The following was a letter to the editor in my local paper yesterday (Williamsport Sun-Gazette, Williamsport, PA):

Secrecy:

The Internal Revenue Code, sections 501 through 505 spelled out the rules for tax-exempts/nonprofits. The code was further amended along the way in 1969, 1976, 1984, 1987. One section of the law reads: Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, etc. Under this group are: civic leagues, boards of trade, chambers of commerce, churches, etc. For this discussion, let's reference churchs here, a 501c3 organization. In churches we have pastors, priests, secretaries, maintenance workers, etc.; all receiving their income, benefits and expense accounts from members tithes and offerings. There should be total transparency and communications with members. This, meaning duties defined commensurate with salaries. It is protocol in 501c3 organizations that this information is periodically made available to its members. The Internal Revenue Code specifically states the guidelines, therefore an organization can keep its tax-exempt status. The word here is transparency, there is no room for secrecy. Alan C. (Cogan Station)

So how can the LDS church get away with this in the USA? How come they have to disclose in the UK - but don't here? I don't understand how they can buy up and develop properties, i.e. the mega MALL, etc. that has been going on for years and not be forced to be transparent. Are there that many Mormons working for the IRS that they get a free pass? I do wish insiders from the COB would be more forthcoming - I have a friend who is a secretary there who said years ago if people only knew how much money (checks) the church cuts to cover , settle and hush-up child sexual abuse by leaders - well - it is at least on par with Catholic priests - where at least some of that has been exposed and publically delt with. The only thing going public about child sexual abuse in Mormon circles is Warren Jeffs and the Fundamentalist groups - and for sure we only know the tip of the iceberg with these folks. I want all the books opened and legitimate accountants, etc. to tell the story of where the Church stands financially. It amazes me more members don't voice their discontent - but that's how the herd goes . . . someone, please clarify how this non-transparency continues unabated.

+1

It really is quite legal and easy for the church to get away with it. The church really is divided into two entities. One is the Corporation of the President of the Church of Jesus Christ of Latter-Day-Saints and the other is the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints. The Corporation of the President is the legal entitiy that represents the tithing and charitable deductions. That side of the church builds meetinghouses,temples,missionary work and things devoted to the religious side of the coin.This side of the house is tax exempt and pays no taxes. It's finances are not released.

The Corporation of the Presiding Bishopric,specificaly a company owned by them called "Deseret Management Corporation"

http://en.wikipedia.org/wiki/Deseret_Management_Corporation

This company manages all of the for profit ventures the church owns. It pays taxes and makes sure that the profits transferred to the church are done so in a way that makes it clear that it is done as a charitable contribution from the Presiding Bishop to the President of the church. All perfectly legal.And this company is more transparent than the Corporation of the President of the Church is. This company is where you will find the mall.

The reality is that in the US churches are exempt from paying taxes as long as they don't endorse a political candidate. It is painful but how it works. In the UK the law is different.In the US churches are not required to disclose finacials. It is the way it is. The abillity to game the system and make a profit is in the genius of having incorporated into two seperate entities. A for-profit buisness arm, Corporation of the Presiding Bishop/Deseret Management and a traditional religious institution, The Corporation of the President.

This is they type of church you get when you have a religion created by lawyers and buisnessmen rather than theologians.

You are never going to see full disclosure by the church. While their are many instances of abuse we will only hear about the ones that are actually filed in court. What they do outside of court will be unknown especially since they always require litigants to sign a Non-disclosure agreement. The church has one of Utah's finest law firms "Kirton and Mc Konkie" on it's payroll in a ddition to it's own in house legal team. They know how to play the game and play it well. At least far better than they did twenty years ago.

Forgive my typing everybody, I am typing this while laying in bed and fighting with kids getting ready for school.



Edited 5 time(s). Last edit at 10/31/2013 09:28AM by whiskeytango.

People need to stop relenting on their non-disclosure of settlements with the church. If a big enough class action could be put together and all of the class members were committed to not negotiating on the issue of publishing the settlement details, even under the risk of losing millions of dollars, the church could be broken on this issue. Then everyone else who had been likewise damaged could come forward with similar suits to collect on their damages. I'm thinking that the temple death threats (pre-1990) might be such a class action issue to sue over. I would give up a million dollar settlement myself to see the church publicly face this issue and be forced to pay billions in damages as a publicly imposed punishment against them for this. After the church has admitted to their wrong doing over this, people can decide objectively if god had anything to do with it, and weather or not they want to forgive the church.