Are The Crystal Cathedral Salaries a Valid Expense?

 Perhaps a church works under different rules when under chapter 11 than the rest of us. It seems to me that they should be paring down the expenses to the bone. Of course it does allow them to continue to operate their church so some of those expenses will undoubtedly be justified. We'll have to leave it to the trustees.
    . . . June


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Creditors and Feds Object to Crystal Cathedral Salaries
The Freedomist:

The U.S. Trustee Program and creditors are objecting to salaries given out by the Crystal Cathedral to several of its employees as the Garden Grove, Calif., megachurch undergoes bankruptcy proceedings.

Crystal Cathedral

The latest filing by creditors on Thursday questioned the church’s request to continue employing William Gaultiere, part-time pastor of Spiritual Formation Ministries and son-in-law of Chief Financial Officer Fred Southard, as the bankruptcy case is under review. Gaultiere receives a salary of $61,955 plus benefits, with over 95 percent of the total amount coming in the form of a housing allowance, the Los Angeles Times reported.

Earlier this week, a federal authority overseeing Crystal Cathedral’s bankruptcy case and creditors filed objections to the salaries of three of the church’s employees for what appeared to be redundant duties. Two of the names listed are related to the church’s founding pastor, Robert H. Schuller.

Names of several other family members who work at the church were also listed in the filings.

The trustee questioned the $132,019 housing allowance for Southard, who takes only a $12,000 salary, the $70,000 compensation for Schuller’s youngest daughter, Gretchen Penner, who produces the church’s “Hour of Power” telecast, and the $55,000 salary of her daughter, Neva Klaassen, who books musical guests for the TV show, according to the Orange County Register.

“There is no justification whatsoever for a housing allowance of this amount,” court documents state. “Mr. Southard has failed to explain why such a housing allowance is necessary or appropriate, given this Debtor is in Chapter 11 and suffering financial difficulties.”

Jim Penner, Schuller’s son-in-law and wife of Gretchen, defended their compensations this week, noting that Southard’s tax-exempt housing allowance was a “benefit of working in a church,” reported the Orange County Register.

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I think the trustees are right in objecting to some of these expenses. If we were in bankruptcy, we wouldn't be drawing those salaries, would we? Please leave your comments

June

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