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09-03-2008, 07:57 PM | #1 |
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LDS church worth
SU noted in another thread that a statement that the LDS church may have $5 billion cash on hand is "one of the most uninformed statements ever made on this site."
I did a quick google search to see what estimates were for LDS finances. Time Magazine and Mormon America (a book published in the '90's) both estimated the church's net worth at over $30 billion. Time estimated the church had annual revenues of $5.9 billion. The church incurs almost zero long-term debt, paying for most projects up front in cash. The financing of City Creek Center, a $1.5 billion project, was 100% equity between the church and Taubman Centers (with the equity mix undisclosed to my knowledge). http://nreionline.com/property/mixed...h_taking_0411/ $5 billion in cash available? I hardly think that is unrealistic. |
09-03-2008, 08:43 PM | #2 |
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I don't think it would be the Church's policy to horde cash like this. I would hope they'd have Buffett's philosophy, which is spend it or lose it. He told the Gates Foundation that they had to spend a certain percentage of his donation each year, all of which had to be spent within a certain time frame. I forget the exact numbers.
I think this should be the philosophy of the Church -- the tithes and offerings should be spent. Sure, there should be a nest egg for insurance purposes, but $5 billion would not be the appropriate size, IMO. Anyways, if tithing donations completely fall off a cliff, do we really think the tithes of years past should subsidize the less faithful church? Also, it shows a lack of faith to horde the money. Prudence says $1 billion, not $5 billion. I would have issues if that were the case.
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09-03-2008, 08:47 PM | #3 |
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I have always wondered if there were truth to the notion that the church really pays for everything up front.
Why would you hand someone 1.5B in cash up front? makes no sense. You get no yield on that money in the interim. I can see the Church not undertaking a capital investment without sufficient funds in their coffers before launch.....but the way the picture is painted, the Church shows up at the construction site on Day 1 and writes a $1.5B check, paying everything up front.
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09-03-2008, 08:52 PM | #4 | |
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I take the statement to mean: we take out loans to pay for capital projects (b/c it's prudent to do so), but we always have more in the bank than we owe -- hence, the line that the Church is not in debt. It does not mean they pay for cash on every capital project.
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"Now I say that I know the meaning of my life: 'To live for God, for my soul.' And this meaning, in spite of its clearness, is mysterious and marvelous. Such is the meaning of all existence." Levin, Anna Karenina, Part 8, Chapter 12 |
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09-03-2008, 08:56 PM | #5 | |
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It is always painted in the light that the Church "pays for everything up front," which is actually likely untrue. It would be more accurate to say that the Church budgets for everything up front and is always cash flow positive.
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09-03-2008, 09:01 PM | #6 | |
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09-03-2008, 09:03 PM | #7 |
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If what FM said is true, then the church has spent more on the shopping mall project that it has in cash reserves. And maybe by a factor of 10.
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09-03-2008, 09:16 PM | #8 | |
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You're missing my point. I guarantee that project was not done under the umbrella of COP or COPB. It would be an investment entity. I don't think for a minute that they put up 1.5B upfront or even will pay it off. How they manage their investments is very different than meetinghouses, temples, etc.
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09-03-2008, 08:56 PM | #9 | |
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09-04-2008, 01:43 AM | #10 | |
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