BCI hopes that all in Boston are digging out well from the blizzard and have power and heat.
With the news Friday that the Catholic Appeal raised $14.2M in the most recent fundraising year–slightly above the $14M goal, and beating the goal for the first time in 3 years–BCI thought it would be appropriate for everyone to see exactly how the Boston Archdiocese is spending donor funds. In addition, it is interesting to see how all of the overpaid folks in the Pastoral Center with excessive six-figure salaries do in keeping to their budget plan.
There are four things that jumped out at BCI immediately from looking at the numbers.
1) Almost 50% of the $35M in Central Operations expenses in the most recent fiscal year were for Administrative costs (“Management and General”)–in other words, other than paying for programs that directly build the Kingdom of God. Look at page 24 in the 2012 Annual Report.
To BCI, it seems like $16.8M is a lot to spend in “Management and general” expenses in order to deliver $14.8M worth of programs. But the Cardinal, the Finance Council, and 16 lay execs paid nearly $4M in salaries and benefits must think this is a pretty good ratio, because they continue to feel comfortable continuing with business as usual at 66 Brooks Drive.
2) The Boston Archdiocese Central Operations overspent their budget plan by nearly 30% in 2012. They had a budget plan going into the 2012 fiscal year that called for spending $27.8M (see bel0w), and instead they spent $35.3M (see above), an overspend of nearly $8M or 28%. You can find more details on the 2012 budget plan in this 2012 BCI blog post, including the table below from the 2012 budget plan:
Q. How many overpaid lay archdiocesan executives does it take to overspend a budget by 28%?
A. 16. Paid nearly $4M in salaries in benefits.
How many readers can afford to overspend their household, business, or parish budget plans and survive for very long? Perhaps if the Pastoral Center paid lay salaries proportionate to what clergy are paid–as the Holy Father’s “Motu Proprio” directs, they might find their executives would be a little more careful with how they spend donor funds.
3) The budget plan for 2013 under new Chancellor John Straub– who said he wants to “maintain transparency and enhance it where we can“–is considerably less transparent than for 2012 (one high-level page vs a dozen pages previously), and shows a lot of money still paying for admin, legal, and fundraising costs, that do not advance the mission of the Catholic Church.
Of a $27.8M budget, $9.5M is “Administrative services” and if you add that up with the General Counsel and Fundraising, you get $12M of $27M spent on expenses that do not contribute to the salvation of souls. For that matter, one can also argue that $1.6M spend on excessive salaries for Catholic Schools Office staff who do not actually deliver any Catholic education does not contribute to the salvation of souls, but that is a topic for another day.
4) Mr. John Riley, of St. Pauls in Wellesley is listed as a parish fundraising coordinator for the Catholic Appeal. BCI understands from readers that he is the brother of a diocesan priest and is a former private sector CFO. To be fundraising for the Catholic Appeal, surely, he must not be aware of the excessive six-figure salaries, wasteful spending and breach of fiduciary responsibility by the archdiocese. If anyone has his email contact information, please send to BCI so that we can alert him to the problems and invite his participation in pressuring the archdiocese to solve them.