US$100 Billion in the Fund, Spent Twice in 26 Years: Members Sue a Church Over Where Their Tithes Went

• Three members sued The Church of Jesus Christ of Latter-day Saints over their tithes
• They say the money was invested rather than spent on charity
• The church’s investment arm, Ensign Peak, is said to hold more than US$100 billion
• Its two big outlays: a US$600m insurer bailout and US$1.4bn for a mall

Three members of The Church of Jesus Christ of Latter-day Saints have filed a federal lawsuit in Salt Lake City alleging that the church misused hundreds of thousands of dollars they gave in tithes, the Associated Press reported in a story carried by the Jamaica Observer. They argue that the money was invested rather than used for charitable purposes as they had been led to expect.

The plaintiffs, Daniel Chappell of Virginia and Masen Christensen and John Oaks of Utah, say that together they have donated about US$350,000 over the past decade. Church members are expected to give a “tithing” of 10 per cent of their income. The lawsuit seeks class-action status, which could draw in millions of members, and asks for independent oversight of how donations are collected and used.

At the centre of the case is Ensign Peak Advisors, the church’s investment arm. The lawsuit says it has built up more than US$100 billion since it was created in 1997 but has spent funds only twice in its 26-year history. Those were US$600 million in 2009 to bail out a failing church-owned insurance company, and US$1.4 billion between 2010 and 2014 for a mall near Temple Square in Salt Lake City. The claims draw partly on a 90-page memo that whistleblower David Nielsen, a former Ensign Peak investment manager, sent to the US Senate Finance Committee.

It is not the first such challenge. James Huntsman, brother of former Utah governor Jon Huntsman Jr, is seeking the return of US$5 million he gave before leaving the church, and his case won an early victory on appeal. In February 2023 the US Securities and Exchange Commission fined the church US$1 million and Ensign Peak US$4 million for using shell companies to hide the size of the portfolio.

The case is a stark example of a church acting as an investor. Money given in the pews ends up in markets and commercial property as well as charity. Jamaican denominations run building funds, reserves and sometimes investment portfolios of their own, on a much smaller scale. The question the plaintiffs are asking will matter here too: whether givers were told honestly how their money would be used. Churches that invest, whether in shares, rental buildings or land, should explain the policy to members in plain terms and report on it regularly.

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