Religious institutions that receive tax-exempt status without filing public financial reports (Form 990) can operate with minimal external accountability, potentially leading to conflicts of interest where taxpayer-funded resources (such as forgiven PPP loans) are used to acquire expensive properties while maintaining claims of biblical integrity.
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Here's the premise. Today's pastors making a full-time living off the church as a lifelong career will eventually be eaten by the system. No matter the good intentions and original passion to save souls, your purity, your ethos, and your message die to the demands of the modern machine. I've said this on lots of podcasts. So, what is the modern machine? It's not the body of Christ.
It's an unregulated crony capitalistic business model that we now call church.
The business and the body are not one in the same. Joby is a great order. He's also built a very large institution with an annual nut of 74.9 million. All religious institutions in America play by the same legal rule book, and I'm going to use 11:22 as the example.
They've got a $75 million a year burn that generates 91.1 million in revenue, the majority of which, 79 million, is given by generous individual Christians via offering and tithes. It is not liable to the state or fed in regards to filing an annual form 990. What does this mean? It means a church can consolidate financials of a 91 million dollar a year operation onto a single 8 and 1/2 by 11 with no external accountability sources. It means salaries are unknown. It means organizations can hire auditing firms, but the problem with this is there's no legal document the auditing firm can use to reconcile if the financials that were given to the auditor are actually accurate. The auditor has to work under the assumption that what the corporate church has given them is in fact accurate. In the last video I said in a roundabout way, taxpayers paid for part of this 3,217 acre almost $13 million property. So, I want you to think back to COVID.
Remember those PPP loans? The loans were used to help keep employees on payroll during the economic shutdown. One of the most common forms of PPP fraud was mismanagement of funds, basically claiming economic hardship when that wasn't true. So, let's go through some interesting dates. Joby's church, 11:22, received a $1.73 million PPP loan for payroll in April of 2020. Seven months later, 1122 acquires a 3,217 acre property for 12.75 million in October of 2020. A few months later, the government forgives 1122 of the 1.73 million PPP loan in 2021. Forgiven PPP loans are paid by our government. So, that forgiven 1.73 million from Joby's church 1122 is now a burden on the American taxpayer. On 1122's website, its core value is biblical integrity, knowing right and wrong according to God's word. Placing debt on the American taxpayer under the auspices of financial hardship as 1122 enjoys tax-free benefits without the requirement to file a 990 as you acquire a 12.75 million-dollar property at the same time does not sound honest, truthful, or right. So, I'll say it again. Pastors that make their full-time living off the institution as lifelong careers will eventually be eaten by the unregulated crony capitalistic business model that we now call church. No matter the good intentions and original passions to save souls, your message, your ethos, and your purity will die to the demands of the modern machine.
It is time for reform.
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