Tithing

 

What is the definition of tithing?

Why doesn’t the Church allow members to know how it spends our donations?

Has the Church always been secretive about its financial records?

Motivation to pay tithing

How much money does the Church have?

How does the Church spend the money?

How do other religions and charities spend their money?

How should the Church spend the money?

The Mall

How much do the General Authorities get paid?

Tithing, the poor and blessings

A bad consequence of paying tithing

Utah Bankruptcies

Tithing Stories

Can you sue the Church?

Advice for those that wish to be a member but not pay a full tithing.

Our thoughts.

Links

Home Page

 

 


Introduction

Certainly donating money to charitable causes is one of the most admirable things that people can do with their money.  The following information relates some historical information involving tithing.

What is the definition of tithing?

The following essay from an LDS member shows that the definition of tithing within the LDS Church may have evolved from its original interpretation.  Special thanks to Sarony for this:     http://www.mormonthink.com/tithingdefinition.htm

Additional comments:    The members of the RLDS Church (Community of Christ) have always tithed on one tenth of their income after expenses.

A Catholic Priest’s interpretation of tithing

(4) The Mormon church is too legalistic on tithing. The word tithe is only mentioned six times in the New Testament, at Mat. 23:23, Luke 11:42 and Heb. 7:5,6,8,9. "Tithing was an Old Testament obligation that was incumbent on the Jews under the Law of Moses. Christians are dispensed from the obligation of tithing ten percent of their incomes, but not from the obligation to help the Church. The key to understanding how God wants us to give to the Church is found in 1 Corinthians 16:2, "On the first day of the week [Sunday] each of you should set aside whatever he can afford," and in 2 Corinthians 9:5-8, "So I thought it necessary to encourage the brothers to go on ahead to you and arrange in advance for your promised gift [donation], so that in this way it might be ready as a bountiful gift and not as an exaction. Consider this: Whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully. Each must do as already determined without sadness or compulsion, for God loves a cheerful giver. Moreover, God is able to make every grace abundant for you, so that in all things, always having all you need, you may have an abundance for every good work."

To paraphrase: God doesn't demand a fixed amount of money from us; he wants us to give from the heart. If people are forced by their church to give a certain percent of their income, that's extortion. If they give freely and cheerfully the amount they are able, that's a gift."

The above quote is from a Catholic priest who responded to an ex-Mormon asking about tithing. The priest is correct. We are not called to tithe. We are asked to make offerings. When the elderly widow gave her last two mites, it was an offering, not a tithe. That would have been 10% of her last two mites. We are not called to tithe, but to make an offering to sustain the church. Plus, if I were to announce that I had given 10% of my income to a homeless shelter, that would not be acceptable to the church, but it is just what the Bible tells us we should do with our tithes. Please check out Deut. 14 for the Old Testament law on tithing. Christians are no longer under that obligation.

 

Our Comment:  It appears that the LDS Church defined tithing differently in the early days of the LDS Church than they do now.  Regardless of how it may have been defined in the past, the LDS Church expects its current members to pay 10% of their income to the Church, in addition to fast offerings and other donations.  Some people pay on net income, some on gross income.  The Bishop is not supposed to inquire further on how people define income.  Although I personally have heard it specifically said from the pulpit by local church leaders that tithing is to be paid on ‘gross income not net income’ but that leader overstepped his authority by declaring that.

 

Additional references

http://ourworld.compuserve.com/homepages/rossuk/tithing.htm

 

 

Why doesn’t the Church allow members to know how it spends our donations?

President Hinckley was interviewed just before the 2002 Olympics.  The following is a transcript of the interview which can be viewed on the youtube link below. 

REPORTER:
IN MY COUNTRY, THE…WE SAY THE PEOPLE'S CHURCHES, THE PROTESTANTS, THE CATHOLICS, THEY PUBLISH ALL THEIR BUDGETS, TO ALL THE PUBLIC.

HINCKLEY:
YEAH. YEAH.

REPORTER:
WHY IS IT IMPOSSIBLE FOR YOUR CHURCH?

HINCKLEY:
WELL, WE SIMPLY THINK THAT THE…THAT INFORMATION BELONGS TO THOSE WHO MADE THE CONTRIBUTION, AND NOT TO THE WORLD. THAT'S THE ONLY THING. YES.

Our comment:  We are tithe payers (the ones that Hinckley referred to as making the contributions). When can we see the financial information?

The LDS Church does not allow its members to see any financial records.   Most churches do publish some financial information and budgets so their members can see what their donations are used for and to assess the needs of the organization that they support with their hard-earned money.  Why is the one, true church less open and forth-coming about their finances and how the money is spent?  Intuitively we would think that the ‘false’ churches would likely be more secretive about how much money they have and how it’s spent and that God’s true church would be very open about how they spend their members’ donations.

 

Has the Church always been secretive about its financial records?

No, past presidents of the Church published the financial records of the Church.  This was stopped in 1959.  WHY?  We presume it was because the Church was relatively poor in the first hundred years of its existence and then started becoming very wealthy in the last half of the 20th century.  The leaders do not want the members (or nonmembers) to know just how phenomenally wealthy that the Church has become.  The leaders also probably do not want to be held accountable to the members for how they choose to spend the tithes donated to the Church.  The Church only publishes its financial information relating to specific countries if those countries’ laws require it such as the United Kingdom.  If our church is so honest and truly the one, true church, why can’t we be at least as open with our finances as the apostate protestant churches?

Granted, as members of the LDS Church, we would likely have disagreements as to how to spend the money.  We can accept that we ‘appoint’ leaders to manage the funds just like Corporations do.  However, even though stockholders of corporations aren’t generally involved in determining how the managers of the corporations’ assets spend their money, they do receive a stockholder’s report every year summarizing how the money was spent and what is the financial position of the corporation.  The LDS tithe-payers receive absolutely nothing regarding how their tithes were used.  It’s kind of hypocritical of the Church to not reveal their finances as they require us, as members, to essentially reveal our finances to them each year during tithing settlement.

From a member of a nonLDS Church:

Annually our diocese publishes the financial run down in the diocese monthly newspaper. It's quite detailed, yet it is nice to see where everything goes.  Every registered family gets this newspaper, whether they contribute or not.  Most parishes also give a prior week’s financial statement in the Sunday bulletin. It usually shows what the total donations were, mass attendance and how much was contributed to special collections. It's just nice to know.

Many Lutherans have told us that you can go to the Synod's website and drill down to any congregation in the world and see how they spent their money.  Sounds like a model of trust and honesty that the one, true church should emulate.

 

Motivation to pay tithing

Tithing as the Catholic priest said above should be a gift, but the LDS Church makes it an obligation.  Fear is often used as a motivator to get people to pay a full tithing.  How many times have you heard the term ‘fire insurance’ associated with tithing?  He who is tithed shall not be burned at Christ’s’ 2nd coming.  Malachi 8:10 is often quoted -  Will a man rob God, yet ye have robbed me….   

 

The guilt placed upon Latter-day Saints can be considerable.  We are not considered members in ‘good standing’ if we’re not paying tithing.  We cannot attend the temple if we don’t pay our tithing.  We cannot have temple-related callings or any high-profile positions if we’re not full tithe-payers.  And if we are full tithe-payers, we’re often counseled to then start paying generous fast offerings, contributing to the missionary fund, etc.

Why is tithing so emphasized in the LDS Church along with the companion statement that "The Lord Does Not Need Your Money"?  We are sure that the Lord does not need the money, but why does "His True Church" put so much of an emphasis on it to make it a topic of Sacrament Meeting talks, to put it in the Sunday School, Priesthood and Relief Society lessons, to create a novel way of teaching tithing to Primary children (i.e. the teacher gives the child ten pennies and she is asked to put one penny in the tithing envelope and give it to the Bishop).  Why are members called to tithing settlement once a year and reminded to settle their unpaid tithes?  Why are ward audits held?  Why do Bishops receive letters from Church headquarters warning them that their wards have given out more Fast Offering funds to members than was collected from their wards, and that they need to exhort their members to contribute more fast offerings?

 

How much money does the Church have?

The financials of the Church are a closely guarded secret.  No one can say with any certainty just how much the Church is worth.  Whenever there have been lawsuits against the Church, the courts normally require that the defendant supply financials to the courts to help assess how much a potential settlement should be.  The Church lawyers use every means to prevent having their financials disclosed to anyone.

The PBS special ‘The Mormons’ estimated the LDS Church is worth some $80 Billion.  That estimate is probably low.  It’s likely worth over $100 Billion as it is the wealthiest per capita religion in the world with annual tax-free revenues estimated to be $6 Billion per year.  The LDS Church owns 928,000 acres in North America, is the largest ranch land owner in Wyoming, is the 2nd largest land owner in Nebraska (Ted Turner #1), has the largest  cattle ranch in 48 states (Adjacent to Disneyworld in Florida), is the largest foreign landowner in UK.  The LDS Church owns several businesses, numerous radio and television stations, its own insurance company, and is rumored to be the largest single producer of commercial beef in the USA.  They own enormous properties in Hawaii including a Marriott hotel franchise in Hawaii, the Polynesian Cultural Center (which is the most visited tourist attraction in Hawaii), as well as of course Brigham Young University and thousands of chapels and meetinghouses worldwide.  They also own shopping malls, are involved in property development and own enormous quantities of stock in many corporations.  The list goes on and on.  At the same time, it tells the poorest of members that it is important to pay their tithing before buying groceries.  Members should have faith that the Lord will provide.  What do these financial concerns have to do with providing for the spiritual welfare of its members?

 

How does the Church spend the money?

President Hinckley, in a public interview, admitted that the Church is very wealthy.  However, he then went on to say that the assets owned by the Church are not income producing but are instead income draining.  This is very deceptive.  The Church owns many businesses that generate profits.  The $6 Billion or so is profit that the Church takes in from contributions by its members and its businesses.  The Church has very little expense in relation to its income.  The money it receives is tax-free.  The property is exempt from taxes.  The Church owns virtually all its properties so it doesn’t have to pay rent.  The utilities on those buildings and the meager funds allotted to the wards for their discretionary budget funds are just a drop in the bucket compared to its income.

Just think about the ward you’re in.  Just the tithing on one middle-class full-tithe payer is enough to pay the utilities for the building.  There’s not many expenses left so the rest goes to Salt Lake.  The Church of course does spend some money building new buildings as the Church grows, but this is offset by the funds generated from the increased membership.  We recognize that perhaps in some of the foreign countries the expenses exceed the revenues, but that’s generally the case in any American—owned business that’s trying to establish itself in new markets.  Also the vast majority of active, tithe-paying members are still in the wealthy developed countries – particularly the United States.

Imagine if you had a corporation where the business model was to have your customers give you 10% of their income every year, and all you provided in return was buildings to meet in and some speeches made periodically by the owners.  Just how profitable would that corporation be?

The Church hardly spends any of its money on humanitarian aid.  Less than 1% of its revenues goes to really help the poor and needy.  And those funds are usually donated as a high profile contribution. 

 

The Tsunami

Timeline:

2004 - Annual financial statement sent to the Charities Commission shows that members of the Church in the UK donate £252,000 to the Humanitarian Aid fund. Church spends £52,000, all of it on projects within the UK.

Donations to the Fast Offering Fund totaled £1,319,000. This was added to the existing balance of £1,186,000 already in the fund. £500,000 of this was transferred to the Church's 'sister' charity, LDS (Welfare) "which will apply these funds to the relief of the poor and needy not only in the UK and Ireland but to other countries in Europe and Africa."

26th December 2004 - at 07.58 local time an earthquake occurred off the west coast of Sumatra, Indonesia, measuring 9.3 on the Richter scale. The resultant Tsunami devastated thousands of communities around the Indian Ocean, and the death toll was measured in the hundreds of thousands.

29th December 2004 - First Presidency of the church issues a statement which was read from the pulpit at Sacrament Meeting the following Sunday.

"In association with other relief agencies, the Church is extending substantial humanitarian aid to the stricken people of southern Asia. We have representatives on the ground who are assessing needs and who are administering help.

This coming Sunday, 2 January 2005, will be our regular fast day. In the present circumstances, we urge our people to remember in their prayers those in the devastated areas and to contribute most generously in fast offerings, which will make it possible for the Church to increase its aid to those whose suffering is so great."

1st January 2005 - Humanitarian Aid Fund begins the year with a balance of £200,000. Fast Offering Fund begins the year with a balance of £2,005,000.

2005 - Annual Financial Statement submitted to the Charities Commission show that members of the Church in the UK donate £509,000 to the Humanitarian Aid Fund. Church spends £34,000, all of it on projects within the UK.

Donations to the Fast Offering Fund totaled £1,597,000. This was added to the existing balance of £2,005,000 already in the fund. £500,000 of this was transferred to the Church's 'sister' charity, LDS (Welfare). This money was spent on 'Direct Charitable Expenditure' which is defined as "expenditure directly relating to the objects of the charity". In theory this could mean the building of chapels, or paying staff (which accounted for £1,094,000 over 2005).

In Summary - Humanitarian Aid Fund (2004 & 2005)

Income - £761,000
Expenditure - £86,000 (11%)
On Tsunami - zero
Balance sitting in the bank - £675,000

Fast Offering Fund (2004 & 2005)

Income (plus previous balance) - £4,102,000
Expenditure - £1,000,000 (24%)
On Tsunami - Impossible to quantify*
Balance sitting in the bank - £3,102,000

(* Given the money was spent in the UK and Ireland, other parts of Europe and Africa are probably nil.  We know some parts of Africa were affected by the Tsunami but not much, and nowhere in the report was a reference made to helping Tsunami victims.)

Why worry?  We will say that we know the church provided very real assistance to some affected areas; we won't deny that the church does some good with the money.  What gets us is that we sat there in sacrament meeting when the letter was read out and having seen the news over the last week felt moved to take the Church at its word and really donate an amount that would make a difference.  However the money just sat in the Church's bank account earning them interest.

It also seems to indicate that 'global' directives from the First Presidency don't necessarily apply to the whole church.  Somebody at Solihull must have known that none of the money going through their hands would ever get to the Tsunami victims, yet they were happy to forward the letter with the directive it be read out in sacrament.

Note: financial information from charities in the UK has to be disclosed publicly so this kind of detail is available.  Thanks to Darque for providing this information.

Details from LDS critic Elder George Carlin: 1/30/2008

I got them from the financial statements themselves (see links). Please keep in mind the tsunami in question hit in December 2004. So, the donations would have most likely occured in both December 2004 and throughout 2005.

* 2004: http://www.charity-commission.gov.uk/registeredcharities/ScannedAccounts%5CEnds51%5C0000242451_AC_20041231_E_C.pdf
On page 15 of 26, Humanitarian Aid is discussed:
- 2004 Restricted Income on the Humanitarian Aid = 252,000 U.K. pounds
- 2004 Direct Charitable Expenditure for Humanitarian Aid = 51,000 U.K. pounds

* 2005: http://www.charity-commission.gov.uk/registeredcharities/ScannedAccounts%5CEnds51%5C0000242451_ac_20051231_e_c.pdf
On page 14 of 26, Humanitarian Aid is discussed:
- 2005 Restricted Income on the Humanitarian Aid = 509,000 U.K. pounds
- 2005 Direct Charitable Expenditure for Humanitarian Aid = 34,000 U.K. pounds

Based on these figures:
In 2004, the Mormon church would have donated 20.23% towards Humanitarian Aid from the total income they received for Humanitarian Aid in the U.K.

In 2005, the Mormon church would have donated 6.67% towards Humanitarian Aid from the total income they received for Humanitarian Aid in the U.K. On page 17 of 26, the report states: "HUMANITARIAN AID FUND. These funds are donated by the members to help fund the programme of Humanitarian Aid approved by The Church of Jesus Christ of Latter-day Saints. The amount expended in 2005 was in respect of projects in the United Kingdom and Ireland."

Assuming this is true, NO monies went to the tsunami victims., the Mormon church only donated a fraction of the income they generated from Humanitarian Aid (in the U.K.) to Humanitarian Aid...and ALL of the Humanitarian Aid went to people in the U.K. and Ireland. Where is the accounting for ANY funds donated to the tsunami victims?

 

 

 

How do other religions and charities spend their money?

“In 1997, U.S. congregations of the similarly sized Evangelical Lutheran Church in America raised $11.8 million in cash donations for worldwide hunger. The same year it raised $3.64 million for domestic and international disaster response, for a one-year humanitarian cash total of $15.44 million, more than half the amount the LDS provided over fourteen years.” P. 129, Mormon America, Richard Ostling

In Jan. 2006, from the Church PR department, (Deseret News Publishing Company): Edgley said, “that since 1984, the LDS Church has donated nearly $750 million in cash and goods to people in need in more than 150 countries.” That averages to $37.5 mil per year or about $3-$4 per Mormon member went to the poor. The total of $750 million in 22 years spent in cash and goods to people in need is only a THIRD what the church is spending on a mall they’re building in Salt Lake City. The Mormon church is spending less than 1% of its income to help the poor. Is the Mormon church really a charitable organization? 

The best estimates are that the church's assets are around $100 billion and that tithing runs $4.5-6.5 billion per year.  But no matter how you slice it, humanitarian work is a small, itty, bitty part of church expenditures.

Even many individuals and corporations spend more than 1% on charitable work:
Wal-Mart - 1.5%
Ford - 2.2%
JP Morgan 2.1%
MBNA - 1.4%
UPS - 1.1%
GM - 1.23%
Avon - 3.97%
MetLife - 1%
Prudential - 1.22%
Eli Lilly - 1.4%

According to the IRS, the average charitable contribution is 2.2%.

Why is it that several large corporations and the average gentile are more charitable than the one and only true church upon the face of the whole earth?  Again we come back to the fact that the church spends very little of its wealth and income on helping the poor and unfortunate.  It spends about 1% of tithing on helping the poor.  If you include investment income, it’s much less than 1%.

Why does there need to be a corporate side?  Why does the church need to buy malls, hotels, restaurants, condos, ranches, farmland, Oahu land, resorts, TV stations, radio stations, newspapers, and insurance companies?  How does owning these things contribute to the 3 missions of the church of perfecting the saints, redeeming the dead, and preaching the gospel?

The real point is that the church gets more money through tithing and investment income than it knows what to do with.

 

 

How should the Church spend the money?

Christ taught that one should sell all that one has and give it to the poor.  While that's not practical, why couldn't the church sell its non-ecclesiastical assets and help the poor?  Does the church really have need of anything other than chapels, temples, MTCs, family history centers, and visitor centers?

“Thoughtful saints might wonder whether the church should spend more of its assets on programs that benefit the membership rather than further enriching an already huge financial base.” P 119, Mormon America, Richard Ostling

 

“The wealth moves generally in the form of building projects and not, as one might expect, in welfare from congregations in the United States to congregations overseas.” P. 126, Mormon America, Richard Ostling

The Church sometimes acts like it’s poor and needs money.  Around the year 2000, the Church laid off the meetinghouse custodians and other church workers, some of whom had worked in the Church Office Building.  The church custodian, although not a high-paying job, was a nice job for at least one person in buildings which house 2-3 wards on average.  It was often a nice way for the church to help out someone that really needed a job.   Now they expect members (as if they didn’t spend enough time in church service) to clean their own buildings on their days off.

The Church also scaled back local spending.  The Church has started cramming as many people as they can into one building.  Instead of just one or two wards sharing a building, they now cram in three or four wards.  This makes one or two wards meet at awkward times.  Who wants to go to church from 2:00 PM till 5:00 PM?  That’s fine if there’s a real reason for it, but to just save a $100 billion entity the expense of building another building or a larger building is very selfish of the church leaders.  They also cut the budgets in many local church programs and they are generally less funded than they were 20 years ago, despite the fact that the Church is considerably wealthier now than it was then.  However one positive move the Church did make was to eliminate the building fund and have those expenses (utilities mostly) come out of the tithing receipts.  We never understood why this wasn’t the case from the beginning.

We would recommend that the Church give more money to the poor and needy (both inside and outside of the Church) without expecting anything in return from the members.  Also build enough meetinghouses so the members can use the buildings during reasonably desirable times.  The Church should raise the ward budgets so the members can actually use more of the money that they donated on a local level.  The Church should employ custodians again.  The humanitarian funds, missionary funds, etc. should all be covered by the tithing receipts which are more than enough to completely cover them many times over.  The Church should keep enough funds invested to keep it sound, but billions and billions invested in businesses when it should be helping others is probably not really the way Jesus would have intended his church to be run, in our opinion.

 

The Mall

The Church is building a large $2 billion mall in Salt Lake City.  There are many newspaper articles that talk about this.  It’s interesting to note that when the plan was originally announced in 2003, the project was to be only $500 million but kept increasing with every news release till the present estimate of $2 billion.  The project will cost up to 12 times what the LDS Conference Center reportedly cost to build.

References:

http://deseretnews.com/dn/view/0,1249,650195673,00.html
http://www.cpnonline.com/cpn/article_display.jsp?vnu_content_id=1001307971 http://en.wikipedia.org/wiki/LDS_Conference_Center

In Oct. 2006 General Conference, Pres. Hinckley told Latter-day Saints, "The Church is undertaking a huge development project in the interest of protecting the environment of Temple Square.  While the costs will be great, it will not involve the expenditure of tithing funds."

That is a very deceptive statement.  Although technically the funds may come from the profits of the church-owned businesses or merely from the interest on its enormous investment capital, where did the money come from to buy the businesses, stocks and other investments to generate those profits?  Everything the church owns ultimately came from money donated to the Church by its members – past and present. 

Of greater significance: since the church can quickly raise $2 billion on merely the interest of its assets, then it doesn’t really need any more tithing dollars.  The Church could function indefinitely if no member ever contributed another dollar to the Church.  The interest on its $100 billion of assets can easily fund the yearly expenses of the Church.

The church has no accountability to its members, government regulators, or anyone else for that matter. They have the attitude that because they are the “Lord’s anointed”, they should not be questioned.  When they are questioned, they either decline to answer questions or respond with evasive obfuscation.

Critic’s comment:  Of all the things Jesus would tell Gordon Hinckley, He told the Prophet to buy a mall?  For ten years, the only new light and knowledge given to the world by Jesus through His Prophet are the doctrines of “no penny poker,” “no multiple earrings,” and “no gay rights.”  And now we are expected to believe that Jesus’ latest revelation is the need for His church to get in the shopping mall business?  Church leaders are overly concerned about how Salt Lake City looks, about how bad it would be to have a closed mall across the street from Temple Square.  Perhaps it would affect the market value of church properties in the vicinity including the Prophet's penthouse pad. A disproportionate concern for the goings-on along the Wasatch Front is not what one would expect from a God concerned equally for the welfare of all his children on earth.  The mall decision is just one more in a long line of decisions made by church leaders that exemplifies their cultural and regional myopia.   http://equalitysblog.typepad.com/equality_time/2006/05/more_than_a_mal.html

 

Our comment:  For a corporation to build a mall is one thing but for a church to build and own a mall just seems somewhat wrong.  Do other churches own malls?

 

 

How much do the General Authorities get paid?

Growing up in the Church many of us took pride in saying that our bishops and other local leaders are not paid like ministers of other religions.  Although that’s true, there are at least 100 or so leaders in the Church that are paid, such as the 12 apostles, First Presidency, and the First Quorum of the Seventy.  People naturally wonder how much they are paid.  Most members are under the impression that the General Authorities receive some sort of living allowance or stipend.  We don’t have definite answers as that information is also kept private by the Church.  A few fair comments before discussing it further:

         Many of the General Authorities were wealthy before entering GA status.

         Some make additional money by writing books.

         Many sit on the boards of corporations owned by the Corporation of the President and of course receive director pay as a member of the board.

         Some own stock in companies controlled by the corporation of the president.

         Some own companies that have contracts with the corporation of the president.

         Some own real estate companies that buy property that the church then purchases.

All of the published salary levels for non-ecclesiastical positions are relatively low.  In the church postings listed on church bulletin boards for accountants, engineers, etc. the salaries are less than what most people would earn in the private sector.  Church Education System teachers are not over paid.  So the question is, do the General Authority salaries follow suit or are they significantly different?  Perhaps one thing to consider is the housing provided to Mission Presidents.  All of the Mission President homes we’ve seen have been luxury homes.  Even mission presidents sent to developing nations live in luxurious quarters, their children attend expensive private schools for expatriates, and the Church provides servants.  It’s quite a difference between where the younger missionaries and older couple missionaries live and where the Mission presidents live.  If this is proportional the higher up the ladder in the Church, then the GAs may receive significant compensation.

Regardless of the salary, being a General Authority has a lot of financial perks.  Many are given a place to live, paid travel, chauffeurs, limos, paid expenses, etc.  And of course the members are very helpful to the GAs.  For example, the billionaire LDS member Brother Huntsman gives President Hinckley free use of his corporate jet.

Church Loans

In the early days of the Church, some leaders lived the law of consecration, more or less, where they turned over much of their assets to the church and then received a very satisfactory living allowance.  Some Church employees have said that leaders in the church have the Church pay for their homes through interest-free forgivable loans.  The forgivable loans also allow them to pad their stock portfolios.  On the other hand, these loans tie them to the Church, because if they get out of line, the loans can be called.  These loans started in the days of Brigham Young and it is still reportedly the practice today.


Our Comment:  Just what would be a fair salary for an apostle?  Any dollar figure named by anyone would either be too much or not enough.  We’re not going to pretend that the apostles of today should be like the apostles of Christ’s time and live off the members as they travel.  We personally don’t think that the General Authorities should be compared to televangelists that try to swindle the members to line their own pockets.  That being said, we do feel that GAs should be accountable to the members.  The salaries of the paid authorities of the Church should be made public as every member in effect must disclose their salary during tithing settlement (it doesn’t take a math wizard to calculate someone’s salary if they paid tithing of 10%).  Corporations disclose how much their executives receive in compensation – even if it is extraordinary.  Why can’t the Church do the same?  Even the salary of the president of the Untied States is public knowledge.  Perhaps much like the president of the United States, many of the GAs likely could make more money in the private sector.

If the salaries were published, that would likely not tell the whole story anyway unless a full account of the paid expenses were provided as well as any loans or any other possible financial gain afforded their position. 

 

From a former church financial employee:

Although we generally don’t use information from sources we can’t verify, the following is from someone that we feel is a trustworthy source.  He claims to be a former church employee.  

 

The Church consists of at least 400 separate legal entities in 130+ countries...all with different taxation laws. The Church itself in USA is mostly tax exempt. There are some countries that the Church pays property tax, etc., but for the most part the Church itself is tax exempt in most of the world. It doesn't even report its financial standing to its own members, much less the US government.


The Church owns stock in many other companies that are well known like Bonneville International, Deseret Book, etc. These companies are not tax exempt because they are not the Church per se even if they are wholly owned by the Church. The Church owns or owned more secretive stock in other conglomerates or holding companies like Times Mirror or the Chandler Fund which owns many big newspapers like The LA Times, Chicago Sun, etc.

 

When I worked there, Ensign Peak Advisors was top secret. I heard my superiors mention it and everyone just 'knew' this was something you never talked about. I knew it was very controversial based on the secrecy even on the inside. Indeed many assets were transferred from the Corporation of the President to this other 'company'. At that time Brother Clarke worked in a back office secretly putting this all together for Hinckley. There are many reasons for this new entity. One is to remove these assets from the Church in case of lawsuits. The other is to try to separate from 'tithing' funds so it can be used more flexibly and the Church can defensively say that Church funds weren't used to do this or that.

The First Presidency and 12 Apostles were at that time paid $600K a year and the 70 were paid about $120K. In addition, in the mid-1990s the members of the First Presidency each had unlimited, unaudited charge cards. Hinckley lived in a million dollar condo with servants all provided by Church funds. GA's have significant other benefits like vacation retreats owned by the Church down by St. George and in Oahu, free tuition in Church colleges for their families, world-wide travel pretty much any time they want.

To give you an idea of Church middle management, I earned about $100,000 per year with benefits including pension. I could travel pretty much anywhere world-wide with little justification.

 

Our Comment:  The claimed salary of $600k (in the mid 1990s – probably 800k+ now) would probably be appropriate for someone assisting in the management of a $100 billion corporation.  So in that regard the compensation wouldn’t be considered excessive.  But many members probably would not see it that way if it was publicly disclosed as it just doesn’t seem right for an apostle to get rich from the Church.  However if they are paid phenomenally well, it offers greater incentive to never leave the church or make it look bad for any reason.

 

 

Tithing, the poor and blessings

It's disgraceful to read the propaganda the Church puts out about tithing.  Read the article ‘Tithing Shoes’ based on a true story from the Church’s magazine Friend, Nov 2007:
http://www.lds.org/ldsorg/v/index.jsp?vgnextoid=21bc9fbee98db010VgnVCM1000004d82620aRCRD&locale=0&sourceId=57201b3e50cf5110VgnVCM100000176f620a____&hideNav=1

The story recounts a destitute mother with a child that did not have any shoes to wear.  She had just enough money to buy some shoes for her son.  Instead, she feels too guilty if she spends that money on her son instead of giving it to the Church as tithing, so she gives it to the Church.  Of course a ‘miracle’ happens and the bishop gives her son some shoes he happened to have.

True or not, the fact that people are conditioned to feel that they should deprive their children of necessities like shoes to pay the church is just wrong.  Have faith?  That’s taking faith to an extreme.  It’s like saying I won’t take my kids to the doctor because I have faith the Lord will heal them.  Irresponsibility, not faith.  There’s nothing noble about this and the Church promotes it.

Where's the Christ-like compassion?  Why does the Church have to humble people by making them feel that they have to pay tithing first, and then these destitute people have to beg the church to help them with necessities?  Doesn’t it make more sense for the people to use the money they have to just pay for the necessities themselves?  Why does the Church even have to get involved?  The Church causes the problem in the first place by requiring all of its members to pay 10% of their income before ANYTHING else whether they can afford it or not?

 

From a member: 

 

I remember my heart sinking when I first saw the pictures of the expensive Conference Center, and remembering the Mormon families I had known who let their kids go without proper medical care just to pay tithes.

 

A Commandment Even for the Destitute. 

In Sunday School the other day, the Gospel Doctrine teacher was speaking about church members who are "groaning under crushing debt."  He expressed his sympathy for such poor souls and then asked, "What is the first step to getting out of debt?"

"Pay a full tithe!"

We can see it now:  What is the first step to saving yourself from drowning?  Add more water!     What is the first step to surviving a robbery?  Give the robber a bigger gun!  What is the first step to stopping masturbation?  Buy more pornography!

We've heard other members refer to this concept as "The Lord's Math."  Unfortunately for them, Mormons will now have to deal with Banker's Math.  The bank doesn’t care that you paid your mortgage payment money to someone else when you could have paid your legal obligation to them instead.

 

Blessings of paying tithing

Some people claim to have received financial blessings when they paid their tithing when they thought they couldn’t afford to.  Some claim to actually have more money by paying their tithing?  If true, how can this be?  The answer is that people naturally budget their money better when they know what expenses they will have in advance.  It’s a self-fulfilling prophecy.  If they know they will pay tithing first, then they do it and stretch what’s left to cover what they need to. 

If you do the math with and without tithing, it’s obvious that you’d have more money at the end of each month if you don’t pay tithing.  Extra money won’t magically appear in only the version where you do pay your tithing.  The unexpected bonus from work, tax refund, birthday money, etc. would happen in either case.  People compensate for tithing by buying fewer groceries, fewer luxuries, and fewer toys for their children, lowering the thermostat, making their children go without something they wanted and whatever else it takes to live within theirincome.

My tithing miracle happened when I QUIT paying tithing.  When I paid tithing, I had one financial problem after another.  When I quit paying tithing my problems ceased. 

“If we decide now to be a full-tithe payer and if we are steady in paying it, blessings will flow.”  Elder Henry B. Eyring of the Quorum of the Twelve Apostles, “Spiritual Preparedness: Start Early and Be Steady,” Ensign, Nov. 2005, 40.

And if they don’t flow, what do we do – starve?  Go crawling to the church like a beggar when we could have provided for ourselves?

 

 

LDS will fair worse than non-LDS

The Winter 2008 BYU Magazine has an article called "How to Build A Solid Financial Future".

Of course, it states that tithing should be paid first. Then it goes on to say:


"BYU Experts are quick to remind Church members to take tithing into account when budgeting for expenses large and small.  Having 10 percent less money will likely mean you live in a smaller home, purchase a less-expensive car, or take a less-lavish family vacation that the average American household"


This seems to contradict all the stuff the General Authorties say in General Conference about 'opening the windows of heaven' and getting a blessing 'that their will not be room enough to receive it'?

At least this article was a refreshing dose of honestly regarding the paying of tithing.

 

 

The gold fillings

From the church’s own site is a somewhat disturbing story of how members of the church in Argentina felt so compelled to provide funds for the temple that they actually gave their gold fillings from their teeth to the church.

“[Faust] emphasized the need to sacrifice for temple building and shared how members in Argentina found ways to donate during the construction of the São Paulo Brazil Temple. They gave the gold from their dental work to help pay for the temple. He said that he had purchased some of the gold fillings for more than the market price to share with congregations the nature of the sacrifice made by these members (Church News, 9 May 1998).”

http://www.ldschurchtemples.com/portoalegre/ 

 

Although some may tout this story as one of ‘faith’, to us it is an example of pushing people to the limit of unnecessary sacrifice.  The Church did not need the gold fillings from these people to pay for the temple.  The interest off the $100 billion of Church assets could have easily covered this.  Are there any LDS members that actually wanted these poor people to feel that they had to rip the fillings out of their mouths and give them to the Church? 

 

 

A bad consequence of paying tithing

The following article describes how Utah is extremely poor in terms of charitable giving to the poor and needy.  The United Way of America ranks Utah 48th in the nation in per-capita giving to nonreligious charities. 

http://www.beliefnet.com/story/125/story_12596_2.html

The reason is obvious.   If the majority of the Utah population is paying 10% of their income to the LDS Church, then they cannot pay very much to other worthy charities that most other people would donate to like The United Way, The Katrina Fund, Cancer Research, etc.  The LDS people feel that they are very generous by paying tithing and feel little desire to give to other organizations.

Instead of money going to help cure terrible diseases like cancer and leukemia, the money is going to the Church to build its asset base.  The Church of course isn’t donating the money they receive to these worthy causes, so for every person that joins the LDS Church, these worthy charities will suffer.  If every single person in the world joined the LDS church, the other charities would be bankrupt, but of course the LDS Church would be embarrassingly rich.  However if everyone was a Lutheran or Catholic then the other nonreligious charities would be continually funded as they are now.  That’s something to think about.  Most people don’t consider the real tangible good that could be done with the money that they give to the LDS Church.

 

 

Utah Bankruptcies

LDS leaders often hint at promises that tithe payers will receive increased income from paying tithes, yet Utah remains one of the poorest states in the US and ranks among the highest in personal bankruptcies.  Utah has led the nation for the last few years in bankruptcy filings.  Not only was Utah #1 in 2005, but it also had a record number of (bankruptcy) filings. 

See:  http://deseretnews.com/dn/view/0,1249,595072079,00.html
http://www.abiworld.org/statcharts/HouseRank.htm

Excerpt:

Households Per Filing, Rank

During the 12-Month Period Ending March 31, 2004

Utah

36.5

Rank 1 - the highest # of filings for any state

Vermont

156.2

Rank 50th  - (Alaska ranked 51st was lowest at 171)

Some reasons for the large number of bankruptcy filings are due to: 1.) Mormons paying 10% or more of their gross income to the Mormon Church in tithing and other offerings, 2.) large families, and 3.) the pressure in Mormonism to be, or at least appear, financially successful as proof the Lord is blessing them. http://www.exmormon.org/mormon/mormon356.htm

Lenders do not figure in charitable donations (i.e. tithing) into the debt to income ratios. So, when a person goes into the local bank to get a loan, and they are right at the top debt ratio limit, they can still get the loan even though 10%+ of their income is going toward tithing. If that same 10% were going to an obligation that demanded payment, they would not qualify for the loan. Same thing on mortgages, and the foreclosure rate in Utah is also one of the highest in the nation.

 

This is a huge problem because these financial people assume financial contributions are optional and come after everything else is paid. They have no idea that for Mormons, tithing is not an option, and it is often paid first.

 

The church demands that tithing be paid before all other obligations.  A March 2004 Ensign article is written by a Mormon bankruptcy attorney who also advocates that tithing should be paid first.

 

Our Comment:  We wonder how much the bankruptcies would decrease in Utah if the members paid their legal obligations first and then gave donations to the Church as they could afford them.

 

See related articles:   

#274  Pay Tithing - Ignore Other Obligations   and  #332 March 2004 Ensign on Tithing 

 

 

Tithing Stories

 

We’ve all heard the faith-promoting stories from the pulpit.  However, here are just a few stories from active and former members regarding tithing:

 

1)  My mom has a friend who is a single mom with 4 kids. She was an active true-believing member, got her endowment, and was doing everything right. She was having a very hard time making ends meet and got behind on her tithing. Her bishop was “counseling” her regarding her finances. (He works in a mine—he’s not a financial advisor). He told her that paying tithing is of utmost importance and should take precedence over bills and other obligations. He told her to use her credit card to pay her tithing and heavenly father would bless her for it. Heavenly Father blessed her by letting her go bankrupt. She had to file bankruptcy because of how tithing maxed out her credit card.

 

2)  My friend was made to feel so guilty about not paying his back tithing that he actually took out a home equity loan to pay his tithing; it was around 9k and he paid on gross.

 

3)  My older brother and his wife refinanced to consolidate their debt; went from a high interest rate to sky high - from $1000/mo payments to $1600 interest only payments and are locked in for two years. With all that "good news" she tells me, "well, I paid off my van and had enough to get caught up on our tithing"! They will be paying on that little tithing loan for the next 30 years. They are on church welfare now.

 

4)  When I was a single mom (divorced due to abuse), I had four young kids. I was working for $7 an hour and getting child support. I was NOT making ends meet. We were eating from the food bank.  I had asked the bishop for help, and he never "got back to me." Well, eventually he did, and let me go to the LDS Food pantry a couple times. But I mean, I was so broke!! Had my power shut off in winter.

So I had always been a full tithe payer AND made fast offerings. My bishop had also told me I had to tithe, not only on my $7/hour gross, but also I had to tithe on my scholarships and grants, and had to tithe on my child support (which was paid by my LDS ex who had already tithed on it). So I did. One year it was just too hard and I got behind on the tithing because my little kids needed some clothes. It was Christmastime, I didn't have any presents bought for them and they had holes in their shoes. I wanted to get them shoes for Christmas.

I went to tithing settlement, ashamed. I hung my head and told him my dilemma. I HAD paid tithing, for about 7 months of the year. I said, "I'm sorry, you'll have to mark me as a partial tithe payer this year. I would have to pay $500 to be a full tithe payer, and I only have $510 in the bank right now and haven't paid the bills yet or bought my kids shoes or food." He just looked at me, all disappointed. Asked me something about faith and trusting the Lord. I said, "I can't afford to pay it." and he said, "You can't afford NOT to pay it." After a minute of silence, I pulled out the checkbook and wrote him a check for $500. He smiled and checked the Full Tithe Payer box, and said, Merry Christmas.

My kids did get a couple things for Christmas, from Salvation Army, but they didn't get shoes. They did get a Christmas turkey from their elementary school who was giving them to the "needy" families, but honestly, we suffered. I have to wonder about a bishop who would ask such a thing of a single mom.

KC     

 

More stories are here: http://mormoncurtain.com/topic_tithing.html

 

 

 

Can you sue the Church?

Many people that have come to the conclusion that the LDS Church is not really the one, true church feel betrayed, angry and foolish for donating many thousands of dollars to the Church.  Some wonder if they can sue the Church for their contributions they have paid over the years.  A lawyer and former member of the LDS Church gives his opinion:

http://home.teleport.com/~packham/lawsuit.htm

 

 

Advice for those that wish to be a member but not pay a full tithing.

Some members wish to remain in the Church but not pay a full tithing but don’t want the embarrassment of having the bishop and some others in church know that they no longer pay tithing.  Here’s one suggestion.  The Church has a program set up so members can pay electronically to the church headquarters.  This was set up as some wealthy people do not want the bishop to know how much money they make.  The LDS headquarters only send an acknowledgement to the local ward that some funds were paid in the year.  They do not say how much money you paid to the Church.  You can donate $5 if you want and declare to the bishop that you were a part-time tithe payer at tithing settlement time and leave it at that.  You could say you were a full tithe payer if you want to also, but we don’t advocate lying.

To get the forms and instructions, just email Church headquarters at   RE-FRD-Electronic-Donations@LDSChurch.org

 

 

Our thoughts

We certainly encourage people to give as they are able to worthy charitable causes.  We think that all givers should carefully consider what organizations are most deserving of their funds.  What they do with the money and how much do they need are two of the most important questions to think about.  Many former Mormons continue to pay their tithing, but now do so to more traditional charities – where they know how the money will be spent.

The LDS Church is not accountable to the very people that contribute the money.  Other churches and charitable organizations publish their budgets and other financial information, why can’t the one, true church do this as well?  Hearing the leaders say that they are accountable to the Lord is insufficient.  The LDS Church holds such power and sway over its members that it demands absolute trust, and gets it, even though the church does not trust them back enough to let them know where donated tithing money is being spent or invested.

LDS tithes are not used for charity, but are used to build the kingdom.  The Church gives so little to the poor and needy.  Only 1% of it’s income goes to helping really needy people.  Why not just give the money to the needy yourself (via Red Cross or other established charities) and know with some surety that your money is actually going to help people and not be used to buy malls or even to build more unnecessary temples?

The yearly tithing settlement has always struck us as very corporate and controlling.  Reminds us more of the IRS than Christ.  Somehow we can never imagine Christ’s apostles having yearly tithing settlements and demanding that repentant people pay 10% of their income before being allowed to worship in the temples.  Why is a tithing settlement necessary anyway?  God knows what we paid and to whom.  Perhaps we’d have an easier time believing in the Church if they didn’t harp on money so much.  With $ involved, it’s obvious they have something to gain by your continued membership in the church, so how can you ever trust them to be totally honest on issues that would affect your membership and thereby their income?

 

How much to pay?

Perhaps giving to a church instead of a nonreligious charity requires additional consideration.  Most people feel that they derive some benefit from belonging to a church and that makes sense.  Is it perhaps $5 to $20 a service whenever the collection plate comes around or is it perhaps 10% of your income for your entire life?

If you totally believe in the Church 100%, then of course you will want to pay a full tithing.  However people that still attend church for social reasons or whatever, often wonder what they should pay.  Our opinion is that you should pay to the church based on what benefit you feel you receive.  To many people, that may be something like $100 a year.  Now people that have been paying tithing for ten years, and then realized that the Church isn’t true have probably already paid enough money to the Church to cover a lifetime of perceived benefit in the Church.  For those people, it probably makes sense to stop giving money to the LDS Church and perhaps think of other worthy benefactors for your charitable giving.

 

The Church doesn’t need the money.

There was a time when the LDS Church really needed the money.  Even if I didn’t fully believe in the church but used its facilities, I would likely pay a reasonable amount to it if it needed the money.  However thanks to the sacrifices of Mormons past, the Church has built an empire worth some $100 billion.  It simply does not need the money.  President Hinckley acknowledged that no tithing dollars were needed to fund a $2 billion mall.  If it can make this kind of interest on its existing assets, then it doesn’t need any additional funding to operate quite comfortably.

Now if the church was struggling, even if it wasn’t true, we would be inclined to help out but in this day and age it’s like donating money to Bill Gates.  And even then Mr. Gates is now using most of his wealth to help the poor. 

We strongly support charitable giving –even 10% or more but to organizations that need it, deserve it and actually help people in a tangible way.  The modern LDS Church in the 21st century simply no longer needs additional tithing dollars.  If you feel you need to still pay tithing, then pay your tithing to reputable charities that distribute their money to the poor and needy or look for cures to diseases and the like.  God knows you paid money to these organizations even without a tithing settlement. 

So you can donate your charitable dollars to organizations like The American Cancer Society to help fight cancer, a homeless shelter to feed the poor, the Katrina fund to help survivors of a terrible flood, the Red Cross to help the truly needy or you can help the Church of Jesus Christ of Latter-day Saints Corporation grow from $100 billion to $200 billion.

 

 

References

 

http://equalitysblog.typepad.com/equality_time/2006/05/more_than_a_mal.html

See also: John Heinerman, Anson Shupe (1986). The Corporate Mormon Empire. Beacon Press. ISBN: 0807004065.

 

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