Connect with us

U.S.

Mormon Church Accused of Stockpiling $100 Billion in Donations

Published

3 years ago

on

  • A whistleblower complaint obtained by The Washington Post alleges that the Mormon Church has amassed 100 billion dollars in accounts intended for charitable purposes. 
  • The complaint came from a Mormon who worked for Ensign, the investment division of the Church that is allowed to operate as a nonprofit. 
  • According to the complaint, Ensign has not fully operated as a nonprofit and could be in violation of tax laws. It also alleges that by stockpiling the money, the Church was defrauding its members.
  • The complaint cites Ensign’s President allegedly saying that the money was being put aside for the second coming of Jesus.

Allegations in Complaint

The Mormon Church has accumulated close to $100 billion in accounts intended for charity, according to a whistleblower complaint obtained by The Washington Post. 

The complaint was given to the Internal Revenue Service on November 21 by David A. Nielsen, a Mormon who worked for Ensign Peak Advisors, the investment division of the Church. His twin brother Lars helped him write the complaint and assemble accompanying documents. They claim that in amassing this money, the Church defrauded its members and potentially violated federal tax law. 

According to the complaint, the Mormon Church asks its members to donate 10% of their income to the Church, which is part of a common religious practice called tithing. Annually, they make $7 billion in contributions from members. It allocates $6 billion to operating costs, and the remaining one billion to Ensign. 

Nonprofits are exempted from paying taxes on their income, including religious organizations like the Mormon Church. Because of this, Ensign, which is classified as a supporting organization of the Church, makes money pretty much free from U.S. taxes. 

The Post said that Ensign’s portfolio started at $12 billion when it was formed in 1997. That portfolio now stands at $100 billion. Nielsen claims that despite its tax-exempt status, Ensign does not operate exclusively for religious, educational or other charitable purposes.

“Ensign has not directly funded any religious, educational or charitable activities in 22 years,” The Post’s report says. No documents specifically supported this claim, however, the complaint says this comes from information Nielsen learned while at the group. He is asking for Ensign to be stripped of its tax-exempt status, as well as alleging that they could owe billions in taxes. He is also seeking a reward from the IRS, which would be a portion of the unpaid taxes recovered.

Money Saved for Second Coming of Christ

According to the Post, the complaint cited Ensign’s President, Roger Clarke for the reasoning behind stockpiling the money. Clarke allegedly told people that, “the amassed funds would be used in the event of the second coming of Christ.“

In the complaint, Nielsen expressed frustration that the church had all this money but continued to ask its members, some of whom struggled financially, to keep donating.

“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?” the complaint asked. 

The complaint claimed that some of Ensign’s money had been used in the past, but not for charitable reasons. It alleges that $2 billion had been spent in the last decade improperly. The Post wrote that this sum was spent over the course of two instances to “bail out a church-run insurance company and a shopping mall in Salt Lake City that was a joint venture between the church and a major real estate company.”

Comments From Those Involved

David Nielson did not speak to the Post but his brother Lars did. 

“Having seen tens of billions in contributions and scores more in investment returns come in, and having seen nothing except two unlawful distributions to for-profit concerns go out, [my brother] was dejected beyond words, and so was I,” he said.  

The Post also reached out to the Mormon Church, however, their spokesman Eric Hawkins did not answer specific questions about the allegations at hand.

“The Church does not provide information about specific transactions or financial decisions,” he said. 

When the Salt Lake Tribune reached out for comment, they were referred to a Q&A about the church’s finances, as well as an accompanying article. 

“Church members are taught to ‘gradually build a financial reserve by regularly saving [a portion of their income],’ the Q&A says. “The Church applies this same principle in its own savings and investments. In addition to food and emergency supplies, the Church also sets aside funds each year for future needs.”

The Q&A also largely plays down the wealth of the Church. One question asks “Is the Church a rich church?” Their response states that “the strength of the Church cannot be measured by its financial holdings or real estate assets.”

“The only real wealth of the Church is in the faith of its people,” it continued.  

See what others are saying: (The Washington Post) (Salt Lake Tribune) (Forbes)

Related Topics:

U.S.

White Supremacist Propaganda Reached Record High in 2022, ADL Finds

Published

2 weeks ago

on

March 9, 2023

By

 “We cannot sit idly by as these extremists pollute our communities with their hateful trash,” ADL CEO Jonathan Greenblatt said.

White supremacist propaganda in the U.S. reached record levels in 2022, according to a report published Wednesday by the Anti-Defamation League’s Center of Extremism.

The ADL found over 6,700 cases of white supremacist propaganda in 2022, which marks a 38% jump from the nearly 4,900 cases the group found in 2021. It also represents the highest number of incidents ever recorded by the ADL. 

The propaganda tallied by the anti-hate organization includes the distribution of racist, antisemitic, and homophobic flyers, banners, graffiti, and more. This propaganda has spread substantially since 2018, when the ADL found just over 1,200 incidents. 

“There’s no question that white supremacists and antisemites are trying to terrorize and harass Americans with their propaganda,” ADL CEO Jonathan Greenblatt said in a statement. “We cannot sit idly by as these extremists pollute our communities with their hateful trash.” 

The report found that there were at least 50 white supremacist groups behind the spread of propaganda in 2022, but 93% of it came from just three groups. One of those groups was also responsible for 43% of the white supremacist events that took place last year. 

White supremacist events saw a startling uptick of their own, with the ADL documenting at least 167, a 55% jump from 2021. 

Propaganda was found in every U.S. state except for Hawaii, and events were documented in 33 states, most heavily in Massachusetts, California, Ohio, and Florida.

“The sheer volume of white supremacist propaganda distributions we are documenting around the country is alarming and dangerous,” Oren Segal, Vice President of the ADL’s Center on Extremism said in a statement. “Hardly a day goes by without communities being targeted by these coordinated, hateful actions, which are designed to sow anxiety and create fear.”

“We need a whole-of-society approach to combat this activity, including elected officials, community leaders, and people of good faith coming together and condemning this activity forcefully,” Segal continued. 

See what others are saying: (Axios) (The Hill) (The New York Times)

Continue Reading

Business

Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades

Published

2 weeks ago

on

March 8, 2023

By

Adidas has labeled 2023 a “transition year” for the company. 

Yeezy Surplus 

Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years. 

Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.

According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes. 

On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.

“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press. 

However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.

The Numbers 

Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million. 

If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.

Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.

As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval. 

Adidas has labeled 2023 a “transition year” for the company. 

“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”

See what others are saying: (The Washington Post) (The New York Times) (CNN)

Continue Reading

U.S.

Immigration Could Be A Solution to Nursing Home Labor Shortages

Published

2 weeks ago

on

March 7, 2023

By

98% of nursing homes in the United States are experiencing difficulty hiring staff. 

The Labor Crisis 

A recent National Bureau of Economic Research paper has offered up a solution to the nursing home labor shortage: immigration. 

According to a 2022 American Health Care Association survey, six in ten nursing homes are limiting new patients due to staffing issues. The survey also says that 87% of nursing homes have staffing shortages and 98% are experiencing difficulty hiring. 

The National Bureau of Economic Research (NBER) outlined in their paper that increased immigration could help solve the labor shortage in nursing homes. Immigrants make up 19% of nursing home workers.

With every 10% increase in female immigration, nursing assistant hours go up by 0.7% and registered nursing hours go up by 1.1% And with that same immigration increase, short-term hospitalizations of nursing home residents go down by 0.6%.

The Solution 

Additionally, the State Department issued 145% more EB-3 documents, which are employment-based visas, for healthcare workers in the 2022 fiscal year than in 2019, suggesting that more people are coming to the U.S. to work in health care. 

However, according to Skilled Nursing News, in August of 2022, the approval process from beginning to end for an RN can take between seven to nine months. 

Displeasure about immigration has exploded since Pres. Joe Biden took office in 2021. According to a Gallup study published in February, around 40% of American adults want to see immigration decrease. That is a steep jump from 19% in 2021, and it is the highest the figure has been since 2016.

However, more than half of Democrats still are satisfied with immigration and want to see it increased. But with a divided Congress, the likelihood of any substantial immigration change happening is pretty slim. 

See what others are saying: (Axios) (KHN) (Skilled Nursing News)

Continue Reading