Key Takeaways
- • **$100+ billion reserve fund operated by Church of Jesus Christ of Latter-day Saints' investment arm Ensign Peak Advisors functions as a "clandestine hedge fund" according to former investment manager David A. Nielsen, with accumulated reserves nearly twice the size of Harvard's endowment.
- • Annual tithing collections of approximately $7 billion from 17 million church members generated roughly $1 billion annually into the reserve fund, which grew tax-free despite being registered as a non-profit organization.
- • Former investment manager alleges systematic misrepresentation of charitable purpose, with funds deployed to for-profit initiatives including a Salt Lake City mall and church-owned insurance company rather than charitable work.
- • Nielsen submitted IRS complaint in 2019 documenting alleged tax evasion through falsified records; whistleblower claims church leadership misled members regarding fund allocation and charitable deployment.
- • Reserve fund created in 1997 has accumulated over two decades with minimal charitable distribution, contradicting stated organizational mission and raising questions about tax-exempt status compliance.
Summary
The Church of Jesus Christ of Latter-day Saints operates a $100+ billion investment fund through its subsidiary Ensign Peak Advisors that functions as a "clandestine hedge fund" rather than a charitable reserve, according to David A. Nielsen, a former nine-year investment manager at the organization. Nielsen made these allegations during a CBS 60 Minutes interview, characterizing the fund's operations with the statement: "Once the money went in, it didn't go out."
The fund's growth stems from the church's tithing system, which collects approximately $7 billion annually from its 17 million members (approximately 10% of member income). About $1 billion of annual collections flows into Ensign Peak's reserve fund, which was established in 1997 and has grown tax-free under non-profit status. The accumulated $100+ billion reserve now exceeds the size of Harvard University's endowment by nearly double, Nielsen stated.
Nielsen's central allegation involves systematic misallocation of funds designated for charitable purposes. He claims the investment firm "[masquerades] as a charity" while engaging in tax evasion through falsified records. Rather than funding charitable initiatives, records indicate reserve funds have been deployed to support for-profit ventures, including a Salt Lake City mall constructed on church property and a church-owned insurance company. Nielsen characterized his experience with the organization by noting: "I thought we were going to change the world. We just grew the bank account."
The whistleblower filed a formal complaint with the Internal Revenue Service in 2019, which was subsequently reported by the Washington Post. Nielsen, described as a devout Mormon himself, was initially recruited to Ensign Peak while employed on Wall Street. His allegations raise substantial questions regarding the church organization's compliance with tax-exempt status requirements and fiduciary obligations to members whose tithing contributions were collected under stated charitable purposes.
The fund's growth stems from the church's tithing system, which collects approximately $7 billion annually from its 17 million members (approximately 10% of member income). About $1 billion of annual collections flows into Ensign Peak's reserve fund, which was established in 1997 and has grown tax-free under non-profit status. The accumulated $100+ billion reserve now exceeds the size of Harvard University's endowment by nearly double, Nielsen stated.
Nielsen's central allegation involves systematic misallocation of funds designated for charitable purposes. He claims the investment firm "[masquerades] as a charity" while engaging in tax evasion through falsified records. Rather than funding charitable initiatives, records indicate reserve funds have been deployed to support for-profit ventures, including a Salt Lake City mall constructed on church property and a church-owned insurance company. Nielsen characterized his experience with the organization by noting: "I thought we were going to change the world. We just grew the bank account."
The whistleblower filed a formal complaint with the Internal Revenue Service in 2019, which was subsequently reported by the Washington Post. Nielsen, described as a devout Mormon himself, was initially recruited to Ensign Peak while employed on Wall Street. His allegations raise substantial questions regarding the church organization's compliance with tax-exempt status requirements and fiduciary obligations to members whose tithing contributions were collected under stated charitable purposes.
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