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Church-owned luxury property sparks call for financial transparency
GREENVILLE, Pitt County — $143 billion. That’s how much money Americans gave to churches in 2022, according to the research group Giving USA. That’s more money than was given to education and human services combined.
How is money spent by church leaders? Also, what happens to the dollars you put in the offering plate?
Several people spoke to the News 12 Investigates team asking these questions and raising concerns about a new mega-mansion with ties to a church in Greenville.
In the sprawling Star Hill Farm neighborhood off Dickinson Avenue in Greenville, home to businesspeople, doctors and even the president of ECU.
Construction crews spent more than two years building the city’s largest home, spanning a total of 1,265 square meters.
“13,000 square feet, that’s almost, it’s a small castle,” says Pete Evans, president of the Trinity Foundation.
According to Pitt County tax records, the 1.6-acre single-family property has a current market value of more than $1.6 million. It is not owned by one person, but by a prominent Greenville church.
County records show it is owned by “Koinonia Christian Center Church Ministries Inc.”
Bishop Rosie O’Neal is the nonprofit’s registered agent, according to the North Carolina Secretary of State’s Office.
“We found dozens, if not hundreds of homes that are worth over a million dollars that are owned by churches, and I think that’s shameful, a disgrace to the Church of God,” Evans said.
Pete Evans is the president of the Trinity Foundation, a watchdog ministry that exposes abuses of public trust in religious organizations.
“It was too much to swallow to see the luxurious lifestyles of the prosperity gospel,” Evans said.
The Koinonia Christian Center website shows that Bishop O’Neal founded the church in 1989 and it now has over 2,500 members.
Her biography states that she oversees 22 churches in the Koinonia Fellowship of Churches and Ministries, both in the United States and internationally.
Since December 2023, we have called the main campus on Greenville Boulevard multiple times and sent nearly half a dozen emails trying to reach Bishop O’Neal. News 12 has requested a copy of the nonprofit’s financial records in good faith and transparency to donors.
“The reason churches are treated specially is really the separation of church and state,” said NCCU tax law professor Reginald Mombrun.
Reginald Mombrun is a tax law professor and former assistant branch chief at the IRS. He says churches are encouraged to voluntarily comply with the IRS.
Religious organizations that meet the requirements of Section 501C3 of the Internal Revenue Code are automatically considered tax-exempt and receive other favorable treatment.
“For a church to be investigated by the IRS, it has to come from a very high position in the IRS,” Mombrun said.
Although not required by law, church leaders can apply for and maintain tax-exempt status by submitting a filing each year. This ensures that any donations are tax-deductible for church members, but the filing is not open to the public.
“The IRS is asleep at the wheel, they should be looking more closely at these churches and auditing more churches, they audit very few churches because there’s no money in it for the IRS,” Evans said.
The IRS allows pastors to subtract their housing costs, including mortgage payments and utilities, from their income.
“If a pastor or a deacon is accused of a crime, this whole issue of the church disappears, the government will not respect that,” Mombrun said.
“It’s basically like the Wild West here in America now, pastors can do almost anything as long as they consult their lawyers and put the right language in their bylaws,” Evans said.
For months, we had not heard from Bishop O’Neal or her staff. So we decided to visit the church to ask our questions in person.
News 12 Tyler Hardin asked, “We’re investigating 3603 Star Hill Farm Road. Do you know the location?”
“I don’t know, I’m just the receptionist”
Since Bishop O’Neal was not there, we went to the house. When we arrived, a church van was parked outside and two people appeared behind the gate.
“I’m Tyler Hardin from News 12 and I’m looking for Bishop Rosie O’Neal.”
“She’s not here now”
“We’ve been sending out a bunch of emails and calling, and we’re curious about what this property is for. We know it’s in the church’s name,” News 12’s Tyler Hardin asked.
“It’s just a house”
“Is this her residence?” News 12’s Tyler Hardin asked.
“It’s her house”
A home with six bedrooms, nine bathrooms, an elevator, a pool and a gazebo, according to county records.
“What message does that send to the community and the congregation, what if they knew about this facility here, this house?”
“Our entire congregation is aware of her new location,” the unidentified person says.
Within minutes of leaving the neighborhood, we received a response to our many emails informing us that they were declining any interviews or questions.
“There’s nothing illegal, nothing immoral, but nothing illegal,” Evans says. “The pastor’s focus should be on the neediest person in the congregation, not on themselves, not on their lavish lifestyles,” Evans says.
Pete is asking the IRS to create a simple form so that churches can easily be more transparent and accountable for every dollar and cent. He says it’s up to you and other parishioners to ask for a copy of your church’s finances to make sure where the money is going is aligned with the mission.
To view a tax guide for churches, click here.
On Thursday evening, Bishop O’Neal posted a video to her congregation on Koinonia Christian Center’s YouTube channel touting her ministry’s work in the community over the past 35 years in response to our reporting.
She mentions that the church has donated homes, cars, and held food drives and inclusive community events.
Bishop O’Neal said, “I want you to be calm and know that one of the reasons people are so faithful in giving is because we do exactly what we say we will do, and they don’t know that the ministry house has been a vision for 31 years, they don’t know that it will be and is, even now, with pastors remaining. An opportunity for them to be refreshed.”
Once again, and as of December 2023, we have reached out to Bishop O’Neal offering an interview to answer some of our questions.
We will keep you informed of any developments.
If you have something you would like News 12’s investigative team to look into, call, text or email us as we hold the powerful accountable.