Parish Debt Relief – Over $800K

Article written by: Shantal Murphy, Diocesan Finance Officer

Parish debt relief has been something that has been important to me since I begin my position as the Diocesan Finance Officer in 2019. For over 2 years I have worked closely with Bishop Warfel and our Chancellor, Darren Eultgen, to evaluate and discuss the history of the parishes with long term debt to the diocese. In many situations, this debt could not realistically be repaid by the parishes. I met with many of these parish finance councils and talked with pastors and parish administrators to gain a better picture of how the past debt impacted their parishes. I also inquired as to how their future would be different without the weight of that debt.

After several discussions with Bishop Warfel, Darren Eultgen, and the Diocesan Finance Council members I proposed a debt reduction plan for past due Care and Share amounts prior to the 2020 campaign year, the total amount of this reduction was going to impact the diocese but I felt for the future of some of these small rural parishes, and with the changes coming into the Annual Catholic Appeal that will replace the old Care and Share it was a good time to move in this direction. At the November 2, 2021, Diocesan Finance Council meeting we discussed the potential financial impact to the diocese, and the positive impacts to the parishes if we followed through on the proposed debt reduction. With positive feedback from our council members we felt that this was the right thing to do and are hoping this may change the trajectory of so many churches in our diocese going forward. I worked with our financial auditor who was also supportive of the debt relief and felt this to be a good time to eliminate some severely past due debt which has been held in our financials for many years.

As a result of this meeting, the Diocesan Finance Council recommended to Bishop Warfel, a one-time forgiveness of the long-term debt of the neediest parishes in our diocese. In most cases, the parishes who received debt forgiveness have made, or have attempted to keep current on, obligations to the diocese in addition to their ordinary parish expenses.

I am committed to continue strengthening the financial posture of our small rural parishes.