Precept Ministries International/ Jack and Kay Arthur 
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
Mailing address:
PO Box 182218
Chattanooga, TN 37422-7218
Website: www.precept.org
Phone: (423) 892-6814
Email: info@precept.org
Organization details
EIN: 620841438
CEO/President: Mr. David Arthur
Chairman: Mr. Dick Mason
Board size: 6
Founder: Jack and Kay Arthur
Year founded: 1970
Tax deductible: Yes
Fiscal year end: 12/31
Member of ECFA: Yes
Member of ECFA since: 1984
Purpose
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
Precept Ministries of Reach Out uses the following to communicate its mission:
To train lay people in the inductive study of God's Word.
Statement of faith
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.
Transparency grade
A
To understand our transparency grade, click here.
Financial efficiency ratings
Sector: Educational Media
| Category | Rating | Overall rank | Sector rank |
| Overall efficiency rating | | 493 of 717 | 33 of 51 |
| Fund acquisition rating | | 441 of 718 | 31 of 52 |
| Resource allocation rating | | 623 of 718 | 42 of 52 |
| Asset utilization rating | | 254 of 717 | 16 of 51 |
Financial ratios
| Funding ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 8% | 12% | 18% | 20% | 24% | 28% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 7% | 7% | 12% | 13% | 15% | 18% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 94% | 64% | 67% | 65% | 63% | 64% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 7% | 7% | 12% | 13% | 13% | 17% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 6% | 36% | 33% | 35% | 37% | 36% |
| Operating ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Program expense ratio Program expense ratio = Program services / Total expenses | 82% | 72% | 72% | 71% | 72% | 67% |
Spending ratio Spending ratio = Total expenses / Total revenue | 102% | 111% | 99% | 98% | 116% | 109% |
Program output ratio Program output ratio = Program services / Total revenue | 82% | 79% | 72% | 69% | 83% | 74% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | -2% | -11% | 1% | 2% | -16% | -9% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | -3% | -17% | 1% | 3% | -23% | -12% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 12% | 22% | 16% | 16% | 16% | 16% |
| Investing ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 0.98 | 1.63 | 1.36 | 1.32 | 1.57 | 1.30 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 1.49 | 1.34 | 1.29 | 1.26 | 1.31 | 1.26 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 2.13 | 2.19 | 1.75 | 1.66 | 2.06 | 1.63 |
| Liquidity ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Current ratio Current ratio = Total current assets / Total current liabilities | 5.81 | 11.06 | 21.74 | 20.14 | 15.11 | 17.06 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.15 | 0.09 | 0.05 | 0.05 | 0.07 | 0.06 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 4.03 | 4.98 | 6.53 | 6.88 | 5.44 | 6.93 |
| Solvency ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 11% | 7% | 4% | 4% | 5% | 5% |
Debt ratio Debt ratio = Debt / Total assets | 0% | 0% | 0% | 0% | 0% | 0% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 62% | 57% | 71% | 73% | 61% | 74% |
Financials
| Balance sheet | |||||
| Assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Cash | $5,269,828 | $6,307,069 | $6,476,372 | $6,019,101 | $7,945,437 |
| Receivables, inventories, prepaids | $234,947 | $265,094 | $209,225 | $187,563 | $209,210 |
| Short-term investments | $313,953 | $285,654 | $311,978 | $257,863 | $252,478 |
| Other current assets | $89,861 | $99,696 | $75,340 | $159,002 | $88,432 |
| Total current assets | $5,908,589 | $6,957,513 | $7,072,915 | $6,623,529 | $8,495,557 |
| Long-term investments | $0 | $0 | $0 | $0 | $0 |
| Fixed assets | $2,019,960 | $1,996,367 | $1,805,086 | $2,012,950 | $2,123,680 |
| Other long-term assets | $0 | $0 | $0 | $63,549 | $60,224 |
| Total long-term assets | $2,019,960 | $1,996,367 | $1,805,086 | $2,076,499 | $2,183,904 |
| Total assets | $7,928,549 | $8,953,880 | $8,878,001 | $8,700,028 | $10,679,461 |
| Liabilities | 2019 | 2018 | 2017 | 2016 | 2015 |
| Payables and accrued expenses | $479,533 | $277,272 | $304,648 | $349,436 | $353,938 |
| Other current liabilities | $54,572 | $42,739 | $46,476 | $89,054 | $144,040 |
| Total current liabilities | $534,105 | $320,011 | $351,124 | $438,490 | $497,978 |
| Debt | $0 | $0 | $0 | $0 | $0 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $0 | $0 | $0 | $0 | $0 |
| Total long-term liabilities | $0 | $0 | $0 | $0 | $0 |
| Total liabilities | $534,105 | $320,011 | $351,124 | $438,490 | $497,978 |
| Net assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Unrestricted | $7,394,444 | $8,587,369 | $8,510,534 | $8,116,318 | $10,163,573 |
| Temporarily restricted | $0 | $46,500 | $16,343 | $145,220 | $17,910 |
| Permanently restricted | $0 | $0 | $0 | $0 | $0 |
| Net assets | $7,394,444 | $8,633,869 | $8,526,877 | $8,261,538 | $10,181,483 |
| Revenues and expenses | |||||
| Revenue | 2019 | 2018 | 2017 | 2016 | 2015 |
| Total contributions | $7,551,716 | $8,199,942 | $7,844,404 | $7,410,242 | $8,168,243 |
| Program service revenue | $3,722,262 | $3,649,223 | $3,700,790 | $3,862,965 | $4,277,352 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $36,097 | $35,215 | $39,486 | $36,878 | $19,592 |
| Other revenue | $403,800 | $423,069 | $411,299 | $404,705 | $199,957 |
| Total other revenue | $4,162,159 | $4,107,507 | $4,151,575 | $4,304,548 | $4,496,901 |
| Total revenue | $11,713,875 | $12,307,449 | $11,995,979 | $11,714,790 | $12,665,144 |
| Expenses | 2019 | 2018 | 2017 | 2016 | 2015 |
| Program services | $9,295,336 | $8,805,014 | $8,322,443 | $9,753,226 | $9,318,255 |
| Management and general | $2,786,144 | $1,953,116 | $1,865,502 | $2,123,530 | $2,234,281 |
| Fundraising | $871,820 | $1,442,327 | $1,542,695 | $1,757,979 | $2,298,653 |
| Total expenses | $12,953,300 | $12,200,457 | $11,730,640 | $13,634,735 | $13,851,189 |
| Change in net assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Surplus (deficit) | ($1,239,425) | $106,992 | $265,339 | ($1,919,945) | ($1,186,045) |
| Other changes in net assets | $0 | $0 | $0 | $0 | $0 |
| Total change in net assets | ($1,239,425) | $106,992 | $265,339 | ($1,919,945) | ($1,186,045) |
Response from ministry
No response has been provided by this ministry.
History
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.
Program accomplishments
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.
Needs
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.