Federal Case

Case #4: Regional Implications

Markel v. Union of Orthodox Jewish Congregations of America, et al.

Could a Ministry Be Forced to Refund a Tithe?

That’s exactly the question the Ninth Circuit recently weighed in on—raising serious implications for churches and ministries nationwide.

Can a judge determine whether your financial practices match your public promises? Are ministries legally accountable not just for handling tithes, but for how they describe them? This case is forcing ministries to confront a sobering reality: transparency isn’t just a virtue—it may now be a legal necessity.

What You Need to Know

James Huntsman, a former member of the Church of Jesus Christ of Latter-day Saints, donated millions in tithes over two decades. After leaving the church, he filed a lawsuit alleging fraud. His claim? That church leaders had publicly promised tithing funds would not be used for commercial ventures—yet allegedly used those funds to help redevelop a shopping mall in Salt Lake City.

The Church invoked the church autonomy doctrine, a legal principle that protects religious organizations from government interference in internal matters like doctrine, governance, and leadership. It argued that how it used tithes was a spiritual issue, not a legal one.

But the court didn’t dismiss the case outright. Instead, it examined whether the Church’s public statements about tithing aligned with its actual financial practices. Ultimately, the court ruled in favor of the Church, noting that the Church had long clarified that earnings from invested tithes, not the tithes themselves, were used for the mall project.

What Your Ministry Can Do

1. Align Words with Actions: Ensure that all public statements—whether from the pulpit, in print, or online—accurately reflect how funds are used. Courts may compare your words to your financial records.
2. Respect Donor Intent: If a donor designates a gift for a specific purpose (e.g., missions, building funds, outreach), use it accordingly. Misuse can lead to legal liability and loss of trust.
3. Document Everything: Maintain clear, consistent records of how donations are allocated and spent. Transparent accounting and internal controls are your best defense against allegations of misrepresentation.