Finances of the Church of Jesus Christ
The Church of Jesus Christ of Latter-day Saints (sometimes erroneously called the "Mormon Church"), is a worldwide church and the fourth largest religion (at 2 percent of the population) in the United States,  but it is still small at 16.5 million members worldwide (2019). The Church has a reputation for being wealthy, mostly because of its sound financial practices, which follow guidelines the Lord has set. Because of the success of the Church, some try to find worldly excuses for its financial soundness, but it is possible to be successful following eternal principles — no cheating allowed.
- 1 History of the Finances of the Church of Jesus Christ
- 2 The Biblical Principle of Tithing
- 3 The Finances of the Church of Jesus Christ
- 4 Use of Funds
- 5 A Lay Clergy
- 6 Church Statement Regarding its Financial Dealings
- 7 Church Issues Statement on SEC Settlement
- 8 See also
- 9 External Links
- 10 References
History of the Finances of the Church of Jesus Christ
The Church of Jesus Christ was established as the restoration of the ancient Church of Christ, with the same organization as was had in the primitive church. The image of the early apostles performing their ministry without "purse or scrip" holds true today. There is no paid clergy in the Church, and members are called to split their time between their worldly pursuits and church service, for which they are untrained. They learn as they serve through inspiration from God. Thus, in the first days of the restoration of the gospel of Christ (early 1800s), those who were able donated what they could to forward the work of the Lord. Martin Harris donated the funds for the first printing of the Book of Mormon and others allowed the prophet, Joseph Smith to stay in their homes when necessary for him to work on scriptural translations.
The Latter-day Saints established themselves in New York and Pennsylvania, but were soon driven out. They gathered in Kirtland, Ohio, where many were extremely poor. Speculation was rife in the United States at that time, and some of the early members of the Church became caught up in that. Land prices rose in Kirtland. With the financial crash of 1837 in the U.S., the bank established in Kirtland failed, leading again to the destitution of the Saints. Driven out of Kirtland, the members of the Church of Jesus Christ gathered in Missouri, again mostly impoverished. When the Saints were driven out of Missouri, most of their goods and cattle were confiscated by mobs, and they had to begin again in Nauvoo, Illinois. The Saints built Nauvoo into a large, beautiful city during the five or so years they were there. Prosperity increased during this time. But then the prophet, Joseph Smith, was martyred and the Saints were driven out to begin their famous exodus to Utah. Again, they started over.
Once in Utah, the Saints struggled again, but gained a foothold and increased in financial stability, establishing agricultural and manufacturing cooperatives along the way. However, in Utah the Church of Jesus Christ publicly revealed its practice of polygamy (which was discontinued by revelation in 1890). The result was a series of more and more onerous acts of American congress, eventually leading to the confiscation of Church property, the suspension of citizens' right to vote, the incarceration of the men of the Church, etc. Under the prophet, President Lorenzo Snow, the Church was in debt to the tune of $2.3 million.
As was had in ancient times, and as commanded by God, the members of the Church of Jesus Christ made donations by paying "tithing," which is ten percent of one's increase, sometimes paid "in kind" (contributing goods). Members were afraid to pay tithing, assuming that the federal government would just confiscate it. After receiving a revelation concerning the suffering Saints in St. George, Utah, where there was a severe drought, Lorenzo Snow, promised them that if they would pay tithing, rain would come, and they would prosper. This came to pass. Other times of leanness included the period of the Great Depression, during which time the Church of Jesus Christ established a welfare system that encouraged self-reliance, now a shining light to governments everywhere that desire to copy its principles.
The Biblical Principle of Tithing
The main source of the financial strength of The Church of Jesus Christ of Latter-day Saints is tithing. (See Doctrine and Covenants 119:4.) Members also contribute other voluntary donations and volunteer service as part of charity. All offerings, including tithing, are voluntary, and are also confidential — no collection plate is passed around during Latter-day Saint church services, and there are no plaques identifying donors in Latter-day Saint meetinghouses or temples. Since the paying of tithes has been a scriptural principle since ancient times, and since sacrifice is a foundational principle of the gospel, the paying of tithing is basic as a demonstration of faith in the Lord Jesus Christ. Therefore, only a full tithe-payer qualifies to enter Latter-day Saint temples and make higher covenants there. However, a member tells his or her bishop whether he or she is a full tithe-payer, and the bishop accepts that declaration as truth.
- Latter-day Saints regard the payment of tithing as a privilege and often tell of spiritual and financial blessings that have come through obedience to this law (Encyclopedia of Mormonism, p. 508).
There are very exact procedures for the collection and management of tithing funds on every level. These procedures are standardized worldwide. Other sources of income for the Church of Christ include limited business investments. These investments all relate to the welfare of the Saints (communications for broadcasting Latter-day Saint media or farms for raising food for the welfare system, for example). The Church accrues financial reserves for difficult times, and pays even for its temples in cash. The Church of Jesus Christ has no debt.
Specially dedicated funds also exist in The Church of Jesus Christ of Latter-day Saints to which members (and friends of other faiths) may donate as able. Donations go to various funds. These funds include the ward missionary fund (to help local missionaries), the general missionary fund (to help finance missionaries in other locations), the Humanitarian Aid Fund, and other funds such as the temple construction fund, and the Perpetual Education Fund (which helps to educate poorer members who have finished serving missions).
A large part of Latter-day Saint tithing funds are allocated to the construction of meetinghouses and temples, as the Church of Jesus Christ grows quickly around the world. Although members clean the meetinghouses in many locations, there are a myriad of other operating costs, including updating of buildings and temples.
On the first Sunday of each month, members of the Church of Jesus Christ fast for two meals and donate the money they would have spent on food to the benefit of the poor in the form of a fast offering. If a family has financial problems, they may be able to obtain goods from a nearby Bishop's storehouse, stocked with groceries. Some of these foodstuffs come from dairies and orchards and canneries owned by the Church and manned by volunteer members. Other products are purchased with "fast offerings." The poor may also obtain temporary financial assistance, along with employment counseling and other helps.
Like tithing, fast offerings are collected by the local congregation (branch or "ward"), but unlike tithing, they are first used for local needs with the excess then sent to Church headquarters.
The Finances of the Church of Jesus Christ
The Church of Jesus Christ has a Council on the Disposition of Tithes. It comprises the First Presidency, the Quorum of the Twelve Apostles, and the Presiding Bishopric. This council supervises all expenditures worldwide and establishes financial policies. There are two subcommittees: the Budget Committee, and the Appropriations Committee, again comprising the General Authorities of the Church. Financial controls consist of sound financial policy, budgeting, organizational structure, and regular comprehensive audits (Encyclopedia of Mormonism, p. 509). The "Audit Committee" is made up of experienced businessmen who are neither General Authorities of the Church nor employees of the Church. It is independent of all other departments of the Church. This and other committees ensure that the Church adheres to ethical practices and set procedures.
There are other boards and committees that supervise investments and participation in business. General Authorities of the Church also participate in these committees. The Deseret Management Corporation has its own board of directors. The DMC functions as a holding company for most of the commercial businesses owned by the Church. The DMC entities include Beneficial Life Insurance, Bonneville International, Bonneville Communications, Deseret Book, Deseret Digital Media, Deseret News, and Temple Square Hospitality. These companies pay the same taxes as do commercial corporations. Some properties are held to support the religious efforts of the Church, for development of sacred sites, and for the building of meetinghouses and temples. The Church has divested itself of many commercial holdings in recent years.
Use of Funds
The Church uses most of its financial resources to construct and maintain buildings and other facilities. The Church also spends its donations on providing social welfare and relief and supporting missionary, educational, and other Church-sponsored programs. The Church does not pay its local leadership, though General Authorities and mission presidents, who serve in these capacities full-time, can receive monies from the Church in the form of housing, living allowances, and other benefits while they are on assignment. (No funds are provided for services rendered.)
- Construction of facilities
The Church builds additional Latter-day Saint chapels (structures used for weekly worship services and for baptisms) and temples as wards and branches of the Church are organized. On average, the Church of Jesus Christ builds a little more than one chapel a day. The Church built approximately 40 smaller temples between 1998 and 2001.
- Maintenance of facilities
The Church pays to maintain its chapels and temples around the world. These costs include repairs, utilities, grounds maintenance, and specialized custodial work. Members also assist with cleaning local chapels by providing general custodial work. These facilities are cost-centers for the Church of Jesus Christ, and maintaining them represents a significant use of the Church's income. The materials used in church classes and the budgets to run activities and other things done by the various congregations of the Church are also centrally funded. It also funds the printing and distribution of manuals for classes, and funds all congregational activities through centralized budgeting.
- Social welfare and relief
The Church operates a welfare distribution system, as it encourages members to seek financial assistance from family and the Church's charity first before seeking public or state-sponsored welfare. AgReserves Inc., Deseret Cattle and Citrus Ranch, and Farmland Reserve, Inc. are part of its welfare distribution system. Welfare resources are distributed by local bishops but maintained by the Presiding Bishop. Welfare resources are also sent for relief aid to victims of natural disasters such as earthquakes, tsunamis, hurricanes, and others around the world. The relief effort has been recognized through many organizations and political leaders, including the United States leaders in reaction to the Hurricane Katrina relief effort by the Church. In 2015, in addition to help already given to aid refugees from the Middle East, the Church proffered another $5 million dollars worth of aid.
The Humanitarian Aid efforts of the Church of Jesus Christ are so well-managed with Latter-day Saint volunteer labor that virtually one hundred percent of donations to the humanitarian aid fund go to the needy. There are both emergency and ongoing projects admired the world over. The Church of Jesus Christ often partners with other reputable charitable entities to get aid to stricken regions quickly, and is often the last to leave, rebuilding devastated areas after disasters. Thus, the Church is the ideal venue for donating to Humanitarian Aid.
- Church Educational System
From member donations the Church funds a large Educational System (CES) consisting of several institutions that provide religious and secular education for both Latter-day Saint and non–Latter-day Saint elementary, secondary, and post-secondary students and adult learners. CES courses of study are separate and distinct from religious instruction provided through Church congregations. The Church owns and subsidizes education at three universities, one business college, and an online higher education program.
- Other programs
The Church also spends much of its money collected through member tithing on missionary, educational, and other programs which the Church of Jesus Christ considers to be within its mission. Although the families of Latter-day Saint missionaries (usually young men ages 18–25 or young women ages 19–25) generally pay US $500 a month for missions, additional general funds of the Church support missionaries unable to pay for their own missions. Additionally, the Church of Jesus Christ provides a mission office and mission home for each of its more than 400 missions and pays for media advertising offering free copies of the Book of Mormon, the Bible, and church-produced videos and DVDs. The cost of printing or producing these materials is also covered entirely by the Church since they are distributed for free. In addition, it supports its Seminary and Institute programs with tithing money.
A Lay Clergy
Every member serves in some capacity in the Church of Jesus Christ, as there is no professional clergy, no divinity school to provide training for ministers or administrators. All callings except for the General Authorities of the Church are temporary. Missionaries support themselves in the mission field. If they can't afford it, they appeal to their families and then to the Church. The Church does, however, pay their transportation to and from their missions. Mission presidents and General Authorities must leave their professional vocations to serve full-time in the Church, so they receive a modest living allowance provided from income on Church investments and not from the tithes of the Saints.
Church Statement Regarding its Financial Dealings
In July 2012 Bloomberg Business Week came out with a cover that was a sacrilege to The Church of Jesus Christ of Latter-day Saints and raised the ire of other religions for its bigotry. Depicting the sacred event of Prophet Joseph Smith and associate Oliver Cowdery receiving the restoration of the Aaronic Priesthood at the hands of the resurrected John the Baptist (one of the most holy events in religious history), the doctored work of art by C.C.A. Christensen shows the Baptist instructing Joseph to establish all sorts of for-profit entities.
Among others who decried both the article and the cover, the Deseret News    refuted claims in the article. The tone of the article was to expose all the money-earning interests of Church of Jesus Christ, but never mentioned its outlay. Just one of the Church's programs — its remarkable welfare program — keeps millions of people from needing state or federal assistance when they encounter financial hardships. An article in the Washington Post recommended letting the Church of Jesus Christ take over U.S. finances to right America's financial woes. The article was humorous but went a long way in showing that the Church of Jesus Christ's well-managed finances and complete freedom from debt should be admired rather than ridiculed.
The Church of Jesus Christ of Latter-day Saints responded with the following explanation:
- The growth of The Church of Jesus Christ of Latter-day Saints from a fledgling band of frontier Americans to a global faith that blesses the lives of millions is one of the great religious success stories of the 19th and 20th centuries.
- From the very beginning, members of the Church displayed a remarkable ability to set aside material things for spiritual goals. One of the earliest Church members, Martin Harris, mortgaged his farm to pay for the publication of the Book of Mormon. Other examples of self-sacrifice among the early Latter-day Saints abound.
- Driven from place to place — from Missouri to Illinois to the far reaches of the western frontier — Church members several times abandoned their homes, farms and cottage businesses they had lovingly nurtured. By the time they made the final great trek across the American Plains to the Rocky Mountains, many were already impoverished. Those who came by handcarts because they could not afford wagons are a poignant testimony to that fact.
- Brigham Young once remarked that if the Latter-day Saints could have 10 years unmolested in the Rocky Mountain valleys, they would establish themselves as an independent people. Over time, Brigham Young’s vision of a thrifty, independent and spiritual people largely came to be realized.
- Complete financial independence and freedom from debt would take several decades, however. Historians today point to the early 1900s as the time when the Church finally began to turn the corner and free itself from decades of indebtedness — specifically highlighting a sermon by Church President Lorenzo Snow in which he called on the Latter-day Saints to renew their commitment to the principle of tithing.
- Tithing is an ancient biblical principle and has been practiced by many churches through the centuries. Independent studies show, however, that nowhere else in America today is the principle of tithing so widely and faithfully followed as among members of The Church of Jesus Christ of Latter-day Saints. The vast majority of the income used to manage the Church comes from tithing, not from businesses or investments.
- Tithing has thus proved to be an enormous blessing to the Church and its people, along with simple but sound economic principles such as avoiding debt, living within one’s means and setting aside funds for a rainy day.
- The key to understanding Church finances is to understand that they are a means to an end. They allow the Church to carry out its religious mission across the world.
- Does the Church own for-profit businesses? Yes. In the Church’s earlier history as it was establishing itself in the remote Intermountain West, some of those businesses were necessitated by the simple fact that they didn’t exist elsewhere in the community. Gradually, as private businesses developed and the need for Church-owned businesses diminished, they were sold off, donated to the community or discontinued. Zions Bank and the LDS Hospital system are examples.
- Today, the Church’s business assets support the Church’s mission and principles by serving as a rainy day fund. Agricultural holdings now operated as for-profit enterprises can be converted into welfare farms in the event of a global food crisis. Companies such as KSL Television and the Deseret News provide strategically valuable communication tools.
- Tithing funds are used to support five key areas of activity:
- Providing buildings or places of worship for members around the world. We have thousands of such buildings and continue to open more, sometimes several in a week.
- Providing education programs, including support for our universities and our seminary and institute programs.
- Supporting the Church’s worldwide missionary program.
- Building and operating nearly 140 temples around the world and the administration of the world’s largest family history program.
- Supporting the Church’s welfare programs and humanitarian aid, which serve people around the world — both members of the Church as well as those who are not members.
- From time to time, some people, including journalists, try to attach a monetary value to the Church in the same way they would assess the assets of a commercial corporation. Such comparisons simply do not hold up. For instance, a corporation’s branch offices or retail outlets have to be financially justified as a source of profit. But every time The Church of Jesus Christ of Latter-day Saints builds a place of worship, the building becomes a consumer of assets and a financial obligation that has to be met through worldwide member donations. The ongoing maintenance and upkeep, utilities and use of the building can only be achieved as long as faithful members continue to support the Church.
- On occasion someone will try to estimate the Church’s income and determine how much of that is used to care for those in need. Again, they rarely capture the whole picture. The bedrock principles underlying the Church’s welfare and humanitarian efforts are Christlike service and self-reliance.
- Nearly 30,000 bishops who oversee their respective congregations have direct access to Church funds to care for those in need, as they help members achieve self-sufficiency.
- At Welfare Square in Salt Lake City, where the Church cans goods for its distribution warehouses, some procedures would be more efficient if automated. Instead, the Church has opted for more labor-intensive production lines that provide opportunities for people to give service and for welfare recipients to work for what they get. This is not the pattern of a commercial business, but it is the pattern for helping people to help themselves. The Church’s aim is to help individuals to overcome temporal barriers as they pursue spiritual values.
- Published numbers related to our humanitarian efforts include only dollars spent directly on humanitarian service. The Church absorbs the administrative costs. Furthermore, these numbers do not reflect the Church’s extensive welfare and employment services that serve many thousands worldwide. They also do not represent Deseret Industries thrift stores that provide vouchers to other charities for their use, donations to food pantries, or humanitarian- or welfare-focused missionary service or support given to aid other relief organizations in their missions. Hundreds of thousands of hours of donated service underpin Church programs such as these.
- The Church exists to improve the lives of people across the world by bringing them closer to Jesus Christ. The assets of the Church are used in ways to support that mission. Buildings are built for members to come together to worship God and to be taught the gospel of Jesus Christ. Missionaries are sent to invite people to come to Christ. Resources are used to provide food and clothing for the needy and to provide ways for people to lift themselves up and be self-reliant. What is important is not the cost but the outcome. As former Church President Gordon B. Hinckley said, “The only true wealth of the Church is in the faith of its people.”
- Those who attempt to define the Church as an institution devoted to amassing monetary wealth miss the entire point: the Church’s purpose is to bring people to Christ and to follow His example by lifting the burdens of those who are struggling. The key to understanding the Church is to see it not as a worldwide corporation, but as millions of faithful members in thousands of congregations across the world following Christ and caring for each other and their neighbors. 
Church Issues Statement on SEC Settlement
The Church released the following statement on Tuesday, February 21, 2023.
- The Church of Jesus Christ of Latter-day Saints and its affiliated investment manager, Ensign Peak Advisors, Inc., have settled a matter with the Securities and Exchange Commission (SEC).
- Investment managers who oversee a portfolio of public equities above a certain threshold are required to file Forms 13F with the SEC quarterly. These forms publicly disclose the names of the securities and their values.
- Since 2000, Ensign Peak received and relied upon legal counsel regarding how to comply with its reporting obligations while attempting to maintain the privacy of the portfolio. As a result, Ensign Peak established separate companies (LLCs) that each filed Forms 13F instead of a single aggregated filing. Ensign Peak and the Church believe that all securities required to be reported were included in the filings by the separate companies.
- In June 2019, the SEC first expressed concern about Ensign Peak’s reporting approach. Ensign Peak adjusted its approach and began filing a single aggregated report. Since that time, 13 quarterly reports have been filed in full accordance with SEC requirements.
- This settlement relates to how the forms were filed previously. Ensign Peak and the Church have cooperated with the government over a period of time as we sought resolution.
- We affirm our commitment to comply with the law, regret mistakes made, and now consider this matter closed.
The statement also provided a section of answers to frequently asked questions. (See Church newsroom, "Church Issues Statement on SEC Settlement".)
- Mormon Money
- Mormon Tithing
- LDS "Mormon" Philanthropies
- Humanitarian Efforts
- LDS Family Services
- Perpetual Education Fund
- Employment Programs
- Deseret News. "What church leaders have said about the use of tithing funds through the years"
- Deseret News, "Church finances: Presiding Bishopric offers unique look inside financial operations of growing faith"
- Church News, "What the Presiding Bishopric has to say about the finances of the Church and the faith of its members"
- Washington Post, "The generosity of the faithful"
- Public Square Magazine, "A Financial Journey: Fulfilling Prophecy, Blessing Saints"
- Hinckley, Gordon B. "The Widow's Mite". BYU Speeches. 17 September 1985. See BYU Speeches.
- Wikipedia, "Finances of The Church of Jesus Christ of Latter-day Saints"
- "The Stake President’s Role in Welfare Services," General Conference, October 1978