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Church Finances

This thread has been started to evaluate, research and/or understand the way the Church spends money in order to upkeep the buildings, etc. There are many things to be discussed, I will throw out a few points and you may feel free to 'run' with any of them you wish to elaborate on. I must however emphasize that you use legit references when making a point or emphasis or backup to what you are saying.

1. Do members have a right to know how their tithing is spent?
2. Why does the Curch invest in stock? Isn't that risky?
3. Are members so faithful that tithes outweigh global debt or does investment help?

Finances Church

In my opinion, no. The money I pay in tithing, doesn't belong to me. Period. No accounting is due me. It is the Lord's money. Those who spend it will be held accountable by him. If it is wasted or lost, or whatever, that is really not any of my business. It isn't my money. So, just like I have no right to know how the bank spends my car payment money, once I give it to them, how the Church spends my tithing money once I give it to them, is also not my business or concern.

Although the Church doesn't make this public, I believe the assets of the Church are VERY large. Banks aren't safe either over a certain amount so I think it is a matter of choice. The money needs to be put some place. As long as they don't invest more in stocks than they can afford to lose, it is fine with me. All investment carries risk. For the average person, saving less than $100,000 banks have no risk, but when you have more in savings than is insured by the bank (In the US this is called FDIC) then anything in that bank above the insured amount is at risk. Risk from robbery, risk from their poor investments, risk if they go out of business. With that risk, comes little opportunity for gain. Interest rates are low. The risk in the stock market, generally, comes with a greater opportunity for gain.

I don't think the Church is investing because it needs additional money. The Church carries no debt and owns many businesses in addition to collecting tithing. I think it is more a matter of it needing to be put somewhere since as I mentioned above, there are very low limits (relative to the Church's vast income) to the amount of insurance given by banks for deposits.

Also, to some extent, I think the Church has a responsibility to do what it can to reasonably make an effort towards increasing what it is given. Like the parable of the talents.

Message Edited! JB@Trinidad: Fixed incorrect use of quote tag

Church Finances Studies Doctrine Mormon

Well, is not their money anymore. It is the Lord's money, would you ask the Lord in what things he spends his money with? Although I have no problems if someone wants to tell me where my tithing goes too. But really, it is not something I'm concerned about. The commandment is to pay tithing, and that's what I do.

It is a form of gambling in my opinion and I have NO idea why the Church invest in stock when we know one of the main purposes of stock is to increase our money....

Great question. I don't know. I need to find out first what's the reason the Church invest in stocks in the first place. When you invest in stock you may win but you also lose and knowing how much money the Church handles, can you imagine the loses?.

Finances Church

Investing in stocks is not gambling if you know what you are doing and invest in the right kinds of stocks. There are many levels of risk in the stocks that can be purchased. Some are very risky, which I would agree is gambling if you buy them (junk bond of the 80's). Others have very little risk.

The church has people that know what they are doing when they invest in the stock market. Any financial planer will tell you that diversity is the key to lower risk. That is why the church owns so many businesses and is invested in so many places, stocks being one of the items in their portfolio.

I think that we all agree that once we pay tithing it is not our money and we do not need an account of what it is used for.

The church has no debt and has not been in debt for many years. Everything is paid for upfront.

Finances Church

Good, but I still don't understand why sacred money is being used on stocks.

Church Finances

Zephyr said:

Question three is not referring to the Church being in debt in the same way you are looking at it. I asked this because I am looking at debt from an accounting perspective, in other words, there is always debt or bills to be paid, this question is asking if tithing alone pays all the bills or if profits from investment also help to pay for anything owed for services rendered, electricity, tax, etc.

Church Finances

I am not sure what the answer to #3 is, but I would bet that tithing more than covers the every day running expenses of the Church. I don't think this is why they Church invests in stocks or anything else. First, they have a responsibility to Heavenly Father for what they do with what they receive.

Where should they put it?

Any place they put the large sums of money they have would carry risk. This includes banks. Anything over approximately $100,000 US, in a US bank is at risk. If the bank is robbed or goes out of business, both of which happen, you are only insured for up to $100,000 (it may be a little higher, but not more than $150,000). You lose the rest of your deposits.

Other investments they have that are not stock also carry risk. They own a number of businesses. Any business can go out of business. They would then lose that investment. So, I don't think stock is any more risky than the other investments the Church has. True, it is for the average person, because we don't have such large amounts of money. Any money we have is most likely fully insured when deposited in a bank. So, for us, a bank is an absolutely risk free investment. This isn't true in the Church's case.

Remember that not all stocks carry high risk. I doubt they buy the unproven ones, looking for a quick return on their money

Now, we could argue that they could just keep all of their money in a Church owned vault some place and have complete control over any risk. However, the parable of the talents again comes to mind. The Lord expects them, in my opinion, to take some risk in order to increase what they are given.

When the Church invests this money received through tithes and increases what they have been given, it allows them to be more generous through out the world in it's humanitarian efforts. It allows more church buildings and temples to be built. It allows more of all the good that the Church does in the world.

Edited: tenaheff on 25th Mar, 2004 - 2:14pm

Church Finances Mormon Doctrine Studies

"Simple, rejuvenating experiences surround us. They can be safety valves
to keep the tension down and the spirit up. Don't concentrate on what you
don't have or have lost. The Lord promised the obedient to share all that
He possesses with them. You may temporarily lack here, but in the next
life, if you prove yourself worthy by living valiantly, a fulness will be
your blessing."

(Richard G. Scott, "Finding Joy in Life," Ensign, May 1996, 25.)