(RNS) Two weeks ago, I wrote a column, not coincidentally, about feeling uneasy after paying my tithing: December is the season of individual tithing settlements for members of the Church of Jesus Christ of Latter-day Saints, and what I find unsettling is that the church, unlike many other religious denominations and charities, never explains what it is doing with my donations. I would very much like to know not just for my own benefit, but because accountability is as important for institutions as it is for individuals.
Yet the church has not released a substantive financial statement in 60 years. "I think the church stopped making disclosures in 1959 because it was on the brink of financial disaster," I wrote in my earlier column, "as its final report indicates, it outspent its income by $8 million that year."
I voiced my suspicion that poverty is no longer behind the church's silence, alleging that "it has grown wealthy enough that exposing the extent of its holdings could cause embarrassment and prompt unwanted questions."
Yesterday, a whistleblower who used to help manage the churchs investment portfolio released a series of documents alleging that the church has mismanaged more than $100 billion of charitable donations, including by channeling a portion of that money into for-profit investments on which it has failed to pay taxes The Washington Post and Religion Unplugged have more details.
Another person, apparently the whistleblowers brother, seems to have written the report that is publicly available for download here.
That report alleges that the church receives an excess of $1 billion a year that it doesnt need for its own operating expenses and that since the 1990s that money has been funneled into a church-owned investment company called Ensign Peak Advisors, which operates as a nonprofit arm of the church. Ensign Peak Advisors, the report claims, has not used its money as a nonprofit should.
That annual tithing surplus, plus the impressive returns on the churchs investments of previous years tithing surpluses, has grown to over $100 billion, according to the report. (Thats not including the churchs holdings in land, buildings, other investments, etc.)
The report further claims that Ensign Peak Advisors has made only two disbursements in its history, and neither was for a charitable purpose; one was to prop up a failing insurance company owned by the church, and the other was to support the City Creek Mall in downtown Salt Lake City.
Here is a screenshot from the report's list of grievances:
A list of grievances in a complaint from a former LDS church employee to the IRS.
Ive gone through the 74-page report, including the attached documentation. Im actually grateful that these charges have come to light, as Ill address at the end, but to my mind this opening salvo seems far from a slam-dunk.
The main problem is that the author of the report has a clear agenda, which damages the reports overall credibility. For example, even if it seems a stretch for church officials to claim the funds are being held in reserve for the Second Coming of Christ, its not helpful (or financially relevant) to compare the churchs belief in that event to Scientologys teaching about the intergalactic alien Xenu. This seems to have been done solely for the purpose of ridiculing both religions.
Neither is it helpful to weaponize rhetorical questions to over-prove a point:
But you should know how much you gave their (Ensign Peak Advisors) slush fund since the COP (Corporation of the President of the Church of Jesus Christ of Latter-day Saints) created it in September 1997: at least $18.4 billion. What did they do with this tax break? Nada, said a whistleblower. What have they done with the rest of Mormon, Inc.s leftovers since 1997? Zilch. And how big are those leftovers now? $124 billion.
Its entirely possible that these numbers are correct; I have no way of knowing, which is the main problem with a church that refuses to disclose its finances. But convincing readers that the numbers are correct would have been better accomplished by simply presenting the facts without such relentlessly strident commentary.
Sometimes the report wants to have things both ways. On the one hand, it accuses church employees of lying openly about finances, and on the other, claims that very few people only the most senior apostles ever know the full extent of the institutions holdings. The whistleblower says the church didnt want any one person to have so much information that he or she would prove to be a liability, but in almost the same breath accuses Gerald Causs, who is a high-ranking leader but not an apostle, of being shifty and a master of carefully worded statements that obscure the truth.
Isnt it possible that church employees who have made public statements about the limitations of the churchs finances Causs included made those declarations in good faith because they didnt have the whole picture?
For that matter, isnt it also possible that these documents that appear to show no charitable distributions from Ensign Peak do not represent all of the EPAs outflow? I think its important that we keep an open mind here, and assume that there is another side to the story ... if the church is willing to come clean with actual documents.
Thats a big if, given that the churchs standard response to journalists estimates of its financial holdings is to trot out the phrase grossly exaggerated. If this report and its accompanying internal documents are to be believed, those journalists were actually underestimating the churchs finances. If the church is going to defend itself, simply releasing another grossly exaggerated dismissal is not going to cut it.
In other words, show us the money.
Whats weirdly karmic about this whole debacle is that it could have been avoided if the church had simply continued to exercise transparency about its income and expenditures, as it did in the early and mid-20th century. Instead, its commitment to secrecy, presumably to avoid criticism, has opened the door to further criticism.
The optimal way for the church to deal with this is to fight fire with fire, releasing all of its own internal financial documents. Other than the shocking size of its portfolio, its possible that those revelations will turn out to be a yawnfest.
Its easy for me to believe that the church is guilty of hoarding its wealth; despite its privileged status, it still actively perceives itself as a victim of religious persecution and learned early on to trust only its own. As well, its facing a future in which its First World growth has flatlined or even (in the case of Europe) entered into negative territory, while new converts are still joining in, for example, West Africa.
Perhaps its utterly excessive stockpile has less to do with the theological possibility of Jesus return than it does with the prosaic current reality that the church is only growing in areas of the global south where its members cannot self-sustain their buildings and programs.
Its harder for me to believe that a church that is as a rule so overly meticulous has been intentionally defrauding its members and the federal government. Its possible, of course, but ... really? Even these internal documents show an institution that has stuck with a conservative 60/40 investment portfolio, so it's not a question of the LDS church engaging in wild speculation with money contributed by the faithful.
Neither does it seem to be a question of top leaders becoming personally rich from the churchs wealth; what greed and hoarding propensities leaders have demonstrated seem to have enriched the church as an institution, not lined their own pockets. So the reports references to the Mormon gigachurch in conjunction with megachurches personal jets and private islands seem unwarranted.
Still, the ball is in the churchs court now. It must not only demonstrate to the IRS that it has been in compliance with the law, but reassure believers that it has adhered to the fourfold mission outlined in one of its training slides for new employees which includes caring for the poor and needy.
Related posts:
I just paid my Mormon tithing. Why don't I feel better about it?
Mormon growth continues to slow, church report shows
Study shows young adult Mormons are most likely generation to tithe (but there's a catch)
Excerpt from:
- You could own this private island off the Florida Keys for $75 million - AOL - February 27th, 2024 [February 27th, 2024]
- From $389k: Who owns Qlds private islands, what they paid - Courier Mail - February 27th, 2024 [February 27th, 2024]
- The World's 16 Most Expensive Private Islands to Visit - Yahoo Finance - February 24th, 2024 [February 24th, 2024]
- Cruise lines will pay new tax on private islands in the Bahamas - FOX 35 Orlando - February 24th, 2024 [February 24th, 2024]
- Michael Stern's JDS Development Sued Over Private Air Travel - The Real Deal - February 24th, 2024 [February 24th, 2024]
- YouTube Star MrBeast Takes Over Royal Caribbean's Private Island - Cruise Hive - January 30th, 2024 [January 30th, 2024]
- 7 Private Islands In The U.S. That You Can Book For Less Than $1,000 A Night - TheTravel - January 30th, 2024 [January 30th, 2024]
- Peter Island Resort Re-Opens with Luxurious New Amenities in 2024 - St Vincent Times - January 29th, 2024 [January 29th, 2024]
- Jeffrey Epstein's Controversial Private Island To Be Turned Into Resort: Report - NDTV - January 7th, 2024 [January 7th, 2024]
- Where is Jeffrey Epstein's island and what happened there? - KRTV NEWS Great Falls - January 7th, 2024 [January 7th, 2024]
- UK Royal Had Orgy With Minor Girls On Private Island, Epstein Files Reveal - NDTV - January 7th, 2024 [January 7th, 2024]
- World's best private island resorts - Cond Nast Traveller India - January 7th, 2024 [January 7th, 2024]
- Dont hurry, be happy at Fijis carefree Kokomo Private Island - Style - October 29th, 2023 [October 29th, 2023]
- How to Visit the Pacific Coast of Panama, According to a Travel Expert - Travel + Leisure - October 29th, 2023 [October 29th, 2023]
- Fresh Puerto Rican Tostones and Stone Crab Highlight New ... - PR Newswire - October 29th, 2023 [October 29th, 2023]
- Progressive White Women in Shambles After Taylor Swift Becomes ... - The Hard Times - October 29th, 2023 [October 29th, 2023]
- If You Can Take the Cable Car to the Colosseum, You're in Vietnam - The New York Times - October 29th, 2023 [October 29th, 2023]
- Hot property: five homes for sale on the Canary Islands - Financial Times - October 29th, 2023 [October 29th, 2023]
- Where to Relocate: Cayman Islands with KPMG Cayman Islands - The Fintech Times - October 29th, 2023 [October 29th, 2023]
- 10 budget-friendly island resorts for a cheap beach vacation - USA Today - October 29th, 2023 [October 29th, 2023]
- Talk Show Host Patricia Bryan Sues Police and Government | Loop ... - Loop News Cayman - October 29th, 2023 [October 29th, 2023]
- Insulators in Farasan Islands Reserve to protect birds - Arab News Pakistan - October 29th, 2023 [October 29th, 2023]
- Iconic Piece of New Disney Ship Arrives at Shipyard - Cruise Hive - October 5th, 2023 [October 5th, 2023]
- The worlds tiniest island is for sale - The Spaces - October 5th, 2023 [October 5th, 2023]
- WHAT'S NEW IN THE BAHAMAS IN OCTOBER 2023 - PR Newswire - October 5th, 2023 [October 5th, 2023]
- New Zealand named one of the friendliest countries in Conde Nast ... - New Zealand Herald - October 5th, 2023 [October 5th, 2023]
- Annual Cruise Hive Awards Open for Best Ships, Cruise Lines and ... - Cruise Hive - October 5th, 2023 [October 5th, 2023]
- The best islands in Europe: Readers' Choice Awards 2023 - Cond Nast Traveller - October 5th, 2023 [October 5th, 2023]
- Islands in the sun - Irish Post - October 5th, 2023 [October 5th, 2023]
- Relax and unwind: where travellers find well-being and peace in the ... - Euronews - October 5th, 2023 [October 5th, 2023]
- What Prigozhin's Death Reveals About Russia Mother Jones - Mother Jones - October 5th, 2023 [October 5th, 2023]
- SERHANT. Achieves $4 Billion in Volume at Three Year Milestone - PR Newswire - October 5th, 2023 [October 5th, 2023]
- supports British Virgin Islands with debt management reform ... - Commonwealth - October 5th, 2023 [October 5th, 2023]
- Discovering Easter Island and Pitcairn by boat - Yachting Monthly - October 5th, 2023 [October 5th, 2023]
- Cleanup from Maui fires complicated by island's logistical ... - Greenfield Daily Reporter - October 5th, 2023 [October 5th, 2023]
- Commission on Limits of Continental Shelf to Hold Fifty-Ninth ... - United Nations - October 5th, 2023 [October 5th, 2023]
- HSBC appoints Head of Wealth and Personal Banking for Channel ... - Channel Eye - October 5th, 2023 [October 5th, 2023]
- Downriver Dispatches - The Wahkiakum County Eagle - October 5th, 2023 [October 5th, 2023]
- The 7 Best Private Villas and Escapes in Queensland Australia - Robb Report - August 30th, 2023 [August 30th, 2023]
- 4 Picturesque Private Islands on Airbnb You Need to See to Believe - HGTV Canada - August 30th, 2023 [August 30th, 2023]
- Five of The Best Islands in Malaysia - British Muslim Magazine - August 30th, 2023 [August 30th, 2023]
- Best Islands and Resorts in the Caribbean - 86758 - Luxury Travel Magazine - August 30th, 2023 [August 30th, 2023]
- Luxury beyond boundaries: Exploring the world's most exclusive ... - TravelDailyNews International - August 30th, 2023 [August 30th, 2023]
- 10 Island Destinations That Will Help You Plan A Budget-Friendly ... - TheTravel - August 30th, 2023 [August 30th, 2023]
- Caribbean resort outlines US$8 million rebranding overhaul - TOPHOTELNEWS - August 30th, 2023 [August 30th, 2023]
- Caribbean cruising gears up for one of its biggest years yet - Travel Weekly - August 30th, 2023 [August 30th, 2023]
- Citi Ultima Card review: Luxury private island access, supercar drive ... - AsiaOne - August 30th, 2023 [August 30th, 2023]
- Union pool recognized by training company | Local News ... - The Missourian - August 30th, 2023 [August 30th, 2023]
- Arctic Circle Express Train Journey in Lofoten Islands and Narvik ... - Luxury Travel Magazine - August 30th, 2023 [August 30th, 2023]
- How Maui's Wildfire Sparked a Disaster Capitalist Power Grab for ... - Earthjustice - August 30th, 2023 [August 30th, 2023]
- Pres. inaugurates completed projects in three islands of Laamu atoll - Raajjemv - August 30th, 2023 [August 30th, 2023]
- Insight: Boosting Resilience of Pacific Islands' Infrastructure - Mirage News - August 30th, 2023 [August 30th, 2023]
- These Are The 10 Best Islands To Visit In Europe This Summer - TheTravel - July 23rd, 2023 [July 23rd, 2023]
- Billionaire who visited Epstein island pours thousands into coffers of vulnerable Dem Senate races - Yahoo News - July 23rd, 2023 [July 23rd, 2023]
- MSC's Explora Journeys Takes Delivery of First-Ever Cruise Ship - Cruise Hive - July 23rd, 2023 [July 23rd, 2023]
- Paradise Found: Discover The 6 Best All-Inclusive Resorts in The ... - Wealth Of Geeks - July 23rd, 2023 [July 23rd, 2023]
- How to holiday in the Seychelles with a budget-friendly itinerary - New Zealand Herald - July 23rd, 2023 [July 23rd, 2023]
- New construction home on Long Island, a small town off the coast of ... - Press Herald - July 23rd, 2023 [July 23rd, 2023]
- Geopolitical duel in the Pacific: Solomon Islands security at risk as ... - The Interpreter - July 11th, 2023 [July 11th, 2023]
- Lake Champlain trip highlights paddling and campground amenities - Adirondack Explorer - July 11th, 2023 [July 11th, 2023]
- Inside the subsea cable firm secretly helping American take on China - Reuters - July 11th, 2023 [July 11th, 2023]
- The ultimate holiday home? A $100 million private island in the Bahamas that starred in James Bond and Pirates of the ... - Country Life - May 18th, 2023 [May 18th, 2023]
- 8 Of The Best Private Islands To Rent In 2023 - Forbes - May 18th, 2023 [May 18th, 2023]
- Getting Scuba-Certified in Fiji Is the Best Way to Explore the Underwater World - Robb Report - May 18th, 2023 [May 18th, 2023]
- Find your own island in the sun amid the blissful atolls of the Maldives - Evening Standard - May 18th, 2023 [May 18th, 2023]
- Jeffrey Epstein sexual abuse case: Deutsche Bank to pay $75 mn to settle a suit - Hindustan Times - May 18th, 2023 [May 18th, 2023]
- JPMorgan CEO Jamie Dimon says he's 'so sad' the bank had relationship with Jeffrey Epstein - CNBC - May 18th, 2023 [May 18th, 2023]
- Top seven luxurious private flight getaways in Texas - South West Londoner - May 18th, 2023 [May 18th, 2023]
- What Are the Most Expensive Celebrity Divorce Settlements? - We Got This Covered - May 18th, 2023 [May 18th, 2023]
- Getting Scuba-Certified in Fiji Is the Best Way to Explore the Underwater World - Yahoo Singapore News - May 18th, 2023 [May 18th, 2023]
- AG nominee says more staffing, resources needed | News ... - Virgin Islands Daily News - May 18th, 2023 [May 18th, 2023]
- Carefree and car-free: The glorious islands where vehicles are ... - Daily Mail - May 18th, 2023 [May 18th, 2023]
- Reinsurance firm supporting treatment centre fundraiser - Royal Gazette - May 18th, 2023 [May 18th, 2023]
- Corinthia to open luxury resort in Maldives - Times of Malta - May 18th, 2023 [May 18th, 2023]
- Investing in Scotland's islands - gov.scot - The Scottish Government - May 18th, 2023 [May 18th, 2023]
- Calls to make education 'more affordable' for Pacific island students - Stuff - May 18th, 2023 [May 18th, 2023]
- 14 Romantic Resorts with Private Plunge Pools - Islands - December 26th, 2022 [December 26th, 2022]
- Rainy Lake Island - Northern Ontario, Ontario , Canada - Private Islands - December 26th, 2022 [December 26th, 2022]
- Darby Island - The Exumas, Bahamas , Caribbean - Private Islands - December 21st, 2022 [December 21st, 2022]
- Private islands for sale in Queensland going cheap, but lifestyle has ... - December 18th, 2022 [December 18th, 2022]