For decades, members of The Church of Jesus Christ of Latter-day Saints (LDS Church) have faithfully paid tithing. Members believe their donations are necessary to sustain church operations. The church teaches that tithing is a commandment and that funds are essential for maintaining temples, meetinghouses, and missionary work. However, many members remain unaware that the church has accumulated a vast financial reserve. This reserve, composed of LDS donations, is enough for the Church to operate for decades without additional tithing contributions.
Even more concerning, this financial reserve was kept hidden for years, raising serious legal and ethical questions. The LDS Church and its investment arm, Ensign Peak Advisors, created shell companies to conceal these funds. This led to a $5 million fine from the U.S. Securities and Exchange Commission (SEC) in 2023. The LDS Church misled both its members and federal regulators about the true extent of its wealth. They violated transparency expectations and legal standards for financial reporting.
The $100 Billion Secret: LDS Church’s Hidden Wealth
In February, 2020 a whistleblower from Ensign Peak Advisors exposed that the LDS Church secretly amassed a $100 billion investment fund.
What is Ensign Peak Advisors?
Ensign Peak Advisors is a church-controlled, nonprofit investment firm established in 1997. It manages a vast portfolio of stocks, bonds, and real estate, making it one of the wealthiest religious investment funds in the world. Despite being a nonprofit entity, its primary role is to grow the LDS Church’s financial assets rather than fund immediate humanitarian or church-building efforts.
The revelation raised serious concerns, as church leaders continued to emphasize the necessity of tithing while privately holding more than enough funds to cover operations for decades. Historical teachings from early church leaders suggested that once the church had sufficient funds, members would no longer be required to pay tithing.
The Changing Doctrine of Tithing
Originally, tithing in the Doctrine and Covenants was defined as a donation based on an individual’s “interest”, meaning surplus income after expenses. However, as the church’s financial needs grew, leaders redefined tithing to mean a mandatory 10% of all gross income, significantly increasing financial contributions from members.
- Early church leaders taught that tithing should be temporary, only needed until the church became financially stable.
- Today, the church demands tithing payments indefinitely, despite its vast financial reserves.
- The shift in doctrine raises questions about whether the commandment is truly doctrinal or simply an evolving financial policy.
Fast Offerings and Lack of Financial Transparency
In addition to tithing, members also donate fast offerings, intended specifically for humanitarian aid and helping the poor. However, the LDS Church does not provide transparency into how these funds are used. Investigations suggest that fast offerings may be mixed with tithing, making it unclear whether donations are used as intended.
The SEC Order: LDS Church & Ensign Peak Fined for Deception
In February 2023, the Securities and Exchange Commission (SEC) fined the LDS Church and Ensign Peak $5 million for using shell companies to conceal its investment size.
According to the SEC:
- The LDS Church created 13 shell LLCs across the U.S. to file misleading financial reports.
- This deception lasted over two decades, hiding the church’s wealth from scrutiny.
- Leaders approved these actions to avoid media attention and government investigations.
Welfare Spending: Is the $1 Billion Claim Deceptive?
After the $100 billion revelation, the LDS Church started reporting close to $1 billion in welfare spending. However, serious concerns have been raised about the accuracy of this figure.
- In July 2016, Elder Dallin H. Oaks (now second in command of the church) stated that the church was spending only $40 million per year on welfare. At the time, this seemed significant—largely because the full extent of the church’s vast financial reserves remained unknown.
- In 2021, a year after the Church’s massive $100 billion fund was revealed, the church suddenly reported nearly $1 billion in welfare spending. This was an astronomical increase that raised serious questions about its timing and credibility.
- The increase from $40 million in 2016 to $906 million in 2021 represents a 2,165% increase in reported welfare spending.
- Critics, including The Widow’s Mite Report, have analyzed these claims and questioned whether the reported figures are misleading or inflated to counter public scrutiny.
The Promise of Malachi: Debunking the Tithing Blessing Myth
One of the most frequently cited scriptures in defense of tithing is Malachi 3:10, which states:
“Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it.”
LDS leaders often use this verse to promise that those who pay tithing will receive blessings, both spiritual and financial. However, this claim does not hold up under scrutiny:
- Anecdotal evidence shows no consistent correlation between tithing and financial prosperity. Many faithful tithe payers still struggle with debt, job loss, and poverty.
- The LDS Church itself does not follow this principle—it hoards wealth instead of redistributing it to members in need, contradicting the spirit of the promise.
- Historically, Malachi was addressing ancient Israelites, not modern churchgoers. The verse was never meant to be a universal financial law but rather a call for priests to stop withholding offerings meant for the poor.
Many members who have paid tithing for decades without experiencing miraculous financial returns feel guilt and shame, believing they must not have had enough faith. However, the evidence suggests that tithing works as a financial model for the institution, not for individual members. The church itself is enriched, while members are left with empty bank accounts and broken promises.
How LDS Donations Work (And Why It’s a Problem)
Many members assume that tithing is essential for the church’s day-to-day operations, yet:
- The church does not provide an itemized breakdown of donation spending.
- Funds go into investments, not immediate church or humanitarian needs.
- Unlike most nonprofits, the LDS Church is not required to disclose detailed financial records.
LDS Donations: Why Transparency Matters
We believe that the Tithing and Donations Online page from the LDS Church does not provide full transparency surrounding the issues with the donations they ask from their members. We try to promote financial transparency. Members should ask tough questions:
- Where is your money actually going?
- Why does the church hoard billions while still requiring members to pay tithing?
- Why did past prophets say tithing would end once the church had enough funds, yet today it remains mandatory?
The LDS Church’s financial secrecy should concern every member. Tithing should serve the faithful, not corporate investments. If the church values integrity, it must fully disclose how it spends donations. Until then, members should rethink their contributions.