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It is sad indeed to learn of a pastor who has excessively profited from his ministry. It is sadder still when such a person has been very vocal regarding the failings of other pastors in this same thing. Dr. MacArthur recently said, "The Apostle Paul described false teachers as doing...when he’s writing to Timothy...is doing what they do for money. They make merchandise of you. That’s what false teachers do. They’ve always done it. They make merchandise out of you, they turn you into a commodity to make them rich. In the words of Peter, “Don’t ever minister for filthy lucre.” The irony, in this particular case, gives us no satisfaction.
Apparently Dr. MacArthur has done very well for himself, according to the below article. Having said that, we don't know Dr. MacArthur's heart. We don't know his motivations. We only can evaluate the evidence presented, and it seems clear that Dr. MacArthur is very well paid, indeed.
After the article the reader will find a rather weak defense of Dr. MacArthur. We will provide commentary on that.
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For decades, John MacArthur has railed on prosperity preachers, likening them to “greed mongerers” who led First Century cults.
Recently, he’s also taken aim at scandal-plagued evangelical leaders, like the late apologist Ravi Zacharias and former Hillsong Pastor Carl Lentz, saying these celebrities were in ministry only for the money. That’s why “liars and frauds and false teachers” are in business, MacArthur said in a recent sermon. “False teachers always do it for the same reason—filthy lucre, money.”
Yet according to financial statements and tax forms obtained by The Roys Report, John MacArthur and his family preside over a religious media and educational empire that has over $130 million in assets and generates more than $70 million a year in tax-free revenue.
MacArthur and his family and related companies have been paid more than $12.8 million from ministry and donor funds. And MacArthur owns three luxury homes worth millions.
In one year alone, MacArthur made more than $402,000 for part-time work at his broadcast ministry, Grace to You (GTY), and another $103,000 from The Master’s University and Seminary (TMUS). This was in addition to MacArthur’s salary from the megachurch he pastors, Grace Community Church, as well as book royalties and speaking fees.
Also, in a scenario very similar to Ravi Zacharias International Ministries (RZIM), the board of GTY has been stacked for decades with MacArthur family members. Like RZIM, GTY also stopped filing IRS 990 tax forms in 2015, which enabled the ministry to keep executive salaries secret.
Grace Community Church (GCC) refuses to release its financial statements in violation of a core standard of the Evangelical Council on Financial Accountability (ECFA) of which Grace was a member.
When I contacted the ECFA about GCC, Compliance Team Lead Jake Lapp replied that the ECFA requires its members to provide a copy of their current financial statements upon written request. He added, “We have been in communication with the church regarding this requirement and expect you will hear a response soon.”
That was 10 months ago.
To date, I have not heard back from GCC, even after emailing the church again to request financial statements. However, I recently learned that GCC resigned from the ECFA less than two weeks after Lapp contacted the church about complying with ECFA standards.*
I also reached out to Grace Church elder and GTY executive director, Phil Johnson, inquiring about some of these matters. Johnson responded that some of the information I requested is “a matter of public record. A real journalist would know that.” (The composition of GTY’s board is publicly available; the answers to my other questions were not.)
Johnson further stated that his email, dated March 23, 2020, would be “the last correspondence you will receive from me. Nor will anyone who speaks for our ministry ever answer questions for you regarding any story you intend to write.”
MacArthur’s Millions in Homes
MacArthur first came under fire for his money in 2014, when several bloggers published MacArthur’s salaries, calling them “reprehensible” and noting that MacArthur “earns more than the president of the United States.”
In response, Phil Johnson posted a statement at the Sharper Iron website, defending his boss’ salary (see “MacArthur’s Salary” below).
Johnson also argued that “(MacArthur’s) lifestyle, not his income, is what biblically-minded people should look at if they want to evaluate his character.”
He added that MacArthur “has lived in the same house for the past 35+ years” and owns only one car.
“(N)o one who actually sees how John lives has ever accused him of self-indulgence or even thought in their wildest dreams to describe him as a lover of money,” Johnson stated.
While it is true that MacArthur has lived in his home in Santa Clarita, California, since the 1980s, the property is worth 1.5 million, which is more than twice the median value of homes in the area.
The five-bedroom, four-bath house sits on more than two acres and includes a tennis court and a swimming pool. The home also is not John MacArthur’s only residence.
Since 1996, MacArthur has also owned a $700,000 villa about an hour west of Santa Clarita, according to a document The Roys Report obtained from the Ventura County Tax Assessor’s office.
The three-bedroom, 2.5-bathroom home is located next to a world class private club with a championship golf course, tennis courts, pool, and fine dining. The home also is just 11 miles from the beach.
John MacArthur’s 7-bedroom, 7.5 bathroom home on 5 acres in Colorado.
For decades, John MacArthur has railed on prosperity preachers, likening them to “greed mongerers” who led First Century cults.
Recently, he’s also taken aim at scandal-plagued evangelical leaders, like the late apologist Ravi Zacharias and former Hillsong Pastor Carl Lentz, saying these celebrities were in ministry only for the money. That’s why “liars and frauds and false teachers” are in business, MacArthur said in a recent sermon. “False teachers always do it for the same reason—filthy lucre, money.”
Yet according to financial statements and tax forms obtained by The Roys Report, John MacArthur and his family preside over a religious media and educational empire that has over $130 million in assets and generates more than $70 million a year in tax-free revenue.
MacArthur and his family and related companies have been paid more than $12.8 million from ministry and donor funds. And MacArthur owns three luxury homes worth millions.
In one year alone, MacArthur made more than $402,000 for part-time work at his broadcast ministry, Grace to You (GTY), and another $103,000 from The Master’s University and Seminary (TMUS). This was in addition to MacArthur’s salary from the megachurch he pastors, Grace Community Church, as well as book royalties and speaking fees.
Also, in a scenario very similar to Ravi Zacharias International Ministries (RZIM), the board of GTY has been stacked for decades with MacArthur family members. Like RZIM, GTY also stopped filing IRS 990 tax forms in 2015, which enabled the ministry to keep executive salaries secret.
Grace Community Church (GCC) refuses to release its financial statements in violation of a core standard of the Evangelical Council on Financial Accountability (ECFA) of which Grace was a member.
When I contacted the ECFA about GCC, Compliance Team Lead Jake Lapp replied that the ECFA requires its members to provide a copy of their current financial statements upon written request. He added, “We have been in communication with the church regarding this requirement and expect you will hear a response soon.”
That was 10 months ago.
To date, I have not heard back from GCC, even after emailing the church again to request financial statements. However, I recently learned that GCC resigned from the ECFA less than two weeks after Lapp contacted the church about complying with ECFA standards.*
I also reached out to Grace Church elder and GTY executive director, Phil Johnson, inquiring about some of these matters. Johnson responded that some of the information I requested is “a matter of public record. A real journalist would know that.” (The composition of GTY’s board is publicly available; the answers to my other questions were not.)
Johnson further stated that his email, dated March 23, 2020, would be “the last correspondence you will receive from me. Nor will anyone who speaks for our ministry ever answer questions for you regarding any story you intend to write.”
MacArthur’s Millions in Homes
MacArthur first came under fire for his money in 2014, when several bloggers published MacArthur’s salaries, calling them “reprehensible” and noting that MacArthur “earns more than the president of the United States.”
In response, Phil Johnson posted a statement at the Sharper Iron website, defending his boss’ salary (see “MacArthur’s Salary” below).
Johnson also argued that “(MacArthur’s) lifestyle, not his income, is what biblically-minded people should look at if they want to evaluate his character.”
He added that MacArthur “has lived in the same house for the past 35+ years” and owns only one car.
“(N)o one who actually sees how John lives has ever accused him of self-indulgence or even thought in their wildest dreams to describe him as a lover of money,” Johnson stated.
While it is true that MacArthur has lived in his home in Santa Clarita, California, since the 1980s, the property is worth 1.5 million, which is more than twice the median value of homes in the area.
The five-bedroom, four-bath house sits on more than two acres and includes a tennis court and a swimming pool. The home also is not John MacArthur’s only residence.
John MacArthur’s $1.5 million Santa Clarita home
Since 1996, MacArthur has also owned a $700,000 villa about an hour west of Santa Clarita, according to a document The Roys Report obtained from the Ventura County Tax Assessor’s office.
The three-bedroom, 2.5-bathroom home is located next to a world class private club with a championship golf course, tennis courts, pool, and fine dining. The home also is just 11 miles from the beach.
Golf Villas entrance where John MacArthur owns a second home in California
MacArthur’s third and largest home—a seven-bedroom, 7.5-bathroom ranch on five acres in Colorado Springs—was built in 2007, according to El Paso County records.
The property was given to Circle M Ranch—a limited liability limited partnership (LLLP) owned by John and Patricia MacArthur—by David Wismer Sr.
Wismer is a longtime member of TMUS’ Board of Directors and has also served as TMUS Board secretary.
I spoke with Wismer and he told me that in 2007, MacArthur approached him, expressing that he wanted to build a home in Colorado Springs. Wismer said he owns a 2,600-acre ranch in Colorado Springs and was happy to give five acres to MacArthur as a gift.
Wismer said MacArthur then built a home (valued around $800,000) on the Colorado property using his own funds.
MacArthur’s third and largest home—a seven-bedroom, 7.5-bathroom ranch on five acres in Colorado Springs—was built in 2007, according to El Paso County records.
The property was given to Circle M Ranch—a limited liability limited partnership (LLLP) owned by John and Patricia MacArthur—by David Wismer Sr.
Wismer is a longtime member of TMUS’ Board of Directors and has also served as TMUS Board secretary.
I spoke with Wismer and he told me that in 2007, MacArthur approached him, expressing that he wanted to build a home in Colorado Springs. Wismer said he owns a 2,600-acre ranch in Colorado Springs and was happy to give five acres to MacArthur as a gift.
Wismer said MacArthur then built a home (valued around $800,000) on the Colorado property using his own funds.
John MacArthur’s 7-bedroom, 7.5 bathroom home on 5 acres in Colorado.MacArthur’s Salary
From 2005—2015, MacArthur made about $3.4 million in compensation from GTY and TMUS, for an average of about $320,000/year.
On top of that, MacArthur also took a salary from Grace Community Church that was “well within the upper-medium range” for California church employees, according to Johnson’s 2014 statement.
This puts MacArthur’s annual combined salary at an estimated half-million dollars most years. And in 2012, when he was paid an especially high salary and benefits from GTY, MacArthur’s salary likely pushed three-quarters of a million dollars.
In Johnson’s 2014 statement, he explained that MacArthur’s “salary and benefits” topped $400,000 in the fiscal year ending in 2012 because the GTY Board gave MacArthur a “rare 1st-edition KJB” that year. The Bible, Johnson said, was a “one-time gift capping 40 years of faithful ministry.”
In addition, Johnson stated that “Grace to You paid John MacArthur zero salary or benefits for the first 30+ years of our ministry’s existence.”
However, this statement does not match the facts.
According to a GTY 990 from 2002—the earliest 990 The Roys Report was able to obtain—MacArthur made $88,336 that year. This was just 16 years after GTY was founded, not 30.
According ECFA, GTY was founded in 1986. (The GTY website says GTY became a nonprofit in the early 1980s.)
It’s possible that Johnson was dating GTY’s beginning to the first year MacArthur was pastor of Grace Community Church (1969). That’s when a volunteer reportedly began recording MacArthur’s messages and giving them to members of the congregation who were too ill to attend. But the ministry didn’t even have a name back then and likely didn’t require any extra hours of MacArthur.
I reached out to Johnson to explain the apparent contradiction, but he did not respond.
Also, in his 2014 statement, Johnson stated that sometime after 2000, the GTY board “made a deliberate decision to pay (MacArthur) a full salary rather than a diminished wage that was arbitrarily curtailed based on the fact that he has other income.”
While it’s true that MacArthur received a huge increase in his GTY salary in 2003 (72%), MacArthur never worked full-time hours at GTY. MacArthur’s GTY hours varied each year from 10 to 30 hours per week, according to the organization’s own 990s.
Yet the hours MacArthur claimed to work each year seem to bear little relation to the salary he received. For example, in 2007, MacArthur claimed to work 20 hours per week at GTY and received $174,191. In 2008, he reportedly worked 10 hours per week and received nearly as much—$177,083.
Similarly, MacArthur’s hours at TMUS varied from 10 hours to 40 hours per week from 2005—2015 and didn’t necessarily correspond to the amount he was paid.
MacArthur logged a tremendous number of hours for GTY and TMUS, especially considering that he also worked as pastor of GCC. In one year, 2012, MacArthur reportedly worked a combined 60 hours a week at GTY and TMUS. This was in addition to the time he spent pastoring GCC, a church with an average attendance of more than 8,000 people.
Below is a chart compiled by The Roys Report, showing both the hours MacArthur claimed and the salaries he received for the years analyzed.
(Though it is not documented below, Phil Johnson received between $160,000 and $238,927 per year between 2005—2015 for his role at GTY. He also received a no-interest loan of $50,000 from the ministry for the purchase of a home, which was fully forgiven over a five-year period.)
A Family Affair
On its website, the ECFA states, “When a ministry encounters failure—or even worse, scandal—its difficulties can almost always be traced to a breakdown in governance.”
A key characteristic of good governance, according to the ECFA, is maintaining “the reality, not just the appearance of independent board governance.” The ECFA considers board members to be independent if they are not related by blood or employees of the organization.
For decades, though, two of MacArthur’s sons have served on GTY’s board along with their father. Phil Johnson, a key GTY employee, has also served on the board for many years.
Since 2002, the GTY board has ranged in size from eight to 12 members. So at times, as many as half of the board was either a MacArthur or an employee under John MacArthur.
One of MacArthur’s sons, Matthew MacArthur, remains on the board and has been listed on every 990 since 2002 as the treasurer of GTY.
MacArthur’s other son, Mark MacArthur, is also listed on every 990 since 2002 as a GTY board member.
In February 2020, Mark MacArthur was charged by the Securities and Exchange Commission with defrauding clients in a $16 million investment scheme. As late as August 2020, Mark MacArthur was still listed on GTY’s website as a board member. Mark MacArthur is not listed as a board member today.
In his 2014 statement, Johnson stated that board members “with blood relationships or employment connections to John MacArthur recuse themselves from salary decisions.”
However, it’s not just John MacArthur who is potentially benefitting from his sons’ and Johnson’s presence on the board. GTY has also paid MacArthur’s son-in-law, Kory Welch, and companies Welch owns, millions over the years, as has TMUS.
Millions to Kory Welch
In 2008, Welch was an employee of GTY, making $83,677 as director of television broadcasting. Welch, who’s married to MacArthur’s daughter, Melinda Welch, also was enjoying a $20,000 no-interest home loan with total debt forgiveness from GTY.
In 2008, there were no other contractors providing video production services for GTY, according to the organization’s 990s.
The next year, however, Welch began working for GTY as a video production contractor through a company Welch had formed two years earlier, called The Welch Group. In 2009, GTY paid The Welch Group $741,000 for “post-production services”—nearly 10 times what GTY had paid Welch the year before.
Since then, GTY has paid either The Welch Group or Dorma Productions (another small company Welch owns) between $659,000—$790,000 per year for a combined $8.3 million between 2009—2019.
Another company owned by Welch, called WeKreative, has also received more than $1 million in contract work from TMUS. From 2016 through 2019, TMUS paid WeKreative nearly $1.1 million for “marketing, public relations, and video production services,” according to TMUS audit reports and 990s.
During this time (in 2018 and 2019), TMUS also employed Welch as its COO, and for a time as its chief marketing officer, for which Welch received more than $138,000 in salary and benefits.
TMUS did not respond to requests for comment about Welch’s contract work or the potential conflict of interest concerning his positions at TMUS.
In addition to these jobs and positions, Welch is the CEO of The John MacArthur Charitable Trust (formerly The Master’s Grace Fund). This is a California nonprofit created “to support various ministries of John MacArthur, according to GTY’s 2019 financial statement.”
The sole member of The John MacArthur Charitable Trust is GTY and GTY elects a majority of the trust’s board. The trust does not file 990s, so it is not known if it pays Welch a salary for his services.
Money & Ministry
“You show me a person who preaches the money gospel, the money message, the wealth message—I’ll show you a person who has been corrupted by the love of money.”
So said John MacArthur in a 1987 sermon.
MacArthur added that he “never ever wanted to be in a position to look at ministry with a price tag.” That’s why, MacArthur said, he never asks for money when he preaches at other churches. “That is just too overwhelming a problem for my flesh to deal with.”
Yet clearly, MacArthur takes plenty of money from his own ministries. And though MacArthur may have never preached the prosperity gospel—a gospel that promises health and wealth—his income and portfolio looks an awful lot like those who do.
MacArthur may be America’s anti-prosperity gospel preacher, but his life, and the life of his family members, appears to be quite prosperous—and he seemingly has his ministries to thank.
*UPDATE: The original version of this story did not report that GCC had resigned from ECFA.
There are two issues with the article. One is the brand of “journalism” displayed in the article, and the other issue is whether a well-known pastor or teacher having money or wealth presents an immoral problem in and of itself, which is what the yellow article intimates.
This article from the Rochester Institute of Technology is of interest: WAR, PROPAGANDA AND MISINFORMATION: THE EVOLUTION OF FAKE NEWS. It explains what yellow journalism is, how it emerged with mass media of the late 1800s, and how yellow journalism has easily morphed onto digital media and found a new home. It’s instructive and interesting, too.
The writing in the article from this woman writer betrays a negative agenda, that she came to a conclusion prior to gathering facts and then shaped the article using the facts that fit the agenda she set out to accomplish. This is otherwise known as a hit piece. We read on Wiktionary that “A hit piece is a published article or post aiming to sway public opinion by presenting false or biased information in a way that appears objective and truthful.” (Source).
Or this from Oxford Dictionary: “an article, a documentary, etc. that deliberately tries to make somebody/something look bad by presenting information about them that appears to be true and accurate but actually is not.”
A reporter is supposed to be fair, charitable, and to remember that one’s words carry weight. A reporter can shape opinions, sway public attitudes, and even cause the downfall of a person or organization. This happens in a good way, as when investigative reporter Nellie Bly famously exposed the deplorable conditions in the Women’s Lunatic Asylum on Blackwell’s Island in New York in 1887. Reforms happened because of her exposé.
Or as in 2002, when the “Boston Globe’s Spotlight team, a group of five investigative journalists, uncovered the widespread sexual abuse of children by scores of the district’s clergy. They also revealed a cover-up: that priests accused of misconduct were being systematically removed and allowed to work in other parishes.” Reforms happened in the Roman Catholic Church because of the reporting.
The other plus side of investigative reporting besides just exposing something, is that the information in the report helps people make decisions about their individual future action regarding the target of the investigation. When the information is fair and unbiased, it helps people make good decisions. When it’s unfair and agenda-driven, people come to poor conclusions, their opinion slyly swayed by biased reporting to the detriment of the person or organization.
Uncharitable Christian investigators should be even more mindful of these things than a secular reporter, since they are part of Jesus’ body. Those who use their Christian voice and platform to get clicks, to enact their vendetta against a Christian, or who are unprofessional, cast negative light to an already damaged profession. This grieves me for my former profession and as a Christian. It grieves me for the name of Christ that people act this way in His name, even for Restoring the Church as the writer claims. I find the whole scenario distasteful.
The main issue is, is it a sin for a Christian to be wealthy? To have money? A vacation home? A high-seeming salary?
Let’s look to the Bible first. In the Old Testament, Abraham and Job were incredibly wealthy. There is no hint of the scriptures saying anything against these men for simply possessing money. In fact, after the LORD tested Job, the LORD restored Job’s fortunes doubly. (Job 42:10). Abraham was counted as righteous. Isaac was rich, too. (Genesis 26:12-13). Nebuchadnezzar was also wealthy, king of one of the most powerful and wealthy empires ever. (Daniel 5:19).
In the New Testament, we see that Nicodemus was wealthy. (John 19:39). Lydia, seller of purple, was also likely very wealthy. They were not condemned for having a high salary, property, or money, nor was any intimation of malfeasance or immorality made against them in scriptures. We see also that there was the Rich Man (with Lazarus at his gate), and the Rich Young Ruler who had much property. Judas was in charge of the ministry money. He had control of the purse.
What the Bible says is that the LOVE of money is the root of evil. We look to see not that they have money, but what they DO with it. Possession is not a crime. Unwise or greedy shepherding, is.
Job and Abraham acknowledged God as their benefactor. They worshiped him for Himself, and thanked Him for their possessions, which they called blessings because they knew they were.
On the other hand, Nebuchadnezzar claimed to have grown his empire and his wealth himself, denying God’s hand in it. This indeed brought punishment. God turned the king into an unreasoning animal for 7 years. When the King came out of it, Nebuchadnezzar then acknowledged God as his benefactor, and supreme King over all. Nebuchadnezzar was not condemned for having money, the Lord gave it to him in the first place! He was punished for taking it for himself and excluding God’s hand in it as Supreme Benefactor.
The Rich Young Ruler was shown to have wealth, but his wealth actually had him. He was unwilling to let go of his property to ensure salvation for soul. His idol was money and he clung to it to the exclusion of holiness, grace, and mercy of salvation- and in violation of the Second Commandment not to have any other gods before God. (Matthew 19:16-29).
Job knew that the Lord giveth and the Lord taketh away, naked he came into the world and naked he would leave. It is the Lord’s will to give anything to anyone at any time, or to take it from them in His good pleasure. Job’s hands were open. The Rich Man and the Rich Young ruler’s were closed.
Possession of wealth isn’t an immoral act. How the character of the person shows through in his or her handling of the money is the key to whether a problem exists or not. Judas stole from the ministry purse. We’ve seen Nebuchadnezzar’s problem was self-exaltation at the expense of God’s glory. (As a side note, we see that Herod was struck for the same reason, though money wasn’t an immediate issue. Herod accepted glory that was God’s, and so he was eaten by worms and died. (Acts 12:23).
Money can blind a person and tempt him beyond what he can bear. Money can make a person cling to idols, or believe he is above the law. Money can make a person insular and uncaring to the needs of others (The Rich Man & Lazarus). Wealth is often the vehicle for a person’s downfall, but having it is not a sin. Abraham tithed generously. He was generous to his nephew Lot in allowing him to choose first by taking the choicest lands and accepting second best for himself. Job prayed and worshiped daily. Nicodemus spent for spices what in today’s money would be about $150,000 to add to Jesus’ burial in honor of his Savior and King.
Money isn’t the issue, looking at a person’s character with it, is. Let’s look at some biblical warning signs that a person’s eye may be shifting from looking at Jesus to looking at his pile of wealth.
Is your pastor, elder, favorite online teacher becoming greedy and having issues with loving money too much by accumulating possessions neverendingly? The Bible is replete with warnings against this. One warning sign is from Luke 12:15–
But He said to them, “Beware, and be on your guard against every form of greed; for not even when one is affluent does his life consist of his possessions.”
Another warning sign is to see if the person a cheerful giver (open hands) or miserly and grumpy about it? Each one must do just as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:7).
Ecclesiastes 5:10-20 speaks about the futility loving money. The love of it drives one to accumulate more possessions, and the more possessions he accumulates the less satisfied he is. Greed is always a downward spiral.
Another warning sign that someone may not be shepherding his means in a Godly way is if strife surrounds the person. Greed in a man stirs up strife says Proverbs 28:25. The proverb goes on to say that those who trust the Lord will prosper, indicating that the greedy man’s trust is misplaced (he trusts his wealth) while the prosperous man trusts rightly- in the Lord.
Of Interest:
Pastor Don Green of Truth Community Church and a former elder at Grace Community Church wrote an essay on the subject, here. His essay is a solid defense of Grace Community Church and John MacArthur.
People have contacted me, worried about continuing to donate to the ministry or reconsidering it based on the article. If you have worries or doubts, please read Green’s, and also Phil Johnson’s piece giving a bit of inside information on the level of and character of John MacArthur’s stewardship.
Please consider the Bible’s instruction about attitudes toward wealth and greed, and apply those standards to the person or organization you’re considering donating to or participating with. And finally, please know that journalism nowadays is a profession rife with charlatans, both secular and allegedly Christian. Just because something published seems like an objective report, in these days, more often than not, it isn’t. Trust what the Word of God says and always look to that as the standard for assessing character.
We live in evil times. Paul notes to Timothy that people even who profess Christ (but are not saved, because they deny His power) will do their evil worst against the Church. Be on guard.
But realize this, that in the last days difficult times will come. For men will be lovers of self, lovers of money, boastful, arrogant, revilers, disobedient to parents, ungrateful, unholy, unloving, irreconcilable, malicious gossips, without self-control, brutal, haters of good, treacherous, reckless, conceited, lovers of pleasure rather than lovers of God, holding to a form of godliness, although they have denied its power; Avoid such men as these. 2 Timothy 3:1-5.
From 2005—2015, MacArthur made about $3.4 million in compensation from GTY and TMUS, for an average of about $320,000/year.
On top of that, MacArthur also took a salary from Grace Community Church that was “well within the upper-medium range” for California church employees, according to Johnson’s 2014 statement.
This puts MacArthur’s annual combined salary at an estimated half-million dollars most years. And in 2012, when he was paid an especially high salary and benefits from GTY, MacArthur’s salary likely pushed three-quarters of a million dollars.
In Johnson’s 2014 statement, he explained that MacArthur’s “salary and benefits” topped $400,000 in the fiscal year ending in 2012 because the GTY Board gave MacArthur a “rare 1st-edition KJB” that year. The Bible, Johnson said, was a “one-time gift capping 40 years of faithful ministry.”
In addition, Johnson stated that “Grace to You paid John MacArthur zero salary or benefits for the first 30+ years of our ministry’s existence.”
However, this statement does not match the facts.
According to a GTY 990 from 2002—the earliest 990 The Roys Report was able to obtain—MacArthur made $88,336 that year. This was just 16 years after GTY was founded, not 30.
According ECFA, GTY was founded in 1986. (The GTY website says GTY became a nonprofit in the early 1980s.)
It’s possible that Johnson was dating GTY’s beginning to the first year MacArthur was pastor of Grace Community Church (1969). That’s when a volunteer reportedly began recording MacArthur’s messages and giving them to members of the congregation who were too ill to attend. But the ministry didn’t even have a name back then and likely didn’t require any extra hours of MacArthur.
I reached out to Johnson to explain the apparent contradiction, but he did not respond.
Also, in his 2014 statement, Johnson stated that sometime after 2000, the GTY board “made a deliberate decision to pay (MacArthur) a full salary rather than a diminished wage that was arbitrarily curtailed based on the fact that he has other income.”
While it’s true that MacArthur received a huge increase in his GTY salary in 2003 (72%), MacArthur never worked full-time hours at GTY. MacArthur’s GTY hours varied each year from 10 to 30 hours per week, according to the organization’s own 990s.
Yet the hours MacArthur claimed to work each year seem to bear little relation to the salary he received. For example, in 2007, MacArthur claimed to work 20 hours per week at GTY and received $174,191. In 2008, he reportedly worked 10 hours per week and received nearly as much—$177,083.
Similarly, MacArthur’s hours at TMUS varied from 10 hours to 40 hours per week from 2005—2015 and didn’t necessarily correspond to the amount he was paid.
MacArthur logged a tremendous number of hours for GTY and TMUS, especially considering that he also worked as pastor of GCC. In one year, 2012, MacArthur reportedly worked a combined 60 hours a week at GTY and TMUS. This was in addition to the time he spent pastoring GCC, a church with an average attendance of more than 8,000 people.
Below is a chart compiled by The Roys Report, showing both the hours MacArthur claimed and the salaries he received for the years analyzed.
(Though it is not documented below, Phil Johnson received between $160,000 and $238,927 per year between 2005—2015 for his role at GTY. He also received a no-interest loan of $50,000 from the ministry for the purchase of a home, which was fully forgiven over a five-year period.)
A Family AffairOn its website, the ECFA states, “When a ministry encounters failure—or even worse, scandal—its difficulties can almost always be traced to a breakdown in governance.”
A key characteristic of good governance, according to the ECFA, is maintaining “the reality, not just the appearance of independent board governance.” The ECFA considers board members to be independent if they are not related by blood or employees of the organization.
For decades, though, two of MacArthur’s sons have served on GTY’s board along with their father. Phil Johnson, a key GTY employee, has also served on the board for many years.
Since 2002, the GTY board has ranged in size from eight to 12 members. So at times, as many as half of the board was either a MacArthur or an employee under John MacArthur.
One of MacArthur’s sons, Matthew MacArthur, remains on the board and has been listed on every 990 since 2002 as the treasurer of GTY.
MacArthur’s other son, Mark MacArthur, is also listed on every 990 since 2002 as a GTY board member.
In February 2020, Mark MacArthur was charged by the Securities and Exchange Commission with defrauding clients in a $16 million investment scheme. As late as August 2020, Mark MacArthur was still listed on GTY’s website as a board member. Mark MacArthur is not listed as a board member today.
In his 2014 statement, Johnson stated that board members “with blood relationships or employment connections to John MacArthur recuse themselves from salary decisions.”
However, it’s not just John MacArthur who is potentially benefitting from his sons’ and Johnson’s presence on the board. GTY has also paid MacArthur’s son-in-law, Kory Welch, and companies Welch owns, millions over the years, as has TMUS.
Millions to Kory Welch
In 2008, Welch was an employee of GTY, making $83,677 as director of television broadcasting. Welch, who’s married to MacArthur’s daughter, Melinda Welch, also was enjoying a $20,000 no-interest home loan with total debt forgiveness from GTY.
In 2008, there were no other contractors providing video production services for GTY, according to the organization’s 990s.
The next year, however, Welch began working for GTY as a video production contractor through a company Welch had formed two years earlier, called The Welch Group. In 2009, GTY paid The Welch Group $741,000 for “post-production services”—nearly 10 times what GTY had paid Welch the year before.
Since then, GTY has paid either The Welch Group or Dorma Productions (another small company Welch owns) between $659,000—$790,000 per year for a combined $8.3 million between 2009—2019.
Another company owned by Welch, called WeKreative, has also received more than $1 million in contract work from TMUS. From 2016 through 2019, TMUS paid WeKreative nearly $1.1 million for “marketing, public relations, and video production services,” according to TMUS audit reports and 990s.
During this time (in 2018 and 2019), TMUS also employed Welch as its COO, and for a time as its chief marketing officer, for which Welch received more than $138,000 in salary and benefits.
TMUS did not respond to requests for comment about Welch’s contract work or the potential conflict of interest concerning his positions at TMUS.
In addition to these jobs and positions, Welch is the CEO of The John MacArthur Charitable Trust (formerly The Master’s Grace Fund). This is a California nonprofit created “to support various ministries of John MacArthur, according to GTY’s 2019 financial statement.”
The sole member of The John MacArthur Charitable Trust is GTY and GTY elects a majority of the trust’s board. The trust does not file 990s, so it is not known if it pays Welch a salary for his services.
Money & Ministry
“You show me a person who preaches the money gospel, the money message, the wealth message—I’ll show you a person who has been corrupted by the love of money.”
So said John MacArthur in a 1987 sermon.
MacArthur added that he “never ever wanted to be in a position to look at ministry with a price tag.” That’s why, MacArthur said, he never asks for money when he preaches at other churches. “That is just too overwhelming a problem for my flesh to deal with.”
Yet clearly, MacArthur takes plenty of money from his own ministries. And though MacArthur may have never preached the prosperity gospel—a gospel that promises health and wealth—his income and portfolio looks an awful lot like those who do.
MacArthur may be America’s anti-prosperity gospel preacher, but his life, and the life of his family members, appears to be quite prosperous—and he seemingly has his ministries to thank.
*UPDATE: The original version of this story did not report that GCC had resigned from ECFA.
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And now for a particularly lame defense, found here. Our comments in bold.
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Is having money or wealth, a sin? - By Elizabeth Prata
(Ms. Prata opens her defense of Dr. MacArthur by attacking the journalist who wrote the story. This is a logical fallacy known as Poisoning the Well. And Ms. Prata uses it to full advantage, first by not documenting her accusation against the journalist, and second by never addressing any part of the substance of the article.
After expending 9 paragraphs blasting "yellow journalism" in general, Ma. Prata skips right over the issue of how Ms. Roys is a yellow journalist. For some reason, no impropriety ever gets documented.
She never references the charges again.
Ms. Prata will spend the balance of her "rebuttal" justifying Dr. MacArthur's prosperity, for the sole reason that he's obviously one of the good guys.
A little later, she engages in a bit of obfuscation. She writes, "The main issue is, is it a sin for a Christian to be wealthy? To have money? A vacation home? A high-seeming salary?" No, Ms. Prata, these are not the main issues.
- First, Dr. MacArthur is not simply a Christian, he is a very prominent pastor who has been quite vocal about the financial excesses of of his theological enemies.
- Second, the issue isn't necessarily sin. The appearance of evil (1Th. 5:22) is a valid consideration.
- Third, hypocrisy isn't necessarily sin. And, if Dr. MacArthur is not being hypocritical, there would need to be some pretty substantial documentation of this.
- Fourth, a pastor must be accountable, and a prominent pastor even more so. Ms. Prata will never call Dr. MacArthur into account. She will never deal with any claim made by the journalist. She will simply ignore them and cite Bible examples of rich people as if that justifies Dr. MacArthur's great wealth.)
Recently an article was published by a yellow journalist against a well-established, reputable ministry, charging its leader with the sin of wealth, hypocrisy, and comparing him to false teachers. The organization she wrote negatively about is Grace Community Church, Grace To You, and John MacArthur.
There are two issues with the article. One is the brand of “journalism” displayed in the article, and the other issue is whether a well-known pastor or teacher having money or wealth presents an immoral problem in and of itself, which is what the yellow article intimates.
This article from the Rochester Institute of Technology is of interest: WAR, PROPAGANDA AND MISINFORMATION: THE EVOLUTION OF FAKE NEWS. It explains what yellow journalism is, how it emerged with mass media of the late 1800s, and how yellow journalism has easily morphed onto digital media and found a new home. It’s instructive and interesting, too.
The writing in the article from this woman writer betrays a negative agenda, that she came to a conclusion prior to gathering facts and then shaped the article using the facts that fit the agenda she set out to accomplish. This is otherwise known as a hit piece. We read on Wiktionary that “A hit piece is a published article or post aiming to sway public opinion by presenting false or biased information in a way that appears objective and truthful.” (Source).
Or this from Oxford Dictionary: “an article, a documentary, etc. that deliberately tries to make somebody/something look bad by presenting information about them that appears to be true and accurate but actually is not.”
A reporter is supposed to be fair, charitable, and to remember that one’s words carry weight. A reporter can shape opinions, sway public attitudes, and even cause the downfall of a person or organization. This happens in a good way, as when investigative reporter Nellie Bly famously exposed the deplorable conditions in the Women’s Lunatic Asylum on Blackwell’s Island in New York in 1887. Reforms happened because of her exposé.
Or as in 2002, when the “Boston Globe’s Spotlight team, a group of five investigative journalists, uncovered the widespread sexual abuse of children by scores of the district’s clergy. They also revealed a cover-up: that priests accused of misconduct were being systematically removed and allowed to work in other parishes.” Reforms happened in the Roman Catholic Church because of the reporting.
The other plus side of investigative reporting besides just exposing something, is that the information in the report helps people make decisions about their individual future action regarding the target of the investigation. When the information is fair and unbiased, it helps people make good decisions. When it’s unfair and agenda-driven, people come to poor conclusions, their opinion slyly swayed by biased reporting to the detriment of the person or organization.
Uncharitable Christian investigators should be even more mindful of these things than a secular reporter, since they are part of Jesus’ body. Those who use their Christian voice and platform to get clicks, to enact their vendetta against a Christian, or who are unprofessional, cast negative light to an already damaged profession. This grieves me for my former profession and as a Christian. It grieves me for the name of Christ that people act this way in His name, even for Restoring the Church as the writer claims. I find the whole scenario distasteful.
The main issue is, is it a sin for a Christian to be wealthy? To have money? A vacation home? A high-seeming salary?
Let’s look to the Bible first. In the Old Testament, Abraham and Job were incredibly wealthy. There is no hint of the scriptures saying anything against these men for simply possessing money. In fact, after the LORD tested Job, the LORD restored Job’s fortunes doubly. (Job 42:10). Abraham was counted as righteous. Isaac was rich, too. (Genesis 26:12-13). Nebuchadnezzar was also wealthy, king of one of the most powerful and wealthy empires ever. (Daniel 5:19).
In the New Testament, we see that Nicodemus was wealthy. (John 19:39). Lydia, seller of purple, was also likely very wealthy. They were not condemned for having a high salary, property, or money, nor was any intimation of malfeasance or immorality made against them in scriptures. We see also that there was the Rich Man (with Lazarus at his gate), and the Rich Young Ruler who had much property. Judas was in charge of the ministry money. He had control of the purse.
What the Bible says is that the LOVE of money is the root of evil. We look to see not that they have money, but what they DO with it. Possession is not a crime. Unwise or greedy shepherding, is.
Job and Abraham acknowledged God as their benefactor. They worshiped him for Himself, and thanked Him for their possessions, which they called blessings because they knew they were.
On the other hand, Nebuchadnezzar claimed to have grown his empire and his wealth himself, denying God’s hand in it. This indeed brought punishment. God turned the king into an unreasoning animal for 7 years. When the King came out of it, Nebuchadnezzar then acknowledged God as his benefactor, and supreme King over all. Nebuchadnezzar was not condemned for having money, the Lord gave it to him in the first place! He was punished for taking it for himself and excluding God’s hand in it as Supreme Benefactor.
The Rich Young Ruler was shown to have wealth, but his wealth actually had him. He was unwilling to let go of his property to ensure salvation for soul. His idol was money and he clung to it to the exclusion of holiness, grace, and mercy of salvation- and in violation of the Second Commandment not to have any other gods before God. (Matthew 19:16-29).
Job knew that the Lord giveth and the Lord taketh away, naked he came into the world and naked he would leave. It is the Lord’s will to give anything to anyone at any time, or to take it from them in His good pleasure. Job’s hands were open. The Rich Man and the Rich Young ruler’s were closed.
Possession of wealth isn’t an immoral act. How the character of the person shows through in his or her handling of the money is the key to whether a problem exists or not. Judas stole from the ministry purse. We’ve seen Nebuchadnezzar’s problem was self-exaltation at the expense of God’s glory. (As a side note, we see that Herod was struck for the same reason, though money wasn’t an immediate issue. Herod accepted glory that was God’s, and so he was eaten by worms and died. (Acts 12:23).
Money can blind a person and tempt him beyond what he can bear. Money can make a person cling to idols, or believe he is above the law. Money can make a person insular and uncaring to the needs of others (The Rich Man & Lazarus). Wealth is often the vehicle for a person’s downfall, but having it is not a sin. Abraham tithed generously. He was generous to his nephew Lot in allowing him to choose first by taking the choicest lands and accepting second best for himself. Job prayed and worshiped daily. Nicodemus spent for spices what in today’s money would be about $150,000 to add to Jesus’ burial in honor of his Savior and King.
Money isn’t the issue, looking at a person’s character with it, is. Let’s look at some biblical warning signs that a person’s eye may be shifting from looking at Jesus to looking at his pile of wealth.
Is your pastor, elder, favorite online teacher becoming greedy and having issues with loving money too much by accumulating possessions neverendingly? The Bible is replete with warnings against this. One warning sign is from Luke 12:15–
But He said to them, “Beware, and be on your guard against every form of greed; for not even when one is affluent does his life consist of his possessions.”
Another warning sign is to see if the person a cheerful giver (open hands) or miserly and grumpy about it? Each one must do just as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. (2 Corinthians 9:7).
Ecclesiastes 5:10-20 speaks about the futility loving money. The love of it drives one to accumulate more possessions, and the more possessions he accumulates the less satisfied he is. Greed is always a downward spiral.
Another warning sign that someone may not be shepherding his means in a Godly way is if strife surrounds the person. Greed in a man stirs up strife says Proverbs 28:25. The proverb goes on to say that those who trust the Lord will prosper, indicating that the greedy man’s trust is misplaced (he trusts his wealth) while the prosperous man trusts rightly- in the Lord.
Of Interest:
Pastor Don Green of Truth Community Church and a former elder at Grace Community Church wrote an essay on the subject, here. His essay is a solid defense of Grace Community Church and John MacArthur.
People have contacted me, worried about continuing to donate to the ministry or reconsidering it based on the article. If you have worries or doubts, please read Green’s, and also Phil Johnson’s piece giving a bit of inside information on the level of and character of John MacArthur’s stewardship.
Please consider the Bible’s instruction about attitudes toward wealth and greed, and apply those standards to the person or organization you’re considering donating to or participating with. And finally, please know that journalism nowadays is a profession rife with charlatans, both secular and allegedly Christian. Just because something published seems like an objective report, in these days, more often than not, it isn’t. Trust what the Word of God says and always look to that as the standard for assessing character.
We live in evil times. Paul notes to Timothy that people even who profess Christ (but are not saved, because they deny His power) will do their evil worst against the Church. Be on guard.
But realize this, that in the last days difficult times will come. For men will be lovers of self, lovers of money, boastful, arrogant, revilers, disobedient to parents, ungrateful, unholy, unloving, irreconcilable, malicious gossips, without self-control, brutal, haters of good, treacherous, reckless, conceited, lovers of pleasure rather than lovers of God, holding to a form of godliness, although they have denied its power; Avoid such men as these. 2 Timothy 3:1-5.
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