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Precept Ministries International/ Jack and Kay Arthur

Rating
Sector:

Educational Media

Total
Revenue:

$13,861,000

Total
Expenses:

$13,380,000

Net
Assets:

$8,487,000
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Profile Contents

Research Analysis
Financial Information

Ministry Pie Chart

Database Avg This Ministry
Program 84% 71.4%
General & Admin 12.5% 11.6%
Fundraising 6.8% 13.8%
Savings -4.4% 3.4%


Ministry Pie Chart

Ministry Pie Chart

Age Size Box:

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

Summary

Founded by Jack and Kay Arthur in 1970, Precept Ministries of Reach Out, Inc. ("Precept") is an inter-denominational Bible teaching ministry centered on inductive Bible study. Precept conducts Bible study conferences, trains individuals to conduct Bible studies, and produces and sells Bible study materials. Precept Upon Precept combines about five hours a week of personal study with group discussions and in-depth lectures (many of which are available on video). Precept has penetrated more than 100 countries with printed materials in twenty-plus languages. Canada, Romania, Ukraine, the Pacific Rim, the Spanish-speaking world and Israel are most involved with Precept. Some other Precept pursuits are "Precept with Kay Arthur" (Bible teaching via radio), "Precept Live with Kay and Jan," (call-in radio show co-hosted by Kay Arthur and Jan Silvious), and a series of one-minute radio spots that gives listeners powerful and culturally relevant precepts for life.

This organization is a nonprofit. Contributions to it are fully tax deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).

Contact Information: [ Back to top ]

Mailing Address:PO Box 182218
Chattanooga, TN
37422-7218
Website: www.precept.org
Phone:(423) 892-6814, (800) 763-8280
Email:You need to enable javascript to see the email

Organization Details [ Back to top ]

EIN: 620841438
CEO/President: Mr. Jack Arthur Tax Deductible: Yes
Chairman: Mr. Dick Mason Fiscal Year End: December 31
Board Size: 6 Financial info from: 990
Founder: Jack and Kay Arthur Member of ECFA: Yes
Year Founded: 1970 Member of ECFA since: 1984

Purpose [ Back to top ]

Founded by Jack and Kay Arthur in 1970, Precept Ministries of Reach Out, Inc. ("Precept") is an inter-denominational Bible teaching ministry centered on inductive Bible study. Precept conducts Bible study conferences, trains individuals to conduct Bible studies, and produces and sells Bible study materials. Precept Upon Precept combines about five hours a week of personal study with group discussions and in-depth lectures (many of which are available on video). Precept has penetrated more than 100 countries with printed materials in twenty-plus languages. Canada, Romania, Ukraine, the Pacific Rim, the Spanish-speaking world and Israel are most involved with Precept.

Some other Precept pursuits are "Precept with Kay Arthur" (Bible teaching via radio), "Precept Live with Kay and Jan," (call-in radio show co-hosted by Kay Arthur and Jan Silvious), and a series of one-minute radio spots that gives listeners powerful and culturally relevant precepts for life.

This organization is a nonprofit. Contributions to it are fully tax deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).

Mission Statement [ Back to top ]

Precept Ministries of Reach Out uses the following to communicate its mission:

To train lay people in the inductive study of God's Word.

Program Accomplishments [ Back to top ]

Today, Precept has penetrated more than 118 countries with printed materials in sixty-one languages. Precept ministers in Canada, Romania, Ukraine, the Pacific Rim, the Spanish-speaking world, and Israel. Precept places a strong emphasis on training local Bible study leaders. Precept Upon Precept, training workshops, have been conducted in Europe, Asia, Africa, South America, Australia, and the Middle East. Precept's International Inductive Study Series is broadcast on the radio. And "Precept with Kay Arthur" - fifteen minutes of teaching is also on radio.

Every week, TV viewers can tune in to a one-hour Bible study lecture by Kay Arthur - the same lectures that are part of the Precept Upon Precept Bible study courses. And radio listeners can tune into "Precept Live with Kay and Jan," a one-hour call-in show co-hosted by Kay Arthur and Jan Silvious. Together, they answer questions and provide biblically based solutions to listeners who are dealing with the topic of the day.

Precept provides a series of one-minute radio spots to stations across the nation that gives listeners powerful and culturally relevant precepts for life. Aired as public service commercials, these spots are likely to turn up just when they're least expected - and often when they're most needed in the lives of the listeners everywhere.

Statement of Faith [ Back to top ]

Precept Ministries of Reach Out uses the following to communicate its doctrinal statement:

Precept Ministries' doctrinal statement summarizes biblical truth that historically and doctrinally has been regarded as essential to the Christian faith. We ask that all of our leaders be in full agreement with this statement.

The Scriptures: We believe in the plenary verbal inspiration of the Word of God. And that both the Old and New Testaments are inerrant in the original writings and are the supreme and final authority for faith and life.

The Godhead: We believe the Godhead exists in three Persons: Father, Son and Holy Spirit. These three persons are one God, having precisely the same nature, attributes and perfections.

The Lord Jesus Christ: We believe in His eternal existence as God; His Incarnation and Virgin Birth; His death on the cross as the substitutionary atonement for sin; His literal, bodily resurrection from the dead; His present ministry of intercession in heaven; and His personal, future return to earth.

The Holy Spirit: We believe that the Holy Spirit, the third Person of the Godhead, convicts men of sin, regenerates, baptizes, indwells, seals and sets apart believers unto a holy life; that He keeps and empowers believers day by day; that He is the Teacher of the Word of God and the Guide for daily living.

Man: We believe that man was created innocent and pure and Adam fell through the sin of disobedience. Therefore, all men are corrupted in body, soul and spirit; and all men need redemption.

Salvation: We believe that salvation is by grace, a free gift of God apart from works; salvation involves repentance, a turning from one's own way to God's way; salvation is through personal faith in the Lord Jesus Christ; all who receive Jesus Christ are regenerated by the Holy Spirit and become the children of God; and true salvation will be manifested by a changed life.

The future: We believe in the personal, visible, bodily return of Jesus Christ to earth; in the bodily resurrection of the just to eternal abode in the glory of God's presence, and in the bodily resurrection of the unjust to judgment and everlasting punishment in the lake of fire.

History [ Back to top ]

In 1970, Jack and Kay Arthur, a missionary couple, suffered medical problems and returned home to Chattanooga. Jack Arthur became the Station Manager for a Christian radio station, and Kay Arthur started a Bible study for teenagers in their living room. God blessed this Bible study, and it began to grow. Soon the teens were meeting in a barn, which they had cleaned out and patched up themselves, and adults began coming too. They needed an expanded ministry center. So, Jack left his radio career and became the president and leader of this flourishing organization. Today Precept reaches around the world into over 100 countries.

Ministry Needs [ Back to top ]

Precept has communicated the following needs:

Precept Ministry is now ministering in 118 countries in 63 languages and the demand for their printed Bible study materials along with the teaching and training they provide continues to grow. It is only through the prayers and financial support of faithful friends that it is possible for the ministry to do all they believe God has called them to do.

Research Analysis

Transparency Grade [ Back to top ]

Transparency Grade of : A
Criteria categoryGradeOther Comments
Timeliness:10010/21/2011 4:33:08 PM: Organization made financial information available less than 5 ½ months after their fiscal year end.
Financial Information:
Foundational Clarity:10010/21/2011 4:33:25 PM: Descriptive information was abundant and thorough.
Level of Cooperation:100Proactive in giving information.
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MinistryWatch.com 5 Star Financial Efficiency Ratings [ Back to top ]

Ranking CategoryRatingOverall RankEducational Media Sector
Overall Efficiency RatingStar324 of 348    36 of 38
Fund Acquisition DecisionStar324 of 348      36 of 38
Resource Allocation Decision of 348      24 of 38
Asset Utilization Decision of 348      24 of 38
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Ministry Statement or Response [ Back to top ]

Financial Information:

Financial Ratios[ Back to top ]

Funding RatiosDatabase Average20102009200820072006
Return on FR Efforts10%27%15%10%11%14%
Fundraising Cost Ratio7%14%8%6%7%8%
Contributions Reliance83%52%54%58%60%57%
Fundraising Expense Ratio7%14%9%6%7%8%
Other Revenue Reliance17%48%46%42%40%43%
Operating RatiosDatabase Average20102009200820072006
Program Expense Ratio80%74%72%75%80%75%
Spending Ratio104%97%92%97%99%101%
Program Output Ratio84%71%66%73%79%76%
Savings Ratio-4%3%8%3%1%-1%
Reserve Accumulation Rate4%6%15%5%1%-1%
General & Admin Ratio12%12%19%19%14%17%
Investing RatiosDatabase Average20102009200820072006
Total Asset Turnover2.91x1.36x1.4x1.6x1.83x1.72x
Degree of L-T Investment3.1x1.46x1.68x2.3x3.04x2.95x
Current Asset Turnover5.56x1.99x2.34x3.66x5.58x5.08x
Age of Assets10.5yr(s)11.9yr(s)8.4yr(s)7yr(s)16yr(s)14.7yr(s)
Liquidity RatiosDatabase Average20102009200820072006
Current Ratio3306.32x10.31x8.1x3.95x8.26x4.54x
Current Liabilities Ratio.39x.1x.12x.25x.12x.22x
Liquid Reserve Level4.91x5.46x4.49x2.45x1.89x1.84x
Solvency RatiosDatabase Average20102009200820072006
Liabilities Ratio.3x.14x.13x.14x.13x.2x
Debt Ratio.07x0x0x0x.05x.09x
Reserve Coverage Ratio81%63%62%54%47%46%

Financials[ Back to top ]

Balance Sheet
Assets20102009200820072006
Cash$6,283,000$4,716,000$2,460,000$1,745,000$1,897,000
Receivables, Inventories & Prepaids$455,000$779,000$986,000$821,000$896,000
Short-Term Investments$0$0$0$0$0
Total Current Assets$6,739,000$5,496,000$3,446,000$2,567,000$2,793,000
Long-Term Investments$27,000$20,000$28,000$43,000$178,000
Fixed Assets$3,053,000$3,606,000$4,331,000$5,070,000$5,163,000
Other Long-Term Assets$51,000$85,000$107,000$123,000$110,000
Total Long-Term Assets$3,131,000$3,712,000$4,467,000$5,236,000$5,452,000
TOTAL ASSETS$9,870,000$9,209,000$7,914,000$7,803,000$8,246,000
Liabilities20102009200820072006
Payables & Accrued Expenses$436,000$520,000$207,000$310,000$615,000
Other Current Liabilities$217,000$157,000$665,000$0$0
Total Current Liabilities$653,000$678,000$873,000$310,000$615,000
Debt$0$0$0$355,000$725,000
Other Long-Term Liabilities$730,000$524,000$226,000$336,000$345,000
Total Long-Term Liabilities$730,000$524,000$226,000$692,000$1,070,000
TOTAL LIABILITIES$1,383,000$1,203,000$1,099,000$1,003,000$1,685,000
Assets20102009200820072006
Unrestricted$7,956,000$7,249,000$6,427,000$6,444,000$5,807,000
Temporarily Restricted$530,000$756,000$387,000$356,000$752,000
Permanently Restricted$0$0$0$0$0
NET ASSETS$8,487,000$8,005,000$6,815,000$6,800,000$6,560,000
Revenue and Expenses
Revenue20102009200820072006
Total Contributions$7,174,000$7,525,000$7,528,000$8,715,000$8,032,000
Program Service Revenue$2,480,000$2,646,000$1,945,000$2,811,000$2,631,000
Membership Dues$0$0$0$0$0
Investment Income$13,000$7,000$36,000$36,000$59,000
Other Revenue$4,192,000$3,880,000$3,468,000$2,846,000$3,365,000
Total Other Revenue$6,687,000$6,533,000$5,450,000$5,694,000$6,057,000
TOTAL REVENUE$13,861,000$14,059,000$12,978,000$14,410,000$14,089,000
Expenses20102009200820072006
Program Services$9,902,000$9,230,000$9,487,000$11,388,000$10,645,000
Management & General$1,564,000$2,487,000$2,422,000$1,956,000$2,405,000
Fundraising$1,914,000$1,154,000$721,000$974,000$1,130,000
TOTAL EXPENSES$13,380,000$12,872,000$12,631,000$14,320,000$14,181,000
Change in Net Assets20102009200820072006
SURPLUS (DEFICIT)$480,000$1,187,000$347,000$90,000($91,000)
Other Changes in Net Assets$0$0$0$150,000$7,000
TOTAL CHANGE IN NET ASSETS$480,000$1,187,000$347,000$240,000($84,000)