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June 10, 2002 Major Catholic Donors Urge Church Leaders to Adopt Clear and Transparent Financial Disclosure Policies / FADICA Urges Bishops to Undertake Financial Study of Funds Used in Sexual Abuse Cases Los Angeles, CA ----- At the twenty-sixth annual meeting of Foundations and Donors Interested in Catholic Activities (FADICA), meeting here on June 8, private foundation trustees from around the country urged the nation’s bishops to "adopt clear and transparent financial disclosure," as part of the policies adopted in Dallas June 13-15 in connection with the priestly sexual abuse crisis. In a letter outlined by the group and sent to the United States Conference of Catholic Bishops President, the Most Rev. Wilton D. Gregory, the foundation member organization expressed disappointment that no comprehensive financial information was available on the amount of church funds used in connection with the clergy sexual abuse crisis. The group’s letter, signed by Dr. Francis J. Butler, FADICA’s president stated: "It seems that the present crisis of clergy sexual abuse will have profoundly negative repercussions for Catholic giving in the absence of clear and transparent financial reporting." Without financial disclosure, the FADICA group asserted, donor uncertainty will increase and "many will begin to wonder whether future donations intended for the church’s work may instead be diverted to settle claims." The organization asked the bishops to undertake a nationwide audit or financial survey providing the Catholic public with summary information on funds paid by dioceses in connection with clergy sexual abuse spanning at least the past two decades and the sources of these funds. The philanthropic organization expressed its worry that if dioceses fail to adopt more transparent financial practices, the work of the church in behalf of the poor as well as its educational and pastoral efforts, will be jeopardized. FADICA is a nonprofit association established by private foundations to provide continuing education and to collaborate around projects of mutual interest. It was formed in 1976. The text of the letter is as follows: --- Bishop Wilton D. Gregory
During our twenty-sixth annual meeting today, we discussed the forthcoming assembly of U.S. bishops and the proposed measures of the ad hoc Committee on Sexual Abuse. As a donor community with a focus on the work of the Catholic church, we pray for the success of your efforts to address the present crisis facing the church in the United States. In reviewing the proposed norms, we wish to voice our concern over the matter of financial stewardship. It seems that the present crisis of clergy sexual abuse will have profoundly negative repercussions for Catholic giving in the absence of clear and transparent financial reporting. No comprehensive financial study or report has yet been made on the amount of church funds used in connection with the settlements of sexual abuse cases, and the treatment costs connected with victims and clergy. We think that this is unfortunate. In the absence of such disclosure, donor uncertainty will increase. Many will begin to wonder whether future donations intended for the church’s work, might instead be diverted to settle claims. Surely you can appreciate what is at risk if donor confidence is lost. The very mission of the church, its work in behalf of the poor, its educational and pastoral efforts may suffer severely. In a spirit of stewardship, we urge you to consider an audit or financial survey providing the Catholic donor public with summary information on funds paid by dioceses to settle clergy sexual abuse cases and treatment costs for victims and priests spanning at least the past two decades. It would be important to provide information on the sources of these funds as well. It is imperative that the church’s leadership embrace a uniform policy of financial transparency. We assure you of our prayers and solidarity as you consider these difficult matters. Sincerely, Francis J. Butler |