Diocesan Annual Appeal Achieves Record Success
By Surpassing $6 Million 

The 2006 Diocese of Scranton Annual Appeal has surpassed $6 million, a record level of support at a time when the Diocese is striving to overcome a number of financial challenges.

As of Jan. 31, $6,001,517 in pledges had been received from 38,401 donors. Contributions continue to be accepted. The goal of the campaign, which was officially launched last September, was $5,250,000.

“The faithful have responded to this campaign with great generosity and a desire to help me address the serious financial condition of our Diocese,” said Bishop Joseph F. Martino. “They have recognized that we are facing huge deficits, and they have stepped up to the challenge. I have the utmost gratitude for their loyal and unwavering commitment to the Church.”

The Bishop thanked everyone who contributed to the campaign. He singled out for special praise the donors who made major gifts to the Appeal, enabling the campaign to raise more money than ever before. 

Appeal Goal Was Increased; Campaign Reshaped

During planning for the 2006 Appeal, it was decided to increase the goal because of budget shortfalls and the need for more funding in other areas. The $5,250,000 goal is $850,000 more than the previous campaign’s goal.

The campaign, under the theme “Fulfilling God’s Plan…Doing Good for Others,” also made provisions for new initiatives that would depend on the Appeal’s ability to provide funding.

These include a grant/incentive program whereby parishes can apply for funding to help improve religious education programs; adding a charitable component to assist soup kitchens in Scranton, Wilkes-Barre and Williamsport, St. Anthony’s Haven homeless shelter, and Project Hope/Camp St. Andrew; and funding for Fatima Retreat Center.

These areas are in addition to the campaign’s core components: Clergy Recruitment and Formation, Clergy Retirement, Parish Life and Evangelization, Communications and Evangelization, Catholic Education, and Diocesan Facilities.

Ernest G. Pappa, Appeal director, noted that “the campaign was redesigned to meet the challenge of reaching a more ambitious goal. It was necessary to develop a new plan that would involve better communication and education, more involvement from parishes, and increased outreach to donors across the Diocese.”

The Diocese retained Community Counseling Service (CCS), the preeminent Catholic fund-raising firm in the country, to help coordinate campaign strategy and assist parishes with the new plan. Key elements were clergy and lay leadership, using a video produced by CTV: Catholic Television and enhanced printed materials to educate the laity about how the Appeal supports the mission of the Church, regional and parish receptions, stewardship, sensitivity to local parish conditions, a phased approach, short-term pledges, and prayer.

When the campaign was launched in September, Bishop Martino stressed that strong leadership from pastors and key parishioners would be vital to promoting the Appeal. He pledged to assume the lead role with respect to major gifts, and he participated at gatherings at 10 sites in the Diocese to meet with clergy and parish leadership.

A new Pastors Advisory Committee was formed to help formulate strategies and policies for the campaign. The committee was chaired by Father Thomas McLaughlin, pastor of St. Luke, Stroudsburg.

Msgr. Peter P. Madus, Appeal moderator, cited the role of his brother priests in the Appeal’s record success.

“They provided the leadership in their communities and it obviously was a major factor in the way their parishioners responded to this campaign,” he said. “During a period when our Diocese is facing numerous challenges, our people truly rose to the occasion with their generosity.” 

Financial Challenges Remain

Bishop Martino said that news of the Appeal’s success must be tempered by the continuing financial difficulties of the Diocese.

“While these funds are crucial to many programs, they are not a windfall that will cure our budgetary problems,” he said. “The Appeal is an important step on our road to recovery, but it is only one step among many others that we must take.”

The Diocese’s financial challenges were detailed in the Jan. 11 issue of The Catholic Light. For the fiscal year that ended June 30, 2006, expenses exceeded revenues by $1,348,789.

James M. Quinn, Diocesan Secretary for Financial Services and Chief Financial Officer, noted that the Diocese is required to set aside $1.2 million each year to fund the future post-retirement medical benefits for its priests now, not after they retire. Currently, the Diocese has an unfunded obligation of $5.4 million for these benefits.

To help address this annual expense, an assessment of $4,000 for every active priest was placed on parishes and institutions where they serve. This assessment, which began July 1, 2006, helps cover the annual cost but does not address the unfunded liability from previous years.

Also, there is a lack of adequate funding for the defined benefit pension plans for Diocesan clergy and lay employees.

In addition, as of Dec. 31, 2006 there was $5,513,590 owed to the Diocese by parishes that have fallen behind in their assessments as well as money they owe for clergy health care and pension and insurance.

A number of parishes and schools have been borrowing money from the Diocesan Deposit and Loan Fund to cover operating expenses. The total amount of outstanding loans due as of Dec. 31 was $28,584,866. Of this total, $12,936,290 is owed by financially troubled parishes and schools.

Mr. Quinn said the Diocese is proceeding with an action plan to resolve its financial difficulties.

A major component of this endeavor is the reorganization of Catholic schools. Among the goals of the reorganization is to stabilize the finances of both schools and the parishes that support their operation.

Although the plan will eventually result in greater efficiencies, the Diocese must also invest money to enhance facilities, make technological upgrades, and account for inevitable contingencies such as repairs to buildings and equipment.

For example, recent engineering reviews have revealed that the heating and air conditioning system at the Bishop Hoban High School building needs to be replaced this summer at a cost of $1.6 million, and the Bishop O’Reilly High School building needs a new boiler that will cost approximately $250,000. Ongoing inspections at other sites could reveal similar situations.

Mr. Quinn said the Diocese continues to meet with the pastors and Finance Councils of troubled parishes to help them develop a sound financial plan. With help from the Appeal, the Diocese plans to establish a debt reduction fund to further assist these parishes.

In addition to the new parish assessment for the post-retirement medical benefits for clergy, the Diocese is also exploring changes to the pension plan for lay employees that could take effect as soon as July 1.