family, there is a family relationship between Jason and Aaron Lynch, both reported as a "highest compensated employee;" a father/son relationship between Jerry and Jeremiah Johnston, both reported as Directors; a husband/wife relationship between Ben and Robyn Archuleta, both reported as a "highest compensated employee;" and a husband/wife relationship between Joe and Carolyn Davis, both reported as Past Directors (See IRS Form 990 Part VII, Section A & Schedule O re: Part VI, Section A, line 2.)
GOVERNANCE CONCERNS:
Christian Advocates Serving Evangelism (the Center) responded "Yes" on its IRS Form 990 filing to the questions in Part VI, Section B asking if it has a written conflict of interest policy and regularly and consistently monitors and enforces compliance with that policy. However, a conflict of interest policy would have limited effect and be difficult for the Center to properly enforce given: (1) the existing Sekulow family relationships among board members and officers, as described above; and (2) its existing related party transactions, as described in separate Analysts' Notes, below.
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According to the Christian Advocates Serving Evangelism (CASE) consolidated audit of December 31, 2024 (Note 13, Related Parties, Contributions and Other Services): "During 2024 and 2023, payments related to radio and TV media agency fees with PFMS of Georgia, Inc.
(PFMS) totaled $1,532,001 and $1,459,049, respectively. The spouse of the Chief Financial Officer of the
Center owns PFMS. PFMS has been providing radio and TV media agency services to the Center since
2000. Effective January 1, 2021, the Center entered into an agreement whereby PFMS would continue
to perform these services through December 31, 2023. The Center and PFMS did not formally extend
the contract until 2025...but PFMS still performed the similar services during the year ended
December 31, 2024, as those that were provided in previous years. The president of the Center owns Regency Productions, Inc. (Regency). Regency has been providing
media production services to the Center since 2000. During 2024 and 2023, payments related to a
Master Production and Movie Contracts with Regency totaled $2,384,217 and $2,355,668, respectively.
As of December 31, 2024 and 2023, there were no amounts due to Regency for media production
services. Effective January 1, 2023, the Center entered into an updated agreement whereby Regency
would continue to perform these services through December 31, 2025. Future commitments related to
this agreement total $2,102,100 for the year ended December 31, 2025."
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According to the Christian Advocates Serving Evangelism (CASE) consolidated audit of December 31, 2024 (Note 13, Related Parties, Other Compensation): "As of December 31, 2024 and 2023, the Chief Financial Officer’s son is the Director of Services and Vice
President of Finance and received approximately $519,000 and $434,000 in compensation, respectively.
In addition, a wife of a Board Member is the Event Coordinator and received compensation of
approximately $36,000 for the years ended December 31, 2024 and 2023. During the years ended
December 31, 2024 and 2023, the sister-in-law of a board member is the Chief Administrative Officer
and received approximately $185,000 and $186,000 in compensation, respectively. Also during the years
ended December 31, 2024 and 2023, the brother-in-law of a board member was the Senior Support
Manager for Headquarters and received approximately $147,000 and $141,000 in compensation,
respectively. Insurance, personal travel related expenses, and other non-cash compensation were incurred for the
years ended December 31, 2024 and 2023, and have been included as other compensation [in 2024] as follows:..." President/Chief Counsel at $16,991 in total; Chief Financial Officer at $51,268 in total; Vice President of Finance at $27,923 in total; and Board members - sons of President at $105,054 in total. The cumulative total of this "other compensation" in 2024 is $201,236.
According to the Christian Advocates Serving Evangelism (CASE) consolidated audit of December 31, 2024 (Note 13, Related Parties, Other): "Employer paid long-term care insurance has been paid as follows..." for the fiscal year ended December 31, 2024: President/Chief Counsel at $11,289 and Board member - Wife of the President at $11,357, for a cumulative total of $22,646 in 2024 |
