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.…