Kevin Begos posed an uncomfortable question for the charitably-inclined this year: “How much of that money is well-spent, and how much of it is squandered? The uncomfortable truth: no one knows for sure, and even worse, few are checking.”

Begos pointed out that there is little government oversight for charities and the IRS rarely investigates suspicious activities. It does require charities to fill out IRS Form 990, but Begos noted that the form has only broad financial categories, and it’s hard to tell if expenses are legitimate: “Indeed, deciphering a 990 would challenge an ace detective — and probably has. Yet should a donor have to moonlight as an accountant or detective just to make sure his or her money is properly spent?”

Rusty Leonard, founder of Ministry Watch, told WoW that his and other charity watchdog groups act as detectives on a donor’s behalf, rating organizations on their financial transparency and efficiency. (Ministry Watch has just released its annual list of 30 exemplary ministries.) Leonard agrees, however, that the IRS Form 990 is a “completely insufficient document.” An investment analyst, Leonard sees a wide gap between the information companies must disclose to investors and the information charities must disclose to donors: “The standard of transparency that we apply to nonprofits is quite low in comparison.”

Despite his usual wariness of government involvement, Leonard believes there should be a regulatory framework for charities – a charitable SEC that enforces penalties if charities misuse donations. Ideally, however, Leonard would like to see donors band together, refusing to provide funds for organizations that don’t meet minimum standards of disclosure: “The average donor still doesn’t even understand what’s going on, doesn’t have a clue how their interests are being trampled upon on a regular basis because they’re unorganized.”

As for unscrupulous charities, “They’re willing to throw the donor under the bus,” Leonard said. “Is that a Christian response?”

Sen. Charles Grassley, GOP leader of the Senate Finance Committee, is asking six big ministries to tell him how they spend their donors’ dollars.

According to New York Times, ministry leaders have until December 6 to tell Grassley about their compensation, housing allowances, checking and savings accounts, cars, airplanes and overseas trips. In an official statement, Grassley said he was answering public complaints and media coverage about lavish salaries, private jets and fat housing allowances: “I don’t want to conclude that there’s a problem, but I have an obligation to donors and the taxpayers to find out more.”

The ministry leaders under investigation: Benny Hinn, Creflo and Taffi Dollar, Paula and Randy White, Eddie Long, Joyce and David Meyer, and Kenneth and Gloria Copeland. The IRS classifies their ministries as churches and exempts them from reporting finances. But the IRS does require leaders to use donations for ministry purposes only, and Grassley is asking if Meyer’s $23,000 marble toilet fits in that category.

Rod Pitzer, director of research for Ministry Watch, told WoW his organization has already profiled the ministries of Benny Hinn, Kenneth Copeland, Creflo Dollar, and Joyce Meyer, awarding the first three an “F” for failing to disclose how they spend donors’ dollars. Pitzer said he sees a “tug of war between competing interests:” good ministries that “want to be unshackled by red tape and government,” corrupt organizations that “want to go under the radar,” donors who want their money used wisely, and government regulators.

Pitzer notes that other ministries – Campus Crusade and the Navigators – voluntarily disclose financial records, pay their leaders reasonable salaries, and open ministry meetings to the public. He said this is the kind of transparency Ministry Watch would like to see other ministries embrace: “Hopefully there’s a dialogue about best practices and hopefully those best practices start with openness and transparency and good governance.”