Gateway Church Issues Statement Confirming Staff Reductions

Robert Morris and Ted Cruz Wilks Bros
Gateway Church Founder Robert Morris and wife Debbie with Senator Ted Cruz (R-TX)

Earlier today, the Fort Worth Star-Telegram published a story with a statement from Gateway Church confirming the staff reductions I reported on Tuesday.  According to the statement from Lawrence Swicegood, executive director of Gateway Media, the church is going to “prune” staff to prepare for growth. I suppose that is one way to look at it, although I also suppose that the staff to be pruned might see it differently.
The Star-Telegram report said that the church planned to reduce staff by 10-15% but gave no time frame. My sources maintain that the plan is to eventually cut as many as one-third of 900 positions.
The Star-Telegram article may have misstated Gateway’s financial status for 2016. As I read the annual report, it appears that Gateway experienced a deficit. More about that in a future post.
To me, a curious note is that the Star-Telegram said the church confirmed the staff layoffs but did not say what initial report had been confirmed. You can read that report first published here on Tuesday.
 
 

Layoffs Coming to Gateway Church Amid Millions in Spending

The fourth largest church in America is in the midst of what has been called a “pruning.” According to sources in a position to know, Gateway Church is in the midst of gradually laying off one-third of current staff. According to sources who wish to remain anonymous to avoid repercussions, Gateway leaders are downplaying the layoffs, calling them a “healthy pruning.” Without referring to the downsizing, Gateway is offering a resume writing workshop to help to those who have been “laid off or fired.”
GW Resume Writing
While the classes will no doubt be helpful, it is worth asking: Why does a church which took in over $127-million in revenues in 2016 need to lay off staff? Gateway’s annual report for 2016 is below:
Gateway Annual Report 2016
First of all, it is worth noting that Gateway is a massive enterprise with a fund balance of over $155-million. At first glance, I have a hard time understanding why Gateway makes their youth group pay for their mid-week pizza snack and is downsizing operational staff. Gateway has not responded to my questions about the matter.
Curiously, Gateway reports $13,123,084 in “non-operating expenses.” Non-operating expenses refer to funds spent not in keeping with an organization’s mission.  As a non-profit, Gateway is supposed to spend donor funds on mission related purposes. If the non-operating expenditures were shown as a deduction from the “revenue over expenses-operations” as was Gateway’s practice in prior years (e.g., 2015), the statements would show a combined spending in excess of revenues (a net loss) of $9,617,522. It appears that Gateway altered their presentation to make the loss less obvious to statement readers. While non-operating expenses can refer to interest payments and other permitted purposes, it is fair to ask why there is no description of these expenses which comprise just over 10% of 2016 revenues.
Possible Non-operating Expenditures
Inaugural Ball sponsorsDuring 2016, Gateway’s founder and Lead Pastor Robert Morris was a vocal supporter of the GOP and now serves on Donald Trump’s advisory committee. Gateway Church helped sponsor a inaugural ball for Donald Trump which took the Morris’ away from their annual January churchwide fast. At the same time, Gateway Church began charging the youth group for their weekly pizza snack at meetings. While the youth group paid for their pizza, the Robert and Mrs. Morris were spending Gateway’s funds on a pricey inaugural gala. With Trump winning the presidency in November, it seems likely that some of those sponsorship funds would have been committed from 2016 revenues. Listen to Tony Perkins thank the sponsors of the gala which celebrated “the great victory.”

In September 2016, Gateway sponsored and hosted a Solemn Assembly of Christian right pastors to pray for the nation. Although the event was a downsized version of the original plan (75,000 pastors in Cowboy stadium), the promotional video makes it clear that the event sought political change through a religious event. Is any of this political activity in Gateway’s non-operating expenses?
[youtube]https://www.youtube.com/watch?v=ljR6pOifHoY[/youtube]
 

Robert Morris' Message to Gateway Church from the Inauguration

While the youth group kids in his church have to pay for their youth meeting refreshments, Robert Morris and Gateway Church co-sponsored one of the glitzy inaugural balls to celebrate the victory of Donald Trump. In a pre-recorded message played to his congregation inauguration weekend, Morris sounded a non-partisan tone. However, as we now know, the church co-sponsored an inaugural ball where Morris declared Donald Trump the “right guy” for president because the church came together in unity. Watch the message to Gateway Church:

Gateway Church Pastor Robert Morris Dines in Style While Youth Group Kids Pay for Pizza

Recall that Gateway Church founding pastor Robert Morris told his congregation two weeks ago that God wanted him to break the annual churchwide fast in order to eat the food served at Donald Trump’s inauguration. According to video served up by the Family Research Council, Morris did more than attend the festivities, he helped sponsor them. Gateway Church was one of nine sponsors of the Faith, Freedom and Future inaugural ball hosted by FRC’s Tony Perkins (Gateway Church, the only church involved, is circled in red below) in celebration of Donald Trump’s victory.
Inaugural Ball sponsors
Tony Perkins gave a shout-out to each sponsor.

I don’t know what it cost to sponsor the formal affair but, in my opinion, that money could have gone to a more important purpose.
Pizza.
Like most youth groups, Gateway Church serves food during youth meetings. For adolescents, food is a draw since they always seem to be hungry. At the same time, many such groups attract teens who might not eat well at home. At one time, like most churches I know, Gateway Church served food at no cost to the youth group attenders. Now, to help “steward” church funds, teens have to pay $2 for their pizza. Since teens have to pay, this means some kids can’t eat because they really can’t afford it. Thus, Gateway Church is actually soliciting church members for donations to help buy pizza for needy youth group kids. This news comes from one of Gateway’s youth pastors:Gateway pizza

In this season, 60% of students showing up on Wednesday nights at Gateway NRH come from families who do not attend Gateway or another church. We’re reaching our community!
We’ve served pizza on these evenings for many years, not for hype, but to be helpful. To ensure we steward our budget well as we grow, we’ve started charging $2 per plate (two slices of pizza, desert and a bottle of water).
$2 a week seems small to most of us, but it is not possible for some families. I’m okay with giving “free” pizza to those in need, but there’s little lasting value in a freebee.
A student hearing, “Somebody at Gateway cared enough to buy this FOR YOU” is way more meaningful than, “Just take this; it’s free tonight.”
If you would like to purchase one or more pizza tickets for us to bless students with, email us at studentsNRH@gatewaypeople and we’ll send you instructions for either a cash or card purchase.

I know one way Gateway could “steward” the budget better.
It seems to me that pizza for needy kids should be easy for a church that can afford to co-sponsor a presidential gala. Tickets sold for $450/person and rooms at the Hyatt Regency Capitol Hill (where the ball was held) were $1000/night with a four night minimum. This was no pizza party.
According to the youth pastor, a donation to the pizza fund shows caring for those needy students. What does it show that Gateway’s leaders lavishly spend tithes and offerings to celebrate a Trump victory but can’t spring for pizza?
C’mon Gateway, your donors have already given their tithes and offerings. Can’t the kids have some pizza on the House of God?
 

Gateway Church Pastor Robert Morris Gets a Break in the Fast to Eat Inauguration Food

At the first of each year, Gateway Church leaders ask members to fast for 21 days. The December issue of Gateway Life magazine describes the event:
GW 21 day fast 2
This year, God has given Gateway Church pastor Robert Morris a break from the fast. Because of the inauguration and the Super Bowl, Morris will do something different. Watch:

Transcript:

But even if you’re not able to attend the conference, the thing that I love about the first of the year at Gateway is that we come together.  Whether it’s through the fast, or the devotional, or through the conference.  But we come together and we recommit ourselves to the Lord.  So I wanna tell you thank you so much for, for that.  And just encourage you to fast some way.  Just so you know, I’m gonna go a little longer than 21 days than what the Lord has told me.
And someone asked me about this awhile back because, I’m going to the inauguration in a few weeks and then there’s the Super Bowl in February.  And I have a reprieve for the Inauguration and for the Super Bowl.  From headquarters.  So, the Lord and Debbie told me that we’re gonna do something different during that time.  So, but I just want to encourage you.

And why not? The inaugural menu looks very special.
Inauguration lunch menu
Surely the Lord wouldn’t want his servant to abstain from any of that.
Gateway and Morris have been strong supporters of Donald Trump. A Gateway source told me that Franklin Graham spoke at Gateway’s First Conference (Jan. 1-4) and called Gateway the greatest single backer of his Decision America Tour. That 50 state effort was, in essence, a GOTV drive for the GOP and Donald Trump.