LOS ANGELES (CA)
Tri-City Herald
By HARRIET RYAN, ASHLEY POWERS AND VICTORIA KIM — Los Angeles Times
LOS ANGELES — In the midst of renewed public outrage over its handling of clergy sex abuse, the Los Angeles Archdiocese is considering a $200 million fundraising campaign that could erase debts brought on by the scandal.
The archdiocese has hired a New York company, Guidance In Giving Inc., to study the feasibility of a large-scale fundraiser that would shore up a bottom line hit hard by costly abuse litigation. It would be the archdiocese’s first capital campaign in 60 years.
The archdiocese’s $660 million settlement in 2007 with more than 500 victims was the largest in U.S. history. According to a December financial report reviewed by the Los Angeles Times, the archdiocese is still paying down loans it used to cover the settlement, and its liabilities now outstrip its assets by $80 million.
The archdiocese is contemplating the fundraiser as a way to repay settlement loans totaling $175 million, according to the report. An archdiocese spokesman confirmed that the capital campaign was being considered but in a statement did not address whether any proceeds would be used to pay down the settlement loan.
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