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whistleblower on Church finances


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Posted

https://newsroom.churchofjesuschrist.org/article/church-finances-and-a-growing-global-church

Posted in 2018:

Quote

While the vast majority of its financial resources comes from the tithes and offerings of Church members, the Church also holds business interests that help in accomplishing its mission.

“Essentially,” President Gordon B. Hinckley explained, “the business assets which the Church has today are an outgrowth of enterprises which were begun in the pioneer era of our history when we were isolated in the valleys of the mountains of western America.”

President Hinckley noted the sugar beet industry, the Hotel Utah, media and merchandising interests as examples of early Church enterprises. “The Church has maintained certain real estate holdings,” he continued, “particularly those contiguous to Temple Square, to help preserve the beauty and the integrity of the core of the city. All of these commercial properties are tax-paying entities.” He observed that “the combined income from all of these business interests is relatively small and would not keep the work going for longer than a very brief period” (“Questions and Answers,” Ensign, Nov. 1985, 49).

No, not misleading at all...

Posted
5 minutes ago, bluebell said:

If it really costs the church 6 billon a year to run things, then having 16 years worth of savings that unreasonable?

Yes. Again, the church is currently earning more than 6 billion a year off its investments. So in actuality the amount saved allows the church to operate in perpetuity with no tithing income.

Posted

I hope my MIL will see the wealth and think about changing her trust fund she has with the church. She and my FIL, who is deceased now, went to each of their children a few years ago and asked how they were doing financially. And then told them that they were donating a good portion of the monies to the church. That is why my husband quit paying tithing. Maybe she may change her mind and leave some money for her grandchildren/great grandchildren for a rainy day fund for college, medical bills etc., hopefully.

Posted (edited)
1 hour ago, Navidad said:

Sorry, I just can't resist commenting on this. I have heard in ward meetings and in church publications that Church members hesitate to associate with non-Church members or allow their children to associate with non-Church member children because the faithful Church member has higher standards than non-Church members. Thus, associating with non-members might influence them to lower their standards. As a non-member, that has always bothered me. Then in the very first post on this thread I see someone who is apparently a church member offering advice on how to defraud The Washington Post of its income from subscribers - how to read articles you are not entitled to read without having to subscribe! Hmmm . . . now what about those standards? 

You do have a point even if not legal fraud. I don’t think we register the difference these days since we are used to having access to everything. Privileges we have begin to feel like rights after awhile. 

 

Edited by Calm
Posted (edited)
9 minutes ago, SeekingUnderstanding said:

He was discussing the commercial interests of the church. This fund is not in that category. 

This is what he said about reserve funds. 

“Church members are taught to “gradually build a financial reserve by regularly saving [a portion of their income]” (Providing in the Lord’s Way: Summary of a Leader’s Guide to Welfare [booklet, 2009], 2). The Church applies this same principle in its own savings and investments. In addition to food and emergency supplies, the Church also sets aside funds each year for future needs. These funds are added to Church reserves, which include stocks and bonds, taxable businesses, agricultural interests and commercial and residential property. Investments can be accessed in times of hardship or to meet the emerging needs of a growing, global faith in its mission to preach the gospel to all nations and prepare for the Second Coming of Jesus Christ (see Gérald Caussé, “In the Lord’s Way: The Spiritual Foundations of Church Financial Self-Reliance,” Church Newsroom, Mar. 2, 2018).

Some investments serve a dual purpose. For example, Church President Gordon B. Hinckley stated that “we have felt that good farms, over a long period, represent a safe investment where the assets of the Church may be preserved and enhanced, while at the same time they are available as an agricultural resource to feed people should there come a time of need” (“The State of the Church,” Ensign, May 1991, 54). Another example is the Church’s participation in the development of downtown Salt Lake City. With its investment in City Creek (a mixed-use development that includes retail space, residential units, office space and parking), the Church enhanced the environs of Temple Square and underscored a commitment to Salt Lake City, Utah, where it is headquartered. The investment increased local economic activity during a financial downturn and attracted visitors and residents to Salt Lake City’s historic downtown.

The Church’s reserves are overseen by Church leaders and managed by professional advisers, consistent with wise and prudent stewardship and modern investment management principles. Ultimately, all funds earned by the Church’s investments go back to supporting its mission to invite souls to come unto Christ.”

Edited by bsjkki
Posted
2 minutes ago, Tacenda said:

I hope my MIL will see the wealth and think about changing her trust fund she has with the church. She and my FIL, who is deceased now, went to each of their children a few years ago and asked how they were doing financially. And then told them that they were donating a good portion of the monies to the church. That is why my husband quit paying tithing. Maybe she may change her mind and leave some money for her grandchildren/great grandchildren for a rainy day fund for college, medical bills etc., hopefully.

I understand the resentment over not receiving someone else's money, what I don't understand is the willingness to admit it. 

Posted
9 minutes ago, The Nehor said:

I am also interested to hear your argument on how using incognito mode or clearing your browser’s cookies and history constitute fraud.

I think they allow 3 free articles for non-subscribers to view (or something like that). Cookies were a method of identification used and so clearing cookies can let you avoid that. It's like a fair ride where everybody gets 2 free rides but after that you have to pay. They track who comes in by stamping your hand. If you wash off the stamp and then come back in for a third ride, is that honest? I'm not so bothered by such moral complexities. The model isn't one I can support (perhaps even as an ethical imperative?). But this is a topic not really relevant to mormondialogue.org.

https://blog.mozilla.org/futurereleases/2019/02/25/exploring-alternative-funding-models-for-the-web/

Posted
59 minutes ago, hoo rider said:

Your comment doesn't make sense to me.  A whistleblower isn't required (or even given the option) to prove non-compliance with the law; that is the role of the prosecutor.  The only role the whistleblower has is to make facts available to the prosecutor that the prosecutor would not otherwise be aware of.  In other words, if a court case is filed it will not be Nielson v. Ensign; it would be IRS v. Ensign.  

 

1 hour ago, SeekingUnderstanding said:

They filed a whistleblower complaint with the irs. No need for representation. They are not suing the church. The IRS will presumably investigate and determine if there was any wrong doing. I personally doubt it. The church is anything but dumb, and I expect them to be legally in the clear. 
 

https://www.irs.gov/compliance/how-do-you-file-a-whistleblower-award-claim-under-section-7623-a-or-b

 

51 minutes ago, smac97 said:

I'm not sure about that.  Filing a whistleblower complaint is not particularly difficult.  And getting an attorney involved would likely mean A) paying the attorney up-front and out-of-pocket, or else B) letting the attorney receive a portion of the whistleblower's reward.

I work in a complex area of law (consumer finance / real estate), and I regularly see the disadvantages faced by people who try to represent themselves in legal disputes.  Most simply don't have the training and experience to navigate their suit (or defense) to a successful end (shoot, many lawyers lack the necessary training and experience).  But filing a whistleblower complaint with the IRS seems like a very different scenario.  

Thanks,

-Smac

The controversy would be for the amount of the recovery.  These cases are litigated all of the time.  With that much money at stake, you can be be sure the amount of the award would be disputed.  Nielson would have to prove how much he contributed, what information given wasn't available the IRS previously.   The amount of the potential recovery is practically guarantees the matter would be litigated. Much of the litigation would center around the content of the initial whistle blower report.

The case would be titled Nielson vs Commissioner of Internal Revenue, if it got that far. IRS Code 7623 gives jurisdiction to the US tax court.  

Of particular note 

"Any individual described in paragraph (1) or (2) may be represented by counsel." (7623 (b)(6)(B)

When the code itself mentions counsel,  I would take it seriously

Of course, he could do it pro se (like he already appears to be doing).  But there is the old saying "A lawyer who represents himself has a fool for a client"

 

Posted
11 minutes ago, SeekingUnderstanding said:

Yes. Again, the church is currently earning more than 6 billion a year off its investments. So in actuality the amount saved allows the church to operate in perpetuity with no tithing income.

Without growth that may be accurate.  If growth continues on as it has (look at the chart I posted) our numbers will more than double in the next 100 years.  6 billion will not be near enough.  Money will eventually run out. 

Posted
1 hour ago, mgy401 said:

A couple of thoughts (assuming the financial numbers in the allegation are correct):

 

Well summarized and stated (can’t give you points yet)

Posted
3 hours ago, Meadowchik said:

Joseph F. Smith, prophet at 1907 General Conference:

"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. I want to live to see that day, if the Lord will spare my life. It does not make any difference, though, so far as that is concerned, whether I live or not. That is the true policy, the true purpose of the Lord in the management of the affairs of His Church."

 

It would seem we're seeing that day.

Donations were and still are in addition to tithe ... Tithing (as are fast offerings) is a dynamic principle, and "tithes sufficient in the storehouse" means that tithes alone would pay for advancing the kingdom of God. we are not at that point yet. We are only at the point where we do not require things like budget and building assessments.

Posted

The IRS already knows everything about the church's finances. It creates a bad precedent when the IRS becomes the gatekeeper on how much a tax-exempt organization should use for charitable purposes. I'm actually proud of the church for being smart with their finances. Because you think the church should do more than they are doing does not mean that you are right. I personally hope that they get up in the trillions. 

It's hilarious that people that aren't members or don't even pay tithing have an issue with this. Please post a link to the Catholic/Baptist/JW/etc. thread that you are complaining on as well. 

Posted
3 minutes ago, juliann said:

I understand the resentment over not receiving someone else's money, what I don't understand is the willingness to admit it. 

My husband worked for his dad's business most of his life as an ironworker with his brothers, often for less money, to help their dad. They also wanted to start their own business or work with other companies for better pay and for other reasons. Their dad asked that they stay and he would make it worth it in the end. But that never happened. The other brothers still pay tithing but my husband doesnt, he figured his tithing is already being paid, but he is inactive now. And doesn't have the testimony of tithing.

Does that answer your bewilderment?

Posted
10 minutes ago, pogi said:

That was said in 1985.  My understanding is this reserve wasn't started until the mid 90's and was nowhere near what it is today. 10 years before that, his comment may have been very accurate. 

Yet it was quoted in 2018 and posted. Good way to mislead without actually lying I guess.

Posted
4 minutes ago, Lloyd Christmas said:

 I'm actually proud of the church for being smart with their finances.

Me too.  Some will see this as evidence that the Lord is behind this organization and is fulfilling Book of Mormon prophecy of prosperity in the land, and early prophecy that the church will be self-sufficient without tithe payers (said at a time when the church had nothing - remarkable!);  Others will view it as evidence that the organization has abandoned the Lord. 

Posted
16 minutes ago, juliann said:

This reminded me to pay the last of my tithing before the end of the year. 

Me too.  Love the ease of online payment. 

Posted
11 minutes ago, Danzo said:

 

 

The controversy would be for the amount of the recovery.  These cases are litigated all of the time.  With that much money at stake, you can be be sure the amount of the award would be disputed.  Nielson would have to prove how much he contributed, what information given wasn't available the IRS previously.   The amount of the potential recovery is practically guarantees the matter would be litigated. Much of the litigation would center around the content of the initial whistle blower report.

The case would be titled Nielson vs Commissioner of Internal Revenue, if it got that far. IRS Code 7623 gives jurisdiction to the US tax court.  

Of particular note 

"Any individual described in paragraph (1) or (2) may be represented by counsel." (7623 (b)(6)(B)

When the code itself mentions counsel,  I would take it seriously

Of course, he could do it pro se (like he already appears to be doing).  But there is the old saying "A lawyer who represents himself has a fool for a client"

 

Which only happens once the IRS actually collects. Are you admitting wrong doing on the part of the church!? 

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