Monday, August 24, 2009

2 Condos? 3 Boats? A Porsche? Directed Toward God?

This post focuses on the two Twin Cities dailies' fascinating response to CREW’s 2/8/07 complaint against LWCC. Other media coverage, and Hammond's reaction, will be detailed in future posts.

The day after CREW filed, The Saint Paul Pioneer Press published the news, along with the church’s official response. The story, entitled "Group Questions $2 Million in Loans to Pastor," is excerpted below. The full text is available for a minimal fee through the PP's archives.

A Twin Cities mega-church loaned its pastor nearly $2 million on favorable terms over five years, and a public-interest group has asked the government to investigate whether the deals were legal.

In a complaint filed Thursday, Citizens for Responsibility and Ethics in Washington, or CREW, asked the Internal Revenue Service to look into the loans and other deals between the Rev. James "Mac" Hammond and the board of trustees of his Living Word Christian Center, based in Brooklyn Park.

"We've always sought to do things above board," said Mark Redman, an associate pastor at the church. "We have no concern that there's any validity to the allegations."

In a written statement... Redman said, "Every effort is made, and will continue to be made, to completely comply with and diligently follow all applicable legal standards established by the IRS and the State of Minnesota for the conduct of non-profit organizations." ...

"The documents that we received paint an incomplete picture and don't give us all the details. However, the more you read the loan documents, the more you're left with the impression that something shady was going down at Living Word," said Tim Mooney, senior counsel for CREW.

… In the fall, the organization complained after Hammond, in the midst of a church service, told the congregation he intended to vote for Michele Bachmann, then a Republican candidate for the state's 6th Congressional District.

... CREW claimed his endorsement was electioneering, which is prohibited in churches because of their tax-exempt status as religious institutions.

At the time, Hammond claimed ignorance of tax laws prohibiting such behavior in churches. The church said the pastor of 26 years had "misunderstood the IRS guidelines."


[My thought: How credible is the claim that Hammond--with all of the legal advice the church gets, with the IRS sending out advisories, with his years of experience leading LWCC--didn't understand those guidelines for tax-exempt organizations? Not very, in my opinion.]

The records show Living Word sold Hammond an airplane for $1.06 million. He leased two planes to the church in a deal that required Living Word to cover the airplanes' operating expenses, maintenance, fuel and hangar fees.

As Hammond was repaying Living Word an average of $9,590 a month for the loans on the aircraft, he was leasing them back to the church at a rate that was nearly twice that amount, CREW said.

In addition to leasing the planes from Hammond and paying for their operating expenses, Living Word also rented hangar space from Hammond.

"Essentially, Living Word paid Pastor Hammond to use, operate and store his own planes at his own facility. That's basically what ended up happening," Mooney said.

Redman said the church is confident that any investigation "will show that we've followed every letter of the law."

"We're not nervous about investigation and accountability," he said. "We work hard to be accountable and candid.

The Star Tribune published a lengthy profile/interview of Hammond by Jon Tevlin in its Sunday, February 11, 2007 edition. The full story, well worth reading can be found at no charge here. Tevlin wrote, in part:

In the early days, [Mac Hammond was] … struggling to pay debts and about $100,000 in back taxes. His air cargo business was for sale. …

Yet Hammond felt called to spread the word. "My biggest insecurity was that I had no formal training for the ministry," he said. "So I'd stand for hours before a full-length mirror, and preach my message to myself."

Today, 25 years later, James McBryde (Mac) Hammond presides over an expansive spiritual empire ...

Last week, a Washington watchdog group filed a formal complaint with the Internal Revenue Service against Hammond's Living Word Christian Center. … But church officials said they are confident that they are complying with tax laws.

Meanwhile, some religious leaders and fellow evangelical ministers are criticizing Hammond's unapologetic embrace of wealth -- from his two planes to his luxury cars and high-end condos. …

The church already owns millions of dollars of property in the Twin Cities and 560 acres in northern Minnesota that includes a $500,000 cabin "retreat." …

"I have heard recounted to me, 'Well, you couldn't make it in business, so you decided to give it a shot in the ministry,' " Hammond, 63, said in an interview in December. "That's just not fair." …

"I think it's important that I not be embarrassed about the increase the Lord does bring me," Hammond said. "One of the things I think has kept Christianity from being as effective as it could be is the idea that the clergy has to be poor. The Bible doesn't say that."

[My thought: Here Hammond has set up a "straw man"--a weak argument that he can easily knock down, an argument that intentionally misrepresents what critics of the prosperity gospel have said. Specifically, Hammond has set up a false dilemma or false dichotomy between pursuing great luxury and being poor, as though there were no other option. Virtually no one argues today that the clergy "has to be poor." Those who object to the theology of Hammond and other Word-Faith preachers have never maintained that poverty is required of ministers. They have argued against what they see as an overemphasis on materialism at the expense of the full Christian message, and/or what they see as questionable ethical practices, less-than-full disclosure of financial dealings, and diversion of tax-exempt funds to the private benefit of a few.]

"Noah was the first investment banker," he said at the start of one recent sermon, which was filled with folksy charm, biblical references and business jargon. "He was buying stock when the rest of the world was liquidating."

…Hammond's story is remarkable. In 1972, his wife, Lynne...had "an encounter with the Lord"...

Hammond, who says he was born again at 12, had strayed from serious study of the Bible. …But he said he was struck by the profound change in his wife and began to consider a life in the ministry.

Hammond said that, despite his financial struggles, he could have earned a good living in aviation. Instead, the couple embraced the Word-Faith movement, which was practiced by Hammond's televangelist contemporaries, the Rev. Kenneth Hagin and the Rev. Kenneth Copeland.

Word-Faith, an offshoot of Pentecostal ministries, preaches literal adherence to the Bible and spreading the gospel. Members believe in speaking in tongues and faith healing. Hammond says that while he can't predict a date for the Rapture, he believes we are in the "last days."

But members also believe there's no reason to live those days uncomfortably, as long as wealth is directed toward God. Hammond's private jet, he said, allows him to preach in congregations nationwide. [My thought: Commercial air service not sufficient?] "It's impossible to bless someone else or be a blessing if you have nothing to bless them with," he said. "It is a fact that the greatest impact we can have on the world around us is going to be defined by financial resource" used for the right reasons.

Hammond declined to discuss his personal wealth. But records show his two Destin, Fla., condos are worth more than $3 million. He pays no taxes on his comfortable but hardly ostentatious Plymouth home, which has lovely landscaping and a pool. A Lexus and a Porsche are registered under Hammond's name, as well as three boats.

[My thought: How are those two Florida condos, that Lexus, that Porsche and those three boats "directed towards God?" How are they "having an impact on the world?"]

A home near Brainerd valued at more than $500,000 (bought for half that) is used as a retreat, according to a church spokesman. The acreage near Brainerd is part of the church's investment strategy, the spokesman said, but may become a youth camp.

Hammond leases his jet to the church, according to public documents.... Hammond makes many trips to other Word-Faith locations. But he also used the jet to travel to Florida property. Hammond said he keeps track of personal use, and repays the church.

The church's associate pastor, Marc Redman, said the accusations [of insider dealings] are false. "Living Word and those outside professionals involved in the conduct of our financial affairs remain confident any fair review of our dealings will reveal the validity of our effort to consistently be an accountable and honest ministry before God, our congregation and our community," Redman said.

Hammond selected an early board of directors. They nominate new members. Board members include Mac and Lynne Hammond, Kenneth Copeland's son, pastors of Living Word's Duluth satellite and Texas minister Dennis Burke. They set salaries for the Hammonds (Lynne and sons James and John and daughter Lucyhrt work for the church) by comparing compensation of pastors in all denominations, as well as founders of similarly sized nonprofits and for-profits.

Hammond says he has rarely if ever accepted the full amount the board has approved, and added that he is the church's biggest donor, even though some have given $1 million. In the early years, the Hammonds were not compensated, said a church spokesman.

Some criticize the closed circle and appointed board. "It's the name it, claim it, blab it, grab it movement," said Ole Anthony, executive director of the Trinity Foundation, a nonprofit that investigates churches. "God wants you to be wealthy. It's the promise of greed in the name of God, and it's the oldest heresy there is." "It just seems to invite suspicion," said Gregory Boyd, the evangelical pastor at the Woodland Hills Church in Maplewood.

Anthony said his organization has received periodic complaints about political and tithing pressure from former members of the church. “…. Because of the rules in America, you can do just about anything you want once you declare yourself a church," he said.

Boyd … said that God has used Hammond for many good deeds. Yet he also contends that Word-Faith ministries often take biblical phrases out of context.

"The Bible has a whole lot to say about hoarding when others are needy," Boyd said. "Greed is the biggest sin in the Bible. What concerns me is saying that [attaining wealth] is Christian thought. That seems to me unbiblical."

Frances Hill, author of "Taxation of Exempt Organizations" and attorney for the Campaign Legal Center in Washington, reviewed a copy of one fundraising letter and the Bachmann incident. "My question is why isn't the IRS already in court to remove their tax-exempt status?" she said.

"This is a perfect example of misuse of [that] status," she said, adding that televangelist Jimmy Swaggart had his tax-exempt status taken away for two years for similar behavior.

Hammond said the letters were vetted by his lawyers and don't violate IRS rules. No action has been taken, he said.

Boyd, who eschews mixing religion with politics, admits that Hammond's politics are a draw. "In evangelical circles, there's a real desire for an authority to tell you how to act," he said. "People like a nice, clean-cut world and an authority who tells you what to believe and that God is on your side. There's no doubt that kind of religion works. Mac's a good communicator; he's saying what people want to hear."

...

There's no debate about who runs the church. Hammond says he's far from finished with his mission. His sons are at least a decade away from taking over, he said.

[My thought: So it's a done deal--his sons are just going to "take over" the church? This is how pastors are chosen? Is this a monarchy or a religious congregation? It's a far cry from seeking applicants, conducting interviews, hearing the candidates preach, prayerful consideration and democratic processes of many other congregations.]

But some don't like how Hammond uses his authority. Several current or former employees and volunteers... said he can be too demanding. They also say he records many church functions to maintain control over the message. A church spokesman said the practice simply allows those who miss meetings to catch up. Some also contend that Hammond mandates tithing, or giving at least 10 percent of their pay, to the church. Redman said tithing is not mandatory, but employees should consider their work a calling and set an example.…


6 comments:

  1. I see that you posted this story just yesterday, but all of these stories are months, some years old. Some of the people you refer to in your blog are no longer on Mac Hammond's staff.

    In response to your thought "How credible is the claim that Hammond--with all of the legal advice the church gets, with the IRS sending out advisories, with his years of experience leading LWCC--didn't understand those guidelines for tax-exempt organizations? Not very, in my opinion"

    My opinion would be - pretty credible, since it seems, after a fairly involved process, the courts have ruled in favor of Mac Hammond and his ministry. Is there evidence of any more formal investigations or even inquiries by the IRS or other government agencies? If not, this is really. . .really old news.

    Your cited stories are old news, your staff quotes even older. CREW's claims and the IRS's right to audit Mac Hammond's church have since been thrown out of court. . .so what's the angle here? Surely you must have some motive in spending all of this time and effort to post old information. Or am I missing something?

    ReplyDelete
  2. Hello, Kevin.

    It's true, all of the posts so far have been background on Mac Hammond and LWCC. I think the information is serious enough to deserve discussion. It may not be news to you but it is news to some. Many people look to Mac Hammond as a spiritual leader and donate their charitable dollars to his empire. I believe they should know the facts, then decide for themselves. I think the same is true for any leader, by the way.

    The federal court did not address any of the facts surrounding LWCC's financial arrangements with Hammond. The IRS's "right to audit" was not thrown out of court. Rather the specific investigation the Bush administration had begun was dismissed because they did it in a faulty manner. The dismissal was not on the merits but on procedural grounds. (I've uploaded the court's memo and order in the sidebar.)

    Whether the IRS has started a new investigation, it is not their practice to say. (They didn't comment on the earlier investigation, either; it only became public when they filed in district court to try to force LWCC to cooperate.)

    As for Hammond's claim that he didn't understand the rules for tax-exempt organizations: It's true that he got away with it (using the church resources for partisan politics). But most of us hold ourselves (I hope) and our Christian leaders to a higher standard for behavior and truthfulness than just, "Well, the feds didn't pursue it so let's not worry about it." Mac Hammond presents himself as one who has been called by God and is doing God's holy work; shouldn't we expect him to speak and act with the highest integrity, regardless of what the authorities do may or may not do? Hammond has been recorded explaining those very rules to his staff in '04. You can hear it through the link in the post "Immediate Fallout from the Bachmann Endorsement." When he said he didn't understand them, he was not speaking Truth.

    The "angle here," as the "Our Purpose" blurb in the sidebar says, is to aggregate and share information about Mac Hammond and his financial dealings with LWCC. The motive? Promoting openness. From the first post in this blog: "We believe that openness in ... leadership and finances is the best course for any church."

    ReplyDelete
  3. Irene-

    You're right. "News" is relative. I guess I'm not understanding why you consider these things you are posting relevant.

    There are many people throughout the world that consider others to be "spiritual leaders". I consider my father to be a spiritual leader. He has influenced my life in many ways, naturally and spiritually speaking. I'd trust him with my life. I'd trust him with my money. Is he perfect? No, that's absurd. In fact, I believe he to has been audited by the IRS, and every claim they brought forth was either incorrect or miscalculated.

    I say that to ask this . . why do you care? You certainly don't know me, or my father, and I'm guessing you don't have any connections to government agencies besides your friend running for congress. You wouldn't care if my father was innocent or guilty of fraud.

    So. . .Why do you care about LWCC? That's the angle I'm after. I can read the purpose for your site, I'm interested in the the reason you have this purpose for your site to be directed at LWCC.

    I think it's funny how you are in support of the IRS and CREW charges against Hammond and LWCC but admit in your post that they have done their job in a "faulty manner". Doesn't that immediately discredit your opinions and label you a hypocrite? After all, you say you believe that "openness in…leadership and finances is the best course for any church", but apparently that thought does not hold true for your standards of the specific government agencies you mention.

    You have no problems questioning the integrity of a man who was accused and to this point, innocent. Yet, you have no problems excepting and admitting the fault of those accusing him. Forgive me for asking, but does that not seem strange to anyone else?

    Irene - I'll ask again, and weather or not you choose to answer, this will be the last time I ask. Why do you care? What's your connection to Hammond, LWCC, CREW, the IRS or even Bachmann?

    Passions is rarely found in the middle of the road. Usually, you'll find it on one ditch or another. It's obvious you are passionate about your blog posts. . .I want to know why?

    ReplyDelete
  4. Hello, Kevin. If you’re wondering whether I am venting some personal grievance against anybody, the answer is no. I have no personal connection with Hammond or anyone else named in this blog, the staff or board of LWCC, CREW, or the IRS. Nor have I ever had any personal connection with them. This is about seeing something in my community that appears to be wrong, and talking about it. I fear that people are being taken advantage of, misled. I don’t like to see people’s faith and trust being manipulated, or the church’s position in our society being misused. I believe in the good the Christianity can do and I care about it.

    You’re right that there has been no legal finding of wrongdoing against LWCC or Hammond, but again, that in my opinion is not the standard for spiritual leaders. Christian leaders need to aim much higher than that. For one example, in 1 Timothy Chapter 3, it says that church leaders should be sensible, respectable, not lovers of money, and a host of other things. Church deacons should be not double-tongued and not greedy for money. And so on. No, they can’t expected to be perfect, since none of us are--but they certainly should behave with the utmost integrity. If you’ve read the posts, you’ve seen evidence that Hammond has used the church as his private bank, and that he has not always been truthful.

    Re: the District Court’s 1/30/09 dismissal….Let’s say I start a fight with somebody and intentionally injure the person (I never have, but bear with me here). Say I’m charged with assault & battery. The investigating officer makes some procedural mistake, so the court dismisses the charge. The dismissal doesn’t address the question of whether I’ve assaulted somebody or not. In this hypothetical case, just because a court never found me guilty doesn’t mean I’m “innocent.” I would know, and there would be evidence to show, that I was wrong.

    The court’s rejection of the IRS motion to compel in the LWCC case is like that. It doesn’t answer the ultimate question of who’s wrong and who’s right. By the way, I am disappointed that the IRS didn’t dot its Is and cross its Ts in commencing the investigation, but that’s another story. It was a procedural mistake. In any event, the IRS’s mistake doesn’t excuse any wrongdoing that Hammond or LWCC (or any of us) may have done. I don’t think that makes me a “hypocrite.”

    I sense that you believe there’s nothing wrong with the way financial matters have been run at LWCC, or you’d prefer that people not talk about them. That’s your right, of course. I have come to a different conclusion than you. There may be nothing I can say that would satisfy you, but I wish you well.

    ReplyDelete
  5. Hi Irene,
    I'd suggest being careful about assuming everything you've read in the newspapers and on the Internet is correct. You're assuming you have the correct and full information about Mac Hammond's financial dealings with his church, and I'm not sure that you do.

    Information from media outlets is secondhand information that has already passed through one person's opinions. As much as writers try to be unbiased in their writing, they usually aren't. (I am a writer, so I can attest to that fact!)

    The information you're quoting from LWCC is thirdhand, plus it's from a media outlet. Again it's well-known that the media often have the tendency to quote incorrectly and/or include only snippets of a conversation and not quote a person in context. That's how writing often works - quotes are used at the discretion of the writer, and not necessarily in full context or description of what truly happened.

    If I were Pastor Mac, I'd be careful about what I told the media, mainly because any information he states to them could very well be taken the wrong way. I don't think you're getting the full story about why or how he has planes, boats, etc.

    I see you assume he's using the church incorrectly because it looks like he's using it as his private bank. How do you know he's not doing something for the benefit of the church or doing it within his means of compensation? You don't. The media wouldn't tell you that.

    There's perhaps an underlying thought from you, every media person who reported on this situation, and multiple others who read about it, that pastors should not make a lot of money. Two comments on that thought: how do you know that his material wealth is all from his church salary? It could very well have come from other sources, particularly since he was in business before in the ministry. And then secondly, I'm not sure how you respond to the Bible, but here are a few verses to consider (and you're welcome to throw back at me all the ones you feel demand pastors be poor): Deuteronomy 8:18, Psalm 35:27, 1 Timothy 5:17-18, Luke 6:38. I'd love to share with you more - just let me know if you're interested.

    By the way, I can see you're trying to be as even-handed about this as possible. Hopefully this helps you see some of the other side.

    Oh and about Pastor Mac Hammond not being truthful: again I would consider the sources you are working with. Yes, you're dealing with something Mac said, but it also came through biased media sources who had an agenda. What if you don't know the full context? You will never have the answer of exactly what went through Pastor Hammond's mind in either occassion; to say he's blatantly not telling the truth and had purported beforehand to do exactly what he ended up doing is inconsiderate and rude. If you had been in each meeting and heard things for yourself, his comments might have struck you a different way.

    If I recorded your conversations with people you trust on controversial issues just for one day, I could take that information and twist it to say something you never intended or give you a different meaning that what was spoken in the conversation.

    ReplyDelete
  6. Irene-

    That works for me. Were would we be with out concerned people in our communities? There are plenty of people in the world that don't care, so I have no problems with people showing some degree of concern for quality of life. . .there own, and others.

    I'm assuming then, that you must live in an area near Brooklyn Park, the city were Hammond's church, LWCC, resides. Is this correct? If so, Then I would also assume that at some point you would have visited the church, maybe wrote a letter, an email, or phoned LWCC regarding your concern for how they influence your community. .right? Otherwise, this blog is nothing more than copying and pasting old Star Tribune and CREW web postings with few interjections of your personal opinions.

    Your example of assault and battery is compelling, and I must admit, it made me think. Of course, the dismissal of the courts does not deem innocence from anything except the legal system. And I agree, all christians, not only leaders, should be held to a higher standard.

    Jesus was convicted of something he never did, and punished for it. Paul was beaten and thrown in prison numerous times. Daniel was punished for living a life for God and God only. Forgive the spelling, but Shadrack, Meshack, and Abendigo were sentenced to death for having conviction to stand for what they believe. Accusations, Ms. Ray, can not be the rod we use to measure character, leadership, or integrity.

    The difference is this. In your example, the courts took the time to at least give ear to both sides, yours, and the victim. In the case if Hammond and CREW, the courts took the time to hear both sides. My question for you is, before you add your voice to the accusers, have you taken the time to hear both sides?

    Side note - I apologize for the "hypocrite" statement in my earlier comment. You are not the hypocrite Ms. Ray, rather these agencies who expect everyone to follow gov't policy, but than do not follow the very policies they set forth. Speaking of the IRS of course.

    Anyway, inspired by your blog, I have spoken with staff members at LWCC. Not read a quote, or read an article about them. I have actually spoken with them personally.

    As a concerned citizen, are you aware of how many outreach events they have that directly influence the community? More than any other church I have known. It was inspiring to know there was a church that actually went out into the community just to help, wherever it could, and expect NOTHING in return. Honestly, it was refreshing.

    I know, the Word says that the "love of money is the root of all evil." Call it a stretch, but to me, that means the opposite must be true as well. When you don't love money, you have the root, or source, of all good. Agree?

    It's hard for me to find fault with a man, a ministry, or a church that has done so much good in the lives of so many people spanning the course of decades.

    If you haven't already, I'd encourage you to call LWCC, write a letter, or visit their website to see just how much good they do. Have you ever gone to a service?

    Assuming your statement is true, and you are really just concerned about your community, you may be more compelled to highlight the many ways Mac Hammond has reached out and changed lives as opposed to pointing fingers and raising concerns about what vehicle he drives to work.

    ReplyDelete

 
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported License.