Watchtower Construction Projects Worldwide Delayed, Reduced in Scope or Canceled

Major Announcement as of Wednesday, September 23, 2015: A Number of Branch and Assembly Hall Construction Projects Worldwide to be Delayed, Reduced in Scope or Canceled. Is the "Tower" in trouble?

The video above is startling--so startling, in fact, that this merits a closer look. What is fueling major adjustments worldwide? Can down-scaling truly be said to be a sign of... up-scaling?

0.37: Adjustments to Make Best Use of Dedicated Funds

This video starts out with the speaker, Sam Herd, prefacing coming major changes with a rationale of "best use of dedicated funds." When the Society started these construction projects, they must have felt this was the "best use of dedicated funds" at that time. They must have calculated the cost beforehand, as the scriptures direct: "For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?" Luke 14:28.   

So what has changed? What has them so spooked that they are pulling out of these projects worldwide? They are scaling back on an unprecedented scale and it should be obvious that more might driving these actions than deciding suddenly to "make the best use of dedicated funds" partway through these construction projects.

1.21: Kingdom Halls Will Continue to be Built

One has to wonder why this information is added at this point. Herd's remarks about building of kingdom halls does not add anything to his disclosure about the delayed/reduced/canceled construction projects. 

Until recently, the Society did not actually pay for Kingdom Halls. They loaned the money, then charged interest from members. Later, if a hall was sold (and most land/buildings build equity), the Society kept all monies.

So you have a scenario whereby members paid for land and interest on construction of a building, free workers did the actual building of same, the building was maintained and kept in prime re-sale condition, all at minimal or no cost to the Society. If the property was later sold, it proved to be a money-maker, with the Society on the receiving end.

A new resolution arrangement now has the loans/interest canceled. This sounds like a wonderful offering at first blush but... congregation elders are supposed to collect/send at least the same amount or more each month and... indefinitely. What about congregations that didn't have a loan with the Society? They, too, are expected to send a fixed amount each month, indefinitely. Resolutions are read out loud, members are expected to agree, whether they can afford it or not, and this non-voluntary offering is sent in to the Society. Many will see this as just another form of tithing--with a different name, of course. This new arrangement has, in fact, been dubbed, "stealth tithing."

1:48: All Branches to Reduce Size of Their Bethel Family

Notice he said "all." Minor adjustment or major? Currently, there are main branches and any number of offshoots around the world, including consolidated branch offices, country offices, and remote translation offices. Available figures suggest these total approximately 90-98 branch offices with approximately 22 country offices. 

Reducing the size means letting Bethelites go. They will no longer be housed nor fed in return for their unpaid labor on behalf of the Society and will have to finds jobs and homes. Some elderly Bethelites have served for years and now will be given notice and turned away, with no outside training, no medical benefits, and no pension, but they have been told to trust in God to provide for their needs. Learn more: Dismissed Special Pioneer Lashes Out Against Downsizing 

Those who remain will have an increased workload by having to provide the everyday services that were formally done by all those members who were let go. 

2:20: Number of Special Pioneers Reduced Significantly
Special pioneers were paid a small stipend.

3:00 Kingdom Work Expanding at Accelerated Pace
No explanation is offered about where and how expansion is occurring at an accelerated pace.

3: 38: These Adjustments Aren't Being Made Because of Lack of Financial Support

This contradicts an appeal by Governing Body member, Stephen Lett, who four months earlier, May 2015, at the 2:10-minute mark, admitted that there was a shortfall of funds and that more money was going out than was coming in. "We have looked forward to this next fiscal year and projected the expenditures... In doing the math, we found that the amount of money flowing out will be much greater than the amount of money that we have coming in at this time." (Listen below)

JW TV May 2015 Highlight - JW Broadcasting

 

Notice Herd (first video) doesn't say because of "a lack of adequate funds." He steers around that by acknowledging members' financial support--but financial support and adequate funding are two different oysters. Again, this is an interesting word choice. Yes, there may not be a lack of financial support from members, i.e. members may be sending in donations (so it is truthful to say that they are giving financial support to the work), but this does not mean that the amounts they are donating are enough to actually finance the work, this corporation, and its multitude of projects. 

Words can paint a favorable impression without revealing the full picture. One can't help but ponder the "why." If we are to believe Herd's statement that this has nothing to do with insufficient funds to cover operating costs (as publicly admitted by Lett), then what is driving these major adjustments? For decades it has been claimed that building of branches and Bethels was necessary to further the preaching work and that sending special pioneers into foreign lands did likewise.

To be fair to the speaker, if it is not lack of money, if somehow their deficit turned around in four months, then what is it? When a person or an organization fails to disclose all the details, it is relatively easy to say, "It isn't this; it isn't that," but that doesn't reveal what it actually is.

"Best use of dedicated funds" could indicate a financial strategy depending on current circumstances and future circumstances, which I will touch on below.

Perhaps Samuel Herd meant to convey, instead, that he was trying to show appreciation for members' financial support and did not word this clearly. If so, we invite him to comment below and clarify matters for readers. 

3:30: Response to JW ORG, to JW Broadcasting Overwhelming 

And he switches focus immediately and talks about the response to their virtual sites and media. This is an curious side-step. Instead of elaborating and establishing that they DO have enough operating funds, he instead paints a glowing picture about the response, as if a response is somehow in the same category as adequate funding.

But site visits do not translate into dollars, do they? Members tuning into JW Broadcasting and a favorable reception to videos does not spell real money. 

One is forced to ask, what does one have to do with the other? This appears to be diversionary window-dressing hiding troubling indicators that all is not well in the land of Watchtower.

4:04: We Can Only do so Much With the Funds at Our Disposal

This is the most confusing statement of all. He has just stated that these adjustments aren't being made because of a lack of financial support, then pretty much admits that they are limited by the "funds at their disposal."

Now, if they had enough funds at their disposal, wouldn't they be continuing all those building projects they started? 

The other possibility is that they have the funds but a storm is looming on the horizon, that they are aware of and planning for.

4:16: We Desire to Give Priority to Those Activities That Contribute the Most to the Spiritual Welfare of Members and Advancement of the Global Preaching Work

Spiritual Welfare of Members: reduce spiritual food that was said to be critical because "we are deep into the time of the end," cut three weekly meetings to one, and in some areas, sell places of worship. Suddenly, less is more.

Advancement of the Global Preaching Work: get rid of special pioneers in foreign lands, dismiss Bethelites and close branches, and halt big construction projects, all of which were said to advance the global preaching work.   

And instead of elaborating how this major down-scaling is supposed to accomplish up-scaling, he once again switches tracks and starts discussing reduction of printed issues of the public magazines because there is too much spiritual food and members are having difficulty keeping up. 

• Members said this for years and were told to appreciate the "rich spiritual feast" as being food at the proper time and necessary to keep their faith strong.  

• Members now have more time than they ever had with more time free that is not spent attending meetings, which would give them extra time for study.

In times past, members were told that as pressure mounted, they would need to constantly feed at the spiritual table. Times aren't getting easier, so if we buy this line of reasoning, as conditions worsen in the world, wouldn't members need more and not less?

Changed Tax Laws = Reduction of Printed Material 
When the Society charged for their printed materials, those materials were an income source--but no longer. Changed tax laws forced them to offer them free-of-charge. 

As a side note, in October 10th, 1988, Society attorneys went to court and filed a "friends of the court" Amicus Curiae brief on behalf of Jimmy Swaggart Ministries, Case No. 88-1374, to try to prevent a change in tax laws regarding the sale of printed goods and having to pay tax on same.

Why would the Watchtower Society do this? Especially since, according to Watchtower, Swaggart would be considered part of the world empire of false religion. Why would Watchtower go into the Supreme Court of the United States and file a legal brief to help Jimmy Swaggart Ministries? 

Swaggart Ministries was being sued by the state of California for non-payment of sales tax on his miscellaneous religious articles sold.

• In February, 1989, the US Supreme Court ruled that it was illegal for 15 states to exempt religious books from sales tax.

• Shortly afterwards, the Society had to change the way they dealt with printed materials or face the tax man. In Our Kingdom Ministry, March, 1991, p. 3-4, the "Simplified Literature Distribution Arrangement" was implemented.

The "new donation arrangement" protected Watchtower's tax-free status on printed materials. Members were never informed of the change in tax laws.

If one does that math, another reason for reducing both the number of pages, and the publication frequency emerges. Printing is no longer the lucrative endeavor it once was.

Does Major Downsizing Reveal an Organization in Trouble?
Cost-saving measures? 

Reducing number of Bethelites (who were fed and housed)
Cutting services offered to remaining Bethel members
Closing branches and Bethels (no more operating costs)
Reducing number of Special Pioneers (who were supported via a small stipend)
Halting/scrapping construction of major building projects (all of which entail cost)
Eliminating Circuit/Overseer' positions (to be confirmed)
Nixing assemblies and conventions (to be confirmed)
Reducing number of meetings per week (lower operating costs, i.e. electricity/heating)
Closing and selling Kingdom Halls (property flipping, which generates cash)
Reducing printed materials and switching to virtual media (cutting costs)

While some of these actions could be said to be reasonable measures, such as switching to virtual media, in an increasingly online world, and while it could be said that times change, still, when one examines the scope of the changes, it appears that monetary support is dwindling to such an extent that cost-saving measures are necessary--or some other compelling reason is fueling this.

What's Coming Down the Pike?

• One has to wonder if the Society knows of changes coming to tax laws and is taking preemptive steps to reduce the financial impact when the other shoe drops, as they did with their printed books and magazines when tax laws changed.

• More lawsuits may be coming their way because of failure to report child molesters to authorities and failure to protect children. These downsizing measures might be necessary to offset the millions they would have to pay out in punitive damages, as was seen with the Candace Conti case.

On June 20th 2012, Judge Robert D. McGuinnes ruled that Watchtower monies, to the tune of  $1 billion in real estate assets, were to be frozen while Watchtower was appealing against the judgment of $21 million in punitive damages awarded to Conti.  

It is not a stretch to foresee that if other lawsuits were to arise, assets could be frozen again.

• They could be on the verge of bankruptcy and this is the last gasp before everything falls apart. (Unlikely, but anything is possible.)

Probable Future Scenarios
What could happen if things go from bad to worse...

• Most printing facilities phased out and the buildings sold. Hit-and-miss donations for printed materials may not be adequate to cover the costs involved in producing same. 
• They sell off the Kingdom Halls and expect members to hold the weekly meeting in their homes.
• They go completely virtual, broadcasting sermons via JW Broadcasting
• They monetize their online sites to generate income
• They continue to televangelize to solicit funds
• Leaders largely retire to their lakeside Warwick compound.
• Members go back to just using the Bible in their preaching work

Last Days for JW ORG? 
It may well be the last days for an organization that has spent over 100 years proclaiming the end was right around the corner.

Whatever form it takes, whether they mainstream, whether they become televangelists, whether the organization becomes a mere shadow of what it once was, one thing seems certain: "the kings have had their day" and indeed... a new day may be dawning.

Is the Sun Rising or Setting on JW ORG?