Step 4 - Instead of keeping the equipment for the next disaster which is bound to occur in this 'time of the
end', they sell it for 100% profit
No, they don't. They sell it at auction for a fraction of the price. So they lost money.
In step 2 they spent $0 of their own money to buy the equipment. They use only money donated by their poor sap adherents.
And when they sell the equipment in the auction, they keep 100% of the money.
$0 expenses, 100% of sale proceeds they keep - that's 100% profit.