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Basic Christian<br />

Column: Schuller makes bishop look humble - Even in bankruptcy,<br />

Schuller is asking for $300,000 a year for the rest of his life<br />

The bankruptcy record includes appalling insight into how the Crystal Cathedral Ministry founder and his kin have<br />

lived for the last several years as the church was heading to ruination. In late 2005, according to a pleading filed by<br />

creditors, Schuller was being phased out as leader and moved into a "roving ambassador" role. For this, according<br />

to a transition agreement, he was to be paid $300,000 a year for "discretionary" spending plus a salary that wasn't<br />

specified at the time, but was later shown to be as much as $257,000 in 2009. It's one level of avarice to be paid a<br />

half-million a year by hard-working congregants for "roving." It's a whole 'nother to be paid that much while your<br />

church is collapsing around you. The church filed for bankruptcy in 2010, a year that Schuller's total compensation<br />

was at least $447,000, according to the creditors. Shocked yet? How about this: Even in bankruptcy, Schuller is<br />

asking for $300,000 a year for the rest of his life. Schuller shamelessly defends the salary. The "ministry has reaped<br />

great benefit from that agreement, far in excess of what it has paid, and it stands to receive even more in the coming<br />

years," he said in a prepared statement last month. It's further untrue, he said, that ministry officials acted in bad<br />

faith - by which I assume he means they had no idea they were in deep financial trouble when they were promising<br />

salaries and health care for life for Schuller and his wife. But as early as 2002, the church started borrowing from<br />

the special church Endowment Fund to which donors had contributed for a specific purpose. Instead, the money<br />

covered salaries and general expenses. The amount of such borrowing ultimately totaled about $10 million. And in<br />

2005, the creditors allege, the church had to stop paying the principle to its major creditor, Farmer & Merchants<br />

Bank. If true, these developments would indicate the Schullers knew well before the bankruptcy, even well before<br />

the national recession, that their financial plan wasn't working. Yet they kept spending.<br />

Schuller "Lawsuit allegations unfair and untrue" - Robert H. Schuller<br />

[Sr.] shot back in response to a lawsuit filed by creditors saying that<br />

he and board members always acted in good faith and in the best<br />

interests of the cathedral - Schuller the founder of the Crystal<br />

Cathedral, called allegations made in a creditors' lawsuit that the<br />

pastor and his family members greatly benefited from the church and<br />

provided little in return, unfair and untrue - The complaint was filed<br />

after Schuller family members refused to put their own financial claims<br />

in bankruptcy court behind the unsecured creditors, primarily<br />

**vendors, who are yet to be paid<br />

Referring to his own agreement in 2005 in which the senior Schuller was given $300,000 and benefits, staff and use<br />

of an office suite for life, the founder said the "ministry has reaped great benefit from that agreement, far in excess<br />

of what it has paid, and it stands to receive even more in the coming years." Among other things, the creditors'<br />

lawsuit filed in bankruptcy court Friday alleges that the Cathedral's board drew about $10 million from endowment<br />

funds between 2002 and 2009. Money from those funds was used for church expenses and salaries when they were<br />

donated for specific purposes such as caring for the Walk of Faith memorial stones. The lawsuit also specifically<br />

names Schuller's daughters, son and their families as well as former Chief Financial Officer Fred Southard, saying<br />

that they received lavish salaries, housing allowances and other benefits such as travel benefits and vehicles.<br />

Schuller's daughters, Carol Schuller Milner and Jeanne Schuller Dunn, have said the lawsuit has inaccuracies and<br />

mis<strong>info</strong>rmation. Milner said she and her siblings have always been a part of the church and contributed to the best<br />

of their abilities, but that most never had a say in the decisions the board made. The complaint says Robert A.<br />

Schuller, son of the founder, and his wife, Donna, were promised a $235,000 reserve fund and $1 million in seed<br />

money for a new church. In addition, they also got a Mercedes Benz and occupied a condominium owned by the<br />

church in Laguna Beach, the suit says. Donna Schuller, who has also been named in the lawsuit, said Tuesday that<br />

the Mercedes mentioned in the complaint was a gift from a family friend in 2005. At the time, her husband<br />

http://www.basicchristian.org/blog_History_Study_Complete.rss[1/16/2012 7:38:03 AM]

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