"Additionally, we recognize that there needs to be a careful review of staff compensation."
Boston Apology Letter – March 16, 2003
The only possible reason for reviewing such is that the levels of compensation are objectionably high or low. In this case, the public complaints were that they were too high. This reflects a direct infraction against IRS Code, and ICOC Administrative Policies 2001 shows that they understood this.
Applicable Laws/Policies/Documents
From ICOC Administrative Policies
2001 --- 17.01.01 Inurement of Benefit --- Inurement of benefit is the use of the Church’s assets for personal benefit by those deemed to be in control of the organization (i.e., founders, directors, officers, leaders, major donors, and the immediate family members of these individuals). The
only exception to this rule is reasonable compensation (salary, housing allowance, and allowable employee benefits)
for services performed. Expenditures of any amount deemed to be inurement may result in revocation of the church’s tax-exempt status.
"The Boston Church has been following the salary model that is currently used in all U.S.-based churches in the International Churches of Christ, but it is evident to us that we must review the approach being taken."
Boston Apology Letter – March 16, 20033
Translation: We're getting so many complaints that we'd better take a look at this. If the ICOC policy to the right had been a true reflection of their practices, there could have been no question as to whether the salary model was appropriate.
Applicable Laws/Policies/Documents
From ICOC Administrative Policies 2001 --- 06.01 Employment Compensation Policy --- …In establishing our specific compensation policies every attempt is made to follow the Scriptural Principles Relating to the ICOC "Needs-Based" Compensation:
1. The International Churches of Christ (ICOC) do not "hire" individuals to do the work of ministry or administration. Individuals who have been called and appointed by God for God’s purposes are given designated roles (responsibilities), according to their ability. These individuals receive their living from the gospel (church). The following scriptures support this approach for the ICOC compensation plan..... 2.
"Needs" are not determined by role or position, but by family size, age of children and housing costs (based on location). Larger families incur higher living costs than smaller. Therefore, larger families "need" more income to cover living costs than do smaller families...
"We need a model that recognizes and fairly compensates our women leaders for their work, while, in some cases, not expecting that they can or should maintain the same ministry responsibilities as their husbands."
Boston Apology Letter – March 16, 2003
Translation: Our Women's Ministry Leaders have been getting paid for full-time ministry work even though they're not full time employees. Cleary the "Needs-Based" philosophy had been avoided once again. And this is probably the backlash from having paid the women in the first place in an effort to make their husband's salary appear to be smaller by splitting it up over two people.
Applicable Laws/Policies/Documents
"Financial support of CSA employees will be prorated according to the percentage of their work that is focused directly on Latin American missions.
"
CSA Leadership Letter -- Spring 2003
This is probably referring to employees who were simultaneously being paid by more than one corporate entity at the same time. If this is the case, it is important to note that the members wouldn't know how much money their leaders were making, even if the local church showed them their books---which they generally do not do, anyway.
Applicable Laws/Policies/Documents
"We give perks to the compliant, and bigger pay checks to those higher up the chain of command."
Henry Kriete Letter -- Spring 2003
Applicable Laws/Policies/Documents
"But is it right or responsible to continue in light of wide scale allegations and concerns? Is it right to have rich leaders in an age of suspicion?"
Henry Kriete Letter -- Spring 2003
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"How much more should the church be appalled when her leaders live near the ‘top of the
scale’"
Henry Kriete Letter -- Spring 2003
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"But even so, this kind of salary model is the exact inversion of apostolic teaching and example. Paul: ‘having nothing, and yet possessing everything.’ Peter: ‘Silver and gold I have none.’ Accept it or not, if money is our motive in any guise, Jesus said, we have received ‘our reward in full.’"
Henry Kriete Letter -- Spring 2003
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"The leadership here is very much on the defensive to justify their lifestyles at the churches expense.
"
Henry Kriete Letter -- Spring 2003
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"• Salary structures patterned after the business world — complete with highly generous severance packages."
Doug and Vicki
Jacoby--The Women's Role
Reconsidered--Spring 2002
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"Another area that we have had inquiries about is how the Church compensates its full time ministry staff.
"
Washington, D.C. Church Apology
Letter -- March 1, 2003
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"This outside review of ICOC salaries went on to state that the ministry salaries tended to be less than what other ministers were earning in other churches of similar sizes and location."
Washington, D.C. Church Apology Letter -- March 1, 2003
This is in reference to the Gammon and Grange letter (which ICOC published for bragging rights). One should note, however, that the letter speaks only to average ministry staff salaries, and not to specific amounts. Since ICOC paid its lead evangelists several times what a similar "pastor" in the world makes, and paid its "interns" very minimal amounts, their average looks good while it obscures the inurement of the high ranking leaders.
Applicable Laws/Policies/Documents
From ICOC Administrative Policies 2001 --- 17.01.01 Inurement of Benefit --- Inurement of benefit is the use of the Church’s assets for personal benefit by those deemed to be in control of the organization (i.e., founders, directors, officers, leaders, major donors, and the immediate family members of these individuals). The
only exception to this rule is reasonable compensation (salary, housing allowance, and allowable employee benefits)
for services performed. Expenditures of any amount deemed to be inurement may result in revocation of the church’s tax-exempt status.
"The Board of Directors has taken nominations and will decide upon a committee that will research and evaluate full-time staff compensation."
Guillermo Adame Letter - Monday, April 14, 2003
Applicable Laws/Policies/Documents
"We are planning a series of financial meetings in order to appoint a committee to evaluate the financial affairs of the church and individual concerns such as staff salaries."
South Florida Apology Letter -- March 9, 2003
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"We believe there must be more accountability of the lives and compensation of the paid staff as well as more involvement of mature non-staff members in setting policy and the budgets of the church."
Los Angeles Apology Letter -- February 28, 2003
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"All matters regarding your staff’s employment, financial compensation, practical application of our Biblical duties, assessment of our skills and any other appropriate issues must be reviewed and refined."
Triangle Apology Letter -- March 4, 2003
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"Regarding the effect of these matters on your Evangelists and current staff, we could say that no one wants the level of financial support for your ministers to be an ongoing issue that hurts anyone in this church."
Triangle Apology Letter -- March 4, 2003
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"We have formed a compensation committee consisting of human resource and business professionals who are non-staff members of the
NYCCOC. They are in the process of evaluating the current salary model and a newly proposed model.
"
New York Apology Letter -- Spring
2003
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