Options for Financial Transparency

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In today’s Deseret News, Boyd and Chapman then acknowledge:

Of course, it’s fair game to question whether the reserves are adequate or excessive, or whether specific actions with funds are proper, as the Post article and the whistleblower does.  Vast assets require controls and nonprofit reserve investments can be controversial.

I agree wholeheartedly: let’s start asking questions about Church finances.  But first, we need Church financial disclosures. [Read more…]

Some Thoughts About Ensign Peak Advisers and the Church

The Religion Unplugged and Washington Post stories raise (at least) three important questions. I’m going to try to address all three here (though at least one will be really quick), and I suspect that this post will be unsatisfying both to those who want to see the church vindicated and those who want to see it get its comeuppance. And that’s because, contrary to popular perception, the tax law isn’t an area full of clear answers and bright lines. It’s also because many tax issues are fact-dependent, and we lack many of the facts. To the extent that you want more information and analysis, Peggy Fletcher Stack has been doing some great reporting on this.

The three main issues I see are these:

  1. Does the church have $100 billion in securities-type investments?
  2. Should the church have $100 billion in securities-type investments?
  3. Does the $100 billion in investments violate the tax law?

Now, I have absolutely no answer to number 1. I’m slightly skeptical, just because growing $12 billion in 1997 to $100 billion today (with two significant market downturns happening in those 22 years) strikes me as requiring some pretty aggressive assumptions. On the other hand, it’s at least plausible. And notably, the church has the ability to tell us how much it’s worth. To the extent it chooses not to do so, assertions like this will continue to find traction. Since the ball’s in the church’s court here, and since I have neither knowledge of nor the ability to find out the net asset value of the church’s investments on my own, for purposes of this post, I’m going to assume that he’s right, and that the church has $100 billion invested in Ensign Peak Advisers.

[Read more…]

The Satanic Temple: Now a Church!

Maybe you heard (or maybe you didn’t): the IRS recently recognized the Satanic Temple as a tax-exempt church.

Before you react to the news, that first sentence requires some unpacking. Specifically, we need to know what the Satanic Temple is, and we need to know what it means to be recognized as a tax-exempt church.

To the extent you’ve heard of the Satanic Temple, it’s likely in one of two contexts. They both have to do with its Baphomet statues. [Read more…]

On Fred Karger, Tax Exemptions, and the Mormon Church

Today, Fred Karger asked a provocative question: should the Mormon church lose its tax exemption? To answer that question, he’s asking for certain (anonymous) tips about the church’s use of its money, though implicit in the way he frames the question is that yes, it should. In short, his argument the the church should lose its tax exemption seems to follow these contours:

  • The church has, and earns, lots of money.
  • The church engages in for-profit businesses and investments with that money, and doesn’t pay taxes on its for-profit earnings.
  • The church uses tax-deductible tithing money for lobbying, in contravention of the tax law.

He wants to collect information to ultimately file “the biggest, loudest and most comprehensive IRS challenge to a Church’s tax-exempt status in history.”  [Read more…]

Presidential Elections, Churches, and the IRS

This month, I’m guest-blogging over at PrawfsBlawg, a law professor blog. Most of what I blog there will be tax law-oriented, without any connection to religion, but occasionally there will be a religious angle. Like today, where I talk a little about the prohibition on churches’ (and other tax-exempt organizations’) endorsing or opposing candidates for office. If you’re interested, pop on over and tell me what you think.

Is My Religion Going to Get Me Audited by the IRS?

irs-audit-red-flags-the-dirty-dozenShort answer: no.

Longer answer: actually, still no.

Context:  [Read more…]

Merging Religious and Secular News(papers)

deseret_news_private_collecThe Church News is moving. It has just announced that stories from the Church News will be posted on DeseretNews.com, that LDSChurchNews.com will redirect to the DN site, and that eventually the archives will be moved as well.

Which is fine and good, I suppose. Apparently, the Church News was hosted on a platform that couldn’t be supported or upgraded.[fn1] So the consolidation seems to make sense from a technical point of view.  [Read more…]