Ensign Peak Advisors Withdrawls, Religious Tax-Exemption, And Lack of Charitable Work

The Ensign Peak Advisors controversy centers on the Church of Jesus Christ of Latter-day Saints, or rather the Corporation of the President of the Church of Jesus Christ of Latter-day Saints, doing business as The Church of Jesus Christ of Latter-day Saints, using a tax-exempt investment fund to manage hundreds of billions of dollars derived from “surplus” tithing. Despite being classified as a charitable organization, Ensign Peak has not used these funds for direct charitable purposes. Instead, the fund bailed out the church-owned for-profit venture Beneficial Financial Group and funded the development of City Creek Center mall, all while senior church leaders claimed the mall was not financed by tithing funds. Should such operations maintain tax-exempt status, given the lack of charitable disbursements and the mingling of religious donations with for-profit ventures?

The Church faces significant scrutiny over the management of Ensign Peak Advisors (EPA), its $100+ billion investment arm. Whistleblower David Nielsen revealed to the U.S. Senate Finance Committee that EPA has made only two disbursements, both benefiting for-profit ventures rather than charitable causes.

In 2009, EPA distributed $600 million to bail out Beneficial Financial Group, the church-owned insurance company. Between 2010 and 2014, $1.4 billion was allocated to Property Reserve Inc. for the development of the City Creek luxury shopping mall. These expenditures contradict repeated claims from church leaders that tithing funds were not used for these ventures. Nielsen’s revelations point to the troubling lack of transparency and accountability in how church funds are utilized.

Despite its immense wealth, the church has not leveraged EPA’s resources for substantial humanitarian efforts. While they have recently increased their humanitarian efforts, the majority of these are still local efforts made by church membership rather than global efforts by church resources. With a reserve so large that it could significantly address global hunger or poverty, this lack of good works raises obligatory questions about the church’s priorities. The church preaches continually “By their fruits ye shall know them,” (Matthew 7:20) so if service and love, transparency and truth are all core tenets of the faith, the secrecy surrounding Ensign Peak Advisors and the lack of good done by this “rainy day fund” suggests a betrayal of these values.

In 2019, whistleblower David Nielsen, a former senior portfolio manager at Ensign Peak Advisors, filed a complaint with the IRS, alleging that the firm misused its tax-exempt status. Nielsen claimed that Ensign Peak accumulated over $100 billion in reserves, with no disbursements for charitable purposes but rather funding projects like City Creek Center and Beneficial Life. He further alleged that the Church attempted to obscure the fund’s size and existence by not disclosing its assets and filing under various shell companies.

Ensign Peak Advisors (EPA) has made only two sets of distributions. Each was for profit-making, “private interests”: 1. In 2009, EPA distributed approximately $600 million to benefit Beneficial Financial Group (BFG). BFG is one of the Church’s for-profit entities, and operates as an insurance and financial services company. 2. Between 2010 and 2014, EPA distributed $1.4 billion to Property Reserve Inc. (PRI) for development of a luxury shopping mall known as the City Creek Mall. PRI used the funds to upgrade this shopping mall. - David Nielsen, former Senior Portfolio Manager, Ensign Peak Advisors Memorandum regarding Ensign Peak Advisors submitted to the U.S. Senate Finance Committee | wasmormon.org — Ensign Peak Advisors (EPA) has made only two sets of distributions. Each was for profit-making, “private interests”: 1. In 2009, EPA distributed approximately $600 million to benefit Beneficial Financial Group (BFG). BFG is one of the Church’s for-profit entities, and operates as an insurance and financial services company. 2. Between 2010 and 2014, EPA distributed $1.4 billion to Property Reserve Inc. (PRI) for development of a luxury shopping mall known as the City Creek Mall. PRI used the funds to upgrade this shopping mall. – David Nielsen, former Senior Portfolio Manager, Ensign Peak Advisors, Memorandum regarding Ensign Peak Advisors submitted to the U.S. Senate Finance Committee

Despite its immense wealth, the church has not leveraged EPA’s resources for substantial humanitarian efforts. Rather the church preaches even in the most impoverished countries that paying tithing to the church (which it doesn’t need, is not transparent with, and doesn’t do meaningful good with) will lift the faithful out of poverty.

The church’s practice of accumulating and using wealth in ways inconsistent with public declarations undermines trust. By prioritizing for-profit ventures over charitable work, the LDS Church shows it is more corporate than compassionate, alienating members who expect their tithes to reflect the gospel’s principles of love and service. It is time for the church to practice financial transparency and align its actions with its professed commitment to aiding humanity. Without this transparency, the tax-exempt status of these for-profit companies owned by the church should and must be revoked. The tax-exempt status of the entire church should even be questioned and investigated. The financial practices of the church are shown repeatedly to be barely legal and rarely honest. Look at the lies about City Creek Center misfiled SEC statements for the EPA, the money laundering through BYU in Canada, and tax evasion in Australia.

As David Nielsen states in his Memorandum regarding Ensign Peak Advisors, “it is not a charity to aid a business enterprise.” Any of this evidence along should be enough to disqualify the church entities of their tax-exempt status.

It is not charity to aid a business enterprise... Ensign Peak Advisors (EPA) has operated a for-profit securities investment business that (a) used none of its $100 billion for any religious, charitable, or educational purpose, and (b) made distributions to only two recipients, in each case to for-profit activities that are “private” interests. Distributing or transferring a combined $2 billion for an insurance company (Beneficial Financial Group) and a shopping mall (City Creek Center) clearly conflicts with EPA’s requirement to operate for religious, charitable, or educational purposes. Either of these facts is sufficient, by itself, to defeat tax-exempt status for EPA. - David Nielsen, former Senior Portfolio Manager, Ensign Peak Advisors, Memorandum regarding Ensign Peak Advisors submitted to the U.S. Senate Finance Committee | wasmormon.org — It is not charity to aid a business enterprise… Ensign Peak Advisors (EPA) has operated a for-profit securities investment business that (a) used none of its $100 billion for any religious, charitable, or educational purpose, and (b) made distributions to only two recipients, in each case to for-profit activities that are “private” interests. Distributing or transferring a combined $2 billion for an insurance company (Beneficial Financial Group) and a shopping mall (City Creek Center) clearly conflicts with EPA’s requirement to operate for religious, charitable, or educational purposes. Either of these facts is sufficient, by itself, to defeat tax-exempt status for EPA. – David Nielsen, former Senior Portfolio Manager, Ensign Peak Advisors, Memorandum regarding Ensign Peak Advisors submitted to the U.S. Senate Finance Committee

A fund of $150 billion could profoundly impact world hunger and poverty. Estimates from global organizations (GlobalGiving, Gray Group International, and Giving Compass) suggest it could eradicate extreme hunger. With $150 billion, the church could fund programs that provide several years of robust interventions, including improving agricultural systems, distributing food, and bolstering economies in impoverished regions.

It makes me feel pretty nauseous, to be quite honest, because although it's good to see a church investing funds in blue chip investments, that has to be balanced against how those funds could be used to benefit the lives of individuals and families. Even if it were only individuals and families within the church, a lot of people who are suffering could have their suffering alleviated if instead instead of diverting those monies into investment, they invested in individuals and families. - Neville Rocco, Australian Barrister, Former Mormon, Bishop, Free-thinker - The Fifth Estate, October 27, 2022 | wasmormon.org — It makes me feel pretty nauseous, to be quite honest, because although it’s good to see a church investing funds in blue chip investments, that has to be balanced against how those funds could be used to benefit the lives of individuals and families. Even if it were only individuals and families within the church, a lot of people who are suffering could have their suffering alleviated if instead instead of diverting those monies into investment, they invested in individuals and families. – Neville Rocco, Australian Barrister, Former Mormon, Bishop, Free-thinker – The Fifth Estate, October 27, 2022

The World Food Programme (WFP) has indicated that $40 billion annually would be sufficient to address immediate food insecurity through targeted aid programs. This figure is considers the logistics of food distribution, infrastructure, and emergency relief in hunger-stricken areas. The broader cost to end hunger entirely, including addressing systemic factors such as poverty, poor agricultural infrastructure, and climate impacts, ranges widely from $7 billion to $265 billion annually. Understandably, ending hunger sustainably involves not just feeding people but transforming agricultural systems, reducing food waste, and addressing economic inequities.

A reserve like Ensign Peak’s $150+ billion could certainly provide funding for such efforts for multiple years, depending on how the funds are allocated. For poverty, funds could expand access to clean water, education, and healthcare, lifting millions out of deprivation. This amount, strategically invested, could create sustainable, life-changing impacts for billions worldwide, aligning resources with humanitarian priorities.

Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give to the poor, and thou shalt have treasure in heaven: and come and follow me.
Matthew 19:21
https://www.churchofjesuschrist.org/study/scriptures/nt/matt/19?lang=eng&id=p21#p21

“It's a large set of Corporations that have, as a sideline, a religion... I mean it's just so obvious. That's where the fundamental modeling of the Mormon church, to me, is just wrong, as a religious institution. It cannot justify itself as a religion because it is profit-taking rather than profit-distributing.” - Neville Rocco, Australian Barrister, Former Mormon Bishop Mormon Church Accused of Ripping Off Taxpayers by Millions, 60 Minutes Australia | wasmormon.org — “It’s a large set of Corporations that have, as a sideline, a religion… I mean it’s just so obvious. That’s where the fundamental modeling of the Mormon church, to me, is just wrong, as a religious institution. It cannot justify itself as a religion because it is profit-taking rather than profit-distributing.” – Neville Rocco, Australian Barrister, Former Mormon Bishop Mormon Church Accused of Ripping Off Taxpayers by Millions, 60 Minutes Australia

The New Testament offers a powerful parallel where Jesus essentially tells a wealthy young man, “If you want to be perfect, go, sell your possessions and give to the poor, and you will have treasure in heaven. Then come, follow me.” This story emphasizes the principle that true discipleship involves prioritizing the welfare of others over material wealth. For an institution that claims to follow Christ, this passage contradicts the church’s use of these vast financial resources. If the goal of Christlike living is to alleviate suffering and uplift the downtrodden, the Church’s reserve represents an extraordinary opportunity to embody these principles on a global scale. Yet, its inaction in humanitarian efforts can’t help but raise doubts about its intentions and alignment with Christ’s teachings.

"Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give to the poor, and thou shalt have treasure in heaven: and come and follow me." - Matthew 19:21. “The Church has accumulated more monetary assets than many of the world's wealthiest institutions.” thewidowsmite.org. "By their fruits ye shall know them" - Matthew 7:20 | wasmormon.org — “Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give to the poor, and thou shalt have treasure in heaven: and come and follow me.” – Matthew 19:21. “The Church has accumulated more monetary assets than many of the world’s wealthiest institutions.” thewidowsmite.org. “By their fruits ye shall know them” – Matthew 7:20

True faith demands accountability and an unwavering commitment to love and service. The church demands an unwavering commitment to the church authority and leadership, not the principles of love. This monetary reserve could be a transformative force for good, echoing the Savior’s call to forsake riches for the betterment of humanity. And the church could do even more good by realigning it’s center to be a force for good rather than a force for maintaining authority. Ironically, the church curriculum is titled “Come follow me,” but they do little along these lines, especially when compared to the impact they could have.

Would you make fewer mistakes, as Elder Kyle McKay, the Executive Director of the Church History Department asks in his rhetorical question, “Would there have been fewer mistakes, fewer messes, if God had only restored His Church and gospel through you?” Imagine you, or any generous charitable individual, were the leader of the church. What would you do with these funds to better the world? Would you do things differently? Do you find the LDS church to be Christlike in action? Please share your thoughts and comments below, or consider sharing your own questions, doubts and reconciliations or deconstruction of your Mormon faith in your own Mormon Story at wasmormon.org.

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