During channel surfing, I've listened to Family Radio and heard their all day fundraising efforts. I think it would have been good for its listeners to know that the money would just be added to its overall net profit. And whoever was giving that money should have known that of the 117 million dollars in reserve, only 1 million dollars was going to be used for what anyone would have used it who knew the last day for earth was May 21, 2011. And doesn't Camping's no-church belief work conveniently for his fundraising? Money, of course, should not be "wasted" on his local church, but saved for the "ministry" of Family Radio.
Saturday, May 21, 2011
Family Radio: Non Prophet, But Plenty of Profit
We can't believe everything we see or hear from the mainstream news media, but CBS reported that in 2002, Harold Camping and Family Radio were worth $22,695,306. This non-profit organization, in 2008 was now worth $117,634,384. And then you read that they spent only one million dollars on advertising for the end of the world on May 21, 2011. If you have 117 million dollars, how much of that are you going to need after you are gone on May 21? None. If you have 117 million dollars, how do you spend only one million dollars to announce that the world is going to end? If the world is going to end and you know the very day, then you spend 117 million of your 117 million. If you spend only one million dollars, you didn't believe the world was going to end anyway. Where your treasure is, there will your heart be also. I contend that Harold Camping himself didn't believe the world would end. How does he keep all that money if he knows the day he is leaving this world for the next?
Excellent thoughts. Thank you.
ReplyDeleteFYI: An estimated worth of $117 million (sum total of all assets and liabilities including any potential market premium assigned to the company's value) is far different than having "$117 million dollars in reserve." The company's cash in the bank is most likely a small fraction of the $117 million estimated worth (a number which could be distorted by any number of accounting methodologies). To actually have that amount in reserve (liquidity) in the bank to spend on end-of-world advertising, the company would have had to borrow heavily against its assets or find a buyer willing to pay the estimated amount for the company (in cash), both of which are highly unlikely scenarios.
ReplyDeleteYour main point is essentially valid, but your supporting financial analysis is skewed.
Thanks for the clarification, Kent. Not talking to myself.
ReplyDelete