I don't fault the church for trying to accommodate a grieving(if racist) family. A funeral is neither the time to take a social stance nor a teachable moment.
The church could have refused to switch pastors, but that isn't really their mission. Christian values dictate that you accept people as they are first, and try to show them the correct way as time progresses.
Just as society expects that a Christian church wouldn't turn an unwed mother away, it also should accept that some in the flock have backwards views towards race and realize that a funeral is not the place to try and change that. A sermon on Sunday is definitely in order, though...
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