Tithing: On Interest, Not Income!

by John P. Pratt
29 Jun 2021, Decision Day (PH), Consecration (UE)

©2021 by John P. Pratt. All rights reserved.

Index, Home

Contents

1. The Revelation 2. Interpretation 2.1 Modern 2.2 Original 3. Abraham's Tithing 4. Conclusion Notes

The LDS law of tithing was first interpreted to mean to donate 10% of one's annual interest on net worth.

Members of the LDS Church have been taught to pay their tithing, usually understood as 10% of their income, but it is left to the individual to decide exactly what that means. Most understand it to be their total income either before or after taxes.[1] Was that always understood to be what the law of tithing meant? If it is different, has a new revelation been received which explains the difference?

Tithing in the Old Testament.

This article first looks at the revelation itself, and then discusses how it was implemented when it was first given in the days of the Prophet Joseph Smith.

2.1 Modern

Word swap by sleight of hand!

There is a long history of how that simple phrase has been interpreted,[1] which is beyond the scope of this article. Here we are interested only in the modern LDS official interpretation. Here it is:

The simplest statement we know of is the statement of the Lord himself, namely, that the members of the Church should pay "one-tenth of all their interest annually," which is understood to mean income. No one is justified in making any other statement than this.
  —   First Presidency Letter to Church Leaders (19 Mar 1970).[2]

Here the First Presidency is totally conservative and safe! Right?? They quote the original revelation verbatim, so who could argue with that?

But, wait, there is a huge interpretation of one word given. We are told that the word "interest" should now be understood as "income". Why is that? Has the word changed in meaning since 1838? After all, there is a huge difference today in what a person considers to be "interest" earned in a year versus their "income" earned for a year. Let us now look at the original interpretation of the law of tithing.

2.2 Original

In 1838, when the revelation was given, what was the understanding of the meaning of the word "interest", on which the members of the Church should pay their annual tithing? Fortunately, that is now known precisely, because a letter has been found in the Joseph Smith papers from the Presiding Bishop Edward Partridge to Newell K. Whitney, which explained his understanding of the new revelation. The letter is dated 24 Jul 1838, shortly after the revelation was given earlier that month.

In that letter, Bishop Partridge provided a very simple example of his understanding of the new law of tithing:

"If a man is worth a $1000, the interest on that would be $60, and one/10 of the interest will be of course $6."

Thus we see, that the word "interest" meant exactly the same thing in 1838 as it means today. A man who had $1,000 in a savings account might earn $60 interest on that money and then would be expected to pay 1/10 of that interest, being $6, to the Church as tithing.

But wait!! What about that man's entire income during that year? That was not even mentioned in Bishop Partridge's letter. In 1838, most members of the Church were eking out an existence just to keep alive amidst all of the persecution. They grew much of their own food and often bartered. The point of this example, however, is not imply that no tithing was paid one's income during the year; the point is that the word "interest" was understood exactly as it understood today. Moreover, the word "interest" back then most likely would have also included any overall "increase" in person's wealth, even as it would also mean that today. That meaning was probably implied in Partridge's letter as being included in one's total net worth.

For example, a rancher would pay tithing on the increase in his net worth annually also. If his herd of cattle increased over the year by 100 head, then he could sell 10 head and pay the proceeds as his tithing on the increase of the herd. That would be a form of "interest". Farmers would not know what their increase was until the end of the year, hence their tithing could be paid annually. That one annual payment has today turned into what is called "tithing settlement" in the LDS Church, which also includes the purpose of paying on annual investments.

Tithing Comparison: 1838 vs 2021!
(See text for details.)

Now consider a modern example which shows how the apparently minor change of "interest" to "income" results in an unconscionable overpayment of tithing for the poor. Suppose a couple with three children makes $30,000 per year in gross income, which is below the US government poverty level for a family of five. Suppose they have been saving to get a down payment to buy their own home, and have $1,000 in the bank toward that end. They rent their home and bought their car and other necessities with loans and credit cards, so those items are not yet paid for. They only have enough money to makes ends meet each month. They faithfully pay tithing on their total income, which totals $3,000 per year for tithing! As shown in the illustration, if the Church still used Bishop Partridge's method, they would pay only $3 per year, and tithing would only be that high if they could get 3% interest on their savings in the bank (3% of $1,000 is $30 interest, and a tithing of $3)! This example demonstrates the true concept that those below the poverty level should have very low tithing, if any at all.

Immediately after the martyrdom, in August 1844, the Quorum of Twelve changed the meaning of tithing to be 10% of one's annual income, substituting "income" for "interest"! Shortly afterward, the Twelve exempted themselves from needing to pay any tithing at all! Brigham later admitted that "neither he nor anyone else" had actually paid according to his new interpretation.[4]

One the other hand, the Reorganized LDS Church (now Community of Christ) apparently has kept the law as they had understood it in Joseph Smith's day:

"New converts are expected to prepare an inventory to establish their net worth. Their initial tithing entails a tenth of this net worth, which can be paid at any time. Members then pay their tithing annually, calculated by taking their gross income, subtracting their basic living needs and turning over to the church ten percent of the remainder."[5]

One modern restoration group claims a new revelation from the Lord which verifies a similar interpretation. It states that tithing was never meant to establish a wealthy general fund nor to invite the wrongful accumulation of wealth that has resulted from the long abuse of this law. "The law was to be a light thing, easily borne by the faithful. Tithing was always to be taken from surplus (meaning unnecessary excess property) and increase (meaning what remains after all costs of the household have been paid). It was to be drawn out of the abundance in the possession of the giver so that there may be enough and to spare, not from property required for their necessities."[7]

The Sealed Book,[8] having recently been translated from the first few of the sealed portion of the Plates of Mormon, provides a second witness to this basis of the calculation of Abraham's tithing:

And this Melchizedek, having established righteousness on earth, was called the king of the heavens by his people, or, in other words, the King of peace. Because he lifted up his voice, and blessed Abram, being the high priest and keeper of the Lord's storehouse, the one that God appointed to receive tithes for the poor. So even Abram paid him the tithes of all that he had, which God gave him, which exceeded his needs. — Sealed Moses 9:11

Thus, we have two witnesses from modern revelation that Abram paid tithing on the excess he had beyond his needs! This is indeed in harmony with the revelation given to Joseph Smith about tithing to be paid on "interest" or "surplus", not on one's total income as taught by the modern LDS Church, beginning in the days of Brigham Young.

Notes

1. See, for example, Waterman, Rock, "Are We Paying Too Much Tithing?" (4 Dec 2012), found on puremormonism.blogspot.com. Better references are given in Quinn, D. Michael, The Mormon Hierarchy: Extensions of Power, Chapter 6.
2. That question is answered on the official LDS website at "Do I pay tithing on my income before taxes are taken out or on what I receive after taxes?" Here is that entire article: "The First Presidency has answered this question in this way: 'The simplest statement we know of is the statement of the Lord himself, namely, that the members of the Church should pay "one-tenth of all their interest annually," which is understood to mean income. No one is justified in making any other statement than this' (First Presidency letter, Mar. 19, 1970). In other words, the way you define your income, and consequently your tithing, is a matter between you and the Lord. Prayerfully seek the Lord's guidance on issues like taxes, gifts, scholarships, and other matters to determine what qualifies as a full tithe." That letter also implies that no new revelation on the subject has been received because it quotes the original revelation.
3. Harper, Steven C., "The Tithing of My People", in Revelations in Context, Matthew McBride & James Goldberg, ed., (2016): "Bishop Partridge, who was present at the meeting in which the revelation was apparently received, wrote from Missouri to Bishop Whitney in Ohio and explained how it was to be followed: 'The saints are required to give all their surplus property into the hands of the bishop of Zion, and after this first tithing they are to pay annually one tenth of all their interest.' Bishop Partridge understood 'one tenth of all their interest' annually to mean 10 percent of what Saints would earn in interest if they invested their net worth for a year." Harper gives his reference in footnote 17: "Bishop Partridge explained, saying, 'If a man is worth a $1000, the interest on that would be $60, and one/10 of the interest will be of course $6' (Edward Partridge letter to Newel K. Whitney, July 24, 1838, in Church History Library, Salt Lake City). Six percent was a common interest rate at the time (see the forthcoming publication of The Joseph Smith Papers, Documents, Volume 6: February 1838 - August 1839)." A photocopy of the original letter is here.
4. See "Tithing in Mormonism": Historical and Modern Definitions in Wikipedia: "Brigham Young defined tithing as 10 percent of one's property upon conversion and then 10 percent of one's annual income.... However, Young admitted that neither he nor anyone else had paid a full tithe as he interpreted the Doctrine and Covenants." The source quoted is Quinn, D. Michael, Sunstone, "LDS Church Finances from the 1830s to the 1990s" (June 1996) pp 17–26. See also Quinn, op. cit. in endnote 1 above: "In August 1844 the Quorum of the Twelve Apostles issued an epistle which required all Mormons to immediately pay 'a tenth of all their property and money . . . and then let them continue to pay in a tenth of their income from that time forth.' There was no exemption for Mormons who had already paid one-tenth of their property upon conversion. In January 1845 a Quorum of Twelve's epistle reemphasized 'the duty of all saints to tithe themselves one-tenth of all they possess when they enter into the new and everlasting covenant: and then one-tenth of their interest, or income, yearly afterwards.' However, two weeks later the Twelve voted to exempt themselves, the two general bishops Newel K. Whitney and George Miller, and the Nauvoo Temple Committee from any obligation to pay tithing. This was due to their services to the church."
5. See "Tithing in Mormonism": Community of Christ in Wikipedia.
6. "Disposable Income vs. Discretionary Income: What's the Difference?" at www.investopedia.com.
7. Revelation given through Denver Snuffer Jr (see "Denver Snuffer") on 21 February 2017: "[Tithing] was never to establish a wealthy general fund nor to invite the wrongful accumulation of wealth that has resulted from the long abuse of this law. The law was to be a light thing, easily borne by the faithful. Tithing was always to be taken from surplus (meaning unnecessary excess property) and increase (meaning what remains after all costs of the household have been paid). It was to be drawn out of the abundance in the possession of the giver so that there may be enough and to spare, not from property required for their necessities. The tithes of this people are to be used for the poor among this people, if they want to become Mine." (Teachings & Commandments 173:1)
8. Pratt, John P., "Is The Sealed Book of Mormon Genuine?" (26 May 2019) is a favorable book review of this book, which was translated from the gold Plates of Mormon.