Paul Melnichuk and the Prayer Palace

After worshipping at the Prayer Palace this morning, Hyacinthe Houghron will, as she does every second Sunday, stuff her tired green minivan with a small feast: six coolers of homemade soup, a mountain of sandwiches, cakes and sweets.
Loaded down with second-hand clothes pulled from the ceiling-high piles in her hair salon, she’ll give out the goods to homeless people on downtown Toronto’s grittiest streets.

Missions like this aren’t cheap for people like her and other volunteers at the church. “We’re poor folks,” says Houghron, describing the majority of the 3,000-strong congregation who attend the spaceship-shaped church at Hwy. 400 and Finch Ave.

The hairdresser scrapes together $600 of her own money each month to keep up the program because the Prayer Palace – one of Canada’s largest evangelical churches – stopped running it five years ago. Other charitable works, like a promised orphanage in Brazil, either dried up or never materialized.

Meanwhile, the three white pastors – Paul Melnichuk and his 40-year-old twin sons, Tim and Tom – lead lavish lives in contrast to the mainly working-class black families that make up the bulk of the church.

Between them, the pastors have amassed a real estate fortune worth about $12 million. Each owns a multi-million-dollar country estate north of Toronto (Tim’s is worth as much as $5.5 million), they share a Florida vacation villa, and the pastors and their wives drive luxurious cars – among them a Porsche Cayenne SUV, a Lexus RX 330 SUV and a Mercedes-Benz CLK 320 convertible.
Congregants are largely unaware of the pastors’ extravagant lifestyles.
“Wow,” says Leslie Stewart, 63, who works in a paint factory six days a week and gives 10 per cent of his income to the church. “I never heard of anything like that. But if I release my tithe and they misuse it, they have to face God.”

The Prayer Palace has a devoted congregation. Most worshippers believe in tithing, the practice of donating 10 per cent of one’s income to the church, and each year they give a reported $3 million. “The people love (the Melnichuks),” Houghron says. “Pastor Paul … loves the Lord. He does God’s work.”
In addition to personally funding the homeless program, Houghron – a staunch supporter of Pastor Paul – tithes and also gives him $100 to $200 cash for his birthday. “He’s never given me gifts like that but he’s given me spiritual gifts,” says Houghron. “He encourages the work I do for the homeless.”
The Prayer Palace offers several exuberant religious services each week. Conducting them, combined with the pastor’s church-building efforts, qualifies the Prayer Palace as a charity under federal law, making the church exempt from taxes.

However, a continuing Star investigation into Canadian charities has found the church devotes little money to charitable work. In fact, the church’s most recent financial statements show that only $9,443 was spent on “benevolent and charity” activities in 2005. The church’s annual “missions” fluctuate between $500 and $36,704 in the past few years. (Snip, complete article here)