Gateway Church doesn’t honor money-back guarantee on tithes, lawsuit alleges
Gateway Church doesn't honor a money-back guarantee on tithes to unsatisfied congregants despite claims to the contrary made by disgraced founder Robert Morris and other leaders of the Southlake, Texas, megachurch, a new class action lawsuit filed by four church members Friday alleges.
The lawsuit was filed by Gateway Church members Katherine Leach, Garry K. Leach, Mark Browder and Terri Browder. In addition to Morris and Gateway Church, it also names as defendants: Tom Lane, a former executive pastor of Gateway Church; founding elder Steve Dulin; and Kevin Grove, who currently serves as an executive global pastor and elder at Gateway Church as well as a trustee of The King's University.
When asked to comment on the lawsuit Monday, Gateway Church spokesman Lawrence Swicegood, declined to addressing claims made in "pending litigation."
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"We do not comment on pending litigation. These are serious allegations. Some of these concerns were brought to us recently, and we are actively investigating them," he said. "Funds donated to our church are sacred, and it is important that we hold ourselves to the highest biblical standards of ethics and integrity."
The church members allege that the lawsuit stems primarily from Gateway Church's refusal to be transparent about the finances of the church, which has generated in excess of $100 million in revenue annually in past years. They focus specifically on the church's Global Ministries fund, to which its leaders promised to allocate 15% of tithes collected.
"This lawsuit is about transparency, brought by members whose concern is not money in their pockets but rather biblical stewardship," the lawsuit reads.
"Then-Senior Pastor Robert Morris and Gateway leaders represented that 15% of all tithe dollars would be distributed to global missions and Jewish ministry partners, encouraging church members to generously give toward these ends," the lawsuit states.
"On the account of the facts set forth herein, Plaintiffs allege that Gateway Church and its leaders engaged in misrepresentation, fraud, and breach to contract in their efforts to induce Plaintiffs and other church members to donate money to Gateway."
"On information and belief, Defendants did not use 15% of all money donated for the intended purpose as represented by Robert Morris and Gateway leaders," the filing adds. "Attempts to seek transparency and proof that money did in fact go to global missions and Jewish ministry partners have been rebuffed by Gateway elders. This lawsuit is a means of last resort and being pursued with a heavy heart."
The church members contend that despite repeated promises from Morris and other leaders that congregants would get a refund of their tithes if they weren't happy with the results of their donations, Gateway Church leaders refused to honor that promise.
"Robert Morris and Tom Lane promised on multiple occasions that if the congregation is not happy with the use of its money, it can get the money back," the lawsuit alleges before citing Morris' public announcement of the money-back guarantee on tithing in 2022.
Morris, who founded Gateway Church in 2000, resigned in June amid an allegation he sexually abused a child for years in the 1980s, beginning when she was 12 years old.
Morris' announcement of a money-back guarantee came during a sermon at Willow Creek church in the suburban Chicago area about "The Principle of First" to help boost falling revenues that the church had been experiencing amid the COVID-19 pandemic.
"I don't want to exaggerate, but I'm sure thousands and thousands of people, and I'm sure it's multiplied, that have told me some way over the years through email, letters, whatever, 'this changed my life,'" Morris noted in a YouTube clip from his message on tithing the first 10% of one's income.
"When I started giving the first 10% to God it changed everything. And here's what I'd like to do. I'd like to just challenge you. I've done this with our church. I've told our church on multiple occasions, I've said to them, if you'll try it for one year, if you are not fully satisfied, at the end of that year, I'll give you your money back," Morris said. "With 22 years in the church, no one's ever asked for their money back."
According to the lawsuit, many Gateway Church members have asked for a refund of their tithes, but the church leaders have ignored their requests.
"This statement was repeated by Tom Lane, and the other defendants knew that the representation was false and made with the intention of inducing congregants to give money. Many people, have requested refund of their tithes only to be stonewalled and ignored by the defendants," the lawsuit alleges.
"In fact, Plaintiff Katherine Leach has publicly and directly delivered a demand letter to Gateway for the return of her tithes pursuant to Gateway's 'money back guarantee.' Gateway has not responded. This offer by Robert Morris and Tom Lane, made with the full knowledge and consent of the other defendants, created a contract under Texas law where a promise was made for consideration and that promise was not fulfilled," it argues.
The plaintiffs in the case are demanding a jury trial, compensation for attorneys fees as well as monetary relief they expect to exceed $1 million.
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