World Magazine just published an in depth report on some of the circumstances that have led to Teen Mania’s foreclosure. The entire article is fascinating and covers both things mentioned here as well as some new facts.
One item that was news to me: for the past two years, Ron Luce has used the Dallas marathon to raise money for Teen Mania – but instead of helping teens, he used much of the proceeds for vanity projects like a new coffee shop.
Saunier, Teen Mania’s development director in 2011 and 2012, says she
would solicit donations for specific projects, but “was never
comfortable that we were doing the right things with those funds.” She
raised her concerns to superiors and nothing changed. Luce ran in a
December 2012 marathon “to raise awareness and support for reaching
America’s 26 million teens with the gospel of Christ.” The effort
generated about $250,000 in donations, but within months Luce spent
$68,000 on campus carpeting projects, $45,000 to install a coffee shop,
and $25,000 to build the new conference room. At least one employee
resigned in protest.
How could such financial mismanagement go on for so many years? Because Ron Luce rules Teen Mania with an iron grip and will not listen to outside counsel.
For example, on March 15, 2012, Ron and Katie Luce met with board
members Daniel Williams and Paul Nelson, CFO Jonathan Hasz, and vice
president of operations David Hasz, to discuss concerns and the
organizational audit that Teen Mania received in January. Within six
months, the Luces were the only ones standing: Williams, Nelson, Tom
Muccio (another top board member), and the Hasz brothers all were gone.
According to the Teen Mania bylaws, also obtained by WORLD, Luce
can only be removed by a unanimous vote—a virtual impossibility since
Katie Luce sits on the eight-member board. The audit recommended
removing or revising Ron Luce’s almost unlimited presidential powers and
replacing Katie Luce as a voting board member, but neither happened.
Read the whole thing here. (May require registration for a free trial in order to access.)