About Mormon tithing and other financial matters - the fact and myth cheat sheet
This is part of the Mormon fact and myth cheat sheet on this website. The main list of Mormon facts and Myths can be found here. This section specifically discusses tithing and other financial matters.
This is a compilation of facts and myths about Mormon beliefs compiled from comments and other resources. I add things to this list as I run into them so this list has more information on it than I have had time to write about in detail. Some of these can be uncommonly random.
Some of these comments may have been collected from someone that is trying to imply that Mormons won't tell you about these things. This is partially accurate simply because we don't actually believe in many of these things. On a similar note, I have pulled some of this information from several "campaigns" which claim that they just want to help us Mormons realize the error of our ways. However, most of these campaigns are not actually targeted to Mormons. They are targeted to those who are not Mormon and may be curious about what we really believe. In war and politics it is known as a "disinformation" campaign and it's used to keep other people in the dark or doubtful of factual information. If these campaigns were intended to target Mormons, they would talk to us directly, instead of referring to Mormons in the third person as "they," and they would use our real teachings to try and convince us of our error.
You may notice that after the first sentence, these descriptions are written in a way so that anyone can quote them if they need to. The disadvantage to this is that there are some things that get repeated in the explanations more than once. It should be noted that this site is not an official source for Mormon doctrine, so if you're going to quote from this site I would recommend that you point out the sources or link back to this page so readers can verify accurate sources for themselves. I have also bolded some things in each statement to help identify the key points.
Speaking of repeating stuff, this introduction is fairly standard on the other fact and myth pages so you can probably skip it on the next one without missing much.
Editing and referencing is still an ongoing process for this page.
About tithing and other financial matters
"Not paying tithing will get you excommunicated":
This is false.
Members of the LDS church are not excommunicated for tithing issues. The church has many members that do not pay tithing and they are still welcomed and fellowshipped by the congregation. The bishop is the only one who would know if you are not paying a full tithe. If you are not paying tithing you cannot attend the temple but you are welcomed as members of the church where you can hold callings and other responsibilities.
"If you are not paying tithing the other members will look down on you":
This is false.
In the Mormon church, the only person who knows whether you are paying an honest tithe is the bishop. Even his counselors are usually unaware if you are a full tithe payer or not.
"The bishop keeps track of how much money you make":
This is false.
A Mormon bishop has no idea how much money the members make. At the end of the year is a thing called tithing settlement. The bishop will ask you to look over your donations and make sure they went to the correct place, and ask you if you are paying a full tithe. Whether you say yes or no is dependant on if you feel that you have paid on honest tithe or not. The question is never asked about how much you made, whether you paid on your gross or net amount, or what you do for a living. If it was to determine how much money you made it would make more sense for tithing settlement to be after April, instead of where it is, at the end of the year before your taxes are due.
"Tithing settlement is used to make sure you are paying what the bishop wants you to pay":
This is false.
Tithing settlement is used for three things: 1- To verify that your charitable donations went to the proper places. 2- To give you a summary of your yearly donations that can be used for tax purposes. And 3- to ask you if you feel that you have paid a full tithe. It's a simple yes or no question. There are no additional questions asked to determine if you paid a full tithe or not, or what amount is appropriate.
"The bishop looks at your tax return to determine how much money you should pay":
This is false.
A Mormon bishop does not review any tax or financial statements of the members, with exception to donations to the church. At the end of the year is a thing called tithing settlement. The bishop will ask you to look over your donations and make sure they went to the correct place, and ask you if you are paying a full tithe. Whether you say yes or no is dependant on if you feel that you have paid on honest tithe or not. The question is never asked about how much you made, whether you paid on your gross or net amount, or what you do for a living. If your taxes were needed it would make more sense for tithing settlement to be after April, instead of where it is, at the end of the year before your taxes are due.
"It's expensive to get your membership records removed from the church":
This is false.
Removing your records from the LDS church is free if you're willing to go see your local bishop. Otherwise it's the cost of a postage stamp to mail a letter.
"Donations help you move up the ranks in the Mormon Church":
This is false.
Most LDS members have a strong work ethic, and so most are financially stable. However the bishop has no idea exactly how much money you make. The stake president, which presides over the bishop, has even less information. A calling is made by looking for someone who would be the right fit for the calling. Callings with greater authority require that you have a temple recommend, which means that you are paying your tithing, but it also means that you are being honest, morally upright, and virtuous. There are many stake presidents and higher called members who are currently serving who pay very little tithing (even though it is a full 10 percent tithe) because of their financial situation, yet they are still called into authoritative callings. For example, David. V. Yarn, a retired grocer, was the temple president of the Columbia South Carolina Temple from 1999 to 2002. M. Russell Ballard struggled financially in his life having huge financial losses running a car dealership and a music hall, yet he is a member of the Quorum of the Twelve Apostles, the penultimate governing authority of the LDS church.
"The Mormon church holds stock in Pepsi and Coke":
This is false.
The Mormon church liquidates all stocks that it receives through donations or other means. This claim was even debunked by Snopes.
"The Mormon church does not pay taxes":
This is false.
All of the for-profit organizations that are held by the LDS church pay state and federal taxes. These organizations are held by the Deseret Management holding company which is owned by the church. All finances of the church are also audited by an external law firm every year before they are reviewed by the IRS. The profits that these companies generate are used to cover the overhead for the welfare system, finance redevelopment projects, and cover the costs of humanitarian services, like the $16.4 million measles and rubella initiative. Tithing is used for more ecclesiastical purposes, like building churches and temples, and Fast Offerings are entirely used for welfare.
"The Mormon church owns Ancestry.com":
This is false.
The LDS church owns Familysearch.org. Ancestry.com is majority owned by Permira funds, along with certain minority co-investors.[1]
References