You cannot serve God and wealth...

No servant can serve two masters; for either he will hate the one and love the other, or else he will be devoted to one and despise the other. You cannot serve God and wealth. - Luke 16:13

Recently we've spent time on Guidestar downloading and reviewing IRS 990s filed by various Evangelical ministries including Ligonier, Grace to You, Grace to You/Masters College and SeminaryInsight for Living, and Desiring God.

Like accountants, our Internal Revenue Service holds to a high doctrine of original sin--much higher than today's Reformed pastors and congregants. Taking money and conflict of interest seriously, the IRS requires nonprofits to file Form 990 answering a whole host of questions the government believes should inform the giving of those inclined to support these ministries. Then the information collected through the 990 is made a matter of public record. Here are some of the questions...

they ask:
  • Briefly describe the organization's mission:
  • Did the organization report a total of more than $15,000 of expenses for professional fundraising services...
  • Was the organization a party to a business transaction with one of the following parties: a current or former officer, director, trustee, or key employee; a family member of a current or former officer, director, trustee, or key employee? If there are business transactions involving interested persons (relatives, for instance), provide name of interested person, relationship between interested person and the organization, amount of transaction, description of transaction...
  • Enter the number of voting members of the governing body...
  • Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?
  • List the organization's five current highest compensated employees who received reportable compensation of more than $100,000 from the organization and any related organization. (fill in number of hours they work per week, total salary, total other income, etc.)
  • Check the appropriate box(es) if the organization provided (first class or charter travel) for a person listed...

The IRS makes this information public and it's clear they're right to do so. We should be accountable for our use of gifts given in good faith for the work of the Kingdom of God--and often solicited from widows.

  • What is your salary?
  • What do you pay your wife through your nonprofit?
  • What do you pay your son or son-in-law's business through your nonprofit?
  • Do you use your nonprofit's money to buy first class airline tickets?
  • To charter airplanes?
  • How much do you pay your public relations man (spokesman)?
  • Does your nonprofit pay you royalties on your books they sell for you?
  • Does your nonprofit pay you royalties on your sermons they broadcast and/or sell for you?
  • How much does your nonprofit pay your professional fundraiser?
  • How much money does your professional fundraiser make for you over and beyond what you pay him to write appeals and count and deposit receipts?
  • Who are the people who control your nonprofit and how many of them are your relatives?

If you support one of these ministries, you would do well to examine its IRS Form 990 carefully to see what they spend your gifts on and whether their answers to such questions give you confidence in their Godly use of that money. For your convenience, at the bottom of this post we've provided the 990s for the ministries owned by better-known personalities of the Evangelical world. And although Guidestar doesn't have Clearnote's own 990 up and running yet, I've put a PDF copy of it for you to download, also. What's sauce for the goose is sauce for the duckling.

Here's a few of the things we've found.

Most of these men live handsomely on the gifts given to their ministries. We'd guess most have a household income of more than $400,000 per year; and in some cases, much more. We can't say precisely how much more, but if you provide yourself $200,000 per year in salary from your nonprofit, you vote yourself $45,000 from another of your nonprofits, you get a church salary of $200,000 (churches don't have to disclose pastor's salaries, but this is a very conservative estimate of what these men are paid by their congregations), your travel expenses are paid by your nonprofit (including first class and charter), and you're paid advances and royalties of $100,000 to $400,000 per year on your ministry books (again this is a conservative estimate for what best-selling Evangelicals make from their books each year), we're up to over $500,000 per year.

Keep in mind that this amount pours in year after year (in four years you've taken in $2,000,000), and that it doesn't include the money you pay your best friends, in-laws, and relatives, nor the speakers fees and honoraria you command for all your itineration.

The Apostle Paul reminded the New Testament church that the Old Testament command, "You shall not muzzle the ox" (Deuteronomy 25:4) applied to pastors (1Corinthians 9:6-11). Which prompted Samuel Johnson to make the observation, "It might as well be said, 'Who drives fat oxen should himself be fat.'"

The business of Evangelicalism is quite lucrative--particularly publishing--and this is why Rupert Murdoch has bought over 50 % of the Evangelical publishing market. This means the majority of Evangelical publishing is now a division of Murdoch's News Corporation.

That said, we single out John Piper for commendation.

John votes himself no salary from his nonprofit, Desiring God Ministries.

In fact, unlike the others, John Piper doesn't own his nonprofit; his church does. Each year Bethlehem Baptist Church appoints the leadership of Desiring God Ministries. We challenge any of these other men to follow John's lead and place their nonprofit under the authority of their elders board. What an excellent example John is on this.

Then because Desiring God Ministries is under the authority of Bethlehem Baptist Church and John is an employee of Bethlehem Baptist Church, Desiring God Ministries has to put into the public record of their Form 990 how much money John is paid by Bethlehem Baptist each year. We see that John's 2010 church salary was $120,000.

Brothers, two things to note about this: first, it's unheard of that any of these men would allow their chuch salaries to be known, publicly; and second, this amount John receives is very, very low for a senior pastor of his position. But of course, John still has his royalties to live high on the hog from, right?

Wrong.

Next to Desiring God Ministries in Guidestars list of nonprofits is a foundation titled Desiring God Foundation. It has three officers: John Piper, Terry Kurschner, and Noel Piper and they don't pay themselves a penny from the foundation. They simply give money away.

How much and to whom? In 2010, Desiring God Foundation made the following grants:

  • $205,000 to Desiring God Ministries
  • $70,000 to Bethlehem Baptist Church
  • $75,000 to Bethlehem College and Seminary
  • $30,000 to Training Leaders International

Where did this money come from? Well, add it up and you'll find these gifts total $380,000 and the Pipers' foundation received income from John's advances and royalties during 2010 of $391,000.

Learn this lesson well, brothers and sisters in Christ: as John said recently in a Sunday evening sermon, he knows his own heart and he disciplines himself financially. Think about it: John and Noel use their royalties to fund a foundation that provides their church most of the salary they are paid each year. Then John turns around and gives his elders board the authority to govern Desiring God Ministries.

May God bless John and Noel Piper, as well as all their employees who are content to be paid as humbly as John and Noel are.

* * *

Clearnote Fellowship IRS Form 990 (2011)

Desiring God Ministries IRS Form 990 (2010)

Desiring God Foundation IRS Form 990 (2010)

Grace to You IRS Form 990 (2010)

Grace to You/Masters College and Seminary IRS Form 990 (2010)

Insight for Living IRS Form 990 (2009)

Ligonier Ministries Inc IRS Form 990 (2010)

(DB & TB, w/thanks to the IRS)

Comments

The problem with the "nonprofit" designation is that it also restricts the ability to speak freely from the pulpit, even if not explicitly endorsing a candidate or ballot question. These are treated as the same under the law, so instructing church members to vote for an amendment to the state constitution banning same-sex "marriage" would be "illegal."

There's also a very good argument to be made that requiring churches to file for tax-exempt status in the first place is a violation of religious liberty, as churches should be exempt automatically.

With that said, your point about the spiritual danger of a ministry position being financially lucrative is very good.

I'd be happier if Desiring God Foundation hadn't given any money to an academic institution employing Greg Boyd as a professor of theology - but it is good to see them giving away so much.

Astounding, really.

Kamilla,

Boyd is connected with Bethel College. I don't see that listed as a receipent of DGF funds. Did I miss something? If so then I would agree with you.

Kamilla: Robert is correct. Boyd used to teach regularly at Bethel College and now he teaches there only occasionally. He continues to serve as a pastor at Woodland Hills Church, which he co-founded in 1992.

Years ago, Pastor John and friends tried to put pressure on the Baptist General Conference (the denomination with which Bethel College is affiliated) so that they would fire Boyd because of his open theist views.

Bethlehem College and Seminary is the pastoral training institute of Bethlehem Baptist Church, the church where John has served as pastor for more than 30 years. There is no connection between Bethlehem College and Seminary and Bethel College and Seminary.

Mea culpa!

I plead dyslexia. Very pleased to have misread that.

Not sure I understand all the details but a summary of what I see as the yearly wages (I'm not sure how one knows about the extra income Tim mentioned from church salaries and royalties? is it really an extra $200,000 for church salary and $100,000-$400,000 for royalties?) but excluding that here is what they get:

o R.C. Sproul Snr: $260,000 (for 40 hrs per week)
o John Macarthur: $220,000 (for 10 hrs per week)
o Phil Johnson: $215,000 (for 40 hrs per week)
o R.C. Sproul Jnr: $160,000 (for 40 hrs per week)
o John Piper: $120,000
o Charles Swindoll: $80,000 (but Cynthia Swindoll gets $170,000 - huh? both 40 hrs per week)
o Grace to You has 6 other guys on an av. wage of $165,000
o Ligonier has 3 other guys on a av. wage of $165,000
o Insight for Living (Chuck Swindoll) has 9 other guys on av. wage of $130,000
o Tim Bayly: $1,000,000 Yikes.

Ok the last one was a joke.

It has Tim down for $0 for 5hrs work per week but that must be because it is Clearnote Fellowship not your church salary.

One point - if a guy is putting in 40hrs per week for these organisations then I would suspect they are not getting a church salary as well, no?

Although these salaries seem very high compared to the man in the pew, the one thing all this does not say is how much these guys give away vs how much they spend on excessive luxurious living. I personally would like to make a stack so that I can fund good causes. But for the sake of the onlooking world it might? be best to give that money away through your organisations (rather than privately) so that people don't think you are making a ridiculous heap.

It's funny, isn't it, that politicians release their tax returns, but pastors don't.

Actually, it wouldn't be a bad idea if *everybody* were required to release their tax returns. I bet charitable giving would rise, and cheating would fall drastically.

Henry,

It's actually very likely that these men are also getting church salaries, even if they put in 40 hrs per week at *one of* their non-profits. So if you total up royalties (and a guess of $100,000 to $400,000 in royalties per year for these particular men is a good guess), speaking fees, church wages, and the non-profit wages, you begin to arrive at the estimates that Tim stated above.

In other words, these 990's are illustrative, but they don't tell the whole story. There's gold in them there hills...

"Who drives fat oxen should be fat himself."

To draw out the analogy: The American church today is a bunch of starving skinnies driven by fat oxen.

The story about John Wesley's home economy is interesting. I don't know if it's true (I only heard about it from the Web), but it's inspirational in any case:

http://saintluther.blogspot.com/2007/05/about-money-john-wesley.html

I, of course, am not following John Wesley in this, and I don't know that we should, but we should think about it. Note, too, that his publishing income was very high-- he just gave it all away. The key thing, really, is not how much you make, but how you spend it, which sometimes can't be determined till the person dies and we see where the remaining money goes. Still, transparency is all to the good.

Compared with pastors' salaries in Britain, some of the numbers here are astronomical!

I don't know what a standard pastor's salary is in the USA, I would imagine in the range $US60-80K, but there are not many pastors in Britain paid more than $US60K equivalent. And none who are obviously paid as much as some American pastors are.

(though the ripoffs perpetrated by the word-of-Faith types, now that is really, truly, appalling).

My friend's dad is a pastor in Scotland (FPCofS) and he only gets paid £20,000 per year (about $30,000).

No book royalties or non-profits to boost it either. He does get to live in the church manse, but does not ever own it to pass on to his children.

#13 Yes, that would be right; a rent-free church manse would be equivalent to another £12,000/year B4 tax, more or less, depending on where he is living. But for the level of responsibility involved, it is not generous, is it?

Wonder what Roman Catholic Archbishops and Cardinals receive compared to their Evangelical counterparts.

sorry small correction, it's probably more like £25,000 (i.e. $40,000). Not a huge difference though. Plus the key point to note is that although he gets to live in the church manse until he dies he never owns it to pass on to his children.

Wasn't bequeathal of the church manse to continue housing one's wife and children one of the reasons why pastoral celibacy became necessary in the middle ages? Then, when the next pastor was selected, where would they then live?

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