In 2023, the U.S. Securities and Exchange Commission (SEC) announced that The Church of Jesus Christ of Latter-day Saints and its investment firm, Ensign Peak Advisors, had settled allegations over financial reporting practices. The SEC accused the Church and Ensign Peak of using shell companies to hide the size of their investment portfolio, which is valued in the tens of billions of dollars. (This was a big “shelf item” for me.)

According to the SEC, from 1997 to 2019, Ensign Peak filed financial disclosures under the names of 13 different shell companies to obscure the Church’s holdings. This approach, the SEC claims, was designed to keep the Church’s wealth out of public view. As part of the settlement, the Church agreed to pay a $1 million fine, and Ensign Peak was fined $4 million. While these penalties might seem significant, they are minimal compared to the Church’s financial resources.

The news has sparked mixed reactions. Many members of the Church expressed disappointment, questioning how such actions align with the values of honesty and integrity they’ve been taught. On the other hand, some have defended the Church, emphasizing its financial resources support humanitarian aid, missionary work, and other global efforts. However, for critics and former members, the settlement reinforces long-standing concerns about transparency and secrecy. Many see this as part of a broader pattern within the Church of prioritizing institutional image over openness. The fact that the Church is not forthright with their accounting is troublesome for me. It raises serious concerns about how such actions align with the values of honesty and integrity that were emphasized throughout my time in the Church. From my perspective, this isn’t just about money. It feels like part of a broader pattern within the Church of prioritizing protecting the institution over being open and honest. That pattern makes it hard to reconcile the principles of transparency and accountability with the actions being taken at the organizational level.

The Church addressed the matter in an official statement, noting that it “cooperated with the SEC” and remains committed to compliance. However, the Church also stated that senior leadership relied on legal counsel to approve the use of external companies for filing reports, while Ensign Peak handled the mechanics of the filings. For me, this raises a troubling question: How is it that a church led by God would not ensure that those with authority are aware when actions are not being carried out correctly or even legally? The explanation of “relying on legal counsel” feels like an attempt to pass the buck, and it doesn’t align with the expectation of divine guidance and moral accountability. Meanwhile, some reports, such as one from KUER, highlight concerns that the Church’s attempts to obscure its wealth were driven by fears of criticism or reputational harm if the true size of its portfolio became public knowledge.Critics suggest this aligns with a broader tendency within the Church to avoid scrutiny and maintain control over its narrative. (Source: KUER) While acknowledging mistakes, the Church emphasized its intent to improve transparency going forward. Well they sort of acknowledge mistakes, “We affirm our commitment to comply with the law, regret mistakes made, and now consider this matter closed.” (Source: Church Statement on SEC Settlement)

Beyond the fines and filings, the settlement raises broader questions about trust. How does an organization that emphasizes principles like honesty and humility among their members, reconcile those values with the management of vast financial resources and strategies designed to shield them from public scrutiny? For many members, this moment represents an opportunity to reflect on how the Church balances its spiritual mission with its financial stewardship.

This isn’t the first time the Church’s financial practices have come under the spotlight. In 2019, a whistleblower alleged that the Church had amassed a $100 billion reserve fund and failed to use it for charitable purposes despite its tax-exempt status. The Church responded by stating that the reserves were intended for future needs, including global emergencies and economic downturns.

For me, the SEC settlement highlights yet another example of the Church’s inability to align its actions with its teachings. While transparency is desperately needed, I don’t believe the Church sees it as a priority. Their repeated emphasis on institutional image and control overshadows the core values they profess to uphold, such as honesty and accountability. This settlement only reinforces why I can no longer support an organization that fails to live up to the principles it teaches.

For Your Information (other financial issues that concern me)

• The Church of Jesus Christ of Latter-day Saints is estimated to have a net worth of approximately $265 billion as of 2023.
• The Church owns over 2.3 million acres of land in the United States, making it the second-largest private landowner in the country.
• Investments include significant holdings in major companies such as Apple, Microsoft, and Alphabet (Google’s parent company), as of September 2023.
• Additional investments span real estate, agriculture, and commercial enterprises, such as the City Creek Center in Salt Lake City and extensive agricultural holdings through Farmland Reserve Inc.
• These resources are managed to support the Church’s religious and humanitarian missions, ensuring financial stability and funding various global programs.
• The Church assigns a monetary value to volunteer hours when reporting its humanitarian efforts. In 2023, the Church reported over $1.3 billion in expenditures and 6.2 million hours of volunteer service, valuing those hours at approximately $207 million (based on an industry standard of $33.49 per hour).
• Estimates suggest that humanitarian aid accounts for only about 0.5% of the Church’s annual expenditures, raising questions about how much of its wealth is actively used for charitable purposes.