Mormon Church Whistleblower Accuses Organization Of Lying To Members, Stockpiling Donations

A whistleblower complaint leveled against the Mormon Church alleges serious and potentially illegal mismanagement of donations.

Submitted to the IRS on Nov. 21 by a former investment manager, the complaint claims that the Church of Jesus Christ of Latter-day Saints has stockpiled $100 billion dollars in surplus donations from members, according to a report from the Washington Post.

The whistleblower, David A. Nielsen, 41, further alleges that the church misled members about the funds they were donating, which were supposed to be used for charitable causes. He also claims that the church used the tax-exempt status given to it as a religious organization to benefit a pair of businesses.

Nielsen previously worked as a senior portfolio manager for Ensign Peak Advisors, an investment firm founded by the church in 1997 to handle surplus tithing funds. Roughly $7 billion in donations are collected from members every year, $1 billion of which is funneled into Ensign.

In order to qualify for tax-exempt status, religious organizations and charities are required to engage in a sufficient level of charitable activity relative to its financial assets. Nielsen alleges that Ensign has not engaged in any “religious, educational, or charitable activities in 22 years.” Therefore, he argues, it should be stripped of its exempt status and the non-profit could owe billions in taxes.

Former IRS employee Philip Hackney told the Post that the issues raised by Nielsen are of “legitimate concern.”

“If you have a charity that simply amasses a war chest year after year and does not spend any money for charity purposes, that does not meet the requirements of tax law,” Hackney explained.

Mormon church historian D. Michael Quinn also said that the $7 billion estimates might be lower than the real figure.

Nielsen also explained Ensign President Roger Clarke’s alleged reasoning for the organization sitting on so much money, saying that the funds would be used in the event of the Second Coming of Jesus Christ. He is intensely critical of this, claiming that the church has continued to call for tithes even from its poorest members.

“Would you pay tithing instead of water, electricity, or feeding your family if you knew that it would sit around by the billions until the Second Coming of Christ?” Nielsen asks in the complaint.

The church declined to comment on the complaint.

“The Church does not provide information about specific transactions or financial decisions,” spokesperson Eric Hawkins said in a statement.