Anybody heard about individual congregations being charities in their own right as opposed to WTBTS. So if anyone tries to sue they could only sue the charity they subscribe to and not the Society itself?
I saw something on Channel C forum.
charitable status
by moneypenny 5 Replies latest jw friends
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JEMIMAH
This is correct, however I am sure it only applies to the UK
Jem
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Amazing
Hi MoneyPenny: I worked with a person who challenged the Watch Tower Society's attempt to gain recognition as a Charity in the UK. One of the reasons for having charitable status is that funds can be moved quickly, easily, and not bear tax burdens as they are moved internationally.
As far as the WTS distancing itself from prosecution in the USA, these changes are not going to help. Each Congregation, in most cases for decades, has already been registered in the USA as Non-Profit organizations or Corporations. So any protections afforded by such corporate status has already been there. But ...
In more recent case law, and legislated law, Corporate and Charitable organizations can be penetrated to go after the officers. And, I believe that now extends to penetrate holding corporations.
Also, in the USA, since the late 1960s and early 1970s, we have had what are called R.I.C.O. laws. These are Federal Statutes, which permit the Federal Government to go after organized crime. The original purpose was to allow Federal Authorities to make connections between a Crime Boss (such as a Mafia Boss) and some separate entity, like a corporation. Most often, there is no available documentation to make such connection, and it all has to turn on oral admission by informants or taped surveillance.
Interestingly, the RICO laws were expanded recently under case law to go after law firms, and even local government agencies, such as a city or county.
I spent considerable time with an attorney in Illinois regarding application of RICO laws to the Society over the molestation complaints. He said that is was possible to use these, but there are other laws that make it easier to file complaints against the Society.
I asked if the Corporate changes the WTS made where the Governing Body are no longer holding corporate positions, or other structural changes to expand various and new Watch Tower corporations would shield their assets.
He said that as long as any connection can be made that they govern the organization and its affiliate congregations, such as the hierarchical arrangement the Catholic Church has, then their assets are open game for any Plaintiff. If they think they can hide assets through various organizational structures, they are sadly mistaken.
However, one of the ways that the Society can hide liquid cash assets are to move the funds quickly off-shore. And the charitable status makes it easier to accomplish this.
A case in point are how the Terrorists Networks use Charities to move money freely, untaxed, from the USA to other countries. This is why the USA Administration is getting a coalition of nations to seize such assets, and stop Terrorists from moving liquid cash.
What I would watch is where the WTS sets of charitable organizations, and where they move their money. I would be far more concerned about this than whether they might shield themselves from major civil suits. My opinion, based on what the attorney told me, is that the Society knows that they cannot head off such lawsuits, but they can move cash assets quick, and make it appear that they are starved for funds.
However, they still have a major problem in that they hold large amounts of real property, equipment, and solid assets. This cannot be moved, and so the Society is very vulnerable to loss of these assets. And since the Society is named as beneficiary on most Kingdom Hall Deeds of Trust, then if a local congregation is sued and the WTS is named as co-defendant, then local Kingdom Halls are vulnerable.
If any or several of these lawsuits are lost by the Society, and the Plaintiffs received large monetary awards, such as would be the case with Punitive damages, then the Courts can issue Citations for Discovery where they can penetrate any and all assets, be it real property, equipment, inventory, supplies, socks, bonds, and cash in the bank, and even debts owed to the Society.
So, even if the WTS gets by with moving funds to another country, seizing large scale solid assets would cripple them for years. And if the Judgment is recognized by another country, then possible liquid assets could be seized before the Society could move them ... when several countries work together, the banking institutions get nervous and tend to cooperate with seizures.
The WTS needs to be very nervous right now. While they can afford the best of legal representation ... if they cannot settle these suit out-of-court, and if they lose one case after another ... it will be just a matter of time until they are brought to their knees.
The problem is that the WTS waited too long to rectify matters at the local level ... and there are too many victims, and too many attorneys willing to take these cases on contingency ... so, stay tuned.
In some ways, I am glad that the NBC Dateline show has not aired ... this gives plenty of opportunity for some of these cases to be fought in the courts and hopefully won. With the WTS having a losing track record in court, then the Dateline show would make much more sense. And no one could claim that the juries were biased due to news releases like Dateline.
I think is it very wise for ex-JWs to watch how the Society is changing its operations, and then get these observations to the attorney's representing Plaintiffs so that they can better develop their strategies in getting access to the WTS assets.
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moneypenny
Thanks Amazing...another of many questions I have is who is beneficiary of KH deeds? you answered that for me thanks.
I have often wondered how these local congregations raise the cash to build etc. The organisation must be worth a packet in real estate alone.
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ISP
As far as attacking the WTS' charitable status in the US..I think there is little chance.
A white racist church was allowed to have charitable status.
* http://www.jehovahs-witness.com/forum/thread.asp?id=16647&site=3#202605ISP
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Amazing
In many states there is a distinction drawn between non-profit status and charitible atatus. A non-profit, in order to enjoy a IRC 501(c)(3) status must meet certain guidelines. They do not have to be charitible or religious. Religions pretty much have carte blanc when it comes to tax codes. ISP is correct in stating that it is generally pointless to attack the WTS as a charity, since they also enjoy the status as a religious corporation.
Whether they are a religious non-profit and/or charity will not exempt them from seizure of assets were they to lose a big civil suit.
Mind: In the olden days, when I was a JW, the Kingdom Hall deeds were owned totally by the local congregation as a non-profit religious association or corporation (depending on how they registered with their respective states.) Then, after the JWs in Bonham, Texas lost their Kingdom Hall to the majority of the congregation who left the Society, the WTS instituted new rules. I was not certain about this until recently when someone posted that the Kingdom Hall deed stipulates the WTS as Beneficiary in the event of the demise of the Congregation. They way, the Society does not show up as owning the Kingdom Hall as an asset.
But, since the local congregation can be sued, the Hall becomes vulnerable to seizure in the event the judgment is against the congregation.
If the Society loses a major suit, then any outstanding mortgages they hold on Kingdom Halls are seen as an asset to be seized ... and the mortgage would be assigned to the benefit of whoever won the judgment ... it could mean any number of subsequent actions by the prevailing party ... foreclosure on the Kingdom Hall and sale to satsfy the judgment, or collection of mortgage payments being awarded to the prevailing party, or assignment to a lending institution where the prevailing party would be paid off and the Congregation would now owe the bank, or the Society might have to pay the judgment to get the local Hall back into clear title, or other remedies.
But one thing is certain ... the Society nor the local Halls can escape. They can call themselves a charity, move liquid captial around ... but the expensive solid assets, like real property, must stay and stick out like a sore thumb.