by George Clifford
Sept. 28, 2012
The Economist recently featured a scathing indictment of how the Roman Catholic Church manages its finances ("Earthly Concerns," pp. 19-23, August 18, 2012). Settlements in child abuse cases totaling $3.3 billion over the last 15 years, which have averaged more than $1 million per case, and the bankruptcies of several U.S. dioceses combined to pique the authors' curiosity about the Roman Catholic Church's finances.
The Roman Catholic Church has 196 dioceses in the U.S., divided into 34 metropolitan provinces with 270 bishops and about 100 million members. They comprise approximately 18,000 parishes, served by 40,000 priests and 17,000 married deacons.
Estimates for 2010, the latest year for which data is available, show that the Roman Church spent $171 billion. Healthcare institutions, colleges, and universities spent almost $150 billion of that total. Only $11 billion went to parish ministry and a relatively paltry $4.7 billion to charity, although Catholic Charities provides important services and is the nation's largest charitable organization. Altogether, the Catholic Church has about 1 million employees in the U.S. By way of comparison, General Electric's 2010 revenues were $150 billion and Wal-Mart employed 2 million people that year. ...
So, how well does The Episcopal Church manage its finances? Errors in budget proposals for the next triennium that were published before this year's General Convention implicitly raised questions about the competence of our financial management. From my review of national documents, reading several dioceses' financial reports, and hearing complaints about a lack of financial transparency in at least some TEC congregations, I know that our financial management is much better than what happens in the Roman Catholic Church (e.g., we require regular audits) but leaves room for significantly improving transparency.
No good reason exists to keep TEC finances shrouded in mystery. Shadows invite, even encourage, wrongdoing. Dioceses should publish a full accounting of their income and expenses - with three exceptions. First, financial reports rightly aggregate assistance provided to individuals into a single line item. Identifying the individual recipients of such aid demeans the recipients' dignity and provides no essential information to donors or other interested parties. Annual audits and appropriate oversight can ensure that the funds do not benefit the wrong people.
Second, financial statements rightly aggregate staff salaries and benefits - except for key employees. Donors and other interested parties do not have any legitimate need to know how much an office assistant or receptionist earns. Budget committees, managers, and auditors appropriately manage such matters. Organizations with salary scales or wage guidelines will usefully publish that information to promote transparency, demonstrate good stewardship, and model paying living wages with benefits.