Throughout the scriptures, the Savior repeatedly encourages his disciples to search, inquire, seek, and knock—to ask questions (see Matt. 5:42; 7:7; Luke 11:9; James 1:5; 1 Ne. 15:11; 2 Ne. 4:35; 3 Ne. 27:28; D&C 4:7; 18:18; 46:7). In the twenty-first century, many people have questions about the finances of The Church of Jesus Christ of Latter-day Saints. Why does a church have so much money? Why does this Church own for-profit companies? Why does the Church spend money on [insert any topic] instead of spending it on [insert another topic of personal concern]? Do Church leaders grow rich off the tithing of members? Why isn’t the Church more open about its finances; what is it hiding? Did a past Church leader predict a time when members would no longer pay tithing?
This essay introduces a model for answering questions about difficult topics and then applies the model to the topic of Church finances. Along the way, I’ll provide starting points for specific questions about Church finances and then demonstrate the full model in action through a case study for answering questions about a 2023 fine from the Securities and Exchange Commission. Two appendixes list recommended resources and places in Church curriculum where teachers might help youth and young adults better understand Church finances.
A Model for Answering Questions about Difficult Topics
Before examining the questions, it is best to think about what an answer is. How will we know what an answer looks and feels like when we find it? In the scriptures, the best answers are often described as being like light, warmth, and life (see Alma 32:35; D&C 50:24). In practical terms, complete answers unite several connected components—they require accurate information, elimination of errors, and critical thinking skills for making sense of it all. Sound answers distill upon us as we rely on the Holy Ghost; they speak to the most personal parts of our lives and deepen our discipleship. Addressing questions about difficult topics is an essential part of helping people come unto Christ by enduring to the end (see 2 Ne. 31:20; 3 Ne. 27:16–17).
The Gospel Library hosts new resources for “Seeking Answers to Your Questions” and identifies five helpful principles related to these components of a complete answer:
Center Your Life on Jesus Christ (Discipleship)
Be Patient with Yourself and with Others (Personal)
Recognize that Revelation Is a Process (Holy Ghost)
Additional principles for “Helping Others with Their Questions” include: respond with love, listen with humility, trust in the Lord, nourish your own faith, and assist them throughout their journey.2 People who ask questions about difficult topics need to connect all the components of a complete answer. Each asker begins from a different starting point. Some may have heard information that is incomplete, taken out of context, or erroneous. Others may know a lot of information but not know how to reconcile it. Still others may have never heard of a topic before and feel surprised or ashamed for not knowing. The best answers engage all components of a complete answer and are adapted to each asker’s individual strengths and needs.
Preparing to Answer Questions About Church Finances
Questions about Church finances often arise in connection with current news and events—the purchase of a commercial enterprise, a new lawsuit, allegations posted online, or a fine levied by a government agency. While the specifics of each breaking story may vary, the general topic of Church finances remains of perpetual interest. We can all prepare to answer specific questions with a general background on the parts of an answer.
Discipleship. For those who seek to center their lives on Jesus Christ, every topic provides an opportunity to teach and learn about him.3 During his mortal ministry, Jesus both established an organization to administer resources and taught principles of effective resource management. Elder D. Todd Christofferson explained that “Jesus organized His work in such a way that the gospel could be established simultaneously in multiple nations and among diverse peoples.”4 Jesus’s teachings also drew on wise principles that encouraged planning before building a tower (Luke 14:28–33), endorsed construction on a foundation of rocks not sand (Matt. 7:24–27), rewarded those who multiplied the financial return on their talents (Matt. 25:14–30), and complied with tax requirements (Matt. 22:21). From the beginning of the modern Restoration, the Lord’s work has required temporal resources.The organization of the Church in 1830 was emphasized as “being regularly organized and established agreeable to the laws of our country” (D&C 20:1)—an event that was both sacred (establishing the Lord’s Church) and secular (done according to law). In many ways, the Church’s current needs are similar to those of other churches that also publish scripture and instructional materials, construct places of worship, support evangelizing work, and care for the needy.5 But when the Risen Lord commanded his people to gather together—first in Ohio, then in Missouri, Illinois, and Utah—the need for resources changed and increased. If thousands of people were to migrate to and live in a place where they could receive ordinances and make covenants, then the Lord’s Church needed to become involved in real estate acquisition, economic development, long-term financial planning, and care of the poor and needy.6 Over time, additional expenditures have included the support of temporal welfare, education, and humanitarian aid. Today, the Church of Jesus Christ supports more than thirty thousand local congregations, thousands of meetinghouses, hundreds of temples, as well as storehouses, schools, and missionaries.7
Personal. All questions begin with the asker and because every asker is different, you will never answer the same question twice. Personal characteristics, attributes, and experiences shape perspectives and expectations, and it always helps to learn to “be patient with yourself and with others.”8 Questions about Church finances may be influenced by general or institutional distrust, personal passion, or lack of specialized information. In the twenty-first century, many people are distrustful of large organizations—governments, businesses, schools, health care systems, and churches. Large organizations often feel impersonal, overly bureaucratized, and distant. It can appear that the organization cares more for its self-preservation and enrichment than for individual concerns and needs. Further, many people carry personal passion for specific causes, such as alleviating poverty or community service for refugees. Finally, financial questions often involve specialized technical knowledge about financial markets, international tax law, or jurisdictional differences. Antagonists acting on social media can loosely charge the Church with trying to protect its tax-exempt status because most people dislike taxes and don’t understand tax laws and requirements.
Holy Ghost. Responding to questions about Church finances provides opportunities to teach about how to recognize and rely on the Holy Ghost. One starting point is to “recognize that revelation is a process,” for both individual Saints and Church leaders.9 Over the past two hundred years, Joseph Smith and subsequent Church leaders have followed both revelation and contemporary business models for financing Church endeavors. Frequently, the Lord gives instructions about outcomes and allows people to figure out the details, such as Nephi seeking the brass plates or the brother of Jared deciding how to light his barges (see 1 Ne. 3–4 and Ether 3). Modern revelations have instructed Church members to consecrate their property, time, and talents to further the Lord’s work as well as established offices and procedures for managing the oversight of donations, including the Council on the Disposition of Tithes (see D&C 41–42; 119–120). Leaders also make use of financial tools such as promissory notes, loans, stocks, and bonds. The process of revelation involves a blend of personal initiatives undertaken within specific contexts while seeking divine direction and confirmation.10
Information. Several published resources present reliable information about the history of Church finances and provide important context and perspective to modern questions.11 The Church History Topics essay on “Church Finances” provides an overview of revealed instructions and practical applications. From the outset, the Church met temporal obligations by relying on donations and contributions from Church members, such as consecrated property, free-will donations, and tithing donations of labor, cash, and property.
Two periods of financial distress are important for understanding the larger history. First, during the 1880s, antipolygamy laws enacted by the United States Congress targeted Church finances, eventually disincorporating the Church and confiscating funds and properties, including the still-unfinished Salt Lake Temple. Church leaders were forced to undertake high-cost loans to make ends meet, precipitating other poor financial investments during the 1880s and 1890s that left the Church in debt until 1907.12
Second, during the 1950s an ambitious international building program, financed by deficit spending, created significant new debts. Apostle and former businessman N. Eldon Tanner was called to the First Presidency in 1963 and helped establish the following key principles that have long influenced Church financial practices: adhering to strict budgetary controls, saving a surplus, spending from reserves, and preparing for the future (the same counsel Church leaders give to members and families).13 After paying off those debts, the Church began to assume other expenses, such as paying for all local unit operating expenses in 1990, equalizing missionary funds in 1991, and dramatically expanding contributions for humanitarian aid. Continuing financial strength and a growing surplus led the Church to begin systematic long-term investment in the stock market in 1997.14
A companion Church History Topics essay on “Church Incorporation” reviews the structural history of the Church’s financial activities. When the Church moved to Illinois in 1839, there were new laws to follow (different from New York in 1830), so Joseph Smith began in 1841 to transact Church business as a trustee-in-trust, a relationship that continued until the 1920s. In 1855, the Utah territorial legislature recognized the Church as a religious corporation enabled to invest in business enterprises and public works projects. Between 1918 and 1923, Church entities were restructured into three corporations: the Corporation of the Presiding Bishop to manage charities and public worship (including meetinghouses); the Zion Securities Corporation to manage taxable and nonecclesiastical entities (including ranches and real estate, which all pay relevant business taxes); and the Corporation of the President to manage assets used for religious reasons and oversee the other two corporations. In 1966, the Deseret Management Corporation (DMC) was established as a holding company for the Church’s for-profit entities, including radio, television, printing, insurance, and the Zion Securities Corporation. In 2019, the corporations of the President and the Presiding Bishop were merged to a single corporate entity, The Church of Jesus Christ (with DMC continuing to hold for-profit entities).15
Errors. In our information age, errors are frequently mingled with facts so that learners struggle to discern truth. Often, errors originate in our assumptions and cultural expectations, or they can be imposed onto topics by rigidly enforcing either/or binary positions. Though errors sometimes appear harmless or humorous, they impede our thinking and slow our spiritual growth. The Savior modeled an effective way to identify and correct errors. When presented with a complicated question about marriage in the next life, he responded simply “Ye do err,” pointed them to truths taught in scripture, and testified of the power of God (Matt. 22:29). Common errors that circulate about Church finances include the following:
The Church and its leaders should only focus on spiritual issues, not finances. This false binary presents spirituality or financial responsibility as opposites, with only one option to be pursued. In real life, financial means are required to print scriptures and hymnals, support missionary work, and build holy places of worship.
Church leaders should release financial data and let the facts speak for themselves. Facts do not speak; people do. All information requires context, completeness, and interpretation. Frequently, Church financial information cannot be shared completely and publicly for reasons of protecting personal privacy, complying with legally defined restrictions, and maintaining confidentiality.16
If Church leaders were truly prophets, then all their financial decisions would be successful. This assumption is not supported by any scripture or prophetic teaching, ancient or modern. By contrast, in the records of sacred history we see ample evidence that God allows his children to develop good judgment, make choices, and reap the consequences of their own actions (see 1 Ne. 3–4;2 Ne. 2:24–29; Ether 3:1–6; Matt. 25:14–30; and D&C 27:2; 60:5; 62:4–5; 80:1–3; 107:99–100; 111:1–6).
Because tithing is just like taxes, we deserve a public accounting of how funds are used. Tithing is not just like taxes. Taxes are extracted from citizens by governments to operate public initiatives and deserve public accountability. By contrast, tithing is a private response to God by a disciple who feels grateful for blessings received, wants to give back what is already God’s, and places trust in future promises of heaven’s help. Tithing is an offering to God, and he will hold his servants accountable for its use.
Wealth is a sign of righteousness. This expectation has its roots not in scripture but in an American cultural idea known as the prosperity gospel. The idea that one’s righteousness results in material wealth is wrong and creates harmful ideas about individual worth and interpersonal ministering.
There is a stunningly new condemnation of the Church and its leaders on social media. Over the past two hundred years, sensationalism has routinely characterized public criticism of the Church. Sensational stories have long played on fears that the Church secretly controlled vast hidden resources (even while it was paying off debts!).17 Fear and conspiracy theories drive clicks and shares, but they are unhelpful for increasing understanding.
Thinking Skills. Today we are surrounded by information—good and bad, truth and lies. As we work to understand the past, we must develop the skills to evaluate information.18 Discernment is both a skill we can develop and a gift of the Spirit (D&C 46:23). President Russell M. Nelson taught that “to discern means to sift, to separate, or to distinguish.” It is “a supernal gift” that “allows members of the Church to see things not visible and to feel things not tangible.”19 With practice, we can improve our thinking skills, developing a keen eye, an analytical mind, and good judgment.20 Among the thinking skills and concepts helpful for understanding the history of Church finances are the following:
Expand binaries. Modern cultures frequently reduce the richness of reality to a pair of either/or opposites—good or evil, members or non-members, faith or doubt. Binaries are useful for keeping small children alive and for creating computer code, but they become harmful when they limit choices, misdirect zeal, and increase contentious polarization. We inhibit our ability to understand Church finances if we impose binaries on the discussion—the Church must deal either with sacred matters or secular; decisions must be made either by revelation or good investment advice; the Church must be either a divine organization or just a legal entity. The Savior demonstrated how to expand binaries by identifying the extremes and finding a middle point, accepting both, and adding to the to the purported opposition by offering “both-and” ideas (see John 8:3–11; Matt. 22:17–21; and D&C 21:1–2; 76:78–81). Elder Dallin H. Oaks described this improved thinking as considering “good, better, and best.”21 Develop the skill to perceive and expand oversimplified binaries.
Change your assumptions. Assumptions are things we presuppose or take for granted without offering any evidence. They spring from our values and cultures and often cannot be proven. Assumptions serve as shortcuts to leap to a solution we already desire. We should not assume that the financial decisions of prophets will always be successful, or that imitating Church investments will lead to riches, or that tithing is the same as taxes. Frequently, challenges with Church finances could stem from incorrect assumptions and expectations. Develop the skill to question why you assume something and be humble to change when you learn better information.
It’s a long story. One of the most common errors in studying Church finances in historical perspective is to oversimplify the past by romanticizing it (a simpler, safer time), omitting it (leaving out the middle), or reducing it (to a meme or slogan). It is incomplete to talk only of the Church’s founding in 1830 and its current stock portfolio without understanding the history in between that involved bankruptcy, periods of debt, a commitment to sound fiscal practices, and the removal of significant financial burdens previously placed on individuals and families. The antidote to oversimplification is to talk about the complete past as a long story. We can observe that change occurs over a long period of time, “line upon line” (2 Ne. 28:30). We can look for multiple causes of events that include many reasons, decisions, and factors relevant to multiple actors. Finally, our understanding of the past develops over many years of collective study and analysis as we wait for implications to play out and sources to be discovered.
Specific Questions about Church Finances
Understanding how all the parts of an answer fit together can prepare us to address specific questions about Church finances. We must seek out accurate information, eliminate errors, and employ good thinking skills as we deepen our discipleship, rely on the Holy Ghost, and respond to personalized needs. The following prompts are not meant to serve as a catechism to be memorized but rather a guide to help begin your preparation. The personal element of an answer makes every question unique—we never really answer the same question twice because the asker always brings an individualized background, starting point, and motivation. You will present this material in a different way each time you answer, depending on the asker’s needs, time constraints, and guidance you receive from the Holy Ghost.
Why does a church have so much money? In modern societies, churches routinely use money for printing scripture and instructional materials, purchasing and maintaining meeting places, and carrying out missionary or community service work. Because of the doctrine of gathering—for unity, strength, and temple ordinances—The Church of Jesus Christ of Latter-day Saints has also needed to engage in real estate acquisition, economic development, and long-term financial planning. The forms for these activities have varied over time as the directive to gather developed from physical concentration in a single place to the worldwide distribution of hundreds of temples.22
In the twenty-first century, Church resources support four divinely appointed responsibilities that involve both spiritual needs and material means. First, the Church helps families live the gospel of Jesus Christ by providing materials that support worship and personal study, sponsoring all local unit meeting place needs and operating costs for more than thirty thousand congregations, and hosting educational and literacy efforts, including the administration of five colleges and universities and a world-wide seminary and institute program.23
Second, the Church enables families to be united for eternity by making covenants with God in houses of the Lord which have been built since ancient times using the best materials and craftsmanship available as expressions of devotion to God.24 As the number of people desiring to make covenants has grown into the millions and their geographical distribution expanded across the earth, the construction of temples has accelerated to keep pace (Brigham Young predicted that thousands of temples will be needed).25
Third, the Church invites all to receive the gospel of Jesus Christ by equalizing the individual and family contributions for thousands of missionaries, managing operating costs for hundreds of missions, and complying with regulations and relationships with governments.
Fourth, the Church follows the Savior’s instructions and example to care for others by ministering to immediate welfare needs, supporting the development of individual and family provident living, managing a host of storehouses and welfare facilities, and contributing to global humanitarian causes (often working in partnership with other international aid agencies).26
The scope of resources needed to support the work of the Church often goes unnoticed or underappreciated because of the sheer breadth (thousands of units all over the world) and because of its almost invisible ubiquity (sacrament cups are somehow just there every week). During the outbreak of the COVID-19 pandemic in 2020, nobody even blinked when the Church simply secured airfare to transport nearly eighty thousand missionaries to their home countries in a time of stress, scarcity, and high costs.27
Why does the Church own for-profit companies? Two misconceptions lie beneath this question. First, the idea that a nonprofit entity (like a church or other charitable organization) cannot earn a profit is incorrect. The important difference between nonprofit organizations and for-profit businesses is that a nonprofit cannot distribute its profit to the private individuals who control the organization. Any gains must go toward public benefit and the organization’s defined public mission (including reasonable payment for provided labor and other services).28 Second, the idea that God does not want his Church to attain financial gains contradicts the wisdom espoused in Jesus’s teachings about multiplying talents (money) and following wise management principles (Matt. 7:24–27;22:21;25:14–30;Luke 14:28–33).29
The informational part of the answer grows out of historical needs and opportunities. Some of the Church’s business corporations have been in operation since the late 1800s, when geographic isolation created a need for some entity to provide important individual and community services—utilities, hospitality, financial, and insurance companies. Other businesses developed alongside the Church’s mission to broadcast the gospel message to the world—businesses related to publishing, radio, and television. Since the 1960s, the Church has set aside part of its funds as a reserve for future needs. Over time, those reserve funds have been invested and managed in the form of property (real estate, development, and master planning), farmland (farms, orchards, and ranches), and cash investments (stocks and equities in the US stock market).30 The Church and its for-profit affiliates follow tax laws in the countries where they operate and pay relevant taxes related to income, property, sales, and other requirements.31
Why does the Church spend money on [insert topic] instead of spending it on [insert another topic of personal concern]? This is a very common framework for a question, though the specific details will vary depending on the asker’s interests or concerns. Sometimes the answer involves learning that the Church does indeed make contributions and investments toward the desired objective. In many cases, Church leaders have been reluctant to tout everything they do, preferring to follow the Savior’s teaching to “Take heed that ye do not your alms before men, to be seen of them: otherwise ye have no reward of your Father which is in heaven” (Matt. 6:1). However, since 2013 the Church has published an account of its humanitarian work.32
Other times, an answer to this question involves checking the desired cause against the Church’s four divinely appointed responsibilities. There are myriad good causes, but Church leaders are under obligation to the Lord (because it is his Church) and to local governments (as a legally defined and recognized entity) to carry out tasks related to its mission. Finally, sometimes part of this answer involves validating that the desired cause is good and remembering that Jesus encouraged and exemplified that his Saints go about “doing good” and “be anxiously engaged in a good cause, and do many things of their own free will, and bring to pass much righteousness” (Acts 10:38; D&C 58:27).
Do Church leaders grow rich off the tithing of its members? Throughout the world, the Church relies on members to provide voluntary leadership of local congregations and regional ecclesiastical activities. These members do not receive financial compensation from the Church and maintain their own employment to support themselves and their families. Some general Church leaders must leave their careers when called to full-time Church service. Applying principles taught by Jesus Christ in modern times, these leaders receive a modest living allowance and insurance benefits to enable their full-time attention to his work (see D&C 42:71–73; 75:24).33 A recent review of available data by an external researcher indicated that the relative compensation figure, when adjusted for inflation, has remained basically flat since the 1870s.34
Why isn’t the Church more open about its finances; what is it hiding? This question often involves several of the following assumptions: all information should be released to the public (an oversimplification); the Church does not release any information (an all-or-nothing binary); secrecy implies wrongdoing (a conspiracy theory); and full disclosure would benefit all (assuming no harm). Underlying each of these is often an assertion that disclosure of facts will solve the problem of mistrust. But even accurate information requires interpretation and needs multiple perspectives.35
We can correct the first oversimplification with a simple thought experiment. “You’re right,” you might respond, “the Church should release all the information that it has. You made a contribution to the Church, so let’s begin with your banking information.” That is typically enough to prompt the realization that there are differences of information, some to share and others to keep safe. Some of the protections around information are defined by external laws and regulations (and vary by country). Other safeguards stem from best practices for maintaining confidentiality, managing current operations, and pursuing long-term planning.36 In other words, some information should be protected.
Considering the variety of international regulations and common safeguards, the Church’s financial disclosures have taken many forms throughout its history. Between 1915 and 1959, leaders announced annual summaries of income and expenditures in general conferences, identifying categories of expenses such as meetinghouses, office buildings, schools, missions, and welfare. Since that time, leaders announce a report containing the results of an annual general audit in general conference, stating that Church leaders followed financially responsible procedures. Since 2013, annual reports of Church humanitarian activities have been released each year.37 In compliance with local jurisdictional requirements, the Church also discloses requested activities in Australia, England and Wales, and the US Stock Exchange.38 Today, the Church often describes categories of expenditures and complies with legal disclosure requirements in multiple countries and contexts.
Sometimes the call for transparency insists on seeing a specific number—total wealth, total revenues, or total expenditures. Common reasons for the request might include that disclosure would prevent costly decisions or aid donors in decision-making. Among nonprofits generally, it is unclear if disclosure prevents costly decisions. In the Church’s own history, during the period in which financial summaries were shared publicly in general conference, the Church reported that it was forced into deficit spending (in 1938, during the Great Depression) and lost money on municipal bonds (in 1956). As for informing donors, the Church does not invite contributions based on a claim of higher relative performance. Tithes and fast offerings are a freewill offering between the member and God.
Did a past Church leader predict a time when members would no longer pay tithing? The friendly version of this question may come from a person looking for a little extra spending cash, while a more antagonistic framing couples the idea with the charge that since tithing is still required, the past prophet was a fraud and the Church is not true. Two thinking skills are helpful here: First, we must try to trace the alleged statement to a real source, and then we must investigate the source fully.39
It turns out the statement is authentic. At the April 1907 general conference, President Joseph F. Smith said: “We expect to see the day when we will not have to ask you for one dollar of donation for any purpose.” Those few words are often presented alone and are frequently accompanied online with emotionally charged headlines and graphics. But doing so lifts the statement entirely out of context. Here is the full statement:
At last we are in a position that we can pay as we go. We do not have to borrow any more, and we won’t have to if the Latter-day Saints continue to live their religion and observe this law of tithing. It is the law of revenue to the Church. Furthermore, I want to say to you, we may not be able to reach it right away, but we expect to see the day when we will not have to ask you for one dollar of donation for any purpose, except that which you volunteer to give of your own accord, because we will have tithes sufficient in the storehouse of the Lord to pay everything that is needful for the advancement of the kingdom of God.40
Now we can effectively analyze the entire statement. First, the situation matters. In 1907, President Smith was excited to announce that after eighteen years of being in debt, the Church had finally paid off the high-interest loans incurred during the 1880s and 1890s. Next, the statement does not announce the end of tithing but rather emphasizes it as “the law of revenue to the Church” with a promise of future success as we “continue to . . . observe this law of tithing.” We can also see the statement about “donations for any purpose” in context of the numerous other requirements Church members faced in 1907—to provide their own local congregational budget, build their own chapels, pay their own utilities, pay membership dues for Relief Society, and host their own fundraisers. It would be another eighty-five years before each of those donation requirements were finally eliminated by the Church’s strengthening financial position. Finally, we can determine the true significance of this statement. It is not an announcement of the end of tithing (a misreading when taken out of context), but it does prophesy of a day when tithing and freewill contributions would be sufficient and all other donation requirements would cease. That prophesy was fulfilled in the 1990s.
A Case Study in Seeking Answers: The SEC Fine
The usefulness of this model for answering questions can be illustrated with a case study. Let’s imagine that your brother-in-law asks you to explain why The Church of Jesus Christ of Latter-day Saints was fined in 2023 for its financial activities. He has seen references on social media that are mostly condemnatory, and he wonders what really happened and what it all means.
If a complete answer is comprised of six parts—discipleship, personal, the Holy Ghost, accurate information, elimination of errors, and thinking skills—then a related need is how to pursue and assemble all six pieces. In practical terms the following steps provide a general routine for arriving at the best answers: (1) Identify the best sources, (2) Read the best sources closely, (3) Lay aside distracting errors, (4) Consider how to understand the information, and (5) Prepare to help others understand. These steps guide toward answering: What did the Church do? Why is it paying a penalty? What does this mean?
1. Identify the best sources. The process begins with a quest for sources—our modern application of the scriptural injunction to study the “best books” (D&C 88:118; 90:15; 109:14). Identifying the best sources requires us to imagine, search, and evaluate. First, we imagine: what are we trying to discover or prove? What information is needed to understand the issues? What search terms and key words might lead to that information? We should consider the types of sources that will have the desired information—big sets of data, personal experiences, contrasting opinions on a divisive issue, the expert analysis of a scholar. With this general sense of what we want and where it might be, we are prepared to search and locate specific sources. Are there large collections of specific records? Which government agencies host websites that house the data? Has a pollster or researcher collected stories? Has a commentator summarized data on a podcast or blog? Have think tanks or research groups analyzed the issue? The search terms and key words you identified may need to be modified as you go. As you find potential sources, you must evaluate how helpful they will be. Typically, it is most helpful to define criteria by which to test the information you encounter, such as accuracy, authenticity, reliability, fairness, and comprehensiveness.41
These skills of imagining, searching, and evaluating help us identify the best sources about the fine the Church paid in 2023. First, we will imagine the information we seek: Who fined the Church in 2023? Did they give any reasons for the fine? Did the Church officially comment on the issue? Effective search terms will include the Church’s name, the agency that levied the fine, and a responsible Church unit. In this case, we can quickly discover that the fine was levied by the Securities and Exchange Commission (SEC) of the United States Government against both the Church and its financial investment group, Ensign Peak Advisors (EPA).
So then we can search more specifically: Does the SEC publish information about the fines that it levies? Is there an archive of past announcements by any of the three entities? As we evaluate the information we find, we are less interested at this stage in the musings and commentaries by journalists, bloggers, or social media influencers. We seek sources directly from the parties involved in the fine, and we discover that both the SEC and the Church host online repositories of past public statements. The SEC published a press release and a detailed report, and the Church released a formal response.42 Because these three documents were created by the parties involved (authenticity), describe their positions (accuracy, reliability), provide insight about their interactions (fairness), and describe the issues in detail (comprehensiveness), these three documents are the best sources on this topic.43
2. Read the best sources closely. Having identified the best sources—a press release, a report by the SEC, and a response by the Church—we now need to read them closely. Close reading strategies seek comprehension: What is being said? How do the parts fit with the whole? How would you summarize? What can you infer? What should we clarify? These kinds of questions help us understand what happened (and prepare us for later questions about what it might mean).
In this case of the 2023 fine by the SEC, all three documents (and especially the detailed nine-page summary) explain what we know about the parties involved, the money at stake, the charges announced, the problems they address, and how they were discovered.
About the Parties: The US Securities and Exchange Commission (SEC) was created after the Stock Market Crash of 1929 as an independent regulatory agency to enforce laws that protect the public and investors against manipulation of the US stock market.44 Ensign Peak Advisors, Inc. (EPA) was established in 1997 to manage the Church’s long-term investments, which originate from annual surpluses, investment income, and assets of other Church entities. EPA is a nonprofit charitable organization that solely advises another charitable organization (the Church), so it is exempt from federal corporate income taxes but still subject to other taxes, such as property, payroll, and so forth.
About the Money: Within the EPA reserve is a portfolio of publicly traded stocks that grew during the period in question from approximately $7 billion in 1997 to $32 billion in 2018. (In 2024, the portfolio held almost $56.9 billion.) Holdings of more than $100 million in publicly traded securities are required to be disclosed to the SEC and the public because they are large enough to play a “significant role in the securities markets as an institutional investment manager.”45
About the Charges: The SEC announced four interrelated charges. First, EPA failed to file disclosure reports (known as Form 13F) about equity investments from 1997–2019. Second, EPA filed misstated forms in 2001, 2005, 2011, and 2015 that obscured the size of the Church’s portfolio by dividing its holdings among an eventual thirteen limited liability companies (LLCs) organized in multiple locations. Third, after dividing its holdings, EPA retained control over the investment decisions of the thirteen individual LLCs. Fourth, EPA filed misstated forms on behalf of the LLCs. The avoidance of disclosure and misstatement of facts were undertaken with the knowledge of the First Presidency and Presiding Bishopric. The Church Audit Department highlighted the risk of this strategy in two audits in 2014 and 2017 but did not recommend changes. As penalty, EPA agreed to pay $4 million, and the Church agreed to pay $1 million.46
About the Problems: As described by the SEC, dividing assets is acceptable so long as the smaller entities (a) control the assets and (b) file their own forms, but in this case, EPA retained control and filed for all thirteen LLCs. The SEC press release concluded: “We allege that the LDS Church’s investment manager, with the Church’s knowledge, went to great lengths to avoid disclosing the Church’s investments, depriving the Commission and the investing public of accurate market information.”47
How the Problems were Discovered: “In May 2018, a public website reported” the existence of separate entities with domain names registered to the Church’s Intellectual Reserve, Inc. Each of the entities (the thirteen LLCs identified above) “listed a Business Manager whose name matched that of a Church employee.” The SEC began investigating and expressed its concern to EPA in June 2019. In February 2020, EPA complied by filing its first consolidated Form 13F representing holdings from the last quarter of 2019.48
About the Motives: The SEC order observed that Church leaders “sought to avoid disclosure of the amount and nature of its assets”49 due to concern that disclosure “would lead to negative consequences in light of the size of the Church’s portfolio”50 and “attract unwanted attention.”51 The statement does not describe the nature of the anticipated consequences or attention. The Church statement attributed the decision to “legal counsel regarding how to comply with its reporting obligations while attempting to maintain the privacy of the portfolio” and twice states that EPA and Church leaders “regret mistakes made.”52 Though the SEC still levied a fine, the public statements of both parties describe the Church’s motive as pursuing “privacy” while avoiding “negative consequences” and “unwanted attention.”53
3. Lay aside distracting errors. Having read the best sources closely, we are now armed with accurate and comprehensive information that will help us quickly eliminate errors, especially the errors that appear in traditional and social media reporting that can still be found by a quick internet search. As is typical in our polarized information age, two groups of errors quickly emerged as opposites. At one extreme, some gleefully recited the charges as proof that a corrupt church led by greedy businessmen got caught hiding money, avoiding taxes, laundering money, misusing funds, manipulating the market, and other nefarious malpractices. The single common origin for each of these allegations is ignorance about the role of the SEC. As the regulatory body overseeing participation in the US stock market, the SEC has absolutely nothing to do with taxes or money laundering, and it made no claims of misuse or manipulation. The SEC report demonstrates that all funds were accounted for and reported (though improperly divided up with control obscured).
At the other extreme, some well-meaning defenders were just as egregious in their use of errors to protect the Church, claiming that the Church hadn’t done anything wrong (but the Church statement accepted the charges and penalty), or that it was just a simple mistake (it was multiple decisions over many years), or that SEC law was too complicated to follow (other entities follow it). Thus, the binary framing of nothing to see here vs. all manner of evils proved to be a total distraction from the actual issues found in the best sources.
A few other errors also surfaced: Some alleged that tithing money would be used to pay the penalty, but the Church statement announced that it would use only investment returns. Some said the issues came to light because of a whistleblower in late 2019, but we know that notification had occurred earlier in May 2018.
4. Consider how to understand the information. At this point in our search, we have a lot of accurate information—about the parties, charges, and problems—and we have eliminated the distracting errors. As we continue thinking, a few significant considerations can distill upon our minds. First, it is important to note that the Church and the SEC came to a resolution. This is not a “Church vs. government” story because the Church statement accepted all the charges in the SEC order: EPA failed to disclose its total holdings in one form, EPA obscured the size and administration of Church holdings by filing through multiple LLCs, and the First Presidency and Presiding Bishopric were aware of EPA actions. Likewise, the SEC order acknowledged that the Church ceased the misstated filings in February 2020 and has complied since then.54
Second, we should also note that some information remains unknown publicly. The Church has not released information about the legal counsel it received (for example, goals and assessment of risk), nor has it commented on what the perceived negative consequences of disclosure might have been. The SEC likewise offered no comment, nor was a public comment required by law or regulation. This silence creates the gap of motive that was filled in by public discussion because humans typically dislike missing pieces of understanding. We should be careful not to fill in the gaps on this or any other topic. When we don’t know something, the best answer is always to state simply that we don’t know it (see Moses 5:6; 1 Ne. 11:17; and Alma 7:8).
Finally, having a command of the available information and the errors reveals that media outlets reported the case very differently. Some resports stuck closely to the stock market issues identified in the SEC order and the Church’s response.55 Others leaped from this story to other stories about taxes or money laundering and made allegations about motives or moral failings.56 By comparing the information in the official reports to the varying treatments in the media, we can observe the commitment of various media outlets to accuracy, reliability, fairness, and comprehensiveness, thereby helping us evaluate the media as reliable sources.
5. Prepare to help others. Our case study began with an imagined query of a brother-in-law and our report back to him will be framed by helping him receive all elements of a complete answer. As you listen and discuss, pay attention to him and what he has learned so far. What does he think happened? What sources has he studied? What personal information do we know about him that is relevant to this topic: How much does he understand about investments and the SEC? Is he suspicious of large organizations generally? Does his current consumption of traditional and social media involve either/or worldviews, partisan reporting, or conspiracy theories? Is there something else relevant from his personal life experience? Your understanding of his personal preparation will help you know which errors to call out quickly, how to share information about the specifics in this case, or if he needs more general information about why the Church needs and uses its reserves and investments. You may need to introduce some thinking skills to expand binaries, change assumptions, or assimilate all the details in a long story.
You will want to connect the information and skills with our discipleship—we follow a Savior who established a Church and taught from the wisdom of following sound management principles (including compliance with regulations). He also taught us to act with integrity, acknowledge mistakes, and make amends. During the past two hundred years, the Lord has directed his servants in both ecclesiastical and temporal matters. They (and we) learn to recognize and rely on the Holy Ghost through a process of revelation in which God often gives brief or partial instructions while allowing space for human judgment, error, and growth.
Following this process for seeking answers pays many dividends. It can help make sense of the SEC charges and prepare to answer a family member’s question. It can also help prepare to respond to additional questions. For example, the SEC fine was commonly linked in media coverage to a different whistleblower case in which a former employee of EPA named David Nielsen alleged that EPA had a $100 billion portfolio and violated its tax-exempt status by using investment revenue in for-profit businesses, specifically for insurance and the City Creek mall in Salt Lake City. The two cases are both about EPA but the contrast in details is telling. In the case of the SEC, when a possible problem was identified in May 2018, the SEC investigated, contacted the Church in June 2019, and the problem was resolved by correct reporting for the fourth financial quarter of 2019 and payment of a fine. By contrast, the whistleblower case went to the appropriate tax authorities in December 2019, and no action was taken by the Internal Revenue Service (who is responsible for tax compliance). In January 2023, Nielsen then took the issue to the US Senate Finance Committee, who likewise did not act.57 Next, Neilsen took the issue to the investigative journalism show 60 Minutes, which ran an episode in May 2023.58 In this case, the absence of response by the IRS and the Senate is revealing as Nielsen moves from audience to audience. The Church never commented on the large, round number for its investments ($100 billion), but in the same quarter that Nielson made his headline-grabbing allegation, the EPA properly filed its Form 13F with the SEC listing almost $37.9 billion. After the 60 Minutes episode, the Church did respond to media inquiries by noting it was “unfortunate ‘60 Minutes’ sought to elevate a story based on unfounded allegations.”59
Be Ready to Answer
Among the teachings attributed to Peter in the early days of Christianity is the charge for believers to “be ready always to give an answer to every[one] that asketh you a reason of the hope that is in you” (1 Pet. 3:15). During the latter days, the ongoing Restoration of the gospel has prompted questions, criticism, and attacks—including about the topic of Church finances. Believers have responded by preparing themselves to answer with accurate information, clear thinking, steadfast faith, and the guidance of the Holy Ghost. This article’s model, background information, prompts, and case study provide an opportunity to prayerfully study, practice, and reflect—to be ready to answer the questions that arise in the twenty-first century.
Appendix A: Resource List
The lists below provide important starting points for understanding Church finances. The “Resources to Share” speak to more general topics and are translated into multiple languages, whereas the “Additional Resources” speak to more specific topics and may not be translated.
Resources to Share
Overviews and/or Brief Descriptions of Broader Topics
Gérald Caussé, “In the Lord’s Way: The Spiritual Foundations of Church Financial Self-Reliance,” in Business and Religion: The Intersection of Faith and Finance, ed. Matthew C. Godfrey and Michael Hubbard MacKay (Religious Studies Center, Brigham Young University; Deseret Book, 2019), 3–19, https://rsc.byu.edu/business-religion/lords-way. This is the complete address from which the July 2018 Ensign article above was excerpted.
Rodney H. Brady, “Business: Church Participation in Business,” in Encyclopedia of Mormonism, 4 vols. (Macmillan, 1992), 1:240–43, https://eom.byu.edu/index.php/Business#Church_Participation_in_Business.
Appendix B: Addressing Church Finances in Church Curriculum
The lists below identify opportunities to add discussion of Church finances to relevant places in existing curriculum materials.
Doctrine and Covenants
Section 42—A teacher might differentiate between the law of consecration (still lived today), the United Order (a firm active in the 1830s), and United Orders (co-ops created in the 1870s).60
Section 78, 82, 104—A teacher can accurately describe the United Order (a firm active in the 1830s).
Section 118—The Lord instructs to care for the families of the Twelve.
Section 119, 120—The law of tithing and the Council on the Disposition of Tithes.
New Testament
Matthew 25:14–30—The parable of talents (a coin) draws on the wisdom of earning a return on investment, including from interest.
Matthew 22:21—Jesus teaches to comply with tax requirements.
Luke 14:28–33—Jesus draws on the wisdom of considering full project costs before building a tower.
Book of Mormon
Alma 11—Introduce the Nephite money system and explain that doing God’s work requires financial means. Note the difference between helpful uses (earning wages, paying debts) and less helpful uses (stirring up lawsuits, bribing speakers).
The Eternal Family (Religion 200)
Lesson 18—Briefly review the Church’s financial history since the 1950s to observe that Church leaders follow the same principles recommended to members (follow a budget, get out of debt, save a surplus, use the surplus for important work).
Foundations of the Restoration (Religion 225)
Lesson 5—Note that the printing and publication of the Book of Mormon required significant financial means, including the personal sacrifice of Martin Harris.61
Lesson 8—Teach that Jesus established and leads an organization.
Lesson 11—Observe that the work of gathering Israel requires spiritual and temporal resources.
Lessons 12—Observe that the establishment of Zion will require financial means to meet divine objectives, including the elimination of poverty.
Lesson 13—Note that among the laws of God are instructions about consecration of time, talents, and financial means.
Lessons 16, 19, 20—Observe that extending ordinances and covenants to the entire earth involves extensive temple building using financial resources.62
Jesus Christ and His Everlasting Gospel (Religion 250)
Lesson 11—Teach that Jesus established and leads an organization.
Lesson 12—Note that among the pure truths taught by the Savior are instructions about managing resources.
Lesson 22—Observe that the work of the ongoing Restoration requires spiritual and temporal resources.63
Teachings and Doctrine of the Book of Mormon (Religion 275)
Lesson 13—Observe that the work of gathering Israel requires spiritual and temporal resources.
Lesson 17—Teach that Jesus established and leads an organization.
Answering My Gospel Questions (Religion 280)
Be prepared to address questions about Church finances.
Keith A. Erekson is an author, teacher, and public historian who holds a PhD in history from Indiana University and a master’s in business administration from the University of Texas at El Paso.
10. See Gérald Caussé, “In the Lord’s Way: The Spiritual Foundations of Church Financial Self-Reliance,” in Business and Religion: The Intersection of Faith and Finance, ed. Matthew C. Godfrey and Michael Hubbard MacKay (Religious Studies Center, Brigham Young University; Deseret Book, 2019), 3–19; David W. Smith, “The Development of the Council on the Disposition of the Tithes,” BYU Studies Quarterly 57, no. 2 (2018): 131–55.
13. “Church Financial Administration,” Topics and Questions, accessed August 3, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration; “Church Finances,” Church History Topics; John P. Livingstone, “N. Eldon Tanner and Church Administration,” in A Firm Foundation: Church Organization and Administration, ed. David J. Whittaker and Arnold K. Garr (Deseret Book, 2011), 485–501.
16. See Keith A. Erekson, Real vs. Rumor: How to Dispel Latter-day Myths (Deseret Book, 2021), 50–61.
17. For example, in 1911, an article in Cosmopolitan Magazine stated that the Church “overtowers either the Steel Trust or Standard Oil” and that the goal of Church leaders was to “cross the Atlantic, cross the Pacific, and rule the nations of the earth” economically. See Matthew C. Godfrey, “A Snake in the Sugar: Magazines, the Hardwick Committee, and the Utah-Idaho Sugar Company, 1910–1911,” in Contingent Citizens: Shifting Perceptions of Latter-Day Saints in American Political Culture, ed. Spencer W. McBride, Brent M. Rogers, and Keith A. Erekson (Cornell University Press, 2020), 148–9.
23. “How the Church Uses Donations”; “Church Financial Administration: Why Does the Church Support Educational Institutions?,” Topics and Questions, accessed August 4, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration.
24. “Church Financial Administration: Why Does the Church Spend So Much Money on Temples?,” Topics and Questions, accessed August 4, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration?lang=eng#p_qq48a.
25.Discourses of Brigham Young, comp. John A. Widtsoe (Deseret Book, 1925), 604.
26. See “Church Financial Administration: How Much Does the Church Spend on Humanitarian Efforts?,” Topics and Questions, accessed August 4, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration. See also Matthew 19:16–22 and Acts 6:1–6.
29. See “Church Financial Administration: Why Does the Church Own Media and Insurance Companies?,” Topics and Questions, accessed August 4, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration.
31. “Church Financial Administration: Do Church-Affiliated Entities Pay Taxes?,” Topics and Questions, accessed August 5, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration.
32. For “Caring Summaries” since 2021, see “Explore the Caring for Those in Need Summary,” How Does the Church Care for Those in Need?, The Church of Jesus Christ of Latter-day Saints, accessed August 5, 2025, https://www.churchofjesuschrist.org/serve/caring/annual-summary; for 2013–2024, see collection “LDS Charities Annual Reports, 2013–2024,” Welfare and Self-Reliance Services Department, Church History Library, The Church of Jesus Christ of Latter-day Saints, https://catalog.churchofjesuschrist.org/record/7195866f-5dae-4cf0-b327-8838495bd57c/0?view=browse&. See also Dallin H. Oaks, “Helping the Poor and Distressed,” Liahona, November 2022, 6–8.
33. See “Church Financial Administration: Do Church Leaders Receive Financial Support?,” Gospel Topics Essays, accessed August 5, 2025, https://www.churchofjesuschrist.org/study/manual/gospel-topics/church-financial-administration.
36. For an exploration of these protections in historical records see Keith A. Erekson, “A New Era of Research Access in the Church History Library,” Journal of Mormon History 46, no. 4 (October 2020): 117–29.
40. Joseph F. Smith, “Opening Address,” Seventy-Seventh Annual Conference of The Church of Jesus Christ of Latter-day Saints (The Church of Jesus Christ of Latter-day Saints, 1907), 7.
41. The use of these five criteria are developed in Erekson, “How Can We Find Truth in a Sea of Information?”
47. “SEC Charges The Church of Jesus Christ of Latter-Day Saints and Its Investment Management Company for Disclosure Failures and Misstated Filings,” Press Release.
