Church Financial Administration

The Church of Jesus Christ of Latter-day Saints was organized to help God’s children come unto Christ and to assist in God’s work of salvation and exaltation. This work focuses on four God-given responsibilities: living the gospel of Jesus Christ, caring for those in need, inviting all to receive the gospel, and uniting families for eternity. To help accomplish this work, God has commanded His children to live the law of tithing. Members of The Church of Jesus Christ of Latter-day Saints strive to be obedient to this law. The Church uses tithing and other donations, along with the Church’s reserve funds, to carry out its divine mission.

Elder David A. Bednar emphasized a basic principle of the Church when he taught: “The Church lives within its means and does not spend more [income] than it receives. … A portion of the annual income is set aside as a reserve for contingencies and unanticipated needs.” As the Church follows long-established, scriptural principles, it will have the funds needed to continue to grow throughout the world and bless all of Heavenly Father’s children as we prepare for the Second Coming of Jesus Christ.

There are four principles that guide how the Church manages its finances:

• God’s law of tithing. The Bible and the Book of Mormon teach that God commanded His people to obey the law of tithing anciently. God reestablished this divine law in our day through the Prophet Joseph Smith. For more information about tithing, see the “Tithing” Gospel Study Guide.

• Self-reliance and avoidance of debt. The Church teaches individuals and families to manage their money and avoid unnecessary debt to maintain independence. Likewise, the Church follows this same principle in managing its financial resources. Doing so allows the Church to fulfill its divine mission without being dependent on other entities.

• Preparing for the future. Just as members of the Church are encouraged to save money and store food and supplies for the future, the Lord has directed His Church to do the same. As directed by the Lord, Church leaders set aside a portion of the Church’s income as reserves. Qualified Church personnel and professionals oversee the investment of Church reserves for current and future needs.

• In the Lord’s own way. All financial matters in the Church are ultimately subject to the Lord’s direction through His chosen leaders. For example, two of the largest current expenditures are education and the maintenance of temples and meetinghouses. Elder Neil L. Andersen taught a gospel truth when he declared that tithing donations to the Church “belong to the Lord” and not to the leaders of the Church or to Church members.

While the early period of the Restoration of the Church “was a time of unprecedented growth and spiritual outpouring, most of these early Saints were extremely poor and lived in precarious conditions. They had sacrificed everything—often prosperous farms and well-established professions—to follow Jesus Christ and His prophet Joseph Smith.”

For much of the 1800s and early 1900s, the Church and many of its members faced severe financial hardship. Since then, the Church has experienced periods of both prosperity and financial adversity.

In the 1960s, after a period of financial struggle due to international growth and an expansive building program, the Church strengthened its financial plan, limited expenses, and set aside a portion of the donations it received. This helped the Church repay its debts and gradually build a financial reserve.

Much of the Church’s current growth is occurring in regions of the world that are still developing economically. Members in economically disadvantaged areas demonstrate faith in Jesus Christ by giving tithes and offerings. These tithes and offerings are meaningful contributions that help to move the Lord’s work forward. Yet additional funds are needed to support the Church in those regions. Sustaining continued Church growth in these areas of the world requires substantial resources.

Today, the Church avoids debt and maintains financial reserves. These reserves are intended not only to meet current needs but also to accomplish the Church’s mission in the future, including during periods of economic difficulty.

Each temple is a house of the Lord. Temples are holy places of worship where individuals make sacred covenants with God that will prepare them to receive eternal life with God and with their families. Modern-day prophets have taught that temples are essential to God’s work to bring about the “immortality and eternal life of man.”

In ancient times, the people of Israel used the best materials available and skilled individuals to build the temple of Solomon. Similarly, in our day, we give our best to the Lord as we construct His temples. The beautiful architecture and furnishings show our love for God.

But the central focus of the temple is the ordinances and covenants that bind us to God and to our families. These ordinances are not available anywhere else. Many new temples are being built each year to increase access to the blessings of the temple, especially for members who cannot travel long distances.

For more information about temples, see temples.ChurchofJesusChrist.org and the “Temples” Gospel Study Guide.

One of the Church’s God-given responsibilities is to follow Jesus Christ’s example and commandment to care for those in need. Currently, the Church spends a significant amount annually on welfare and humanitarian efforts and giving to charitable causes. Latter-day Saints also donate their own time and resources to support many other charitable efforts inside and outside of the Church.

For more information about the Church’s efforts to care for those in need, see the annual Summary on Caring for Those in Need.

Members of the First Presidency, the Quorum of the Twelve Apostles, the General Authority Seventies, and the Presiding Bishopric leave their careers when they are called to full-time Church service. They receive a modest living allowance and insurance benefits so they can devote all their time to serving the Lord.

Throughout the world, the Church relies on a lay ministry to lead local congregations. These leaders, including stake presidents, bishops, Relief Society presidents, and others, do not receive any financial compensation for their service. They typically maintain their current employment to support themselves and their families.

For many years the Church has set aside a portion of its income for future needs. Church leaders have spoken about these funds from time to time and have called them Church “reserves” or “financial reserves.” Reserve funds are common among churches and other nonprofit organizations.

As President Gordon B. Hinckley explained more than three decades ago, “Prudent management requires that this money be put to use” rather than be left sitting idle. This aligns with what the Savior taught in the parable of the talents.

Church reserves are managed by dedicated investment professionals and by outside investment advisers in ways consistent with policies established by senior Church leaders. The Church seeks to diversify its investments, meaning that resources are placed in a variety of asset categories.

Three primary legal entities manage Church reserves:

The Church and its affiliates follow the tax laws of countries where the Church has a presence. The Church pays taxes, which may consist of income, property, sales, value-added, and other taxes.

As taught in the Doctrine and Covenants, “The glory of God is intelligence, or, in other words, light and truth.” God wants us to educate our minds, improve our skills, and enhance our abilities so we can better influence the world for good; provide for ourselves, our families, and those in need; and help build God’s kingdom.

The Church supports the following universities, colleges, and online educational programs, where over 140,000 students are enrolled:

• Brigham Young University

• Brigham Young University–Idaho

• Brigham Young University–Hawaii

• Ensign College

• BYU–Pathway Worldwide

The Church also provides religious studies in seminary and institute classes for approximately 800,000 students worldwide. Regarding these educational endeavors, President Gordon B. Hinckley explained, “This is a huge and costly undertaking, but it yields noteworthy benefits in the lives of our youth in terms of spiritual enrichment, moral strength to resist the evil that is all about us, as well as a tremendous increase in gospel scholarship.”

Some have the misconception that nonprofit organizations like the Church cannot earn profits. However, many nonprofit organizations own stocks or own or invest in businesses that earn profits. “Nonprofit” primarily means any profits cannot be distributed to the persons who control the organization. The Church strictly adheres to this limitation. The Church’s investments—whether in stocks, real estate, or businesses—and all profits earned on those investments are used only to help further God’s work of salvation and exaltation.

The Church holds interests in some businesses that began over a century ago, when the Church was isolated in the western United States and helped provide services to communities. Over time, these business interests came to include media and communications services (including Deseret News and Deseret Book) as well as financial and hospitality services. Deseret Management Corporation (DMC) is the holding company that manages these for-profit entities.

Deseret Mutual Benefit Administrators (DMBA) is a nonprofit entity that provides health, retirement, and life insurance benefits for employees of the Church and its affiliates. (Learn more about DMBA.)

Beneficial Life Insurance Company, a for-profit subsidiary of DMC, was formed in 1905 to help protect widows and orphans from certain financial hardships endured by early Church pioneers. Over time it expanded to offer life insurance policies to the general public. In 2009, it discontinued underwriting new policies but continues to support existing policy holders.

The law of tithing is a commandment from the Lord, and continued tithes from Church members help the Church fulfill its divine mission as the Church grows throughout the world.

Tithing is about more than money; by giving the law of tithing to the members of His restored Church, the Lord invites them to exercise faith and receive promised blessings. Church members believe that the payment of tithing shows gratitude to God and brings both spiritual and temporal blessings. Paying tithing also builds faith in God and His Beloved Son and Their holy work.