{"id":19019,"date":"2019-12-21T18:42:00","date_gmt":"2019-12-21T18:42:00","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=19019"},"modified":"2019-12-24T11:49:58","modified_gmt":"2019-12-24T11:49:58","slug":"mormons-and-money-an-unorthodox-and-messy-history-of-church-finances","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/mormons-and-money-an-unorthodox-and-messy-history-of-church-finances\/","title":{"rendered":"Mormons and money: An unorthodox and messy history of church finances"},"content":{"rendered":"

John Turner<\/a>, George Mason University<\/a><\/em><\/p>\n

The Church of Jesus Christ of Latter-day Saints has allegedly amassed US$100 billion in purportedly charitable assets<\/a> since 1997 without ever giving any money away \u2013 a possible breach of federal tax laws.<\/p>\n

This estimate of the size of its investment vehicle known as Ensign Peak Advisors became public knowledge when David A. Nielsen, a former employee and a member of the church, blew the whistle.<\/p>\n

Together with his twin brother Lars<\/a>, a former church member, Nielsen gave the Internal Revenue Service evidence he claims proves the church mishandled funds<\/a>.<\/p>\n

According to the Nielsens, Ensign Peak Advisors has invested the church\u2019s annual surplus member contributions to build up a $100 billion portfolio. But the Nielsens say they could find no evidence that Ensign Peak Advisors spent a dime of this money for religious, charitable, educational or other \u201cpublic\u201d purposes as IRS rules require under most circumstances<\/a>. They also allege that it diverted tax-exempt funds to finance some for-profit projects, which could also violate IRS rules banning such transactions<\/a> in some situations.<\/p>\n

If the IRS determines that the investment fund failed to act as a charity even though it benefited from tax breaks, it might find that Ensign Peak Advisors broke tax laws<\/a>. If that happens, and the IRS collects back taxes, David Nielsen could receive a cut as a reward.<\/p>\n

If the numbers are accurate, Ensign is the nation\u2019s largest charitable endowment, with as much money as Harvard University<\/a> and the Bill and Melinda Gates Foundation<\/a> have at their disposal, combined, if not more.<\/p>\n

Church leaders deny that they have violated<\/a> any laws that regulate tax-exempt institutions. The church \u201ccomplies with all applicable law governing our donations, investments, taxes and reserves,\u201d said the three-member council<\/a> headed by church president Russell M. Nelson.<\/p>\n

From my vantage point as a historian of Mormonism<\/a>, this news marks a new twist on an old story. For nearly two centuries, the church has conducted its finances in ways that defy the expectations Americans have for religious organizations.<\/p>\n