Ep. 470: Liberty & Falwell Settlement Terms Released, Bob Jones University, Kay Arthur, and Daystar

MinistryWatch Podcast

On today’s program, Liberty University reached a settlement with disgraced former President Jerry Falwell Jr. last year, but the terms of that settlement were only disclosed this week. We’ll have details.

And, Bob Jones University names a new president just a month after its current leader announced he is stepping back. Many alumni aren’t happy with the choice. We’ll explain why.

Plus, beloved Bible study author Kay Arthur has died at 91. We’ll look back at the ministry founder’s life.

But first, police close its investigation into sexual abuse allegations against Daystar. The police department investigating accusations that sexual abuse was covered up by Daystar Television Network’s founding family, Joni and Marcus Lamb, has announced it is closing the investigation. According to the Colleyville Police Department in North Texas, the allegations were thoroughly investigated over the last year and a half, but no one will be charged in the matter.

The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Marci Seither, Kathryn Post, Bob Smietana, Brittany Smith, and Christina Darnell.

A special thanks to The NonProfit Times for contributing material for this week’s podcast.

Until next time, may God bless you.

MANUSCRIPT:

FIRST SEGMENT

Warren:

Hello everybody. I’m Warren Smith, coming to you this week from Charlotte, North Carolina.

Natasha:

And I’m Natasha Cowden, coming to you from Denver, Colorado, and we’d like to welcome you to the MinistryWatch podcast.

Warren:

On today’s program, Liberty University reached a settlement with disgraced former President Jerry Falwell Jr. last year, but the terms of that settlement were only disclosed this week. We’ll have details.

And, Bob Jones University names a new president just a month after its current leader announced he is stepping back. Many alumni aren’t happy with the choice. We’ll explain why.

Plus, beloved Bible study author Kay Arthur has died at 91. We’ll look back at the ministry founder’s life.

Natasha:

But first, Police close its investigation into sexual abuse allegations against Daystar.

Warren:

The police department investigating accusations that sexual abuse was covered up by Daystar Television Network’s founding family, Joni and Marcus Lamb, has announced it is closing the investigation.

According to the Colleyville Police Department in North Texas, the allegations were thoroughly investigated over the last year and a half, but no one will be charged in the matter.

Dara Nelson, Colleyville Police Department’s public information officer, in a statement. “The case is closed with no charges filed. In Texas, there is no statute of limitations for sexual assault of a child. If any new evidence emerges in this case, it will be thoroughly investigated,” she added.

Natasha:

Warren, can you briefly give us a little more background to this story?

Warren:

Last fall, Jonathan Lamb, son of Daystar founders Marcus and Joni Lamb, and his wife, Suzy, publicly accused Daystar leaders of covering up abuse involving their daughter from several years prior.

The couple accused a Lamb family member, identified as “Pete,” of the abuse. Pete submitted to two lie detector tests, and no evidence was ever produced implicating him in the abuse, according to a statement on Daystar’s website.

Both “Pete” and Daystar denied any wrongdoing.

Natasha:

But the family isn’t convinced.

Warren:

In a post on X, Suzy Lamb called the investigation closure “a formality,” adding that victims of abuse often take years to speak up. She also said “Pete” was not exonerated of the alleged abuse.

“When our child is ready to speak – she will and the case will be wide open again,” Suzy Lamb wrote. “Till then we rest and trust God to bring justice.”

In response to the allegations last fall, Joni Lamb addressed her son’s allegations, saying he had been fired from the network for performance issues.

“Rather than take any steps to improve his performance at Daystar, it seems clear now that Jonathan was focused on fabricating a smear campaign” because he was not named as the future president of Daystar following the death of his father Marcus Lamb in 2021.

Warren ad-lib.

Natasha:

Next, Bob Jones University has a new President

Warren:

Bob Jones University (BJU) announced the appointment of Dr. Bruce McAllister as its new president, replacing Josh Crockett who has served just under a year.

McAllister is a BJU alumnus and has served with the university in various roles for over 48 years. Most recently, he was vice president of ministry. In that role, he oversaw BJU’s ministry and outreach both on and off campus and was a liaison, speaker, and representative at conferences and seminars.

McAllister graduated in 1977 during BJU’s 50^th anniversary year, and he hopes to still be leading the university at its 100^th anniversary in 2027.

In his remarks to the faculty and staff of BJU on May 20, he said he is “very optimistic about the future of BJU primarily because we have a very great God.”

Natasha:

This was a pretty quick major decision on behalf of the school

Warren:

Yes The decision to name McAllister was made quickly, Dawson said, because he was already well-vetted as a finalist in last year’s search for a president.

The board of trustees’ vote for McAllister was unanimous.

In reaction to the announcement of McAllister’s appointment, Michael Pettit, a BJU alumnus and son of former president Steve Pettit, posted criticism on social media: “Bruce’s appointment is not leadership. It’s managed decline. This is Dr. Bob’s shadow government at work. There was a future. There was a path forward. But it was stripped from you by men clinging to power, legacy, and probable financial gain. This is a tragedy – make no mistake. And unless something changes, it likely ends in closure around the 100th.”

Natasha:

While we’re discussing universities, there’s a new development at Liberty.

Warren:

Liberty University has agreed to a $15-million settlement of a lawsuit with former president Jerry Falwell Jr., according to tax documents reviewed by USA Today.

The documents reveal the university, located in Lynchburg, Virginia, will pay Falwell Jr. $5.5 million to settle litigation and $9.7 million for retirement.

Falwell Jr. will pay Liberty $440,000 to settle “disputed expenses” between him and the academic institution.

Falwell Jr. was “very pleased with the outcome of the settlement negotiations and with the final settlement,” according to USA Today. Liberty did not provide a statement to the outlet.

Natasha:

Can you remind us why this settlement was necessary?

Warren:

In March 2023, Falwell sued the university for $8.5 million in retirement benefits he claimed they owed him.

In July 2023, Falwell Jr. sued the university, accusing it of misappropriating “for itself” the name and image of Falwell Sr., the conservative Christian evangelist who co-founded the evangelical university in 1971.

The settlement agreement authorizes Liberty to use the name, image, and likeness of its founder, Jerry Falwell Sr.

Natasha:

And Gateway Church is still in the news.

Warren:

Gateway Church is seeking the intervention of a Tarrant County district court to stop an arbitration proceeding sought by its founding pastor, Robert Morris. Morris is demanding over $1 million from the church.

On April 23, 2025, Morris sent a letter to the Institute for Christian Conciliation, a division of Ambassadors of Reconciliation, with a demand for arbitration between himself and Gateway Church seeking enforcement of the terms of a deferred defined benefit plan and the intellectual property rights to his books and other works.

As of January 8, Morris claimed the church owed him $1,083,574 that it was refusing to pay. He also claimed he was terminated by the church even though the church has said he resigned.

Natasha:

Morris has been indicted by a grand jury in Oklahoma for five counts of lewd or indecent acts with a child. He made his initial appearance in the criminal matter on May 9 with a preliminary hearing set for September 4.

Warren:

Not long after Morris resigned in June 2024, the church claims he sought a $1 million payment from Gateway, $800k per year until he reaches age 70, and $600k per year for the remainder of his or his wife’s life. Morris is currently 63 years old.

Warren:

Gateway refused to pay the demands, citing contractual reasons and Morris’s “defiantly unapologetic posture” with respect to his actions.

Finally, the church argues that because Morris is facing criminal charges for the conduct that led to his resignation, the outcome and testimony in the criminal trial will “likely be important evidence in the arbitration,” while his presence at the criminal trial will likely pose significant scheduling issues for the arbitration.

Natasha:

Warren, let’s take a quick break. When we return, the story of a couple who took their retirement savings and invested it into a ministry venture that serves their local community.

I’m Natasha Cowden, along with my co-host Warren Smith, and we’ll have that story and much more, after this short break.

BREAK

SECOND SEGMENT

Natasha:

Welcome back. I’m Natasha Cowden, along with my co-host Warren Smith, and you’re listening to the MinistryWatch podcast.

Next, the story we promised before the break.

Warren:

When Jim and Dot Bennett met as Spanish majors at Penn State University, they had no idea how the Lord would open doors to minister in ways they never could have imagined. After a journey of faith, years of hard work, and prayer, they opened a 12,000-square-foot center for the growing Hispanic population who live in eastern Kentucky.

Jim’s experience in the mining industry inspired him to start an international consulting practice for mining and gas companies. His company now works in over 120 countries.

Natasha:

During that time, Dot was working with the Hispanic community through the Kentucky Rivers Foothill Head Start program. She felt compassion for immigrants, thinking of her own family’s journey as immigrants seeking a better life and of the struggles they faced to get on their feet. Especially for those struggling to navigate the health and legal system without knowing the language.

Warren:

After seeing the growing needs in their community, They discussed building a center to provide medical counseling, education, faith-based services, and legal assistance, primarily serving the Hispanic community.

“It was going to cost about 4 million bucks, pushing us to the end,” recounted Jim. “We would be giving up our retirement, all the resources we had to open the doors, and the time it takes to run a place like that. But God was testing our faith, and we knew we had to make it work, no matter how hard it was.”

The couple moved forward and after five years of hard work, Centro de San Juan Diego became a reality in 2020. Their mission statement centered around Proverbs 3:27: “Do not withhold good from those to whom it is due, when it is in your power to act.”

By the way…Warren ad lib.

Natasha:

What’s our next story?

Warren:

During their annual meeting in Dallas next month, Southern Baptists will sing, bless missionaries, pass a budget, listen to sermons and engage in lively debate about a host of issues.

Among those issues: what to do with the denomination’s Ethics and Religious Liberty Commission. For nearly a decade, the ERLC has been a source of controversy as the nation’s largest Protestant denomination has navigated the cultural and political divides of the Trump era.

Natasha:

While Southern Baptists, like many evangelicals, have been strong supporters of President Donald Trump in the voting booth, some of the president’s policy decisions and personal conduct have clashed with Baptist ethics and beliefs.

Warren:

That’s left the ERLC, which speaks to ethical issues and public policy debates, occasionally at odds with the denomination’s 12.7 million members, leading to three attempts to disband or defund the agency over the past decade.

Clint Pressley, president of the Southern Baptist Convention, suspects there will be a motion to close the agency at the denomination’s annual meeting in June, but Pressley said the future of the ERLC is not up to him. Even if he had concerns about it, he’s got no power to make a decision. Instead, that power rests with church representatives known as messengers.

Pressley added that his role as chair of the SBC’s annual meeting means he cannot take sides in any debate over the ERLC.

Natasha:

In recent months, both the ERLC and its critics have engaged in an online public relations war over the agency’s reputation and future. The Center for Baptist Leadership, a startup activist group with ties to American Reformer magazine, has run a series of articles, podcast episodes and social media posts critical of the ERLC — primarily for its stances on immigration reform and lack of close ties to the Trump administration.

Warren:

The ERLC has promoted its ties to House Speaker Mike Johnson, a former ERLC trustee, and its support for defunding Planned Parenthood, as well as its opposition to gender transition procedures for minors and gender and sexuality ideology.

There have been three votes to defund or disband the ERLC since Trump took office the first time — all of them have failed but between a quarter and a third of messengers at the 2024 annual meeting appeared to support closing the agency. The SBC’s rules require two votes in successive annual meetings to shut down an entity such as the ERLC.

Natasha:

The U.S. Department of Education (ED) has rescinded a $37.7-million fine assessed against Grand Canyon University (GCU) in 2023.

Warren:

The original fine was assessed for what the Department of Education said at the time was deception of more than 7,500 students about the cost of doctoral programs at GCU.

Natasha:

So what happened?

Warren:

The ED “dismissed the case with no findings, fines, liabilities or penalties of any kind, and confirmed it has not established that GCU violated any Title IV requirements, including the claim that GCU ‘substantially misrepresented’ the cost of its doctoral programs that was alleged by ED officials under the Biden Administration,” according to a press release by GCU.

A private lawsuit in federal court about the doctoral program representations survived a motion to dismiss on May 6. A Federal Trade Commission lawsuit filed in December 2023 regarding the same issues is still pending.

GCU is the largest Christian university in the country with nearly $1.9 billion in revenue according to its Form 990.

In the MinistryWatch database, GCU has a five-star financial efficiency rating, a C transparency grade, and a donor confidence score of 72 out of 100.

Natasha:

Warren, we’re going to take another break. When we return, our lightning round of ministry news of the week.

I’m Natasha Cowden, with my co-host Warren Smith. More in a moment.

BREAK

THIRD SEGMENT

Natasha:

Welcome back. I’m Natasha Cowden, with my co-host Warren Smith and you’re listening to the MinistryWatch Podcast.

Warren, we like to use this last segment as a sort of lightning round of shorter news briefs.

What’s up first?

Warren:

Kay Arthur, a popular Christian speaker, author and longtime host of the “Precepts for Life” Bible teaching program that was broadcast around the world, has died.

She was 91.

A former missionary and registered nurse, Arthur was known for her inductive Bible studies — which involved teaching people to “observe, interpret, and apply the truth of Scripture” — Arthur would go on to write more than 100 books and Bible studies. The Precept Bible Study Method is used in 190 countries and has been translated into 110 languages.

In 2011, Arthur, who hosted Precepts for Life from 1999 to 2019, was named to the National Religious Broadcasters Hall of Fame. The program was also named Best Bible Teaching Program by the NRB twice. Arthur also won four Gold Medallion awards from the Evangelical Christian Publishers Association.

She was preceded in death by her husband, Jack, who died in 2017 after 51 years of marriage. She is survived by three sons, nine grandchildren and seven great-grandchildren.

Natasha:

What’s next?

Warren:

The value of a volunteer’s time in the United States increased $1.30 an hour during 2024 to $34.79, an increase of 3.9% from 2023, when value is averaged across all 50 states, the District of Columbia and Puerto Rico.

Four areas cracked the $40 per hour mark, with the District of Columbia topping the list at $52.06 per hour, followed by Massachusetts at $42, Washington State at $41.70 and California hitting $40.14.

Puerto Rico was the least expensive at $17.32, even with an increase of $1.50 per hour. Mississippi was the next least expensive at $27.01, with an increase of $1.59 per hour.

Natasha:

The data is from Independent Sector and the Do Good Institute at the University of Maryland’s School of Public Policy.

Warren:

Nathan Dietz, research director at the Do Good Institute, is the researcher responsible for calculating the estimates. “The estimated value of an hour of volunteer time, which reflects the value that volunteer labor adds to the capacity of nonprofit organizations, increased again in 2024. The increase of 3.9% is greater than the overall annual inflation rate (2.9%), which shows that the contributions of volunteers are more valuable today than ever before.”

Natasha:

Next, who is in our Ministry Spotlight?

Warren:

Dignity Freedom Network (DFN), a ministry working with women and families across India, recently saw a jump in its Donor Confidence Score from 37 to 52. That still places the organization in the “Exercise Caution” category, mostly due to it not making its Form 990s available to the public.

A spokesperson for DFN told MinistryWatch the organization does not file a 990 “with the IRS, but we do prepare them every year and are happy to send them to donors.”

DFN sent a copy of its latest 990 to MinistryWatch. In 2023, the organization had a revenue of $2.1 million, and its expenses were $2.7 million. It has $1.4 million in net assets.

DFN is also a member of the ECFA, but has requested that its member profile be hidden.

“We’re still a member, still in good standing, but we asked them to remove us from the website for safety issues,” the DFN spokesperson told MinistryWatch.

Warren ad-lib.

Natasha:

This week, in Ministries Making a Difference, Christina Darnell rounded up churches that are building practical ministries based on the needs of their local neighbors.

Warren:

Warren ad-lib theme of local, practical ministries.

Over the past few years, Lifehouse Church of Salem County in New Jersey has expanded its ministry to families with disabilities inside and outside the church. The congregation sponsors and coaches an elementary-age baseball team with Little League Challenger, a league for children with disabilities. It also hosted a special VBS two years ago that grew into a monthly VBS-type program for families with disabilities that includes Bible stories, crafts, and music.

On Fridays in Austin, Texas, First United Methodist Church invites homeless women to a day of self-care—a safe haven, steaming coffee, scrumptious meal, hot shower, a new outfit, and a chance to wash laundry. Once a month, a hairstylist donates her time to cut hair. The ministry began as church leaders noticed it was mostly men who took advantage of their homeless services. They found out women were intimidated by the men, and so they prepared a separate day. Now, as many as 30-40 women show up at the church for help on any given Friday.

Members of the Church of the Nazarene in Cerro Cama in Panama have initiated a host of practical ministries to its surrounding community. With the help of volunteers from other districts and missions teams from North America, they have hosted Vacation Bible Schools, medical mission teams, hot meal distributions, support for public schools and families in need, and support sessions for teenagers. The work has created a need for further accommodations, and in 2024, the church began building a new sanctuary, a children’s dining area, and a pastoral apartment.

Natasha:

Warren, any final thoughts before we go?

Warren:

Warren Ad-Lib MAY Recurring Donor Appeal.

Like, share on podcast app and social media.

Natasha:

The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Marci Seither, Kathryn Post, Bob Smietana, Brittany Smith, and Christina Darnell.

A special thanks to The NonProfit Times for contributing material for this week’s podcast.

I’m Natasha Cowden, coming to you from Denver, Colorado.

Warren:

And I’m Warren Smith, in Charlotte, North Carolina.

Natasha:

You’ve been listening to the MinistryWatch podcast. Until next time, may God bless you.