Tulsa World: ORU will separate legally, financially from ORM

MAKE US YOUR HOMEPAGE | Saturday, November 21, 2009 | WIRELESS

Home > News > Article

Comment

RSS

Bookmark

ORU will separate legally, financially from ORM

By ZIVA BRANSTETTER World Projects Editor
Published: 11/28/2007 1:47 PM
Last Modified: 11/28/2007 1:47 PM

For more: Read the latest ORU stories, view the lawsuit and other documents and watch slide shows and video.

The Roberts family will no longer have a say in the school's business operations.

Oral Roberts University will separate legally and financially from the ministry that created it, and the university's founding family will have no role in the school's future business affairs, ORU regents announced Wednesday.

Meanwhile, at the conclusion of a two-day, closed-door meeting, the regents refused to release the findings from an outside investigation of the school's finances but said reforms stemming from the investigation are in the works.

"By unanimous decision of the board, it was decided that the university will take every step necessary to separate ORU and the Oral Roberts Evangelistic Association as a legal, financial, accounting and governance matter," said George Pearsons, the regents' chairman.

"However, the spiritual connection between the two organizations will remain."

Richard Roberts, who resigned Friday as ORU's president, will remain the CEO of the evangelistic association, Pearsons said.

Roberts' wife, Lindsay Roberts, resigned as a spiritual regent of ORU about one month ago, Pearsons said.

"She just felt

like in the best interest of the university, it would be best for her to step aside," he said.

Richard Roberts and Oral Roberts remain as the only "lifetime spiritual regents" on ORU's board but will not have a vote in any business matters, Pearsons said.

The board accepted Richard Roberts' resignation, and Billy Joe Daugherty, the pastor of Victory Christian Center, will remain the school's acting president during a search for a new president, which could take months, Pearsons said.

"The board wishes Richard the very best, and we thank him for his 15 years of service to the university," he said.

External investigation: The regents met with the ORU faculty earlier Tuesday. Three former professors claim in an Oct. 2 lawsuit that they were forced from their jobs after they brought allegations of financial excesses by the Roberts family to the regents' attention.

Those allegations include assertions that the family's personal expenses were charged to the ministry or university. The alleged charges include a $29,000 senior trip to the Bahamas for a daughter of Richard and Lindsay Roberts and $39,000 worth of clothing for Lindsay Roberts.

Richard Roberts has said his family has always reimbursed the university or ministry for any personal expenses.

The lawsuit's allegations led the regents to ask a a Washington law firm, Miller & Chevalier, to review the school's finances.

The regents received the firm's report during their two-day meeting, which ended Tuesday. The findings of the investigation were not made public.

Pearsons said that because of the litigation, "we are not able to go into details . . ., but I must say all of the recommendations that were given to us, the board was extremely attentive to every one of them."

When asked whether the investigation found that money had been misspent, Pearsons said: "That I can't get into with you specifically, but there are a lot of things that are being corrected and we are looking at right now."

Roberts family homes: Richard Roberts and his family will be allowed to live in a university-owned home "for the time being," Pearsons said.

Property records show that ORU owns nine single-family residential properties north of the campus, together valued at $4,173,400.

The properties range in value from a $193,000 house, built in 1965 and encompassing 2,831 square feet, to Richard Roberts' $1.436 million home, records show.

That home, a 6,782-square-foot house with four fireplaces and five full baths, was built in 1986.

Roberts' home and one valued at $246,800 have been granted exemptions from Tulsa County property taxes under a state provision granted to private schools. It is unclear whether that exemption would continue if Roberts no longer holds an ORU title.

Missing regents: All but three of the school's 24 voting board members attended the meeting. Pearsons would not say which regents were absent.

Three regents -- the evangelists Benny Hinn, Creflo Dollar and Kenneth Copeland -- are under investigation by the U.S. Senate's Finance Committee.

The three were not present at a press conference Tuesday in in ORU's chapel. Most of the other regents were.

Before the press conference, regents met with students, who could be heard cheering loudly behind the chapel's closed doors.

Splitting up: Separating ORU and the evangelical association "was actually an agreement many years ago with the IRS and over time they have blended together," Pearsons said.

Although the two are separate nonprofit entities, 14 of the 15 key officers and trustees of the evangelical association are also listed as key officers and trustees of ORU.

The ministry spent most of its $12 million in revenue last fiscal year on its weekly television shows, direct mail and other outreach efforts.

Separating the two won't be simple, Pearsons said.

"There's a lot of overlap that takes place, and so we just have to sit down, go through that and make sure the proper separation is there," he said.

Oral Roberts: Pearsons said Richard Roberts and Oral Roberts would no longer be involved in the university's business decisions.

Oral Roberts, as the school's chancellor, "is still working very closely with Billy Joe Daugherty on the day-to-day activities at the university and will continue to do so until such time as the new president is installed," Pearsons said.

"As spiritual regents, they do not have a vote on the board, and any decisions that are made by this board are by a vote," he said.

The chairman said Richard Roberts and Oral Roberts understand the need for the changes.

"They are very willing to do whatever it takes to comply with the IRS and whatever the board deems necessary for us to be financially stable," he said.

Ziva Branstetter 581-8378
ziva.branstetter@tulsaworld.com

By ZIVA BRANSTETTER World Projects Editor

Comment

RSS

Bookmark

Reader Comments

Show: Most Recent Comment First

Add your comment

37 comments have been made on this story so far. Tell us what you think below!

Reporting Comments

If you see a comment that violates our terms and conditions, please help us by clicking the "Report this Comment" link next to a comment. That will alert the web staff to review the comment. Thank you. -- Web Editor Jason Collington

	Report Comment qqq, (11/28/2007 2:09:07 PM) I think it would be better to refer to OREA, not ORM. ORM is a Tradename, not a business entity.
	Report Comment qqq, (11/28/2007 2:10:54 PM) And Ziva, have you asked ORU and OREA for their Bylaws and Articles of Incorporation which should have been attachments to their Form 1023, and therefore public information?
	Report Comment qqq, (11/28/2007 2:14:42 PM) What they are saying about separation of OREA and ORU is suspiciously close to the current state of affairs. This is one place where they describe the current state of affairs: . "The Board of Regents has sole and complete authority over all of the business, secular, corporeal, commercial, financial, pecuniary, fiscal, and other non-spiritual affairs of the Corporation." . That key word, "non-spiritual", seems to have covered up a hole big enough to drive this whole mess through, namely that the "Lifetime Spiritual Regents" could veto ANY action of the BOR, and could only be overridden by a 90% vote of the Regents. This is based on what Dr. Don Vance said on KFAQ a few days ago reporting what the tenured faculty were told by Oral at their meeting early last week. . So what is going to be different now? . If the key word is TRUST, the BOR must freely make available the current Bylaws and Articles of Incorporation of ORU. As I understand the law, this is required by the IRS anyway for 501(C)(3) non-profits, so it should not be a hardship. The BOR must then indicate how these have been changed to cause a separation of ORU and OREA. . A separate item, of course, is the reduction in the large number of common members on the OREA Board and the ORU BOR. . I understand that many want assurances that ORU will not drift in a secular direction. I am only asking that the BOR make completely clear to everyone what they are doing at this juncture to separate OREA and ORU that is different from the past. What George Pearsons says is, "However, the spiritual connection between the two organizations will remain." What EXACTLY is that connection. If the BOR wants TRUST, vague words are not sufficient.
	Report Comment Gail, Tulsa, Ok (11/28/2007 3:21:12 PM) Indeed, vague words are not sufficient. It needs clarification. --------------- Ziva, please press for the Bylaws and other governing policies.
	Report Comment Lizzy, Jenks (11/28/2007 3:22:05 PM) qqq - The difference now is that Mart Green has requested 2 seats on the BoR for 2 Green family members. He is requiring accountability for his generous donation. This is information was on either KOTV or KTUL TV news.
	Report Comment Elizabeth Conley, Norfolk (11/28/2007 3:22:16 PM) This seems like wonderful news to me. Frankly, it exceeds all my prayers for ORU. I guess that means God was listening to the prayers of students, faculty and parents, who really deserve this break. Because Richard and Oral remain as lifetime spiritual regents, yet do not vote on business matters or have veto power on these issues, I conclude they retain reasonable power to direct the University in all other aspects. This is appropriate, given the School's Charismatic Pentecostal values. To me, this is a matter of religious freedom. Let's not demonize the Roberts' family. Remember all the good they have done, and that they and their flock should not be bullied into change in matters of faith.
	Report Comment DJ Clay, tulsa (12/1/2007 1:37:20 PM) ORU is a great school, I met some great people and my beautiful wife their. I completely agree the LR & RR are completely disengaged with reality...Once Lindsey & Richard are replaced the SCHOOL WILL ONCE AGAIN RISE TO PROMINENCE, because it will be honoring God...I feel so strongly about this that I put together another Parody Song about the latest RICHARD debacle and ORU'S impending return to prominence. You can find it by googling ORU Slim Shady. - DJ Clay 1/2 of the "Original" ORU SLIM SHADY.
	Report Comment Bill, ORU Graduate and Lawyer, Brownwood (11/28/2007 11:17:58 PM) As to the audit, keep in mind, the auditors were hired by RR/ORU. Consequenlty, even though, they are suppose to be "independent", it is usually not the case; especially, if these auditors are associated with K Copeland. Also, look at the auditors for Enron...what a joke.
	Report Comment The Devil, (11/29/2007 1:36:25 AM) I like it when foxes watch the henhouses. Like an evangelical right winger like Grassley investigates more rightwing republicans.
	Report Comment Elizabebth Conley, Noroflk (11/29/2007 5:43:34 AM) 27. 11/28/2007 9:00:48 PM, Fifty Dollar Fine "WTF are you..." That's what I'm talking about. Get a grip, or not! It's totally up to you. But seriously, do you really think this is healthy? I'm betting you have people who care about you who have told you it's not. Listen once in a while. It's not as painful as you fear.
	Report Comment Cecil, Tulsa (11/29/2007 12:18:50 PM) Examine the allegations in the amended plaintiff's petition. Seems majority of the allegations should have initially required the Board of Regions appoval at the time of the events. Seems like the BOR were not fullfilling their lawful obligations. Now they are seeking to coverup their actions. I do not think the name should be changed. Oral Roberts did establish the institution and committed his life to the facility.
	Report Comment Fifty Dollar Fine, (11/29/2007 9:52:35 PM) #33 Elizabeth Know it all - "That's what I'm talking about. Get a grip, or not! It's totally up to you. But seriously, do you really think this is healthy? I'm betting you have people who care about you who have told you it's not. Listen once in a while. It's not as painful as you fear." . In your haste to lecture me on things you know nothing about, you forgot to answer the question, Elizabeth Conley. . What in blazes are you talking about, except to play know-it-all on the internet. . Get real.
	Report Comment Light-7, (11/30/2007 2:20:37 AM) When alumni and friends are assured their gifts will go to oru, the money will come in.
	Report Comment Bill, ORU Graduate and Lawyer, Brownwood (11/28/2007 6:22:14 PM) Everything I have wanted seems to be happening. And, I expect that getting rid of the TV Evangelist Group will be forthcoming. I am still waiting on a post indicating how much they were giving ORU. I hope they prove me wrong, but I doubt they were giving much, but only disgraced the school.
	Report Comment Elizabeth Conley, Norfolk (11/28/2007 8:14:12 PM) It's fascinating to note that interest in this story has dropped off so sharply with this news. Why? Theories anyone?
	Report Comment Fifty Dollar Fine, (11/28/2007 9:00:48 PM) #16 Elizabeth Conley - "Exactly what would satisfy you 50$ Fine. After all, this is all about you. What's it gonna be, who you wanna lynch? I'm standing by with my torch and pitchfork. Who's it gonna be? Why? Err, never mind why. Just who. sheesh gal! You've got a lot of hostility and " . WTF are you talking about, NOW? . Do you even know?
	Report Comment Fifty Dollar Fine, (11/28/2007 9:02:09 PM) 11 Oru 92 - "I don't care if they get 5 seats on the BOR, things needed to change and fast! this is answer to prayer." . That is precisely the mentality that will keep ORU exactly what it is into perpetuity...a freakshow personality cult populated by automatons.
	Report Comment Still Want To Hang RR?, (11/28/2007 9:03:58 PM) 60. 11/28/2007 8:47:09 PM, MO ALUM's writings are usually accurate, 351. 11/28/2007 7:54:20 PM, MO Alum, Rumor from the campus today. The audit said most of the allegations of misspending were petty. Basically the Roberts lived like people who made the 600k a year they reported and committed the sins of combining business trips with vacations and taking advantage of the tax code. Don't know it thats true but if it is the prof's should settle soon and move on with their lives. It would be interesting if after all of this RR wasn't guilty of anything other than poor management. - Remember, the salary stated includes all benefits.
	Report Comment dtaylor, (11/28/2007 9:58:31 PM) tell you what, mr green could give lessons to a number of the board members. green doesnt look to be intimidated by any of this to me at all. why would he be? i am sure he has been through much more than what he is facing. his family will turn oru into a money making venture. carrying on the vision. his focus is on the students and order. i dont know what more one would want. and he came to oru. and he brought finances, order, wisdom, security, care and understanding and vision. he is a businessman, called of god as he said. who knows who will be the pick for prez, no way of knowing long term. jmo
	Report Comment Elizabeth Conley, Norfolk (11/28/2007 4:13:54 PM) "I heard the SRs have no vote on the BOR (that has been true up to now), but I didn't hear no veto. As long as the Bylaws, etc. are a mystery no one on the outside of the inner circle will really know. Also, the boundary between matters of business and matters of spirituality is ambiguous, at best. If Oral were to declare something a "Spiritual" matter, who would contradict him? Often "Spiritual" matters require money too. We would be only one "talk with God" away from a return of financial problems. How would this be resolved???" "but will not have a vote in any business matters, Pearsons said. " "Pearsons said Richard Roberts and Oral Roberts would no longer be involved in the university's business decisions. Oral Roberts, as the school's chancellor, "is still working very closely with Billy Joe Daugherty on the day-to-day activities at the university and will continue to do so until such time as the new president is installed," Pearsons said. "As spiritual regents, they do not have a vote on the board, and any decisions that are made by this board are by a vote," he said. " We aren't going to get the minutes to this board's meetings this week. Perhaps in the future. The Tulsa World Reporters don't always ask the questions I want answered either. It would be good to hear the words "no veto power" and "minutes and bylaws posted", but that's going to take a while. Change is hard. Let's not rush these folks. There's a good chance they'll get there.
	Report Comment Gail, Tulsa, Ok (11/28/2007 4:17:29 PM) qqq: I agree totally that the ORM is a blanket term for all of the OREA. It is going to be very difficult to separate all of the aspects of these organizations. ----------------- As I have said before, ones BELIEFS are very difficult to over come. How can you overcome someone saying GOD TOLD ME? -------------- I listened to the uncensored conference and I hope the Green's are not only business savvy, but wise to how people with the behavioral history the Roberts exhibit will attempt to hid their sins. ------------ I will arrive in Tulsa this weekend and hope to discover more info.
	Report Comment qqq, (11/28/2007 4:22:54 PM) I'm delighted Mart wants his family on the board. He'd be more of a fool than I have any sense he is, if he didn't want to "watch his investment". Many on the BOR are there, I think, because they want to make themselves look good. I think he will be there to make ORU look good. He has what in business is called "skin in the game", $70 million dollars worth. Once all the many thanks move on, ORU can only make him look bad. He'd be a laughingstock in his own business world if he poured that much money down a rat-hole. He sounds like just the kind of person ORU needs more of. He seems very genuine. Also, he can see the business aspects that are such necessary superstructure underneath to keep the place vibrant. I am very hopeful, but I want to see what he is able to do. All his words and body language speak of MAJOR changes, including the removal of many folks who where sitting at the press conference in front of him. At the moment, he wields a big club, but there is much more reform that needs to take place.
	Report Comment qqq, (11/28/2007 4:33:39 PM) Gail, "Oral Roberts Ministries" is a "Tradename" registered with the OK Secretary of State's office. . "Oral Roberts University" and "Oral Roberts Evangelistic Association", with and without various suffixes, and many other names, like Traco Advertising, Maybee Center, Tower Realty, University Village, August Promotions, Golden Eagle Communications, March Development, ORM Services, ORM Development Center, and several others are various for-profit and not-for-profit businesses. . Anything but simple.
	Report Comment Does Mart Green have a college degree?, (11/28/2007 4:55:50 PM) If he started his book sellling business at age 19, didn't he go to college?? If he didn't, some of you need to quit picking on the Regents.
	Report Comment ANOTHER DUPLICATE ARTICLE, (11/28/2007 4:59:48 PM) Again, another repeat of the same article. What a waste of paper.

25 of 37 comments displayed. | View All

Add Your Comment
In order to post a comment on this article, you must sign in to Tulsaworld.com. If you do not have a site account, you can create an account for free.