Lawsuit Alleging Compulsory Tithing by the Mormon Church Thrown Out by Judge
The Church of Jesus Christ of Latter-day Saints (LDS Church) has prevailed in a federal lawsuit alleging misuse of tithing donations. A Utah-based federal judge dismissed the lawsuit, ruling that the church bears no responsibility to return hundreds of thousands of dollars in donations.
The lawsuit, comprising nine plaintiffs, contended that the church used tithing funds for various investments, without informing donors that their contributions might be allocated for such purposes. These investments included stocks, bonds, property, and agriculture. According to the plaintiffs, they were not aware of this usage until a media surge raised speculation about misappropriation of funds.
U.S. District Judge Robert J. Shelby determined that it was implausible for reasonably diligent donors, who had contributed substantial sums to the church, to have not learned about the purported misuse of funds at the time of its disclosure. However, Shelby refrained from endorsing the "church autonomy doctrine" or "religious autonomy doctrine" argument, stating that a jury trial may be necessary to address such claims in the future.
Sam Penrod, a church spokesperson, lauded the court's decision, affirming that tithing donations are an expression of faith and facilitate the church's divine mission. Chris Seeger, an attorney for the plaintiffs, expressed concern that the dismissal would complicate efforts to determine the church's handling of tithing donations.
This lawsuit followed a similar case in 2021, filed in a California-based federal court, in which businessman James Huntsman sought the return of an estimated $5 million in tithing donations. In that case, Huntsman claimed that the church's lack of transparency about funding sources constituted fraud.
While the legality of using tithing for investments remains a complex issue involving religious freedom, donor intent, and nonprofit law, the LDS Church has defended its practices, asserting that donations are carefully managed under the direction of senior church leaders.
Sources:
"Federal judge dismisses another tithing lawsuit against the Church of Jesus Christ""Judge dismisses lawsuit against Mormon church over how it uses donations""Judge tosses lawsuit against Mormon church use of donations"
The plaintiffs argued that the LDS Church used tithing funds for investments in stocks, bonds, property, and agriculture, without informing donors. The LDS Church maintains that tithing donations are used to facilitate their business ventures, as an expression of faith and in accordance with the church's divine mission.
