Archdiocesan annual report shows giving going up, spending decreasing

By Michelle Martin
STAFF WRITER

The Archdiocese of Chicago had a good year in fiscal 2006 because of higher contributions, controlled spending and a higher interest rate, said Thomas Brennan, the archdiocese’s finance director.

According the annual financial report for the fiscal year that ended June 30, the archdiocesan pastoral center—which includes administration and ministries and services ranging from the Office for Catholic Schools to The Catholic New World—ended the year with $28 million more in assets than liabilities—an $87 million turnaround from last year, when the report showed $58 million more in liabilities than assets.

Archdiocesan parishes, as a group, were in the black by $941 million, slightly less than last year’s figure of $978 million. Complete details are available in the special section starting on Page 1a.

Much of the change on the archdiocesan balance sheet came from a reduction in pension liabilities—a result of rising interest rates and, to a lesser extent, changes in the pension program, Brennan said.

The report also reflects new costs related to clerical sexual abuse cases and provisions for the future cost of retiring buildings—a new accounting standard, Brennan said.

On the other hand, the financial situation of parishes and the archdiocese as a whole were buoyed by record contributions to the Annual Catholic Appeal and rising Mass collections.

Weekend and holy day Mass collections rose by 2.3 percent, Brennan said, while proceeds from the Annual Catholic Appeal more than doubled, from $4.4 million to $8.9 million.

Next year will likely see continued high levels of contributions to the appeal, as parishioners were allowed to spread their donations throughout calendar year 2006.

Overall, parishioners pledged $12.6 million to the appeal, and $10.6 million had been paid as of Nov. 30.

The Office for Stewardship and Development will use much the same process for the 2007 appeal as well, offering parishes that exceed their goals a rebate of any extra money collected. Parishes will be asked to send representatives to training sessions during the second half of January and to ask parishioners to make their pledges during the first three weekends in February,

“The parishes had a real incentive this year,” Brennan said.

On the cost-cutting side, more than 80 percent of the 365 parishes, as well as the Pastoral Center, now participate in the Resource Renewal Project, an effort coordinated by the Coleman Group management consultants. The project allows the pastoral center, parishes and schools to work together on purchasing, leveraging high volume for larger discounts.

The project, which started in 2004 with about a dozen pilot parishes along with the Pastoral Center, now saves members a total of about $400,000 a month on products and services from office supplies to cleaning.