Ethan Walker
The Catholic Church has at least $73 billion in assets, according to media reports and financial statements, but the true figure is likely much higher. The wealth of the Catholic Church is a sensitive topic, and the Church is often accused of downplaying its financial resources. The finances of individual parishes are independent, and the majority of their revenue comes from collections. A small percentage of the money collected during services is sent to the diocese, and there are also annual drives to raise money for the diocese. The diocese uses this money to fund diocesan operations and ministries, as well as to support the salary of the priest and the upkeep of the parish.
| Characteristics | Values |
|---|---|
| Percentage of parish money that goes to the diocese | 7%</th: 0,16 |
| 8 cents of every dollar donated</th: 4,8 | |
| 17 cents of every assessable dollar donated</th: 4 | |
| 40% of funds raised during the "Keep the Light Shining Campaign"</th: 7 | |
| Parish money used for | Salary of the priest</th: 0,2,10,11 |
| Payroll of the parish staff</th: 2,10 | |
| Upkeep and ministries of the parish</th: 2 | |
| Charities</th: 2 | |
| Diocesan priests' free room and board, car allowance, and allowance for professional expenses</th: 11 | |
| Diocesan priests' retirement fund</th: 10 | |
| Diocesan priests' study week and spiritual retreat</th: 10 | |
| Diocesan taxes</th: 2 | |
| Diocesan debts and loans</th: 6 |
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What You'll Learn
- Parish money is used for priest salaries, parish staff payroll, and parish upkeep
- A small percentage of parish money goes to the diocese
- Parishes contribute to diocesan appeals and fundraising campaigns
- Parishes may be taxed by the diocese
- Parishes must seek diocesan approval for property sales or purchases
Parish money is used for priest salaries, parish staff payroll, and parish upkeep
The primary revenue of any diocesan parish is generated from collections, which are used to cover priest salaries, parish staff payroll, and parish upkeep. During mass, there are typically two collections: the first is for priests, and the second is for parish maintenance. All the money from the first collection is set aside to be used for the priests' needs, including their salary, free room and board, a car allowance, and a modest allowance for professional expenses. Priests are also allowed to keep what they earn, inherit, and receive as gifts. Religious or Order priests, on the other hand, are paid but may only keep what is necessary for ordinary living expenses, with any additional money turned over to their respective religious communities.
The second collection during mass is for parish maintenance, covering expenses such as printing bulletins, phone bills, water bills, electricity bills, and other utilities. Some parishes also have separate capital savings accounts specifically for major facilities and grounds needs. Additionally, fundraisers are often held for specific events or purposes, such as supporting youth centres, church events, or charities.
The amount of money collected during these parish collections can vary, with larger parishes potentially raising thousands of dollars each week. A significant portion of the parish's revenue may also go towards the diocese, such as through the annual diocesan appeal or diocesan works fund (DWF) appeal. Each parish is given a target amount to raise for the diocese, based on its size and wealth. This money contributes to funding the chancery, Catholic ministries within the diocese, and supporting Catholic schools.
While the specific financial practices may vary across different parishes and dioceses, the primary purpose of parish money is to ensure the well-being and smooth operation of the church and its affiliated staff, including priests and parish employees.
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A small percentage of parish money goes to the diocese
The Catholic Church has at least $73 billion in assets, according to media reports and financial statements, but the true figure is likely much higher. Despite this, individual parishes often claim to be short on funds. Parishes raise money through collections, donations, and fundraising. Most of the money stays within the parish to cover expenses such as salaries, utilities, and property taxes.
The specific percentage contributed to the diocese can vary depending on the parish and diocese. In one example, a parish in Pittsburgh, Pennsylvania, mentioned that $0.17 of every assessable dollar donated goes to the diocese, while another parish reported contributing 7% of their collection to the diocese.
It is important to note that none of the parish money goes directly to the Vatican or the diocese of Rome. Instead, it is distributed within the local diocese to support various operations and ministries.
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Parishes contribute to diocesan appeals and fundraising campaigns
Secondly, parishes contribute a percentage of their assessable income to the diocese. This typically ranges from 7% to 17% and is used for various purposes, including supporting Catholic schools within the diocese. The amount contributed is based on the total assessable income from the previous fiscal year.
Thirdly, parishes may also have to pay taxes to the diocese, which are levied on their revenue. Additionally, any profits from the sale of parish property also go towards the diocese's Parish Share Program and School Subsidy.
Finally, parishes may hold specific fundraising campaigns, such as the "Keep the Light Shining Campaign," which is a combined diocesan and parish campaign. The funds raised from such campaigns are split between the diocese and the parish, with each having specific case statements outlining how the money will be used.
While the majority of parish revenue comes from collections during masses, it is important to note that none of the general donations go to the Vatican or the diocese of Rome. The money is used to support the local parish, including paying salaries, upkeep, and ministries. Diocesan priests also keep what they earn, inherit, and receive as gifts, and their salaries can range from $18,000 to over $30,000 per year, depending on various factors.
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Parishes may be taxed by the diocese
Parishes are subsections of dioceses, which are, in turn, subsections of the worldwide Catholic Church. Parishes are taxed by the diocese, with the primary revenue of any diocesan parish coming from collections. The tax is meant to support the bishop, who has no episcopal benefice. The amount of tax is usually a moderate amount, proportional to the parish's income, and is meant to cover the diocese's regular expenses.
The tax is called the cathedraticum and is a universal law that not only chapters and parish churches but also endowed chapels and benefices should pay. The amount of the cathedraticum was fixed in ancient times at two solidi (a solidus was one seventy-second part of a pound of gold). If a smaller amount becomes customary, the bishop must accept this reduced pension and cannot command a return to the original sum. In some cases, the amount is based on a percentage of the parish's revenue, such as one-third or one-tenth.
In addition to the cathedraticum, there are other ways that parishes contribute financially to the diocese. For example, during mass, there may be two collections, one for the priests and another for parish maintenance. There are also periodic collections in each parish for above-diocesan funds, such as Catholic Relief Services. Parishes may also be asked to contribute to specific causes, such as building a new diocesan high school or providing disaster relief.
The money that goes to the diocese from parish taxes is used to cover a variety of expenses, including the salary of the bishop, the salary of the priest, the payroll of parish staff, and the upkeep and ministries of the parish. It also goes towards funding the chancery and various Catholic ministries within the diocese.
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Parishes must seek diocesan approval for property sales or purchases
The bishop can define what constitutes a "major" purchase or sale. If a parish wishes to purchase property, the diocesan bishop may require permission from the priest before proceeding. This is to ensure that the parish has the financial means to complete the transaction. The priest must provide a detailed financial analysis and business plan to support the request.
In the case of property sales, the bishop should ensure that the parish receives a fair price for the asset. If the priest intends to sell an asset for significantly less than its value, the finance council should object and can escalate the matter to the bishop if necessary.
In some dioceses, specific bodies are appointed to advise on property matters. For example, the Archdiocesan Building and Property Commission (ABPC) assists parishes in evaluating the benefits and options associated with buying, developing, or selling land assets. The ABPC also supervises construction, alteration, and renovation projects.
Overall, the requirement for diocesan approval ensures financial accountability and helps to protect the interests of the parish.
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Frequently asked questions
A Catholic parish can raise around \$300 in most good collections, with each parish contributing about \$14,000 to the diocesan appeal annually.
Typically, most of the money stays in the parish to serve the needs of the parish (employees, religious instruction, electricity, and building upkeep). However, a small percentage (ranging from 7% to 17%) of the collection goes to the diocese.
The diocese uses the money to support diocesan operations, ministries, and special projects. It also goes towards the salary of the bishop and diocesan priests, who may keep what they earn.
Yes, there are annual drives to raise additional funds for the diocese, and some dioceses levy a tax on parishes. Parishes may also be required to contribute to specific diocesan fundraising campaigns, such as "Peter's Pence".
