Mormon Church has misled members on $100 billion tax-exempt investment fund, whistleblower alleges
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The complaint provides a window into the closely held finances of one of the nation’s most visible religious organizations, based in Salt Lake City.
Based on internal accounting documents from February 2018, the complaint estimates the portfolio has grown in value from $12 billion in 1997, when Ensign was formed, to about $100 billion today.
---------------------------------------PAUSE: City Creek is on this board-game
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RELATED CONTENT ON THIS BLOG:
1 30 September 2018
We are so blessed!
Just another one of those 'Revelations', published today by East Valley Tribune staff writer Jim Walsh who's getting ahead of his stories published by The Times Media Group for local consumption, framing them with a battle between "historic preservation can't beat progress" and "revitalizing" downtown Mesa.
Now he's revealing Phase 2 in the Mesa LDS Temple-area, where for-profit investment affiliates own more than 70 properties - they essentially "own the neighborhood" so we won't see any neighbors objecting. . .
Just another one of those 'Revelations', published today by East Valley Tribune staff writer Jim Walsh who's getting ahead of his stories published by The Times Media Group for local consumption, framing them with a battle between "historic preservation can't beat progress" and "revitalizing" downtown Mesa.
Now he's revealing Phase 2 in the Mesa LDS Temple-area, where for-profit investment affiliates own more than 70 properties - they essentially "own the neighborhood" so we won't see any neighbors objecting. . .
Blogger Note1: Writer Jim Walsh provides no links to the statement by CCRI Spokesman Dale Bills that he uses in the reporting and he doesn't name the CCRI 'affiliates' who own the land increasing the original Phase 1 of 4.6 acres to the 8.2 acres in Phase 2.
Blogger Note 2: Scroll down below in related content to see the sources of the announcements and revelations about earlier plans - Question: Is this really what Mesa needs?
Blogger Note 2: Scroll down below in related content to see the sources of the announcements and revelations about earlier plans - Question: Is this really what Mesa needs?
TIME FOR A REACTION?
Or cross your fingers behind your back and hope no one notices?
Blogger Note: It's very clear from statements made by Matt Baldwin, real estate development director for City Creek Reserve (CCRI)), an investment affiliate of the Church.
We’ve been planning this project for years, . .We’ve talked with city and county government leaders, city planning staff and other local developers.
Or cross your fingers behind your back and hope no one notices?
Blogger Note: It's very clear from statements made by Matt Baldwin, real estate development director for City Creek Reserve (CCRI)), an investment affiliate of the Church.
We’ve been planning this project for years, . .We’ve talked with city and county government leaders, city planning staff and other local developers.
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2 > Source: The Mormon News Room
"We’ve been planning this project for years,” said Matt Baldwin, real estate development director for City Creek Reserve (CCRI), an investment affiliate of the Church. “We’ve talked with city and county government leaders, city planning staff and other local developers. We want to enhance and beautify this block, but we also want to make sure what we’re proposing is what downtown Mesa needs,”
The revitalization, located between Mesa Drive and LeSueur Street, will include 240 apartments, 12 townhomes, 70,000 square feet of landscaped open space, ground floor retail space and 450 spaces for underground parking. Retail tenants will be accommodated in up to 12,500 square feet of ground floor space
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| Mike Hutchinson |
“What CCRI has envisioned is exactly right for downtown Mesa right now,” observed Mike Hutchinson, executive vice president of the East Valley Partnership and former Mesa city manager.
“They’ve done their homework. This project will bring renewed vitality to this key block on Main Street.”
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Pending rezoning and permit approvals, City Creek expects to begin construction in September of this year, with completion projected in 24–30 months in late 2020 or early 2021.City Creek Reserve, Inc. (CCRI) is a real estate investment affiliate of The Church of Jesus Christ of Latter-day Saints. CCRI is the master developer of City Creek, a sustainably-designed, 23-acre, walkable urban community of residences, offices and retail stores in downtown Salt Lake City, which has renewed and revitalized the heart of the city
BACK TO INFORMATION TAKEN FROM The Washington Post:
An extract:
"Nielsen’s complaint further alleges that between 2009 and 2014, Ensign pumped $1.4 billion in several installments into the City Creek Center, a shopping mall in downtown Salt Lake City. . . partly owned by the church, had also been hit by the financial crisis.
Amid complaints from members about the church venturing into retail, church leaders have repeatedly made assurances over several years that no money from tithes would be spent on developing the mall, a joint venture with the Taubman real estate group.
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On Monday, the church told The Post that through its involvement in the City Creek mall, it had “increased local economic activity during a financial downturn and attracted visitors and residents to Salt Lake City’s historic downtown.”A Taubman spokeswoman declined to comment.
Hackney, the University of Pittsburgh tax law expert, said the payments would raise red flags if they were indeed made to for-profit entities that were separate from Ensign and not recorded as investments.
While the church may argue Ensign contributes to a broader religious and charitable mission, as a separate corporate entity, it must show that “it furthers a charitable purpose exclusively on its own,” Hackney said. . .
IRS rules state that nonprofits “must not provide a substantial benefit to private interests” and that the earnings of registered religious organizations must not benefit “any private individual or shareholder” to avoid jeopardizing tax-exempt status.__________________________________________________________________________________
Former Latter-day Saint Church investment portfolio manager alleges billions in unpaid taxes, Washington Post reports
Spencer Burt fox13now.com
BLOGGER NOTE: Interesting that Church spokesman Eric Hawkins responded to FOX 13’s request for comment with the following statement, including links:Thanks for your inquiry. We receive these types of questions from time to time, and have therefore prepared a rather extensive description of the Church’s financial processes and procedures (including a Q&A section) for journalists.
Here are a few links to the resources I’ve described above:
The Church does not provide information about specific transactions or financial decisions. However, I’ve tried to gather a few important principles from within those materials
(See the links provided in FOX13 Utah site for more complete information):Principles of Church Finances
The Church of Jesus Christ of Latter-day Saints has a singular purpose: to invite all people to come unto Christ. The Church is not a financial or profit-making institution; it uses resources to carry out its divinely appointed mission. The Church is a steward of the tithes and generous donations provided by its members, and it practices the principles it teaches — avoiding debt, living within a budget and preparing for the future.
Following sound financial principles over an extended period of time, the Church has grown from meager beginnings into a worldwide organization able to support its divine mission.
Church Financial Reserves“Church members are taught to “gradually build a financial reserve by regularly saving [a portion of their income]” (Providing in the Lord’s Way: Summary of a Leader’s Guide to Welfare [booklet, 2009], 2). 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. These funds are added to Church reserves, which include stocks and bonds, taxable businesses, agricultural interests and commercial and residential property. Investments can be accessed in times of hardship or to meet the emerging needs of a growing, global faith in its mission to preach the gospel to all nations and prepare for the Second Coming of Jesus Christ (see Gérald Caussé, “In the Lord’s Way: The Spiritual Foundations of Church Financial Self-Reliance,” Church Newsroom, Mar. 2, 2018).
Some investments serve a dual purpose. For example, Church President Gordon B. Hinckley stated that “we have felt that good farms, over a long period, represent a safe investment where the assets of the Church may be preserved and enhanced, while at the same time they are available as an agricultural resource to feed people should there come a time of need” (“The State of the Church,” Ensign, May 1991, 54). Another example is the Church’s participation in the development of downtown Salt Lake City. With its investment in City Creek (a mixed-use development that includes retail space, residential units, office space and parking), the Church enhanced the environs of Temple Square and underscored a commitment to Salt Lake City, Utah, where it is headquartered. The investment increased local economic activity during a financial downturn and attracted visitors and residents to Salt Lake City’s historic downtown.
The Church’s reserves are overseen by Church leaders and managed by professional advisers, consistent with wise and prudent stewardship and modern investment management principles. Ultimately, all funds earned by the Church’s investments go back to supporting its mission to invite souls to come unto Christ.”
The Tax Status of the Church
“The Church of Jesus Christ of Latter-day Saints pays all taxes that are required by law. Latter-day Saints believe in “obeying, honoring, and sustaining the law” (Articles of Faith 1:12). Worldwide, the Church and its affiliated entities pay applicable taxes and other governmental levies. In the United States, where churches and other nonprofit organizations are generally exempt from federal and state income tax, the Church pays taxes on any income it derives from revenue-producing activities that are regularly carried on and are not substantially related to its tax-exempt purposes. Church-affiliated entities that are organized as for-profit corporations pay regular federal and state corporate income taxes on their net income. The Church and its affiliated entities also pay property taxes on property that is not used for religious, educational or charitable purposes, including taxes on undeveloped land and properties held for investment or commercial purposes. Government fees, levies and assessments are paid in connection with the development of Church property. The Church also pays federal and state employer taxes and withholds and remits employee payroll taxes. Where applicable, the Church and its affiliated entities pay state and local sales and use taxes.”
