I'm no lawyer. That said, seems like there are a couple of violations of the law here...
Obviously, first and foremost, this church should lose its tax exempt status. Pure and simple. The church's most public spokesperson, knowing the consequences, willfully violated the law anyway.
And secondly, Mr. Booth should be sued by his church board for abdicating his responsibility in leading a nonprofit organization and threatening the organization's financial health by jeopardizing its tax exempt status. According to the Minnesota Attorney General's Office, Minnesota law "imposes on [board] directors the fiduciary duties of care, loyalty and obedience to the law." Obviously, Mr. Booth as an employee disregarded all three of these duties, and the board should be forced to take action accordingly, including not only firing Mr. Booth for obviously failing to protect the organization, but also attempting to recover from Mr. Booth legal fees and compensation for the loss of the church's tax-exempt status, if it is revoked by the IRS (which it should be.)
All said, there should be serious, serious consequences here.
