The Spending of Tithing by the Church of Jesus Christ of Latter-day Saints: Controversies and Usage

Introduction

The Church of Jesus Christ of Latter-day Saints (LDS Church) is a non-profit religious organization that manages a significant amount of tithing contributions from its members. Tithing is a 10% contribution mandated by the LDS Church to support various church-related activities. However, in recent years, concerns and controversies have arisen regarding the spending of these tithing funds. This article explores the current usage of tithing contributions and highlights the controversies surrounding the organization's financial practices.

The Ensign Peak Controversy

The Ensign Peak debacle is a notable series of events involving the LDS Church and its investment arm, Ensign Peak Advisors. This controversy includes a whistleblower, an SEC investigation, and a class-action lawsuit. The events of Ensign Peak began in 2019 when David Nielsen, a former Ensign Peak portfolio manager, came forward with allegations that the church and Ensign Peak were hiding the church's investments in a multibillion-dollar portfolio. These allegations led to a thorough investigation by the Securities and Exchange Commission (SEC).

SEC Investigation

The SEC found that the church and Ensign Peak were using shell companies to hide the size of their investment portfolio. This deception was a violation of securities laws, and as a result, the SEC charged the church and Ensign Peak with failing to disclose investments and fined them a total of $5 million. This legal action underscored the importance of transparency in financial practices within the LDS Church.

Class-Action Lawsuit

In October 2023, nine plaintiffs filed a class-action lawsuit against the church and Ensign Peak. The lawsuit alleges that the LDS Church violated its members' trust by investing their tithing in stocks, bonds, real estate, and agriculture, which do not support charitable activities. This lawsuit reflects the continuing concerns about the use of tithing funds and highlights the church's responsibility to its members.

How Tithing Funds are Used

The Council for the Disposition of the Tithe (CDT) determines the uses of tithing funds. These funds are allocated to various activities, including:

Building and maintaining church buildings and facilities Paying salaries for staff, including clerks and security personnel Supporting books and vehicles for missionaries to travel and maintain three universities and high schools Providing airfare for general authorities to visit far-flung stakes, similar to a Catholic archdiocese, to strengthen the faith and maintain doctrinal purity Investing in new enterprises to support the build-up of the kingdom of God and the establishment of the physical and spiritual reality of Zion

A key aspect of tithing is its role in funding the establishment and maintenance of the kingdom of God. However, critics argue that this does not always translate to a direct support of charitable activities. Instead, much of the charitable work is funded through fast offerings and specific donations, with tithing forming a significant portion of these activities.

New Investments and Financial Practices

The church has also made new investments, leveraging the returns from older enterprises. One notable example is The City Creek Mall, which serves a dual purpose of protecting the area around Temple Square and generating additional income for the church. This new investment exemplifies the church's commitment to increasing its financial stability and reserves, which are set aside for future needs.

Reserves and Future Needs

The church maintains substantial reserves, often cited as a "proverbial rainy day fund." This fund is meant to ensure that the church can manage unforeseen financial challenges, similar to how households set aside emergency funds. Critics argue that there is never enough money to meet all charitable needs, leading the church to prioritize reserves over immediate charitable activities.

Conclusion

The spending of tithing funds by the LDS Church has faced significant scrutiny and controversy. From the Ensign Peak scandal to the ongoing class-action lawsuit, the church's financial practices have raised questions about transparency and the use of member contributions. While the church argues that these funds are used to support the establishment of the kingdom of God and maintain doctrinal purity, it is crucial for the church to address these concerns and ensure that member contributions are used effectively and transparently.