Southlake, TX — In a significant legal challenge that has caught the attention of many, Gateway Church, based in Southlake, faces a class-action lawsuit filed by a group of its own members. The suit, initiated last Friday, demands the return of donations known traditionally as tithes. According to the plaintiffs’ legal team, hundreds of church members have recently joined the call for refunds, citing concerns over financial transparency and accountability within the church.
Last weekend, Tra Willbanks, an elder at Gateway Church, responded to the growing controversy during a Saturday church service. In an attempt to ease concerns, he disclosed the church’s decision to engage the Evangelical Council for Financial Accountability to review its financial practices. Willbanks reassured the congregation that Gateway has consistently audited its financial records since 2005, maintaining transparency in its financial dealings.
The lawsuit, however, paints a contrasting picture of the church’s financial management. It includes allegations from Allen Shoulders, a CPA and former employee within Gateway’s global ministries division. Shoulders claims that despite public assertions by former lead pastor Robert Morris that 15% of the church’s substantial $100 million annual revenue was designated for global ministry, the actual allocation was significantly less.
Gateway spokesperson Lawrence Swicegood disputed these allegations, stating that independent audits over the last 11 years show an average of 20% of Gateway’s annual budget going to global missions, with fluctuations between 17% and 24%. Swicegood elaborated that a total of $171 million has been committed to various mission efforts across different scales and regions over this period, with a dedicated 10% to Jewish missions annually.
The plaintiffs, however, are skeptical of these statements, highlighting a difference between financial reviews and comprehensive audits. According to Shoulders, during his tenure from 2011 to 2014, the church conducted only financial reviews, which he argues are insufficient for detecting financial mismanagement.
Amidst these financial discrepancies, an increasing number of church members are now claiming their right to a refund of their donations—a promise allegedly made by Morris, who reportedly said at a 2023 convention that dissatisfied members could have their donations returned after a year.
The church’s attorneys, The Church Lawyers, have however, stated that returning donations could potentially violate federal law, explaining that once made, donations are considered final and are used for various charitable activities of the church. They argue that refunds are not an intended charitable purpose and thus cannot be legally processed.
As Gateway Church hires new legal representation and shifts its public relations strategies, former members like Valentina Hensen express a deep desire for transparency and righteousness within the church’s operations. Hensen’s voice is just one among many advocating for what they perceive as not only a financial issue but a moral imperative for clarity and integrity.
This legal battle not only questions the financial governance of one of the largest evangelical churches in the United States but also tests the boundaries of religious donations and their legal oversight. The case, indicating broader concerns of fraud and breach of contract, is set to advance to a federal court, where a judge will decide whether the church must honor requests to refund donations, fundamentally scrutinizing how churches manage financial commitments to their congregants.