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Living Stream Ministry

Rating
Sector:

Publishing

Total
Revenue:

$17,622,000

Total
Expenses:

$9,847,000

Net
Assets:

$59,116,000

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Profile Contents

Research Analysis
Financial Information

Ministry Pie Chart

Database Avg This Ministry
Program 82% 42.8%
General & Admin 12.6% 23.2%
Fundraising 6.2% 0%
Savings -.9% 44.1%


Ministry Pie Chart

Ministry Pie Chart

Age Size Box:

>50
Yr(s)25-50
<25
<$1m$1m-
$5m
>$5m

Summary

The Living Stream Ministry publishes the works of Watchman Nee and Witness Lee, providing the authoritative and definitive collections of treasures from these two servants of the Lord Jesus Christ. The writings of Watchman Nee and Witness Lee focus on the enjoyment of the divine life, which all the believers possess, and on the building up of the church, the goal of God's work with man in this age.

Contact Information: [ Back to top ]

Mailing Address:P.O. Box 2121 2431 W. LA Palma Avenue (92801)
Anaheim, CA
92814-0121
Website: www.LSM.org
Phone:(714) 236-6001
Email:You need to enable javascript to see the email

Organization Details [ Back to top ]

EIN: 237031637
CEO/President: Mr. Benson Phillips Tax Deductible: Yes
Chairman: Fiscal Year End: December 31
Board Size: 9 Financial info from: 990
Founder: Member of ECFA: No
Year Founded: Member of ECFA since:

Purpose [ Back to top ]

Living Stream Ministry publishes the works of Watchman Nee and Witness Lee, providing the authoritative and definitive collections of treasures from these two servants of the Lord Jesus Christ. The writings of Watchman Nee and Witness Lee focus on the enjoyment of the divine life, which all the believers possess, and on the building up of the church, the goal of God's work with man in this age.

Mission Statement [ Back to top ]

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Program Accomplishments [ Back to top ]

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Statement of Faith [ Back to top ]

Living Stream uses the following to express its Statement of Faith:

Holding the Bible as the complete and only divine revelation, we strongly believe that God is eternally one and also eternally the Father, the Son, and the Spirit, the three being distinct but not separate. We hold that Christ is both the complete God and the perfect man. Without abandoning His divinity, He was conceived in the womb of a human virgin, lived a genuine human life on earth, and died a vicarious and all-inclusive death on the cross. After three days He resurrected bodily and has ascended to the heavens. He is now in glory, fully God but still fully man. We look to His imminent return with the kingdom of God, by which He will reign over the earth in the millennium and in eternity. We confess that the third of the Trinity, the Spirit, is equally God. All that the Father has and is, is expressed by the Son; and all that the Son has and is, is realized as the Spirit. We further believe that mankind is in need of God's salvation. Though we were absolutely unable to fulfill the heavy demands of God's righteousness, holiness, and glory, Christ fulfilled all the requirements through His death on the cross. Because of Christ's death, God has forgiven us of our sins, reconciled us to Himself, and justified us by making Christ our righteousness. Based on Christ's redemption, God regenerates the redeemed with His Spirit to consummate His salvation, that they may become His children. Now possessing God's life and nature, the believers enjoy a daily salvation in His Body in this age and the eternal salvation in the coming age and in eternity. In eternity we will dwell with God in the New Jerusalem, the consummation of God's salvation of His elect.

History [ Back to top ]

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Ministry Needs [ Back to top ]

This organization has not offered MinistryWatch.com with specific needs to be posted on the profile. At such a time that MinistryWatch.com receives a response from the ministry, it will be posted immediately.

Research Analysis

Transparency Grade [ Back to top ]

Transparency Grade of : B
Criteria categoryGradeOther Comments
Timeliness:90
Financial Information:80
Foundational Clarity:
Level of Cooperation:
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MinistryWatch.com 5 Star Financial Efficiency Ratings [ Back to top ]

Ranking CategoryRatingOverall RankPublishing Sector
Overall Efficiency RatingStarStarStar231 of 353    4 of 9
Fund Acquisition DecisionStarStarStarStar85 of 353      1 of 9
Resource Allocation DecisionStarStarStar234 of 353      5 of 9
Asset Utilization DecisionStarStar315 of 353      9 of 9
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Supporters Might Say
  • LSM helps Christians reach a deeper level of spirituality.
  • Watchman Nee’s testimony of ministry and martyrdom is an inspiration to millions.
  • Watchman Nee and Witness Lee have been instrumental in the growth of the church in China and the South Pacific region.
  • LSM’s free online publications make the books available for everyone.
  • LSM is helping to unify the church.
  • LSM believes that the Bible, not tradition, should shape our doctrine.

Critics Might Say
  • LSM’s views on many doctrinal issues are novel and extreme.
  • LSM’s harshest critics believe that the Local Church is a cult.
  • Watchman Nee and Witness Lee fostered a dangerous guru mentality, in which they were held to be sources, not just expositors of, revelation.
  • LSM’s publications have provided grist for cult groups such as The Way and the Children of God.
  • Neither Watchman Nee nor Witness Lee had any formal theological training.
  • LSM and the Local Church have confiscated and withheld information on their organization and have threatened and sued other Christians for trying to expose their teachings to the public. This type of activity is more in keeping with a Communistic “Ministry of Information” than a genuinely Christian church.
  • LSM claims that Watchman Nee studied the Bible using 20 different methods. One wonders if this kind of hermeneutical menagerie could produce anything but confusion.

Worldview Considerations
  • LSM’s statement of faith is constructed along broadly Christian lines, but includes statements, which imply modalism and deification.
  • LSM seems to at times exhibit a disregard for orthodoxy.
  • LSM emphasizes the mystical at the expense of the rational. (Note: The two are not mutually exclusive. Many aspects of the Christian faith are mysterious, but this does not entail that they are irrational).
  • LSM believes that the Son is the Holy Spirit and the Father.
  • LSM believes that Christ is both the Head of the Body (the church) and that he is the Body.
  • LSM implies that following the way of life involves forsaking the path of knowledge. But it is not clear why the two must be incompatible.
  • Watchman Nee held to the partial rapture theory, in which only righteous believers are taken up with Christ while others are left to endure the Great Tribulation.

Analyst Comments [ Back to top ]

MinistryWatch.com’s Take
August 2003
By Andy Preslar



The Revelations of Watchman Nee
Living Stream Ministry (LSM) is the publishing arm of what is commonly called the “Local Church” (also known as Church of Recovery, The Lord’s Recovery), and exists in order to propagate the unique teachings of Watchman Nee and Witness Lee. LSM accomplishes this mission by means of publishing books by Watchman Nee and Witness Lee, publishing its own version of the Bible, the Recovery Version (complete with extensive footnotes authored by Witness Lee), publishing journals and magazines, providing online publications which can be read free of charge, offering daily devotionals via email, and by producing a daily radio program.

Watchman Nee was a prolific author and spiritual “guru” who planted hundreds of churches in China before he was arrested in 1952 by the Communist government of China. Witness Lee was the founder of the Local Church and a disciple of Watchman Nee. He was entrusted with the latter’s publishing operation in Taiwan, and continued in the work of church planting. Witness Lee moved to the U. S. in 1962, where he continued to minister until his death in 1997. The Local Church, which is often referred to by insiders as the Lord’s Recovery, is a worldwide movement of local churches united by their adherence to the teachings of Watchman Nee and Witness Lee, their rejection of denominations, and by a common source of doctrinal and devotional publications, namely, LSM. There are currently over 2,300 Local Church congregations worldwide.

LSM believes that Watchman Nee received unique revelations from God concerning doctrine and the church. The organization also believes that Witness Lee, through his speaking and writings, faithfully perpetuated the message of divine revelation committed to Watchman Nee. It should be noted that, although LSM repeatedly refers to the “revelations” received by Watchman Nee, the ministry’s doctrinal statement clearly affirms, “The Bible is the complete and only divine revelation.” It is uncertain whether the ministry can resolve this seeming conflict. Watchman Nee’s revelations seem to be more than just special insights into the meaning of Scripture (although Witness Lee certainly claims that the Local Church possesses such unique insight). Rather, Watchman Nee supposedly received revelations by way of mystical experiences and visions. These “revelations” appear to form much of the basis for the teachings of Witness Lee and the Local Church.

A “Pure System of Publications”
LSM does not see itself as just another publishing ministry. In their own words: “We have a pure system of publications which comprise all the main things of the divine, spiritual, and heavenly things” (“The Practice of the Lord’s Recovery”, Elders’ Training Book #4 [LSM: 1985], 15). LSM believes that making the works of Watchman Nee and Witness Lee available to the church is an invaluable service precisely because they are convinced that these two men were chosen instruments of God for initiating the “recovery” of the church. For this reason, their writings (hence, LSM’s publications) are supposed to carry a unique weight of authority. The various publication and teaching ministries of LSM are as follows:

  • Bible Version: LSM publishes the official Bible translation of the Local Church, the Recovery Version. The Recovery Version was conceived by Witness Lee, and the translation was done by a select group of Local Church members. Witness Lee’s extensive study notes accompany the Recovery Version.
  • Book Publications: LSM publishes hundreds of volumes authored by Watchman Nee and Witness Lee. Watchman Nee wrote extensively on a wide variety of theological subjects, constantly emphasizing the themes of the “crucified life,” the “resurrection life,” and the “local church.” The multiple volumes, which comprise Witness Lee’s Life Studies, compiled from his extensive messages, form a Bible commentary series which totals some 25,000 pages.
  • Journal and Magazine Publications: LSM publishes two regular periodicals and one theological journal. The Stream magazine is published quarterly and purports to “minister the intrinsic essence of the divine revelation,” stressing “organic union with God” over objective truths. Generation is a youth magazine designed by young people. Affirmation and Critique is LSM’s bi-annual theological journal, which regularly addresses doctrinal issues central to the Local Church movement from both a historical and a systematic perspective.
  • Online Publications: LSM has a plethora of publications available for reading online. This includes the Recovery Version of the Bible (with notes), the Life-works (coming soon) and individual publications of Watchman Nee, and several volumes of Witness Lee’s theological outlines, commentary, and messages. In addition, portions of LSM’s magazine and journal publications can be downloaded on-line.
  • Email Devotionals: LSM offers, free-of-charge, an email publication, called eManna, which features daily devotional reading, sent directly to subscribers’ email address.
  • Radio Program: Finally, LSM produces Life Study of the Bible with Witness Lee, a half-hour radio program which is broadcast daily in three languages on more than 100 radio stations.

An Emphasis on Unity
It is safe to say that the teachings of Watchman Nee, Witness Lee, and the Local Church have raised a few eyebrows in theological circles. The Local Church claims that the decisive turn in the ministry careers of its two distinguished leaders occurred when each began to seek life instead of knowledge. This mystical “turn” away from knowledge and objective truth did not prevent either of these men from commenting extensively on theological matters. If there is a prevailing theme in their teachings, it is that of unity: unity in the persons of the Godhead, unity between man and God, and unity in the church.

The emphasis on unity in the Trinity leads Witness Lee to adopt a functional/ economic view of the persons of the Trinity, in which the Father, Son, and Holy Spirit are merely distinguished by their functions. In this view, the Son is the Father and the Spirit. This contrasts with the orthodox view of the Trinity in which it is maintained that the Son, the Father, and the Spirit are one in Being and Essence, while remaining distinct as persons. Thus there is one tri-personal God. Thus Jesus, the Son, could pray to the Father and send the Holy Spirit, activities that imply a distinction of persons. Witness Lee’s functional view of the Trinity appears to be version of modalism, an ancient heresy which states that Father, Son, and Holy Spirit are only three different modes in which God appears or functions. Witness Lee denies that his view is modalistic, but he seems to affirm modalism in his interpretation of key biblical passages.

Witness Lee and the Local Church further believe that unity of persons in the Trinity extends to man in salvation in such a way that the divine Trinity is “processed” in the spirit, soul, and body of man. This “processing” (which takes place over the course of a believer’s life and culminates in glorification) involves a “mingling” of the human and divine natures; as a result, man is actually deified (becomes God). This again contrasts with the orthodox view of salvation, in which man is ultimately beatified (not deified); that is, he becomes like God (man does not actually become God) through seeing the divine essence (I John. 3:2).

The Local Church extends the principle of unity a step further, arguing from the premises that (a) the persons of the Trinity are one, (b) God and believers are mingled into one, (c) the church is comprised of all true believers, to the conclusion that (d) the church is one, and that oneness is divine (Christ is not only the head of the church, Christ is the church). From (d), the Local Church infers that denominations should not exist, since they imply disunity. The true church will be unified as Christ is unified. This unity includes local churches, but it means that local churches must respect one another’s “grounds.” The grounds of each local church are individual cities; hence, there should only be one church per city. The Local Church maintains that such was the New Testament practice, and that in these last days the followers of Watchmen Nee and Witness Lee are “recovering” that practice. Some of the writings of Witness Lee seem to imply that the Local Church alone, since it alone has recovered the divine revelations concerning unity, is the true church.

Evaluation
No Christian should deny the fact that there is unity in the Trinity, between God and man in salvation, and in the universal Church of true believers. The Local Church’s teachings on unity, however, remind one of G. K. Chesterton’s description of a man locking himself mentally into the “clean and well-lit prison of one idea.” Watchman Nee and Witness Lee do employee reason. Unfortunately, their theological starting point is not rational. The mystical notion of unity has been allowed to take the place of logic and sound hermeneutics. The whole counsel of God is therefore interpreted in the light of a subjective “feeling.” The result seems to be that LSM and the Local Church have taken the turn away from the path of knowledge only to find themselves on the broad highway of doctrinal error.

Ministry Statement or Response [ Back to top ]

Financial Information:

Financial Ratios[ Back to top ]

Funding RatiosDatabase Average20072006200520042003
Return on FR Efforts9%0%0%0%0%0%
Fundraising Cost Ratio6%0%0%0%0%0%
Contributions Reliance83%54%41%18%0%0%
Fundraising Expense Ratio6%0%0%0%0%0%
Other Revenue Reliance17%46%59%82%0%0%
Operating RatiosDatabase Average20072006200520042003
Program Expense Ratio81%77%79%87%0%0%
Spending Ratio101%56%89%161%0%0%
Program Output Ratio82%43%70%140%0%0%
Savings Ratio-1%44%11%-61%0%0%
Reserve Accumulation Rate2%14%3%-9%0%0%
General & Admin Ratio13%23%21%13%0%0%
Investing RatiosDatabase Average20072006200520042003
Total Asset Turnover2.62x.14x.17x.2x0x0x
Degree of L-T Investment3x3.26x4.72x4.41x0x0x
Current Asset Turnover4.92x.46x.82x.87x0x0x
Age of Assets9.6yr(s)45.4yr(s)30.9yr(s)18.5yr(s)0.0yr(s)0.0yr(s)
Liquidity RatiosDatabase Average20072006200520042003
Current Ratio117.88x89.47x36.81x36.13x0x0x
Current Liabilities Ratio.32x.01x.03x.03x0x0x
Liquid Reserve Level5.67x25.64x14.17x13.39x0x0x
Solvency RatiosDatabase Average20072006200520042003
Liabilities Ratio.23x.15x.18x.23x0x0x
Debt Ratio.06x.14x.17x.23x0x0x
Reserve Coverage Ratio86%561%463%408%0%0%

Financials[ Back to top ]

Balance Sheet
Assets20072006200520042003
Cash$13,175,000$1,439,000$2,559,000$2,990,000$2,915,000
Receivables, Inventories & Prepaids$7,886,000$11,697,000$12,048,000$12,039,000$11,871,000
Short-Term Investments$214,000$135,000$131,000$147,000$130,000
Total Current Assets$21,276,000$13,272,000$14,738,000$15,177,000$14,918,000
Long-Term Investments$0$0$0$0$0
Fixed Assets$47,639,000$48,137,000$49,088,000$54,009,000$55,996,000
Other Long-Term Assets$513,000$1,207,000$1,201,000$1,310,000$1,490,000
Total Long-Term Assets$48,153,000$49,344,000$50,289,000$55,320,000$57,487,000
TOTAL ASSETS$69,429,000$62,617,000$65,028,000$70,498,000$72,406,000
Liabilities20072006200520042003
Payables & Accrued Expenses$237,000$360,000$407,000$308,000$423,000
Other Current Liabilities$0$0$0$0$0
Total Current Liabilities$237,000$360,000$407,000$308,000$423,000
Debt$9,898,000$10,798,000$14,671,000$15,360,000$17,327,000
Other Long-Term Liabilities$177,000$109,000$0$0$0
Total Long-Term Liabilities$10,075,000$10,907,000$14,671,000$15,360,000$17,327,000
TOTAL LIABILITIES$10,313,000$11,268,000$15,079,000$15,669,000$17,751,000
Assets20072006200520042003
Unrestricted$59,116,000$51,348,000$49,949,000$54,828,000$54,654,000
Temporarily Restricted$0$0$0$0$0
Permanently Restricted$0$0$0$0$0
NET ASSETS$59,116,000$51,348,000$49,949,000$54,828,000$54,654,000
Revenue and Expenses
Revenue20072006200520042003
Total Contributions$9,542,000$5,106,000$1,431,000$788,000$1,254,000
Program Service Revenue$3,338,000$3,346,000$3,490,000$3,328,000$2,993,000
Membership Dues$0$0$0$0$0
Investment Income$679,000$343,000$45,000($77,000)($476,000)
Other Revenue$4,062,000$3,536,000$2,988,000$4,196,000$3,649,000
Total Other Revenue$8,080,000$7,226,000$6,524,000$7,447,000$6,167,000
TOTAL REVENUE$17,622,000$12,332,000$7,955,000$8,235,000$7,421,000
Expenses20072006200520042003
Program Services$7,559,000$8,658,000$11,114,000$6,175,000$5,441,000
Management & General$2,287,000$2,279,000$1,727,000$2,043,000$2,801,000
Fundraising$0$0$0$0$0
TOTAL EXPENSES$9,847,000$10,937,000$12,842,000$8,218,000$8,242,000
Change in Net Assets20072006200520042003
SURPLUS (DEFICIT)$7,775,000$1,395,000($4,886,000)$17,000($821,000)
Other Changes in Net Assets($7,000)$4,000$6,000$157,000$24,000
TOTAL CHANGE IN NET ASSETS$7,767,000$1,399,000($4,879,000)$174,000($797,000)

Functional Expenses [ Back to top ]

Funding Ratios20072006200520042003
Grants & Allocations$880,000$1,868,000$5,093,000$621,000$274,000
Specific Assistance to Individuals$0$0$2,000$5,000$6,000
Benefits Paid To or For Members$0$0$0$0$0
Compensation of Officers, Directors$355,000$374,000$347,000$307,000$251,000
Other Salaries, Wages$3,101,000$2,944,000$2,601,000$2,421,000$1,780,000
Pension Plan Contributions$0$0$63,000$0$0
Other Employee Benefits$0$172,000$4,000$0$425,000
Payroll Taxes$261,000$274,000$221,000$0$176,000
Professional Fundraising Fees$0$0$0$0$0
Accounting Fees$151,000$0$0$118,000$49,000
Legal Fees$17,000$212,000$94,000$77,000$47,000
Supplies$215,000$220,000$222,000$234,000$311,000
Telephone$129,000$120,000$111,000$118,000$128,000
Postage & Shipping$475,000$438,000$445,000$431,000$387,000
Occupancy$603,000$609,000$0$388,000$374,000
Equipment Rental & Maintenance$176,000$0$0$184,000$190,000
Printing & Publications$0$0$0$0$0
Travel$139,000$89,000$82,000$124,000$157,000
Conferences, Conventions & Meetings$104,000$239,000$173,000$216,000$259,000
Interest$421,000$449,000$52,000$146,000$288,000
Depreciation, Depletion etc.$326,000$446,000$685,000$819,000$844,000
Other Expenses$2,486,000$2,475,000$2,638,000$2,000,000$2,287,000
Total Functional Expenses$9,847,000$10,937,000$12,842,000$8,218,000$8,242,000