May 7, 2002

Concern Grows Among Foundations as Church Crisis Unfolds / Group President Says Candor and Financial Transparency Needed to Restore Climate for Church Giving

Washington, D.C. ----- As the clergy sexual abuse scandals swell into a tidal wave of adverse news for the church, private philanthropies with Catholic interests have expressed worry over the financial ramifications for Catholic schools, parishes and programs for the poor.

"The mood is worrisome at the present time," said Francis J. Butler, President of FADICA, in a May 5 Associated Press interview. "It is really a terrible atmosphere in which to raise money," he said. "Major Catholic donors," he noted, "are increasingly wary of making donations to dioceses that are facing judges and juries."

In the Boston Archdiocese, the scandal recently caused three foundations and corporate donors that had previously been extensively involved in Catholic charities’ work, to turn down grant requests of nearly one million dollars to that agency. The action triggered staff layoffs and project delays.

"I think everybody has been affected by what’s taken place", Dr. Butler told the New York Times in an April 24 interview about changing donor attitudes resulting from the mounting tragedy. He expressed particular concern over the longer term effects on younger members of the foundation community. In recent years the FADICA organization has been working with its younger adult members to familiarize them with the broad gamut of church-sponsored charitable work. "We will feel the impact for years to come," FADICA’s president predicted.

The first publicized priestly abuse scandal surfaced in Louisiana in 1984, eight years later the Catholic bishops at the national level designed personnel policies for dioceses to follow in cases of clergy sexual abuse. No direction however was given on how to handle the financial repercussions of the crisis nor the adverse impact that settlements might have on charitable giving. Each of the 194 dioceses has been left to decide its own course of action. The details of financial settlements have remained for the most part confidential. This has led to guess work by lawyers and reporters that vast amounts of charitable donations and church property have been used to settle claims. The national dimensions of past settlements remain a mystery.

In an April 19th letter to Cardinal Theodore McCarrick of Washington, Dr. Butler said: "Given the scope of the damage that has been done by this crisis, the trust and confidence of the laity and the wider public could be restored if church leaders take bold steps. One of these," he said would be "the disclosure, once and for all, of the financial dimension of what has taken place." Dr. Butler urged Cardinal McCarrick to see that "a policy of complete candor and accountability in the matter of how church funds have been used would be a step in the right direction."

The FADICA organization will hold its annual meeting June 7-8 in Los Angeles. Members from all over the country will use the occasion to share opinions and explore the charitable dimensions of the current church crisis.


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