Precept Ministries International/ Jack and Kay Arthur 
The information in this column was provided to MinistryWatch by the ministry itself. It was last updated 7/30/2021. To update the information in this column, please email: info@ministrywatch.com
Summary
Scripture guides you toward God. Precept guides you through Scripture.
Life-changing intimacy with God is the heart of Precept. Since 1970, the ministry has equipped small group Bible Study Leaders to disciple others to discover the truth of God's Word for themselves, but not by themselves.
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. Steve Strand
Board size: 10
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
To help people across the globe know God by knowing His Word, Precept recruits, equips, and resources Bible Study Leaders and study groups who take Scripture to their communities.
Mission statement
To engage people in relationship with God through knowing His Word.
Statement of faith
The Scriptures: We believe (a) in the plenary verbal inspiration of the Word of God, and (b) 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 (a) His eternal existence as God, (b) His Incarnation and Virgin Birth, (c) His death on the cross as the substitutionary atonement for sin, (d) His literal, bodily resurrection from the dead, (e) His present ministry of intercession in heaven, and (f) 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 (a) man was created innocent and pure, and (b) Adam fell through the sin of disobedience. Therefore, (c) all men are corrupted in body, soul, and spirit; and (d) all men need redemption.
Salvation: We believe that (a) salvation is by grace, a free gift of God apart from works, (b) salvation involves repentance, a change of mind in respect to God and thus turning from one's own way to God's way, (c) salvation is through personal faith in the Lord Jesus Christ, (d) all who receive Jesus Christ are regenerated by the Holy Spirit and become the children of God,
and (e) true salvation will be manifested by a changed life.
The Future: We believe (a) in the personal, visible, bodily return of Jesus Christ to earth, (b) in the bodily resurrection of the just to the eternal abode in the glory of God's presence, and (c) 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 | | 676 of 940 | 34 of 51 |
| Fund acquisition rating | | 619 of 942 | 32 of 51 |
| Resource allocation rating | | 814 of 942 | 42 of 51 |
| Asset utilization rating | | 301 of 940 | 16 of 51 |
Financial ratios
| Funding ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 8% | 10% | 12% | 18% | 20% | 24% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 6% | 8% | 7% | 12% | 13% | 15% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 93% | 73% | 64% | 67% | 65% | 63% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 6% | 7% | 7% | 12% | 13% | 13% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 7% | 27% | 36% | 33% | 35% | 37% |
| Operating ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Program expense ratio Program expense ratio = Program services / Total expenses | 81% | 72% | 72% | 72% | 71% | 72% |
Spending ratio Spending ratio = Total expenses / Total revenue | 98% | 107% | 111% | 99% | 98% | 116% |
Program output ratio Program output ratio = Program services / Total revenue | 79% | 77% | 79% | 72% | 69% | 83% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | 2% | -7% | -11% | 1% | 2% | -16% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | 3% | -12% | -17% | 1% | 3% | -23% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 12% | 21% | 22% | 16% | 16% | 16% |
| Investing ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 0.92 | 1.48 | 1.63 | 1.36 | 1.32 | 1.57 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 1.38 | 1.30 | 1.34 | 1.29 | 1.26 | 1.31 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 1.74 | 1.92 | 2.19 | 1.75 | 1.66 | 2.06 |
| Liquidity ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Current ratio Current ratio = Total current assets / Total current liabilities | 8.16 | 20.36 | 11.06 | 21.74 | 20.14 | 15.11 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.11 | 0.05 | 0.09 | 0.05 | 0.05 | 0.07 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 5.69 | 5.93 | 4.98 | 6.53 | 6.88 | 5.44 |
| Solvency ratios | Sector median | 2020 | 2019 | 2018 | 2017 | 2016 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 14% | 18% | 7% | 4% | 4% | 5% |
Debt ratio Debt ratio = Debt / Total assets | 0% | 0% | 0% | 0% | 0% | 0% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 85% | 55% | 57% | 71% | 73% | 61% |
Financials
| Balance sheet | |||||
| Assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Cash | $5,486,028 | $5,269,828 | $6,307,069 | $6,476,372 | $6,019,101 |
| Receivables, inventories, prepaids | $225,257 | $234,947 | $265,094 | $209,225 | $187,563 |
| Short-term investments | $332,723 | $313,953 | $285,654 | $311,978 | $257,863 |
| Other current assets | $199,945 | $89,861 | $99,696 | $75,340 | $159,002 |
| Total current assets | $6,243,953 | $5,908,589 | $6,957,513 | $7,072,915 | $6,623,529 |
| Long-term investments | $0 | $0 | $0 | $0 | $0 |
| Fixed assets | $1,857,110 | $2,019,960 | $1,996,367 | $1,805,086 | $2,012,950 |
| Other long-term assets | $0 | $0 | $0 | $0 | $63,549 |
| Total long-term assets | $1,857,110 | $2,019,960 | $1,996,367 | $1,805,086 | $2,076,499 |
| Total assets | $8,101,063 | $7,928,549 | $8,953,880 | $8,878,001 | $8,700,028 |
| Liabilities | 2020 | 2019 | 2018 | 2017 | 2016 |
| Payables and accrued expenses | $261,103 | $479,533 | $277,272 | $304,648 | $349,436 |
| Other current liabilities | $45,526 | $54,572 | $42,739 | $46,476 | $89,054 |
| Total current liabilities | $306,629 | $534,105 | $320,011 | $351,124 | $438,490 |
| Debt | $0 | $0 | $0 | $0 | $0 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $1,165,000 | $0 | $0 | $0 | $0 |
| Total long-term liabilities | $1,165,000 | $0 | $0 | $0 | $0 |
| Total liabilities | $1,471,629 | $534,105 | $320,011 | $351,124 | $438,490 |
| Net assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Without donor restrictions | $6,629,434 | $7,394,444 | $8,587,369 | $8,510,534 | $8,116,318 |
| With donor restrictions | $0 | $0 | $46,500 | $16,343 | $145,220 |
| Net assets | $6,629,434 | $7,394,444 | $8,633,869 | $8,526,877 | $8,261,538 |
| Revenues and expenses | |||||
| Revenue | 2020 | 2019 | 2018 | 2017 | 2016 |
| Total contributions | $8,241,196 | $7,551,716 | $8,199,942 | $7,844,404 | $7,410,242 |
| Program service revenue | $2,812,806 | $3,722,262 | $3,649,223 | $3,700,790 | $3,862,965 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $18,633 | $36,097 | $35,215 | $39,486 | $36,878 |
| Other revenue | $178,456 | $403,800 | $423,069 | $411,299 | $404,705 |
| Total other revenue | $3,009,895 | $4,162,159 | $4,107,507 | $4,151,575 | $4,304,548 |
| Total revenue | $11,251,091 | $11,713,875 | $12,307,449 | $11,995,979 | $11,714,790 |
| Expenses | 2020 | 2019 | 2018 | 2017 | 2016 |
| Program services | $8,619,648 | $9,295,336 | $8,805,014 | $8,322,443 | $9,753,226 |
| Management and general | $2,547,621 | $2,786,144 | $1,953,116 | $1,865,502 | $2,123,530 |
| Fundraising | $848,832 | $871,820 | $1,442,327 | $1,542,695 | $1,757,979 |
| Total expenses | $12,016,101 | $12,953,300 | $12,200,457 | $11,730,640 | $13,634,735 |
| Change in net assets | 2020 | 2019 | 2018 | 2017 | 2016 |
| Surplus (deficit) | ($765,010) | ($1,239,425) | $106,992 | $265,339 | ($1,919,945) |
| Other changes in net assets | $0 | $0 | $0 | $0 | $0 |
| Total change in net assets | ($765,010) | ($1,239,425) | $106,992 | $265,339 | ($1,919,945) |
Compensation
| Name | Title | Compensation |
| Ken Bowers | Executive Director | $211,147 |
| David Arthur | Chief Executive Officer | $210,471 |
| Pete Delacy | VP Content Corporate Sec. | $164,785 |
| Elaine Watkins | Chief Relationship Officer | $158,246 |
| Kay Arthur | Board Member | $146,651 |
| Jeremy Lucarelli | VP Us Leader Development | $130,179 |
| Debbie Poe | VP People Services | $127,202 |
| Cindi Finn | Chief Financial Officer | $126,038 |
| Costel Oglice | VP International Ministry | $110,488 |
| Stan Latham | VP Development | $105,576 |
| Mia Oglice | VP International Ministry | $98,616 |
Compensation data as of: 12/31/2020
Response from ministry
No response has been provided by this ministry.
The information below was provided to MinistryWatch by the ministry itself. It was last updated 7/30/2021. To update the information below, please email: info@ministrywatch.com
History
After building a local Bible study ministry from their home, Kay and Jack Arthur officially started Reach Out Ranch-which became Precept-in 1970. Since then, millions of people around the world have engaged with God through Precept resources, study groups, trainings, broadcasts, and videos.
Program accomplishments
Today, Precept has empowered people in nearly 190 countries and over 90 languages with Bible-centered resources and training. Over the past 50 years, Kay Arthur has received many awards for her teaching and outreach, including the National Religious Broadcasters Hall of Fame Award and an Honorary Doctorate of Humane Letters from Tennessee Temple University.
Needs
Around the world, the demands for Bible study resources, training, and leaders continues to grow. Precept relies on the prayers and financial support of their ministry partners to fulfill the calling God has given them: To see every believer in Christ living out His Word, every day.