Get All Access for $5/mo

Scientology's Money Trail Celebrities! Tax shelters! Bart Simpson! A glimpse into the finances of the secretive church.

By L. Christopher Smith

South Park has ridiculed it, protesters have attacked it, and Germany has tried to outlaw it. Yet the Church of Scientology still operates in 160 countries, with an extremely complex economic model that makes it hard for opponents to go after its finances. Ever since the 1980s, when it faced a potentially lethal class-action lawsuit and intense scrutiny from the U.S. government, the group has reportedly spread its revenues-and its liability-among a vast array of independent trusts, corporations, and nonprofits. All are reportedly tightly controlled by David Miscavige, a second-generation Scientologist who has run the church since the 1986 death of its founder, science-fiction author L. Ron Hubbard. Tax filings from the early 1990s show that the church was earning about $300 million a year back then, but the paper trail disappears after that. The church won tax-exempt status in 1993 and is not required to file annual returns with the I.R.S., so it's extremely difficult to tell just how much Scientology takes in during a given year. (Groups that don't have direct ties to the church's executive branch, or "Mother Church," as it's known, often act as separate legal entities and file taxes individually.) We asked a number of sources-ex-Scientologists familiar with the church's finances-to help us arrive at an estimate of its annual revenue.

Fundraising
According to a former Scientologist, a single 2007 event in the U.K. helped pay for dozens of new buildings and fueled a two-week pledge drive that netted nearly $50 million. The biggest recent U.S. gift was reportedly a $7.5 million donation from Nancy Cartwright, who does the voice of Bart Simpson. Other major donors include Tom Cruise, who's given an estimated $25 million over the years, Kirstie Alley, and Jenna Elfman.

Estimated revenue: $50 million to $100 million

Membership Fees
Scientology boasts hundreds of organizations, centers, and missions around the world, which charge fees to members. (Followers also pay to be "cleared" of their problems via counseling sessions known as auditing, which average $500 an hour.) In something akin to a franchise model, the centers send 12.5 percent of such fees to Scientology's management arm. The biggest chunk comes from the Flag Service Organization, the church's largest center, in Clearwater, Florida.

Estimated revenue: $400 million

Consulting
A web of church-related groups promotes the principles of L. Ron Hubbard. One licenses his management doctrines to small-business owners, particularly dentists and chiropractors, who pay fees in return. A portion of those licensing fees goes to a separate entity, which holds the copyrights to Hubbard's works and which some ex-Scientologists claim is connected to the church itself.

Estimated revenue: $50 million

Bottom Line
As long as Scientology can keep generating huge donations while fending off lawsuits, its doors will likely stay open.

Total estimated annual revenue: $500 million to $550 million

Visit Portfolio.com for the latest business news and opinion, executive profiles and careers. Portfolio.com© 2007 Condé Nast Inc. All rights reserved.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.