Ideal Orgs

L. Ron Hubbard and the Zen of Org Economics

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While compiling information on the economic model of Scientology, I found a fascinating 1970 HCO PL (scroll down) in which L. Ron Hubbard emphasized that the economic viability of an Org trumped posh quarters. Wanting to wring the maximum amount of cash out of Scientology’s Orgs, Hubbard was a pragmatist when it came to the matter of dwellings. This is why Hubbard could live in a rented house in Elizabeth, New Jersey; his manor at St. Hill; on a ship; in nondescript apartments in Queens, Culver City, or Hemet; or in a Bluebird motorhome. Hubbard was also quite willing for Scientology’s facilities to be merely adequate.

In Miscavige era Scientology, this policy has been reversed. Thus, while the Ideal Orgs are posh, they are essentially empty, nonviable, money-losing operations. As such, the Ideal Orgs are not financially sustainable or even justifiable; particularly as these Orgs must increasingly rely upon IAS subsidies or simply begging public Scientologists for subsistence money to pay their utility bills.

Beginning in 2002, David Miscavige bet hundreds of millions of dollars on his Ideal Org strategy. This strategy has proven to be a staggering failure insofar as Scientology membership and the reputation of the Church of Scientology continues to plummet in a free fall. Scientology’s psycho-terrorism of Fair Game and the enslavement and utter exploitation of Sea Org members are mutually contradictory with its goals of growth and expansion and “good PR.”

The Church of Scientology is hopelessly mired in a series of conflicting goals. Scientology cannot possibly hope to create a world without war, crime, or insanity when it is perpetually at war with Culture and governments; engaged in the criminality of financially raping its own members; and perpetually behaving in an insane manner. This self-destructive operating basis is unworkable and cannot possibly be called a technology.

And as membership and cash flow continues to exponentially diminish, the IAS reserves will be increasingly relied upon to fund daily operations, i.e. OSA’s disastrous campaigns of psycho-terrorist Fair Game; endless lawyers; damage control; creating hate websites; the dissemination of the usual PR lies; the enslavement and utter exploitation of Sea Org members; and the subsidizing of both new and existing empty Ideal Orgs.

Bottom Line: Given the Church of Scientology’s system of cruelty and greed created by Founder L. Ron Hubbard it really doesn’t matter if Scientology is ensconced in palaces or housed in decaying strip malls. The System of Scientology itself is doomed to failure and is in a state of decay, stagnation, and collapse. This collapse is dramatically accentuated by staggering revelations of Scientology’s enormous depravity and cruelty.


HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, Bast Grinstead, Sussex
HCO POLICY LETTER OF 23 SEPTEMBER 1970

Remimeo
Estate Bureau
LRH Comm Hat
OES Hat
ED Hat
CO Hat

QUARTERS, POLICY REGARDING
HISTORICAL

In twenty years an enormous amount of experience has been gained regarding the quarters and housing of orgs.

From this experience there are only a few clear-cut lessons. These follow:

A. VIABILITY of the org (its economic survival including its security from political-enemy-motivated attack) is the first and foremost consideration. In terms of quarters an org can afford just so much expense. Therefore, viability is the first consideration—not how posh or what repute or what image. Thus, we have the policy that:

THE FIRST CONSIDERATION IN PROCURING QUARTERS IS THE VIABILITY OF THE ORG.

Example: Stockholm took very posh, fancy quarters. Up to that time it has been viable. The overload of expense rapidly upset the salary sum, the staff began to moonlight (work on other jobs), and the org all but collapsed until cheaper quarters were found.

Example: Phoenix 1955. A beautiful, big building at small expense was found. It was very prominent. Enemy local attack was stepped up in the area including door-to-door black propaganda by psychiatrists and a campaign by commie newspaper reporters. The full reserves of the org went into furnishing these quarters. The area had to be abandoned,
losing all reserves. Elizabeth, New Jersey, 1950. The shabby quarters there made lots of money. Beautiful country quarters were under survey for purchase. The psychiatric block, much stronger then, began action in Trenton, New Jersey to invoke a law against medical schools. If the better quarters had been purchased, they would have been lost. The org foolishly moved to New York City across the river where the New York Org owned a building.

CONCLUSION: Viability of economics must not exceed the income of the org. The SAFE figure for rent and mortgage payments must not exceed 15 percent to 17 percent of the gross income of the org.

Political security must be attained by counterattack and if not attained or is risky, no heavy property investment or renovation should be programed.

If a country itself is liable to fall, property investment and renovation should be held to a minimum as viability is under the general political threat to the country itself.

B. Quarters must be close to ample and cheap student and pc housing, restaurants and transport.

Example: Abellund in Denmark, 1969, was a lovely place. The org there failed because it was 42 kilometers in the country without transport or taxis or buses, had no student housing nearby and had no restaurants. It was lovely but hated by students and pcs. Its isolation and general atmosphere promoted idleness and the org was down to half rations and no pay when forcefully moved by Flag into Copenhagen where in very bad quarters and bad housing it became viable. Student housing and feeding is very expensive and facilities scarce even so and still hurts the org income greatly.

Example: Elizabeth, New Jersey 1950. The org was located amid square blocks full of rooming houses and at the city center of three railways and bus lines. The students’ own rooms were used for auditing which permitted org expansion. Nothing was posh. Everything noisy. The org was very viable and had streams of people.

Example: SH 1960-1968. The presence of lots of rooms for students in the town and cheap living despite the lousiness of the quarters gave SH in England its greatest periods of affluence. Political attack barred out foreign students, and the town people came at length to petition the government to remove the ban. (The closure of the 1955 Phoenix org also caused 35 small-town businesses to close in the org vicinity.)

CONCLUSION: The presence of ample, cheap housing and restaurants and general and local transport is a main factor in the viability of an org.

C. Image is a secondary consideration.

Example: Hotel Reycar Alicante Spain was relatively cheap. It was quite posh. Students complained as it cost a bit more than they were willing to pay. Image in this case worked against the org,

Example: Johannesburg’s three old buildings foolishly sold and the money squandered has yet to attain the income it made in its “old, horrible quarters” despite its newer image.

Example: The beauty of Saint Hill in England is secondary to its viability and student housing.

CONCLUSION: One does all he can by staff work to improve the image. If image is the reason why one must move from an area where the org was viable or had student housing, forget it. Polish up what you have already, Image is gratifying. If A and B exist, one can think about image. Image of the outer building does not much affect A and B. Cleanliness and order of what you have is the image to concentrate upon. Staff pay and food and cheap student housing do more for an org than a posh building.

D. DON’T SELL IN ORDER TO RENT IF YOU’RE VIABLE.

Example: London about 1965 agreed to sell its buildings. Three years later by agreement it had to vacate. It squandered its money so made and has rented quarters and has not done well since.

Example; Johannesburg sold its buildings in the late 60s for a profit, blew the profit on old bills instead of making the money and has been on a struggle ever since.

Example: Reversely, Washington, DC has paid for its buildings in rent several times over and has nothing and is in sporadic trouble, probably exceeding its 17 percent of gross for quarters.

CONCLUSION: Purchase is superior to renting unless political viability is very bad. And when an org owns quarters and is viable, it is not clever to sell and rent.

E. Expensive office equipment is not a first priority.

Example: Camden, New Jersey 1954 bought beautiful desks and chairs and cabinets. When it moved they were seized on a landlord pretext. All its reserves were tied up in furniture which can’t be resold anyway.

CONCLUSION: Enough desks and chairs and furnishings is far superior to top-grade office furniture. Reserves tied up in furniture is never recoverable. Furniture quality does not influence production. Furniture lack does reduce production.

F. Renovations are destructive if extensive.

Example: London 1958-59 rented 7 Fitzroy. Contrary to orders which were to hire a man and do one room at a time, it went all out with contractors and even rewired the place and went broke on renovation bills. It took three rough years to get the org out of debt. Then when the building was given back to the owners (Church of England), they charged huge building damages which had to be paid although they had a new, sleek building in return for an old wreck it had been.

Example: Phoenix 1955 cost all the org reserves to renovate a building then lost.

Example: A ship was fully renovated before use and wound up costing more than a huge, usable ship.

CONCLUSION: Don’t renovate at vast expense. Use and make it better as you can with your own people.

G. Other businesses or rentals to support an org wind up very costly.

Example: Hickstead Garage was bought to support Saint Hill. Was a horrible drag and distraction and supported nothing, not even itself. Saint Hill Special Briefing Course supported Saint Hill.

CONCLUSION: Schemes to use other than Scientology actions or partial rentals, etc., can be a bad nuisance. Scientology supports Scientology orgs and we learn this over and over.

H. Depending on political viability, it is better to buy than rent. If political viability is shaky, it is better to rent than buy.

Example: Spain’s Hotel Reycar was a great success as a rental, getting org quarters so students would rent rooms. However, the Spanish government was worked on by the South African ambassador who was worked on by the World Federation of Mental Health stooge Stander, a commie in South Africa. The org was subjected to surveillance and upset and moved. It could not have moved easily had it owned.

CONCLUSION: In politically troubled areas use a downstat hotel and promise student room rentals. One can move in hours. Or one can stay. This would apply to the Middle East or to any country, like Spain, subjected to political menace. (Spain is intolerant of religions, and its officials are bought easily and is caving in to Russian pressures and
probably won’t live as a government beyond Franco’s death.)

I. Where possible, don’t split up units of the same org unless you have to.

Example: Notting Hill Gate 1955 was rented. Half the org stayed a bus ride away at 163 Holland Park, London. Denied some of the services of an org, each part had a rough time.

Examples: The HGC Los Angeles from 1956 for some time was separate. This was not too bad and it paralleled an earlier 1955 separate building HGC in Washington. But the secret here was the personal competence of the HGC D of P and when that person was promoted to Los Angeles the HGC did much less well. The separate HGC in LA got
into out-tech.

CONCLUSION: The functioning public line units (Academy, HGC) should not be in separate buildings from the org. However, working units such as Mimeo or even Div 2, except the Body Reg, have sometimes been separate from an org and no trouble was experienced. Housing and food for a staff can of course be separate and should be.

SUMMARY

The above are the major policies relating to obtaining and situating quarters.

A and B are much more important than the remainder.

An org which adventures more than 15 percent of its current gross income
for rent or purchase payments can get into far more serious trouble than an org
with a poor building image. Hopeful thinking contrary to these policies, especially
A and B, can smash an org,

The switch of address alone can cost an org a great deal unless loudly remedied.

One maxim is, if you have a going concern with enough income and pay,
don’t monkey with it until you can realize a total purchase price with A and B
in mind.

L. RON HUBBARD
Founder

February 2017: Notes and Observations on Scientology

February 2017: Here are some notes and observations on how I watch and look at Scientology:

1. So many things constellate around The Underground Bunker that this place is mandatory daily reading. Tony Ortega understands context, story, and significance in a way that utterly eludes Scientology, David Miscavige, Freedom Rag, and the no-show-no-stats SMP.

2. Mike Rinder’s blog is the Tiffany’s of documenting Scientology’s ongoing failures, deceits, and decline. Mike provides an outstanding daily journal of real-time Scientology decline. Mike’s valuable insights into Scientology as an organization are possible due to his decades of managing the Office of Special Affairs on a daily basis. Mike understands Scientology and David Miscavige at a profound level. That Mike’s jovial and robust sense of humor is mated to his ferocious intellect makes reading his analysis of the situation that much more enjoyable.

3. Disconnection and Fair Game are non-negotiable and must go. To the degree that Scientology practices and enforces Disconnection and Fair Game, Scientology’s self-destruction will persist. No one out here in the real world will stand for Scientology’s breaking up of families and its programs of character assassination.

4. Leah Remini: Scientology and the Aftermath was a devastating expose of the Church of Scientology and its brutality. If it is not already in the works, season two will spontaneously appear as an act of Creation Ex Nihilo; the metaphysics of television dictate that this must happen.

4. Twitter and Facebook are extremely important to watch. The sum of message traffic on these platforms provides invaluable existential information about Scientology and Culture. Social media shows Scientology’s inherent inability to interact with Culture. This ineptitude is traceable to L. Ron Hubbard who called for Scientology to use blatantly phony and dishonest PR in the place of apologetics or other forms of meaningful interaction with Culture.

5. Scientology’s hate websites are very important to watch. These incriminating sites constitute damning and irrefutable forensic evidence which shows that Scientology’s programs of Fair Game have an unlimited budget of tax-free dollars. These websites also offer a penetrating insight into the psyche of Miscavige and OSA in a way that betrays both of them. Like a Cold War era Sovietologist would note, a good analyst must study the propaganda operations and party line rhetoric of the other side. IMO, our side needs more analysts who are willing to monitor, document, analyze, and write about Scientology’s websites.

6. Scientology’s cash position, cash surplus, and real estate acquisitions are almost completely meaningless as significant metrics. Any organization with a cash surplus can buy and amass a real estate portfolio. In most cases, Scientology’s real estate acquisitions of decrepit old buildings in need of millions of dollars in renovations are designed to stall and buy time for David Miscavige. From my perspective, Miscavige is obviously using these empty buildings to buy time and create some semblance of hope for the future of Scientology. However, no one is fooled. Example: The San Fernando Valley Ideal Org is a complete waste of time and money. There is no excuse for Miscavige to leave that eyesore unfinished given the IAS cash pile. The PR damage done to Scientology by leaving buildings empty for years or decades, particularly when there is plenty of money available to open these buildings within 12-18 months, is inexcusable. Conversely, Scientology will cherry pick top properties. This was the case with SMP here in Hollywood or Larry Hagman’s place in Ojai. But then the Cult will not actually do anything with these premier properties except use them for PR.

7. David Miscavige needs to reverse the massive and long-term statcrash in Scientology and does not know how to do it because he refuses to understand the nature and essence of the problems facing Scientology. Understanding the real problems would require critical self-reflection on his part wherein he would conclude that he must resign and step aside. He has zero capabilities in this regard and believes himself to be indispensable to Scientology. Compounding this is the long term structural damage to Scientology wrought by Miscavige’s execution of Hubbard’s bad policies and Miscavige’s own failed programs in the period 2001 to the present day is irreversible. Miscavige massively overreached with his frenzied money grab in the Basics, selling IAS statuses, and the failed Ideal Org strategy. GAT I and GAT II were, and are, failures in ways Miscavige does not understand.

8. Scientology’s contradictory policies of greed-driven inhumanity place it at war with itself and all the parts of its own existence. To use an analogy, Scientology is like a raging alcoholic with serious self-created problems who denies they are an alcoholic and blames others for their problems. Everyone else can see the problems except Scientology. The Church of Scientology is an embarrassment to itself and does not see it.

9. The real numbers a good leaker could give are these:
A. Attendance at events: publics and SO.
B. The number of SO members over the past ten years.
C. The total number of IAS members in good standing with the Church.
D. Total membership losses of publics and SO over the past ten years.
E. Number of SO senior execs paid off to sign nondisclosure agreements in the past ten years.

10. One of the real things to watch is the covert consolidation of Scientology Orgs. Miscavige can call it whatever he wants, but consolidation is contraction and Scientology is contracting inwards upon itself with great force. The acquisition of real estate is a red herring. Purchasing buildings is meaningless in the face of Scientology’s uncontrollable and accelerating membership losses. The way out is through the nearest door.

11. The petard upon which Scientology is hanging itself is Disconnection and Fair Game.

Why Ideal Orgs? An Essay by Mike Rinder

Foreword: This essay by Mike Rinder is so outstanding in exposing the deception underlying David Miscavige’s Ideal Org programs that I am reprinting it here in its entirety. This essay connects the dots. Reprinted with permission of the author.

 

Why Ideal Orgs?

An Essay by Mike Rinder

Any time there is a post about ideal org failures, there is a lot of speculation about “Why?”

I have written various posts and comments about this from time to time, but realized I had never put it all in one place.

There are two reasons for the ideal org program that go hand in hand. And it explains why, in spite of the clear failure of this program to bring about planetary clearing, or anything at all aligned with the “Aims of Scientology,” it will continue to be pushed until the very end.

1. It is vital for Miscavige to hold onto his position

2. IRS concerns

But before explaining these points more thoroughly, a review of the history of how “ideal orgs” came about will help put everything else in context.

In 2002 the city of Buffalo moved to force the church in Buffalo out of its building under the laws of eminent domain in order to construct a parking ramp.

The church sued, claiming this was preventing the practice of its religion.

The city settled, agreeing to pay money to allow the org to relocate. Prices of property in Buffalo were crazy cheap at the time and they found a large building. Miscavige had been working on his plan to eliminate the “incompetence of staff” in Div 6 by replacing them with scripted videos to explain dianetics and scientology. And so this was given the go ahead with a large space allocated for “AV displays” in Div 6. This was the precursor to the FART Div 6 and Miscavige told everyone who would listen about his brilliant plan that would drive millions onto the Bridge. Henceforth all orgs needed to have enough space for his Golden Age of Div 6.

Around the same time, Joburg Org had become extremely unsafe in its downtown premises (a staff member had been murdered on the street outside the org) and by necessity they were having to move.

Also at the time, Miscavige had been spending a lot of time at Flag with the McPherson case. Tampa Org, which was in a strip mall had become a flap through non-payment of their rent. Buffalo was financed by the city. Joburg was pretty easy to finance as there was a huge amount of money sitting in South Africa that could not be gotten out of the country awaiting exchange control approval (which would never come for the amounts that were there). The value of the rand was decreasing. So, he approved a building be purchased. But Tampa was different. So he personally briefed Jenny Linson and Angie Blankenship to round up the local “OT’s” and hold THEM responsible for the state of Tampa Org on the basis that it was out ethics for THEM to have their nearest Class V org such a disgrace and they needed to “take responsibility.”

The CMO in Clearwater were put onto Tampa Org virtually on an all hands basis, collecting money, finding the building, recruiting staff and getting the renovations done.

Same in Africa with all of CMO Africa full time on the Joburg Org and CMO EUS was directly involved in Buffalo. It became Miscavige’s pet project. He reviewed the space plans and rejected them numerous times, constantly “refining” the planning.  Anyone who has ever worked on these lines can tell you that this is perhaps the most frustrating and unproductive thing they have ever been engaged in. Not only do the goalposts constantly shift, the playing field tilts and the sprinklers go on and off at random times. He spends hundreds of hours on something that should take an hour and then complains about how overworked he is.

But compared to today, those first orgs were done at lightning speed. They opened the following year — Tampa in March 2003 and Joburg and Buffalo in November. And with them the “Ideal Org” program was born. even though at that early age it didnt have a formal name — in fact, it was called “The Buffalo Strategy” because Buffalo was “so successful.” Miscavige sent out programs to all orgs to “do the Buffalo strategy.”

The next priority orgs were primarily for the benefit of Tom Cruise. Madrid (his 2D at the time was Penelope Cruz, though by the time the org opened they were split up — Miscavige was also there trying to gain religious recognition for scientology in Spain), New York (because Tom had an apartment there and visited often and may need to bring someone important into the org — you will recall it was also where he had a “chance” encounter with his church selected bride to be) and San Francisco (not especially Tom Cruise related — there happened to be a lot of wealthy people there and a building that attracted Miscavige’s attention, the “original Transamerica building”).

This whole fiasco could have ended after Tampa, Buffalo and Joburg.  So, back to the two reasons WHY this has become the most important thing in scientology:

1. It is vital for Miscavige to hold onto his position

The ONLY way Miscavige (at least at the outset) was able to maintain his position of power (which by his definition is having people listen to you) was to be seen by scientologists as both “on Source” and responsible for expanding scientology.

He managed to convince the sheeple that he “knew” what LRH wanted done and that he was ruthlessly dedicated to ensuring there was nothing but standard tech in the church. He pronounced himself the man who let in the light and ended the era of the blind leading the blind with his brilliant innovation of the “Golden Age Of Tech.” Plus he kept re-releasing books and lectures, each time newly packaged, but sold as “being on source for the first time.” And each new release heavily stressed how “COB” was making sure ALL tech in its “100% pure form” was gotten into the hands of scientologists and the world. People who WANT to believe something have very short memories. The vast majority didn’t notice that the “now on Source” stuff replaced what had previously been sold to them as the “now on source stuff” by the same guy. It’s happened over and over. So, he has pretty cleverly maneuvered himself into the positioning of being the ultimate “on source” scientologist in the minds of staff and public.  Nowadays he is actually less concerned about “following LRH” than he is about ensuring people understand what HIS “command intention” is. He lived out the 21 years that LRH was theoretically going to reappear in and added on a few more to be safe and then started cranking up the “Command Intention” push and the “Cult of COB.” It would take too long to really lay out how he has accomplished this, and it is not really important for this posting. Suffice to say, in the minds of “good scientologists” there is no doubt that Miscavige is the best scientologist they know.

But there is that pesky second prong — expanding scientology. This is really important.  In the scientology mindset, beyond anything else on planet earth, expanding scientology is “the greatest good for the greatest number of dynamics.”  Of course, scientology will help ALL dynamics of EVERYONE. So, if someone is expanding scientology, they have virtually unlimited “ethics protection”, they can “get away with murder.” This is absolutely vital to Miscavige. Many of you may have experienced telling a KMoolAid drinker about Miscavige beating people up or living lavishly only for them to respond with “that is unimportant, look at his stats, he can get away with murder.”  This IS the pervasive think within the sheeple. Anyone who is exposing the facts about Miscavige is dismissed as “an SP attacking an upstat” and his “foibles” are excused because of the massive good he is doing.

It is for this reason Miscavige spends an inordinate amount of time convincing people he is an “upstat.” This includes all the idiotic sounding numbers — the miles of conduit laid, square inches of ink etc etc. These are the foundation for the big generality lies. “We have expanded 5X since the release of Golden Age Of Tech II”.  These lies are swallowed whole.

But, even if his lies are bought, he had a big problem.

The LRH “game” for orgs was to reach the size of old St Hill. Every staff member on earth has had that hammered into them for years. They all know what it means. So too the public. A big Academy with lots of students and lots of clears being made – IN ADDITION to staff being well paid and going OT with their own universe corps.

To compound the problem, Miscavige had invented an arbitrary that he would not release the mythical OT IX and X until “all orgs were SH Size.”

He tried at Maiden Voyages to convince the OT Ambassadors that they had to be responsible for getting their org to SH Size if they ever wanted to get OT IX and X. It was HEAVILY pushed for a while, and a number of OT VIII’s were recruited to be org EDs (thus directly responsible for getting OT IX and X — see Geir Isene’s story about meeting Miscavige on the Freewinds).  But the problem was that these OT Ambassadors had no more chance of getting an org to SH Size than the existing staff did. And that was impossible. A few orgs were “announced” but they had been stat-pushed and artificially propped up to reach the arbitrary stat quotas for the week they were awarded and promptly sank back to their previous levels. The reality began to set in with the OT Ambassadors — all orgs are NEVER going to be SH Size and the Bridge has ended right where I am at (OT VIII) and I still don’t know WTF. It also began to sink in with them, when they were putting their attention on expanding the orgs to SH size, that this was NOT happening.

So, Miscavige came up with a new “why” — the “orgs are trying to do too little” and pitched this in one of the all-time insane briefings that the clubbed seals lapped up. It “explained” the failure to reach SH Size was because they didn’t have an org capable of doing so. He equated it to trying to do an auditing session without having a meter or room set up properly. The handling for this was to “slam dunk” all orgs right now — “straight up and vertical, no gradients” and that meant “get a building big enough for all the functions of an org to be performed.” Everyone loved this because it “explained” their failures and gave them something else to concentrate on. Instead of expanding orgs, he now gave the OT Ambassadors the job of raising the money and finding the buildings. Now they couldn’t complain about no OT IX and X because the “only reason” it was not available to them was that not all orgs had become “ideal” (even this was a gradual evolution to redefine the term as the LRH policy letter doesn’t resemble what is now known as an “ideal org”) and the ONLY reason for that was that they had failed to collect enough money.

He also took their attention off the actual expansion of the orgs (there isn’t any) and convinced them that if they just got the buildings that would BE expansion and everything would happen by magic. It was genius. And of course, with all the attention on “ideal orgs” the staff forgot about the concept of ever getting a Universe Corps as nobody talked about that any more.

So why doesn’t the church just BUY and RENOVATE all the buildings? I have brought this up a number of times as they are happy to suck the last dollars out of anyone and everyone for the “most important program on earth,” but when a catastrophe like Boston happens they do nothing. Well, as long as they are NOT done, Miscavige doesn’t have to come up with something and call it OT IX and X. Though he does recognize he has to find something for the OT VIIIs to do — which has been a parade of Basics, Congresses, ACCs, Purif, Objectives, Student Hat, Running Pgm and Super Power. But that’s beside the point of the “ideal orgs.”

It’s a beautiful scheme — they raise money for him to buy buildings he owns and as long as they are not done he doesn’t have to confront what to do about his promised OT IX and X. And not only that, he has taken all attention off having to get staff through OT levels by providing Universe Corps to them – a complete pain in the ass. AND the total amount of church reserves (his ultimate “stat” to protect him from any possible internal dissent should the natives become restless he could simply claim “upstats”) just keeps going up and up and up. And he doesn’t have to have any organization or auditors or supervisors to deliver services to make money, it just rolls in to Reserves and he sits like Scrooge McDuck and watches.

Add to this that he has something to SHOW. He has redefined expansion to mean “new buildings”.  And those “new churches” prove that scientology is expanding under his leadership. If you go to the scientology.org website, it is a parade of glowing reports about scientology’s international expansion with 37 “new churches” opened since 2003 (the Mormons have probably opened 370 real NEW temples in that time) and how “Mr. Miscavige” has been at the helm spearheading this incredible expansion of the “fastest growing religion on earth.”

You only need to attend a single event or read one of their magazines to know that “scientology expansion” now equals “square feet of renovated space.” And new buildings equals new orgs. And all you need for new buildings is money and a team of CGI people to make videos and the entire scam is in place. To quote Miscavige “just add water” and you have “expansion.”

2. IRS

The second element is the IRS.  The reason that churches (and other institutions) are granted tax exempt status is because they are in theory providing a public benefit. All share in the goodwill and services provided by churches one way or another so taxing them makes no sense.  But the IRS is concerned that the money is actually SPENT for the public benefit and is not simply accumulated. Accumulated cash is NOT benefiting the public. You are of course allowed to have reserves for future expansion or for disastrous occurrences, and a large amount is allowable.

While Miscavige can hide a lot of what he does behind “religious belief and practice protected under the First Amendment” (labor law violations, abuse of church workers etc etc) it is far more difficult to hide how much money you are taking in and accumulating. Especially when you constantly publish lists of the amounts that people give (‘statuses”). The IRS is severely limited in its ability to look into the finances of churches — but still, Miscavige and his lawyers are aware that this area of accumulating reserves is a vulnerable one.

He could spend the money on real charitable programs. Build schools. Provide vaccines. Give away food. Even give away WTH booklets or dianetics and scientology books. But he sees all of those things as draining HIS Reserves stats. And he HAS to remain “upstat” at all times, even if it destroys the entire church to keep HIS pretense going. He is above reproach because of this. It is LRH who said the ultimate stat of CO CMO Int/WDC Chairman is Total Sea Org Reserves (he never gave a stat for RTC and in any event, that is not what Miscavige does, he is directly involved in the day to day micromanagement of everything in scientology).

One thing you CAN do with the money is buy facilities to “service your parishioners.” And the IRS basically takes you at your word that this is part of your religious belief and practice. Thus the CST vaults and the ridiculous expense involved in them was proudly shown to the IRS as a valid use of church funds.  Virtually any property purchased that can be given a “religious significance” passes muster with the IRS.

The beauty of property purchases is that they are also included in the “Total Reserves Stat” — thus a $10 million cash outlay does not decrease Miscavige’s Total Reserves Stat as it simply changes significance from cash to property.

This is why you see ridiculous properties like KCET being purchased for more than $40 million (who knows how much to “renovate” it?). Or Larry Hadman’s former mansion for $10 million for a “celebrity Narconon”. Or various “ideal org buildings.”

The building expenses are a defense against charges of accumulating too much in reserves.

He will always have to come up with new schemes to spend money on real estate. Buying “ideal orgs” is one way but it has a downside. It curtails the revenue stream every time one is purchased. And it takes him ever closer to having to release the non-existent OT IX and X.

Believe me, no matter how nutty the “ideal org” program gets, it is not going away.

Not while Miscavige is running the show.