Sutton Turner in 2012 on Mars Hill Church’s Financial Situation: “We are in a big mess”

It is my belief that the reason we have such poor giving by our Church is the lack of stewardship in the Church staff. Churches with excellent stewardship see greater giving because people know that every dollar they give will go towards the mission of the Church. It is very clear this has not been the case at Mars Hill Church.
Sutton Turner

On Monday, Mars Hill Church leaders told the congregation that the church is “now facing the most serious budget challenge in our history.” However, according to a 2012 Mars Hill Church memo from Sutton Turner to his fellow executive elders, the church has been operating from crisis to crisis for quite some time.  At the time, he wrote: “we are in a big mess. It is much worse that I could have ever imagined.” Perhaps, this assessment in 2012 provides perspective on the severity of the current “most serious budget challenge” the church history. 

Turner’s March 17, 2012 memo outlines his perception of Mars Hill Church as “a very broken and fundamentally financially unsustainable organization.” Turner identifies numerous problems including a culture “that is plagued by poor stewardship, entitlement, December’s Hail Mary strategy, and using of the Church to build a personal ministry.”

Turner delineates reasons for his opinions throughout the memo. For now, I want to focus on two issues, the Result Source campaign and what Turner called the “December hail Mary strategy.”

On the Result Source expense to rig the New York Times count of book sales, Turner notes that the church spent heavily on that campaign along with launching six new locations.

Then you put on top of these 6 churches launches a RM campaign and you basically have a company going to World War III. It is all hands on deck, spend whenever is needed and let’s win the War.

The decision to “spend whatever is needed” is an unexamined aspect of the Real Marriage campaign. Mars Hill Church had finished 2011 strong because of the 2011 “December hail Mary strategy.” Over the next 3 months, the church burned through that money to the point that in March Sutton Turner woke up in the middle of the night and wrote a doomsday memo to his colleagues. Media and communications staff were given the tasks of promoting the Real Marriage book, including scheduling and servicing speaking engagements, all on church time. In the memo, Turner complains about this aspect of Mars Hill culture:

Many times these personal ministries are done during staff time and using church resources. This actually encouraged when I first came on staff as it was explained to me that staff was able to take MHC time to do consulting work to supplement their income. At the very highest levels of the organization this was taking place and reproduced throughout the organization. So as a result, all staff members saw this as acceptable and now the established culture within Mars Hill Church.

There is no higher level of the organization than Mark Driscoll and Sutton Turner had already participated in that culture by signing the contract with Result Source in October 2011 to rig the bestseller lists. On one hand, Turner is correct that ministers should not use the church to benefit them financially, but on the other hand, he had gone along with just such a scheme on a massive scale. At the end of the memo, he returns to the launch of six churches and the Real Marriage campaign as being a prime factor for the hole they were in.

The hole we are in today was set in course when we decided to plant 6 churches in 5 months on top of the Real Marriage campaign. Too much work for an 8,000 in weekly attendance church to undertake when there was a culture within the church staff of poor stewardship and a church body that did not financially support the church.

Another aspect of this memo that really stands out is the admission that the December end-of-the-year giving campaigns were designed to make up for giving shortfalls. Turner wrote:

From what I can tell by this past year’s budget, we have had a strategy of completing a Hail Mary every December with a big giving campaign. This has allowed the negative monthly financial performance to continue while we count on a Hail Mary giving push in December to make up for the annual deficit. Givers are giving to grow the body and plant more churches, but given our spending habits, their gifts just help us catch up. With the growth of the church, the 2011 version only allows for enough cash to run through June 2012 and is not a sustainable plan for December 2012.

Even though the church told the congregation that the December offerings were to be over and above tithes in order to fund extra projects, the money was not used in that manner.  Even though Turner complained about this fundraising style, the church maintained the “December hail Mary strategy” during the end of the 2013 with glowing descriptions of a Jesus Festival to be held in August. That idea was discarded without notice very early in 2014.

Closer to the time of Turner’s memo was the 2011 end of the year appeal for $6.4 million for, among other things, the planting of four churches (happened), and to fund an animated children’s series (never happened). However, by March 2012, Turner was sounding the alarm that the church was in serious financial shape. He summarized the predicament with the following image:

financialchallenge2011
If Mars Hill Church is now in “the most serious budget challenge in our history” then things now must be much worse than anyone has stated publicly. Given the rapid acquisition of properties, Mars Hill could be very low on cash and be in danger of the same kind of problems that existed in 2012. My guess is October is a deadline of sorts along the lines of point #3 above.

My suspicion is that the past is prologue to the current situation. Turner predicted that the situation was unsustainable and it appears he was correct.

I will probably revisit this memo in a future post but for now, let me end where I began. I believe Turner was correct when wrote:

It is my belief that the reason we have such poor giving by our Church is the lack of stewardship in the Church staff. Churches with excellent stewardship see greater giving because people know that every dollar they give will go towards the mission of the Church. It is very clear this has not been the case at Mars Hill Church.

However, very little has changed since he wrote those words. The church has steadfastly refused to disclose Global Fund spending, the church attempted to keep information about the Global Fund hidden, executive personnel costs are closely guarded secrets, and up until recently, members and some elders could not get a look at bylaws. It is still true that “churches with excellent stewardship see greater giving because people know that every dollar they give will go towards the mission of the Church.” Perhaps even Turner would agree that, even in the present season, “this has not been the case at Mars Hill Church.”

Read the memo here.

Nine Mars Hill Church Elders Took a Bold Stand and Now Eight Are Gone

Add four more to the growing fraternity of ex-pastors after yesterday’s layoffs at Mars Hill Church.
According to reliable sources, Drew Hensley (University District), Ryan Welsh (Pastor of Theology and Leadership), Ryan Kearns (Director of Community Groups), and Cliff Ellis (Director of Biblical Living/Redemption Groups) were all let go yesterday.
Three of these pastors were directors, meaning they were responsible for ministries across Mars Hill Church and not just at one campus. All four signed the infamous letter that called for Mark Driscoll to step down and enter an elder directed restoration process. These pastors join Dustin Kensrue, Adams Ramsey, Gary Shavey (all three resigned their paid positions) and Mark Dunford (relieved of his volunteer elder status) in the ranks of ex-elders who signed the letter. James Rose, who is a volunteer at Ballard, appears to remain in place.
It is noteworthy that Mars Hill laid off key ministry leaders. The ministry directors were responsible for generating and leading much of the ministry programs (e.g., community groups, student ministry, biblical counseling, etc.) across all of the Mars Hill locations. At the same time, the church has spared the executive pastors who are largely seen as administrators of the franchise locations.  It also seems to be likely that laying off Kearns, Ellis, Hensley and Welsh related to their signatures on the letter calling on Driscoll to step down. Case in point: Matthias Haeuser’s Downtown Seattle campus was closed but he will have opportunity for a role at Ballard’s campus. Drew Hensley’s (a letter signer) University District location was shut down and he will be laid off.
One source (a current elder) tells me that executive elders’ salaries are not on the table for discussion. However, the 30-40 (unconfirmed reports tell me the number was higher) people laid off may not get severance pay and don’t have unemployment. The lack of comment from the executive elders about how they personally are going to help is louder than any amended statements could be.
The signers and their status:

Dustin Kensrue – Director of Worship / Worship Pastor at Mars Hill Bellevue (RESIGNED)

Drew Hensley – Lead Pastor at Mars Hill U-District Pastor (LAID OFF)

Mark Dunford – Pastor at Mars Hill Portland (ELDERSHIP REMOVED)

Ryan Kearns – Director of Community Groups/Pastor at Mars Hill Bellevue (LAID OFF)

Ryan Welsh – Pastor of Theology and Discipleship (LAID OFF)

Adam Ramsey – Director of Student Ministry / Pastor at Mars Hill Bellevue (RESIGNED)

Cliff Ellis – Director of Biblical Living / Pastor at Mars Hill West Seattle (LAID OFF)

Gary Shavey – Pastor of Biblical Living at Mars Hill Bellevue (RESIGNED)

James Rose – Pastor at Mars Hill Ballard (REMAINS IN SAME POSITION)

In this post, I provided twitter contact information for these pastors, I encourage Mars Hill stakeholders to contact them for their perspectives.

Additional notes: Cliff Ellis may remain as an unpaid volunteer elder for now. Drew Hensley is still active because he will stay until U-District closes down in October.

 

Mars Hill Church Announces More Layoffs; Blames People For Lack of Giving (UPDATED)

Today, on the church website, Mars Hill Church leaders announced additional layoffs. On a page titled simply, “Financial Challenges,” church leaders said:

Two weeks ago we shared in The Weekly some of the financial challenges we are facing at Mars Hill Church. While our church has been financially healthy for many years, we are now facing the most serious budget challenge in our history. Church budgeting is really a simple process in one respect: we are able to provide the level of staff and ministry programs that those who attend our church provide the resources for. In other words, it is ultimately our people, not our leaders, who determine how much “church” we are able to provide.

This announcement probably doesn’t help the leaders. This comes across as a rebuke to the people who are left in the pews. The “we-they” divide is clear. We (church leaders) can’t provide church if they (the non-leaders) don’t give more money. The implication of this notice is the layoffs are the fault of the people in the pews. This statement demonstrates no recognition of the reasons why fewer people are attending, or why the giving is down. The leaders here take no responsibility for providing the people in the pews with reasons to question what is going on among those who “provide” church (NYTs bestseller fiasco, secrecy surrounding finances, Global Fund, formal charges from current and former pastors, etc.).

The last sentence in the paragraph above completely glosses over the fact that the leaders decide how to spend the money they get from the people. The people have no input and very little knowledge.

Let’s review: the members of Mars Hill Church are not members for the purposes of participating in governance or helping to determine (or even knowing) how resources are spent. They are members for giving, volunteering, and obeying the leaders. Until just recently, the members were not allowed to see the bylaws, they are not able to know specifics about how their gifts are spent, and they are not allowed to know how much the senior leadership is compensated. Lack of knowledge and input might make people wonder if they are getting the church they have been paying for, to use the Mars Hill Church leader’s way of thinking.

The two largest expense items in almost any organization’s budget are facilities and personnel costs. Sadly, we now find ourselves in a situation where we cannot sustain our current staffing levels across the Mars Hill network of churches and must move forward with further reduction of paid staff. This will, unfortunately, also result in a decrease in the number of ministry programs we are able to provide beyond our weekly church services.

The notice expresses sorrow over the layoffs but insists the church must live within “economic reality.” There is another reality that I think the leaders must face. Beating the remaining sheep might have worked in the old days of Mars Hill but today is a new day and I suspect the sheep are tired of it.

UPDATE: Several hours after the original statement was posted, the following paragraph appeared on the Mars Hill website:

This update was published earlier in an effort to communicate this news to the Mars Hill community in a timely way. However, in our effort to communicate efficiently we were, perhaps, less clear than we intended to be. While it is true that the generous giving of our members funds the various ministries of Mars Hill Church, the original post below failed to acknowledge that the reason for much of the decrease in attendance and giving falls to us, the leadership of Mars Hill. We shoulder the responsibility for our past sins and mistakes—which has caused many to leave. As we continue to repent, learn, and grow in this season, we also bear the responsibility to lead differently as we move forward—for God’s glory and the good of his church. 

Well, that’s better, but can it be trusted? Clearly, each reader will have to decide what this is about and what shouldering the responsibility would look like.

Seattle Times: First Mars Hill Will Close Churches, Then Layoff Staff

There is one cost cutting move I didn’t see in this article. See if you can figure it out.
On the eve of what will probably be a sad day at Mars Hill, the church revealed to the Seattle Times that layoffs are coming. According to the Times report, the church will cut between 30-40 staff on the heels of today’s church closings.
Justin Dean acknowledged that attendance is way down to between 8-9,000 per Sunday.
 

Mars Hill Church to Close Three Locations; Another on Hold (UPDATED)

DowntownMHCAccording to sources last evening and in church this morning, Mars Hill pastors at four locations told their congregations that their church location would be closed or possibly closed in the near future.
Mars Hill Downtown Seattle, and University of Washington District will be closed and asked to join Mars Hill Ballard. Mars Hill Phoenix, AZ will close at the end of September while Huntington Beach, CA will remain open for awhile pending giving increases. If there is a turnaround, the Huntington Beach location might survive.
The church has been facing loss of attenders and a decline in giving. Blaming negative media attention, Mars Hill executive pastors issued a warning last week. Once billed as one of America’s fastest growing churches, Mars Hill has been losing ground rapidly through a tumultuous 2014.
UPDATE: This was just posted on Mars Hill Church’s website:

Mars Hill,

In last week’s Weekly blog post we shared about the tough financial position we find ourselves in. As we have been seeking to operate within our current means, we have come to the regrettable conclusion that we must consolidate some of our church locations, and close or transition others.

DOWNTOWN SEATTLE & U-DISTRICT

Throughout the day today our pastors at Downtown Seattle and U-District are informing those churches that they will be soon be consolidating with Mars Hill Church Ballard. The first Sunday that all three churches will meet together at Mars Hill Ballard will be October 12.

PHOENIX

Mars Hill Church Phoenix is announcing today that their last service as a Mars Hill church will be Sunday, September 28th. We are exploring opportunities for Pastor Tim Birdwell to continue the church in a different form and how we can best support that possible effort.

HUNTINGTON BEACH

Additionally, our pastors in Huntington Beach are sharing with the church today that they too are in jeopardy of having to close their doors if they are not able to increase giving by the end of the year. We have also ceased any further development of a Los Angeles church plant.

Please pray for the people attending these churches. If you attend one of these churches, we are deeply sorry, and we hope you are able to make one of the services at Mars Hill Ballard work for you and your family, or if you are in Phoenix that we can work together to best support future opportunities. Your pastors love you and want to help make this as easy for you as possible, so please reach out to them with any questions and needs. I also want you to know we take this very seriously, your pastors grieve over this, and we have made these decisions with great care, and after much prayer.

SPOKANE

Even as we are forced to make some hard decisions regarding some of our locations, we are dedicated to planting new churches so that we can lead more people to Jesus. We will explore opportunities as they are presented and as sufficient funding is available. We will continue with our plans to plant Mars Hill Church Spokane, which currently has a strong core group, a location that we believe is sustainable, and a fiscally responsible plan for needed improvements.

While it’s with a heavy heart that I have to deliver this news, I am very thankful for a regional network of churches that can work together as a family. I hope you will join me in praying for these churches and all of those affected by these changes.

Pastor Dave

Additional thoughts:
Oh the irony. Hat tip to Wenatchee the Hatchet for pointing out this video of Mark Driscoll less than a year ago driving a hearse up to a once dead church. That church would be U-District which is closing. Watch:
[youtube]http://youtu.be/CdxPgNwGV4Y[/youtube]
Mars Hill reportedly offered $1.25 million on the old First Covenant Church building in Spokane earlier this year. Apparently Mars Hill Global Fund is helping with the remodeling. Even though, the church is not meeting yet and the sale of the building has not been recorded with the county, the project remains alive.  I don’t know where the purchase is at present but since it has not been recorded, it would be interesting to find out if the church could back out but decided not to do so.
Becky Garrison just posted a summary of Mars Hill Church property holdings.
Wenatchee the Hatchet uses one of Mark Driscoll’s books to identify the stage of church development Mars Hill is in now. The diagnosis is not favorable but treatment is possible. Will Mars do it?