And what are the rules of Churches? I know that despite the First ammendment, there are still rules, but what is the rule here regarding Churches?The explanation I read in another article:
Charities have to use their money for charitable purposes. Reasonable reserve funds are allowed, but hoarding money isn't considered a charitable purpose.
That being said, other charities have similar hoards of money (for instance), so it seems to me like this might be making a whole lot out of the LDS Church not formally setting this fund up as an endowment.
I think there have been much worse violations of tax rules by religious organizations.