“If someone in your church won the lottery and wanted to donate it to the church, would you accept it?”
This was one of the questions that was put to us budding young pastors when I studied Ethics in Seminary.
Of course, the dilemma was that the church can’t, in good faith, endorse gambling, given the damage that problem gambling inflicts on families and society as a whole. But, imagine the good that the church could do with that kind of cash!
A robust debate ensued.
In the end, I was the only one in my class who said, “Heck, yes! I’d take the donation!” And my reason was pretty simple: Just because the money wasn’t sent by God, doesn’t mean it can’t be used by God… or something spiritual-sounding like that.
And then I said, “In reality, we have no idea whether the money that people are donating to the church is acquired ethically. I mean, someone could rob a bank and put it in the offering plate and we would be none the wiser.”
Well, it turns out, the church is liable for dodgey donations, and one unlucky congregation in Illinois found out the hard way what can happen when a well-meaning congregant gifts money to the church that they are not legally entitled to have, let alone give.
Ill-Gotten Donations and one Church’s Dilemma
The 120-year-old Messiah Lutheran Church in Joliet, Illinois, is currently facing financial ruin after a federal court judgment ordered them to repay $487,000 in donations that were unknowingly received from a convicted fraudster.
Yes, apparently hundreds of thousand of dollars poured into the church’s coffers over a decade-long period and no one had stopped to ask, “Where is this money coming from?”
The funds received from a church-member/fraudster, who everyone assumed was just a faithful Christian businessman, was used to pay ministerial staff, fund church programs, and pay for other essential expenses. Unfortunately, all of it has been spent.
Every last cent.
Although the church had no knowledge of the source of these donations, under Illinois law, donations acquired illegally can be clawed back from charities in cases like this. Strange as it may seem, this lawsuit could have happened to any non-profit organization in Illinois.
To meet the court’s demands, the church emptied their Building Fund to make an initial payment of $187,000 on the judgment. Now, the church is in a race against time to raise $300,000 in the next month or else it faces losing its building, and even bankruptcy, through virtually no fault of its own.
Cue the fundraising appeal, and a heart-wrenching video pleading for donations. Take a look:
According the website, The Securities and Exchange Commission (SEC) has demanded the money be repaid by the 15th November, or else it will increase the amount owing to $400,000 “and is free to enforce the judgement, resulting in the church not being able to pay its bills and likely forcing the sale of the church building and property, even though the church has done nothing wrong.”
A travesty of justice, or fair call?
Of course, Messiah Lutheran Church is painting itself as the “David” character in a “David vs Goliath” struggle, where they are the good guys, and the SEC are the bad guys.
The whole messy situation begs the question, is this a glaring injustice, or simply a fair application of the law?
On one hand, it seems an undeniably harsh blow for a church to bear the burden of donations received in good faith, only to have them deemed “ill-gotten” due to the actions of a convicted fraudster. The notion that a charitable organization could be held accountable for the unknowing receipt of such funds challenges our sense of fairness.
On the other hand, this money was, for all intents and purposes, stolen or fraudulently acquired to begin with. What about the people that were ripped off in the first place? Don’t they have a legal right to be compensated? And, legalities aside, isn’t it fair that they be paid back?
It is an ethical tightrope.
The church stands to lose its home and livelihood although it is legally not at fault. Yet, the victims of the Ponzi scheme, who suffered immeasurable financial harm, are entitled to justice and restitution.
So, let me ask you? What would you do? Would you err on the side of empathy or legal rigour? Could there be a middle ground?
We all bear the burden
It turns out that the Messiah saved us, and now we have to save Messiah. So, here’s what I am going to do. I am going to jump on the church’s fundraising website and make a donation, even though I live on the other side of the world.
Those who read my writing regularly will know that I have been a critic of institutionalized church. When the church has done something wrong, I think it should have to pay for it. Yet, as I reflect on this situation, it’s clear that the church finds itself in an unjust predicament. I mean, what is the church supposed to do? Ask everyone who gives money where they got the money from?
There is always a price to pay for the sins of others, but why should the innocent have to pay it?
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This post was previously published on Backyard Church.
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