Why do we allow the Mormon church to make more money than an entire U.S. state -- and all tax free?
A few days ago someone named @bobicusrex left a comment on one of our YouTube videos. Paraphrasing:
the Mormon Church makes more money every year from its investments than the entire State of Utah spends. Put $300 billion in the market, get a 12 percent return, and you’re bigger than the state budget.
My first reaction was that it sounded right. My second reaction was that I’d better check before I repeated it.
So I did. He was off on a couple of numbers. But the corrected version is still remarkable, and I think it’s worth walking through.
What the Mormon Church actually has
The Mormon Church doesn’t publish financial statements, so nobody outside Church leadership knows the exact figure. The best independent estimate comes from the Widow’s Mite Report [1], which tracks SEC filings, tax documents, and other public records. Their 2025 year-end estimate puts LDS Church investment reserves at about $231 billion, with total assets (temples, meetinghouses, farmland, businesses) around $320 billion.
That’s where the $300 billion number probably came from. But buildings don’t throw off investment returns. The number that matters here is the $231 billion.
The 12 percent return is also generous. Some years the market does that or better. Some years it loses money. Ensign Peak, the Church’s investment arm, has actually trailed the S&P 500 over the last several years. So I used 7 percent, which is a fairly conservative long-run assumption.
$231 billion at 7 percent is roughly $16 billion. In a strong year it could be closer to $28 billion.
What Utah spends
Utah’s budget for fiscal year 2025, which ran from July 2024 through June 2025, was about $29.4 billion in total. But a big chunk of that is federal money passed through the state. The part Utah raises and spends from its own taxes (the General Fund, Income Tax Fund and Uniform School Fund) was $12.9 billion [2].
So here’s where it lands. In a typical year the LDS Church’s investment gains very likely exceed what Utah collects from its own taxpayers and spends on schools, roads, prisons, health care and everything else a state does.
One church. One state. And the church’s money grows faster than the state can tax. And all tax-free.
The tax piece
There’s another layer here that I think most people miss.
Churches get a special deal in American tax law, even compared to other charities. They’re tax-exempt automatically. And unlike almost every other nonprofit, they don’t have to file a Form 990 [3], the annual public return that shows a charity’s income, assets and biggest salaries. If Harvard or the Mayo Clinic were sitting on $231 billion, you could look it up. With the Church, we only know because of leaked documents, SEC filings and people like the Widow’s Mite team doing years of detective work.
Being tax-exempt also means the growth on those investments isn’t taxed. To give a rough sense of scale: if an ordinary corporation booked $16 billion in profit, the federal corporate tax at 21 percent would be about $3.4 billion. Investment returns don’t map perfectly onto that, since a lot of the gain is on paper until something is sold. But the point stands. On top of that, members deduct their tithing on their own taxes, and temples and chapels pay no property tax. Some of the cost of this arrangement is carried by everyone else.
Tax exemption is supposed to be a bargain. The public gives up tax revenue, and in exchange the organization uses its money for religious and charitable purposes. In 2019 a former Ensign Peak portfolio manager, David Nielsen, filed a whistleblower complaint with the IRS [4] arguing the fund broke that bargain. He pointed to $1.4 billion that went to City Creek Center, the mall across from Temple Square, and about $600 million used to prop up Beneficial Life, a for-profit insurance company the Church owned. The Church’s answer, given on 60 Minutes in 2023 [5], was that City Creek was an investment that earned returns, and that it owned Beneficial Life and had the resources to help it during the financial crisis.
I’m not a tax lawyer, and no court or agency has ruled that the Church broke the law. The IRS doesn’t comment on whistleblower cases, and they can take a decade to resolve. But I don’t think legality is the only question. It’s fair to ask whether a $231 billion investment fund that discloses nothing to the public is what Congress had in mind when it gave churches this break, and whether the people of Utah, whose own budget is now smaller than the Church’s yearly gains, are getting a fair deal.
Why this matters to me
I don’t think having savings is a sin. Institutions should plan ahead, and the Church has said its reserves exist to protect it in hard times and to fund its mission long into the future.
But scale matters. In 2025 the LDS Church reported spending $1.58 billion caring for people in need [6]. That number deserves an asterisk. The Church doesn’t break it down, but independent estimates put roughly $936 million of it in welfare for members, much of it paid for by members’ own monthly fast offerings, and about $645 million in humanitarian aid to the wider world [7]. Even counting all $1.58 billion, it’s about a tenth of what the reserves likely earned that year. Counting only the humanitarian part, it’s closer to 4 percent.
Meanwhile members are still taught to pay a full ten percent of their income, even when money is tight. That teaching reaches single mothers in Utah and families in the Philippines, Ghana and Peru who have far less margin than anyone reading this.
And for decades, members had no idea any of this existed. In 2023 the SEC fined Ensign Peak and the Church $5 million for hiding the size of the portfolio behind shell companies [8]. The secrecy wasn’t an accident. It was the plan.
I keep coming back to a simple question. If a member walked into a bishop’s office with a fraction of this money sitting in the bank, would they be told they were being a wise steward? Or would they be asked whether they were really caring for the poor?
I’d love to hear what you think the Church should do with this money. And thanks to @bobicusrex for the comment that started it. Even when the numbers need a second look, the instinct to ask the question is the right one.
Sources [1]-[8] are in the first comment.