It's in the public record that for the 2011 calendar year John Macarthur earned $402,444 for working PART-TIME for Grace To You and $103,000 for The Master's College and Seminary. That's more than $500,000, not counting his church salary, book royalties, speaking fees, etc.
John Macarthur's two sons hold the positions of treasurer and director at Grace To You. His Grace To You salary can be seen on page 7 of the link here. Remarkably, for working just part time for Grace To You, John Macarthur earns more than the annual salary of the President of the United States (which is $400,000).
According to the IRS 990 forms submitted by Grace To You and The Master's College and Seminary for 2011, John Macarthur worked 20 hours/week for Grace To You and 40 hours/week for The Masters College and Seminary. Assuming he doesn't work for either of these corporations on the weekends, then he must work on average 12 hours/day Monday through Friday. And I've been told by members of Grace Community Church that he claims he spends 40 hours/week studying the Bible, and he travels extensively (first class), and writes books...
Other Grace Community Church leaders are also well compensated. For 2011, the Executive Director of Grace To You, Phil Johnson, received $218,788 and Don Green, the Managing Director of Grace To You, earned $200,847 (these men earned more than the annual salary of a US senator). Rufus Harvey, the CFO at Grace To You, was compensated $170,615. It's in the record that seven employees at Grace To You were compensated in excess of $150,000 in 2011. Travis Allen, the Director of Internet for Grace To You, was compensated $139,135.
Want to make alot of money? Work your way up the ladder of a "non profit religious corporation!" I wonder what the average annual salary is for those Christians who donate to Grace To You.
How do these Grace To You leaders justify to themselves these salaries? Do they justify these salaries because they adhere to and obey God's Word (truth, holiness, charity, self denial), or do they justify these salaries by assessing and setting their worthiness/value based upon what they (or others they employ) have determined the world's corporations compensate their employees who hold comparable positions (relativity, worldliness, greed, lovers of self)?
The Grace To You 990 form, Schedule O, reveals that they have indeed determined their compensation by employing the world's ways (which they call "an independent compensation study").
In a clear conflict of interest, John Macarthur's Grace To You has given more than $2,000,000 over the last 3 years to a private firm solely owned by Kory Welch, his son-in law. The Welch Group receives approximately $750,000 annually from Grace To You for producing its videos. The Welch Group corporation, I believe, has always won the low bid for this lucrative contract. The CFO at Grace To You, Rufus Harvey, told me that there were other bidders for these contracts, but when I asked him to reveal the names of the other bidders, he replied to me, "We don't have to disclose that information by law." But don't Christians who donate their hard earned money to Grace To You have a right to know these details regardless of whether or not the law requires their disclosure? If The Welch Group has been fairly awarded this video production contract every year (as the low bidder), then why not disclose the identity of the other bidders? Do other bidders even exist?
Is Grace To You Avoiding the Appearance of Evil?
Every Year Grace To You Awards Lucrative Contract to John Macarthur's Son In Law Grace To You (GTY) is a tax exempt 501(c)(3) organization. According to the IRS 990 form for GTY for the 2009 calendar year, GTY received approximately $14,000,000 in contributions that year and held approximately $5,000,000 in cash by that year's end. GTY has "12 voting members of the governing body." John Macarthur is the President of GTY; his son, Matt Macarthur, is treasurer of GTY; and his other son, Mark Macarthur, is a director of GTY. (John Macarthur's sons are considered to be non-independent board members of GTY.) In the IRS 990 form for 2009, Schedule L, in the section titled, "Business Transactions Involving Interested Persons," and listed under "Contract Services," it's shown that GTY paid $667,000 to The Welch Group Corporation. The Welch Group Corporation is a production company whose CEO and sole owner is Kory Welch, John Macarthur's son-in law. In the IRS 990 form for 2008, Schedule L, it's shown that GTY paid The Welch Group $741,000 for its services. That's $1,408,000 paid to The Welch Group from GTY for those 2 years. [Update: From 2008-2010, GTY has paid The Welch Group more than $2,000,000.]
In the IRS 990 forms for GTY for 2009, GTY stressed the point in Schedule O--Supplemental Information to Form 990, that operational conflicts of interest are carefully avoided and I don't doubt that interested/related parties are not present when the voting for these contracts is conducted, nevertheless, I would like to raise the following points: GTY, which is a non-profit corp that must publicly disclose its business, is paying The Welch Group, a for-profit company, that doesn't have to disclose its business/earnings. Also, assuming that these contracts have been awarded fairly with The Welch Group being the low bidder (I don't make this assumption), one could still question whether GTY has "avoided the appearance of evil" in awarding these contracts to a firm owned by John Macarthur's son-in-law. Also of interest from this IRS 990 form for GTY is that Phil Johnson, the Executive Director of GTY, was again well compensated in 2009 with $225,000, while six other GTY board members were compensated $150,000 or more.