Luis Palau Evangelistic Association 
The information in this column was provided to MinistryWatch by the ministry itself. It was last updated 3/15/2021. To update the information in this column, please email: info@ministrywatch.com
Summary
The Luis Palau Evangelistic Association ("LPEA") was founded in 1967 by Luis Palau. LPEA has three purposes: (1) to win as many people as possible to Jesus Christ throughout the world; (2) to emphasize with the Church the principles of victorious Christian Living (Galatians 2:20), so as to stimulate, revive, and mobilize the Church to continuous, effective evangelism, follow-up, and Church growth; and (3) to influence Christianity worldwide, holding high the banner of biblical evangelism, so that the Church's commitment to evangelism will never die. Since 1990, the Luis Palau Evangelistic Association has led evangelistic crusades in 20 U.S. cities, including Chicago, Kansas City, Grand Rapids, Miami, Tulsa, San Antonio, Phoenix, Fort Worth, and the San Fernando Valley in Los Angeles. This organization is a nonprofit corporation. 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 50
Portland, OR 97207-1173
Website: www.palau.org
Phone: (503) 614-1500
Email: lnfo@palau.org
Organization details
EIN: 930713827
CEO/President: Kevin Palau
Chairman: Mr. Scott Cahill
Board size: 18
Founder: Dr. Luis Palau
Year founded: 1978
Tax deductible: Yes
Fiscal year end: 12/31
Member of ECFA: Yes
Member of ECFA since: 1980
Purpose
The Luis Palau Evangelistic Association ("LPEA") was founded in 1967 by Luis Palau. Luis Palau's purpose is to proclaim the Good News of Jesus Christ to those who have never heard the Gospel. This is done in a mass effort through LPEA festivals in areas throughout the world. All festivals are free of charged, opened to anyone and are aimed at reaching the generations that have never heard the Gospel explained in a way that is encouraging and inviting to come and know Jesus.
Along with these festivals LPEA has developed a program to train and mentor younger evangelists in order to reach more people. They have also expanded their ministry to include radio, television, videos and DVDs.
This organization is a nonprofit corporation. 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
The Luis Palau Evangelistic Association's Mission Statement is:
The Luis Palau Evangelistic Association exists to proclaim the Good News, unite the Church, and impact cities worldwide.
Statement of faith
Luis Palau Evangelistic Association's Statement of Faith is:
We believe that the Bible is the verbally inspired Word of God, without error in the original writings, and the supreme and final authority in doctrine and practice.
We believe in one God, eternally existent in three Persons: Father, Son, and Holy Spirit.
We believe in the deity of our Lord Jesus Christ, in His virgin birth, in His sinless life, in His miracles, in His vicarious death and atonement through His shed blood, in His bodily resurrection, in His ascension to the right hand of the Father, and in His personal return in power and glory
We believe that faith in the Lord Jesus Christ and regeneration by the Spirit are essential for the salvation of lost and sinful man.
We believe in the present ministry of the Holy Spirit, by whose indwelling the Christian is enabled to live a godly life.
We believe in the forgiveness of sins, the resurrection of the body, and life eternal.
We believe in the spiritual unity of the Church, which is the Body of Christ, composed of all who are regenerated through faith in the Lord Jesus Christ
Transparency grade
A
To understand our transparency grade, click here.
Financial efficiency ratings
Sector: Evangelism
| Category | Rating | Overall rank | Sector rank |
| Overall efficiency rating | | 104 of 913 | 7 of 47 |
| Fund acquisition rating | | 436 of 915 | 25 of 47 |
| Resource allocation rating | | 180 of 915 | 10 of 47 |
| Asset utilization rating | | 59 of 913 | 4 of 47 |
Financial ratios
| Funding ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 6% | 6% | 5% | 6% | 5% | 6% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 5% | 6% | 5% | 5% | 5% | 6% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 96% | 99% | 99% | 99% | 99% | 99% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 5% | 6% | 5% | 6% | 5% | 5% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 4% | 1% | 1% | 1% | 1% | 1% |
| Operating ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Program expense ratio Program expense ratio = Program services / Total expenses | 82% | 89% | 90% | 89% | 90% | 92% |
Spending ratio Spending ratio = Total expenses / Total revenue | 94% | 100% | 100% | 95% | 96% | 127% |
Program output ratio Program output ratio = Program services / Total revenue | 78% | 89% | 89% | 85% | 87% | 116% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | 6% | 0% | 0% | 5% | 4% | -27% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | 8% | 2% | 2% | 26% | 23% | -225% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 11% | 5% | 5% | 5% | 4% | 3% |
| Investing ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 1.15 | 4.21 | 4.35 | 3.83 | 4.78 | 8.03 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 1.50 | 1.47 | 1.65 | 1.61 | 1.73 | 1.88 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 2.05 | 6.19 | 7.20 | 6.17 | 8.28 | 15.12 |
| Liquidity ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Current ratio Current ratio = Total current assets / Total current liabilities | 6.87 | 3.32 | 8.84 | 3.18 | 2.57 | 2.10 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.14 | 0.30 | 0.11 | 0.31 | 0.39 | 0.48 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 4.34 | 1.35 | 1.48 | 1.33 | 0.89 | 0.42 |
| Solvency ratios | Sector median | 2019 | 2018 | 2017 | 2016 | 2015 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 16% | 20% | 18% | 19% | 22% | 25% |
Debt ratio Debt ratio = Debt / Total assets | 0% | 0% | 0% | 0% | 0% | 0% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 70% | 19% | 19% | 21% | 16% | 9% |
Financials
| Balance sheet | |||||
| Assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Cash | $2,727,252 | $2,081,115 | $2,751,944 | $2,712,924 | $1,488,905 |
| Receivables, inventories, prepaids | $0 | $0 | $0 | $142,714 | $56,093 |
| Short-term investments | $2,310,894 | $2,385,346 | $1,813,443 | $412,883 | $848,426 |
| Other current assets | $237,020 | $0 | $0 | $0 | $0 |
| Total current assets | $5,275,166 | $4,466,461 | $4,565,387 | $3,268,521 | $2,393,424 |
| Long-term investments | $959,189 | $857,791 | $936,368 | $861,547 | $24,000 |
| Fixed assets | $1,520,873 | $1,754,329 | $1,595,591 | $1,534,405 | $1,675,336 |
| Other long-term assets | $0 | $310,077 | $263,907 | $0 | $412,805 |
| Total long-term assets | $2,480,062 | $2,922,197 | $2,795,866 | $2,395,952 | $2,112,141 |
| Total assets | $7,755,228 | $7,388,658 | $7,361,253 | $5,664,473 | $4,505,565 |
| Liabilities | 2019 | 2018 | 2017 | 2016 | 2015 |
| Payables and accrued expenses | $630,064 | $505,418 | $497,258 | $434,492 | $394,333 |
| Other current liabilities | $959,189 | $0 | $936,368 | $837,547 | $747,892 |
| Total current liabilities | $1,589,253 | $505,418 | $1,433,626 | $1,272,039 | $1,142,225 |
| Debt | $0 | $0 | $0 | $0 | $0 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $0 | $857,791 | $0 | $0 | $0 |
| Total long-term liabilities | $0 | $857,791 | $0 | $0 | $0 |
| Total liabilities | $1,589,253 | $1,363,209 | $1,433,626 | $1,272,039 | $1,142,225 |
| Net assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Without donor restrictions | $5,872,932 | $5,447,320 | $4,657,253 | $4,032,456 | $2,905,885 |
| With donor restrictions | $293,043 | $578,129 | $1,270,374 | $359,978 | $457,455 |
| Net assets | $6,165,975 | $6,025,449 | $5,927,627 | $4,392,434 | $3,363,340 |
| Revenues and expenses | |||||
| Revenue | 2019 | 2018 | 2017 | 2016 | 2015 |
| Total contributions | $32,476,762 | $32,065,995 | $29,490,588 | $27,810,584 | $28,406,917 |
| Program service revenue | $0 | $0 | $0 | $0 | $0 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $79,106 | ($42,151) | $19,675 | ($863) | ($32,463) |
| Other revenue | $245,035 | $236,657 | $216,161 | $267,342 | $220,329 |
| Total other revenue | $324,141 | $194,506 | $235,836 | $266,479 | $187,866 |
| Total revenue | $32,800,903 | $32,260,501 | $29,726,424 | $28,077,063 | $28,594,783 |
| Expenses | 2019 | 2018 | 2017 | 2016 | 2015 |
| Program services | $29,029,250 | $28,834,896 | $25,197,941 | $24,476,307 | $33,179,479 |
| Management and general | $1,765,406 | $1,569,969 | $1,365,479 | $1,160,715 | $1,217,571 |
| Fundraising | $1,865,721 | $1,757,814 | $1,627,811 | $1,410,947 | $1,780,899 |
| Total expenses | $32,660,377 | $32,162,679 | $28,191,231 | $27,047,969 | $36,177,949 |
| Change in net assets | 2019 | 2018 | 2017 | 2016 | 2015 |
| Surplus (deficit) | $140,526 | $97,822 | $1,535,193 | $1,029,094 | ($7,583,166) |
| Other changes in net assets | $0 | $0 | $0 | $0 | $0 |
| Total change in net assets | $140,526 | $97,822 | $1,535,193 | $1,029,094 | ($7,583,166) |
Compensation
| Name | Title | Compensation |
| Kevin Palau | President/Director | $270,706 |
| Andrew Palau | Dir. of Festivals | $269,595 |
| John Ogle | Vice President | $263,302 |
| Dr Luis Palau | Evangelist/Director | $246,809 |
| Keith Palau | Dir. of Donor Relations | $169,160 |
| Scott Kraske | Chief Financial Officer | $155,923 |
| Justin Fordice | Director of Communications | $150,405 |
| David Jones | Vice President/Treasurer | $148,381 |
| Jorge Scopazzo | Producer | $144,359 |
| Doug Steward | Exec. Producer | $141,560 |
Compensation data as of: 12/31/2019
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 3/15/2021. To update the information below, please email: info@ministrywatch.com
History
In 1947 Luis Palau confessed Jesus Christ as Savior at a summer camp led by a Saint Alban's teacher. "That night I could hardly sleep," Palau remembers. "Back in my tent, by the light of my flashlight, I wrote in my Bible: 'February 12, 1947, I received Jesus Christ.''
During a particularly tempting Carnival Week in 1951 in Buenos Aires, Palau made what he calls "the second most important decision in my life: to serve only Jesus Christ and to give my life to working for Him." In the following years Luis Palau became very active in the local church. He began extensive personal Bible study and began speaking in outdoor evangelistic meetings and on radio.
In 1959 Luis began working for the Latin American division of OC International, a missionary organization based in Colorado Springs, Colorado. By 1961 Luis Palau completed graduate program at Multnomah School of the Bible, Portland, Oregon and married Patricia Marilyn Scofield, another Multnomah student. Luis Palau joined OC International and began a seven-month training program in Detroit, Michigan, with Missionary Internship.
In 1962 Luis Palau became a citizen of the United States of America. Luis Palau served as Spanish interpreter for Billy Graham during his evangelistic crusade in Fresno, California. In 1963 Luis Palau was ordained a Christian minister in Palo Alto, California. OC International assigned the Palaus to church-planting ministry in Colombia, South America. In 1964, In Colombia, Luis Palau began regular Gospel radio broadcasts, developing into Luis Palau Responde and Cruzada, now heard daily by an estimated 22 million people in the Spanish-speaking world. Luis Palau began extensive writing ministry. In 1966 Luis Palau spoke to 20,000 people at the Presidential Plaza in Bogota, Colombia, on the opening day of his first large-scale evangelistic crusade. In 1967 he began forming the Luis Palau Evangelistic Team within the framework of OC International. He first outlined the Palau Team's objectives: to win people to Christ; to stimulate and mobilize the Church to effective evangelism; to see hundreds, if not thousands, of young men enter the ministry; and to plant local churches. From 1968 through 1978 Luis Palau continued to do crusades to hundreds of thousand listeners throughout Mexico, other South American countries , Spain, Germany and Britain. In 1978 the Luis Palau Evangelistic Team incorporated as an independent Organization.
Since 1978 worldwide crusades have be part of the ministry with hundreds of thousand lives influenced.
In 1994 LPEA launched a new bimonthly Newsletter, PROCLAIM and Thomas Nelson published Palau' new book, Healthy Habits for Spiritual Growth.