LYNCHBURG, VA., AUG. 24 -- The Rev. Jerry Falwell, saying there was "no diversion or duplicity," today denied a published report that he diverted nearly $7 million in donations for his political organizations to his religious activities.

The Lynchburg News & Daily Advance reported Sunday that Falwell's Thomas Road Baptist Church and other ministries received $6.7 million over the past three years from the Moral Majority and the Liberty Federation, which reduced spending on grass-roots political activities during the same three-year period.

"We have spent the last several months preparing a full financial report on the Jerry Falwell ministries for the purpose of leading the way for other ministries to do likewise," Falwell said. "We believe that full disclosure is a necessity for all Christian ministries if in fact credibility is to be reestablished since the PTL scandal."

Noting that his ministries completed the financial statement only last week, Falwell said, "All funds that were transferred from Liberty Federation and Moral Majority to our Liberty Godparent Home for unwed mothers, 'Old Time Gospel Hour' and Liberty University were funds which we had raised by direct mail.

"In those fund-raising letters we clearly stipulated that the funds were to be used exactly as they were used by the ministries which received them. There was no diversion or duplicity."

Falwell stressed that there was a clear distinction between the political and religious arms of his ministry.

"There is no commingling of funds between any of our ministries. We would consider that to be very improper. The only time Liberty Federation, our political arm, would make a grant to Liberty University or to our home for unwed mothers is when the donors specifically designate such contributions," he said.

"There is a very clear line between the religious and political ministries. That's required by law and we are very careful about that."

Internal Revenue Service officials would not comment on specific activities, but officials told the newspaper the fund shifts would be legal unless Falwell intentionally misled donors.

Falwell said he has sent numerous fund-raising letters to donors on his political mailing lists asking for aid to his ministry for unwed mothers "and when the funds come in, just as we stipulated, we then direct -- not divert, direct -- it to that ministry, and every penny, just as it was raised."

In the newspaper interview, Falwell had said: "I think most people are giving because I signed the letter. They're giving because I signed it and I asked them to support a certain project. They could {not} care less if the project was being administered by whatever arms of the Jerry Falwell ministry enterprise."

Falwell told the News & Daily Advance that many people who had contributed to his political groups would not give directly to his ministries, which include the church, the "Old Time Gospel Hour" television ministry, Liberty University, Liberty Broadcasting Network and Lynchburg Christian Academy.

Falwell said an unidentified southern industrialist "gave $1 million last year, but stipulated he did not want it to go to the 'Old Time Gospel Hour.' He wanted it to go for political science and for political activities and for the training of young people, and {he said} 'I'm not going to write a check to a religious organization.' "

The industrialist mailed the check to the Moral Majority, and the money was used for political science instruction at Liberty University, Falwell said.

"As per his specific instructions, he wanted the money used by Liberty University to train young people in political science. We followed his instructions to the letter," he said.