What the Gateway Church Lawsuit Means for Your Church’s Giving Practices
Introduction
As the year draws to a close and many churches ramp up campaigns for year‑end giving, a recent federal court development — involving the non‑denominational megachurch Gateway Church and its former senior pastor Robert Morris — offers a timely reminder: clear giving practices, faithful use of donated funds, and transparent communication are not optional. They are essential.
Background of the case
In October 2024, Gateway Church members Katherine Leach, Gary Leach, Mark Browder and Terri Browder (among others) filed a class‑action complaint in federal court. They alleged that Gateway and its leadership misrepresented how tithe funds would be used, and that the church failed to follow through on promised allocations. ChurchLeaders The plaintiffs contend the church publicly stated that “15 % of all tithe dollars” would go to global missions and Jewish ministry partners, but that internal records (according to a former Gateway CPA) reflected far less. The Roys Report The plaintiffs also claim that congregants were told they could request refunds if they were dissatisfied with how the tithes were used. RNS
Recent legal developments
On September 19 2025, U.S. District Court ruled in favor of the plaintiffs' case moving forward by denying the church’s motion to dismiss. The judge allowed expansion of the class and the commencement of discovery. KERA News+1
Then on September 25, a separate motion by the church to dismiss the case on First Amendment grounds (via the ecclesiastical‑abstention doctrine) was denied by Judge Amos Mazzant. While the court acknowledged that tithing is a religious act, it distinguished the current allegations as secular claims of fraud and misrepresentation—not purely religious/ministerial doctrines. Religion Unplugged+1
Key issues raised by the lawsuit
Promise vs Reality: The church allegedly advertised that a specific percentage of donations would go to designated missions efforts—but former internal personnel say actual distributions fell short. The Roys Report+1
Refund Guarantee: Plaintiffs claim they were assured a refund option if dissatisfied with the use of tithes; the fact such a statement existed may convert a donation into a contractual obligation. RNS
Transparency and Documentation: The complaint argues the church refused to provide a professional audit of the global ministries fund, and lacked sufficient documentation to show the promised allocation. ChurchLeaders+1
Ecclesiastical Abstention: The doctrine holds courts should not intrude on religious doctrine or internal church governance. Yet here the court found the claims relate to secular, financial promises and allocations, so it proceeded. Religion Unplugged
Implications for your church or ministry
Public statements matter: If you advertise or promise that X % of giving will go to a specific purpose, this may create enforceable expectations by donors.
Treat giving with legal care: Even though giving is voluntary and rooted in faith, once you set a promise (e.g., “Money‑Back Guarantee,” “15% to missions”), you may trigger contractual, fiduciary or even fraud‑related claims.
Document allocation and use: If you receive designated or implied‑designated funds (e.g., “missions,” “building,” “youth”), have clear policies and financial tracking that match donors’ expectations.
Communicate clearly: If circumstances change (e.g., you cannot follow through on the stated allocation), provide prompt, clear communication to donors.
Refund policies: Be cautious about refund guarantees unless you’re fully able to honor them and have a clear internal policy.
Governance and ethics: Robust internal oversight—not just for giving, but for leadership practices—bolsters trust and can mitigate risk in times of scrutiny.
What you should be doing now — Year‑end checklist
Review your giving/promised allocation language in communications and ensure you can deliver.
Audit or review funds designated for special purposes: Are they used as promised? Are they documented?
Clarify any “money‑back” or refund language: Do you have a policy, procedure, and testing of whether you’ve honored it?
Provide transparency and reporting to your congregation: Consider how you will explain where funds went, especially if major funds are diverted (e.g., for building, staffing, mission).
Ensure your board or elders understand the legal and fiduciary implications of mis‑stepping; an informed leadership is a stewardship leadership.
Conclusion
The Gateway Church case may sit in a large church context, but the lessons are universal: donors give in faith, expecting stewardship, transparency, and honesty. As we approach year‑end giving, your ministry’s reputation—and perhaps legal standing—may hinge on how well you manage these expectations.