Bringing Our Gifts to the Table: Creating Conditions for Financial Health in the Church

Home , Dale Joseph Melczek, John Carroll University, Roger Morin

National Leadership Roundtable on Church Management Conference at The Wharton School

June 29–30, 2006 Philadelphia, Pennsylvania

Bringing Our Gifts to the Table: Creating Conditions for Financial Health in the Church

National Leadership Roundtable on Church Management Conference at The Wharton School

June 29–30, 2006 Philadelphia, Pennsylvania

Table of Contents ofTAble Contents

Introduction...... 1 Kerry A. Robinson, Executive Director, Leadership Roundtable

Opening Prayer...... 3 Most Rev. Dale J. Melczek, Diocese of Gary

Welcome ...... 5 Kerry A. Robinson, Executive Director, Leadership Roundtable

Everyone Counts: Finding the Means for Ministry and Service ...... 7 Keynote Address: Dr. Francis J. Butler, President, FADICA

Exploring Financial Challenges and Opportunities ...... 13 Moderator Most Rev. William B. Friend, Diocese of Schreveport Panelists Most Rev. Edwin F. O’Brien, Archdiocese of Military Services Most Rev. Michael J. Bransfield, Diocese of Wheeling-Charleston Plenary Discussion Highlights ...... 17

Effective Diocesan Planning ...... 21 Moderator Dr. Patrick T. Harker, Dean, The Wharton School Presentation James Lundholm-Eades, Director of Planning, Archdiocese of St. Paul & Minneapolis Plenary Discussion Highlights ...... 25

Essentials of Church Financial Transparency: The Archdiocese of Boston Transparency Project...... 29 Moderator Rev. J. Donald Monan, S.J., Chancellor, Boston College Panelists John H. McCarthy, CPA, Senior Fellow, Hauser Center at Harvard University Dominic A. Tarantino, CPA, Retired Chairman, Price Waterhouse World Firm J. Malcolm Visbal, CPA, Retired Partner, Grant Thornton Plenary Discussion Highlights ...... 35 TAble of Contents pedxF Plan ofAction Appendix F: Conference Agenda Appendix E: Participants Appendix D: Update ontheLeadership Roundtable Appendix C: Archdiocese Financial ofBoston Transparency Project Inaugural Practices Best Award: Appendix B: Renewal andRebuildingintheArchdiocese ofNewOrleans Appendix A: Acknowledgments Laying theFoundation forSuccessful Fundraising (Multi-Parish/Multi-Diocese) ScaleintheChurch Economiesof The Power of EvaluationThe Value intheChurch of Panelists Moderator Panelists Panelists Moderator e.J ra ei,Peiet ahlcCaiiso the Archdiocese of CatholicCharities President, Hehir, Bryan J. Rev. Leadership Roundtable Chair, Boisi, Geoffrey T. onEisn ietro eerhadCin evcs Leadership Research andClient Services, Director of John Eriksen, New Orleans Auxiliary Bishop of Morin, Roger P. Most Rev. McKinsey &Company Former Managing Director, Frederick Gluck, ihe ruh ietro PlanningandMember Services, Director of Michael Brough, Roundtable Leadership ExecutiveDirector, Robinson, Kerry A. fBoston of Roundtable Leadership Roundtable Plenary DiscussionHighlights Plenary Fort Worth Diocese of Human Resources, Director of Charmaine Williams, Korn/Ferry International &CEO, Chairman Paul Reilly, Heidrick &Struggles SeniorChairman, Gerard Roche, NACPA Executive Director, JoMary Moran, ae mt,CO ics fTyler Diocese of CFO, James Smith, McKinsey &Company Former Managing Director, Frederick Gluck, Plenary DiscussionHighlights Plenary Notre Dame President Emeritus, CSC, Edward Malloy, Rev. Inc. Our Changing World, CEOandPresident, Michael Hoffman, Roundtable Leadership ExecutiveDirector, Robinson, Kerry A...... 57 ...... 77 ...... 87 ...... 83 ...... 47 ...... 43 ...... 55 ...... 71 ...... 65 ...... 37 ...... 59 ...... 51 w mgnto bu hti osbe andproductive andbeneficialto the CatholicChurch inthe ispossible, aboutwhat imagination own butmore I hopethatyou enjoy theseproceedings, andLaying theFoundation forSuccessful Fundraising. Scale, Economies of Power of The Evaluation, Church The Financial Transparency, Value of Essentialsof Effective Diocesan Planning, are They development inworking sessionsattheconference. focuswere forfurther highlighted of Under five thatrubric areas specific the CatholicChurch. creating conditions forthefinancialhealthof formaximum application. seminated openly andwidely thatisdeveloped isintended to theLeadership Roundtable beshared anddis- thateverything ethos of It isatestament to theconstructive thatconference are provided inthisvolume. the proceedings of and The Leadership Roundtable’s 2006, second annual membership conference washeldonJune 29–30, to theChurch to bedeveloped inservice intheUnited States over thenext fewyears. tions, 48recommenda- by informed theoriginal objectives, 21specific Leadership Roundtable consisting of Action forthe thisconference emergedaPlanof Outof bishops. prominentattended together U.S. with its180members which many of Leadership Roundtable helditsfirstannual membershipconference, Three monthslater the DC. Directors metforthefirsttimein Washington, on July 11theBoard of and theNational Leadership Roundtable onChurch Management wasincorporated, 2005, In March of Church emulation. thatmerit excellence inour namely to identifywhatalready works well intheChurch andthoseexamples of Alsonotableisthestrong emphasisonthepositive, entirely non-doctrinal. inthisfocus, affairs andis, focusing solelyontemporal theChurch, andhuman resource development of finances, management, exclusively the with hasconcerned itself from itsinception, It isnotablethatthiseffort, national levels. and diocesan, andhuman resources development atthelocal, finances, the Church’s management, 48recommendations forpositively impacting wasalistof thisgathering Aseminalresult of effectively. theChurch beadvanced might more Catholic Church intheUnited States inorder thatthemissionof the andcontribute substantively to improve thetemporal affairsof assess, to met discuss, experience, executive levels of high with from Catholicluminaries thesecularworld andtheChurch, Hundreds of held atThe Wharton School inJune 2004called conference animportant The National Leadership Roundtable onChurch Management outof grew Director Executive Robinson, Kerry A. Introduction importantly I hope that this serves to Ihopethatthisserves stimulateimportantly your The Church in America: Leadership Roundtable The conference focusedonthebroad themeof .

Introduction 1 2

United States, especially in terms of your own parish, diocese, religious community, or Catholic nonprofit. Our Church and its leaders deserve our support, expertise, insight, and participation to achieve excellence in management and mission. Introduction oplo oe ec,jsie n oe asgoodandfaithfulstewards. andlove, justice, peace, hope, gospel of May we proclaim Jesus’ Keep usfaithfulto allthatisgoodandtrue. love. to oneanotherinthebondof and Unite usto yourself theworld. inbuildinguptheChurchto transform doourpart sothatitmight theHoly Spirit of Empower thegifts us with you thegifts have given us. May we beworthy stewards of inandthrough theChurch. to extend His presence living intheworld, baptism, timethrough your eternally begott in thefullnessof We thankyou formanifesting your love foryour deeplygrateful love. we inyour gather namethisday, Father, theHoly Spirit. andof theSon, and of theFather, In thenameof Let usbow ourheads inprayer. theworld. tocussions serve of builduptheChurch forthetransformation ourdis- And may allof theChurch. of May Godblessallthatyou doonbehalf others. tionships with andhelpingthemto share thatlifeandlove rela- inright thetrinity, completely inthelifeandlove of pr forourmissionof supports These are necessary andpastoral planning. human resources, finances, excellence inmanagement, standards andorganizational bestpractices of share youwhat by will way of Iamconfident formy thatIspeak communion, of ogy Within asoundecclesiol- theChurch. of has motivated you to offeryourselves andyour onbehalf gifts edifiedthat your Iamtruly love forJesus andyour love fortheChurch resources in other directions. could beusingyour talentsand You experienced much success inlife. andhas endowed many with gifts, Everyone here hasbeengenerously and foryour presence today. Roundtable onChurch Management, theNational Leadership mission of you foryour interest inthe thank allof to alsowish I ourconference. ers of theotherorganiz- Robinson of andall andKerry Boisi to Geoff gratitude I’d like to express aword of prayer, a Before openingoursessionwith Gary Bishopof Melczek, J. Dale Most Rev. Opening Prayer Bishop DaleMelczek oclaiming thegospelandhelpingpeoplelive more nsn eu.We thankyou for callingusthrough Jesus. en son, brother bishopshere in saying thatwe welcome

Opening Prayer 3 4

May our conversations during this gathering begin with your inspiration and continue with your divine help, in the service of your Church, for the building of your kingdom, and to the glory of your name. We make our prayer through Christ Jesus, our Lord. Opening Prayer Opening inspiring andenjoyable.inspiring alsobe but will Your productive, on thesecommittees benot onlyhighly participation will efforts. andwe encourage themembershipto become actively involved inthese Action, ects inourPlanof Please note thatBoard committees are currently hard atwork developing thesethemesand otherproj- andfundraising. scale, economies of personnel, of evaluation parency, financialtrans- diocesan planning, thosethemesto refine atthisgathering: We have taken five of ship. conversations thoughtful among thismember- projects20 specific thathave emergedfrom dynamic, Action around more than theBoard developed aPlanof ourconference inOctober, As of anoutgrowth actively and advancing itsmission. witnessing Church, people exceptionwithout greater numbers of we alsofind andhealthy financialconditions, excellence intemporal affairs, aculture of best practices, For where we findthedisciplineof theChurch’s mission. found positive ontheeffectiveness impact of have nevertheless they apro- afaithcommunity, anced budgetsare notinthemselves themissionof andbal- endowments, positive And although revenue streams, be. tion—the healthierourfinances will organiza- orCatholiccharitable school, community, religious diocese, asaparish, affairs—whether that thecloserto excellence we come inconducting ourtemporal HealthConditions forFinancial intheChurch Our overarching themeforthisconference is tomitted theChurch. to developing inservice we are projects andopportunities com- the progress of andarray is thatbefore you leave tomorrow you have will agoodsenseof Agreat deal hashappe months ago. we lastgathered here meetingnine forourinaugural Indeed, to feellikebeginning home. for It is extending to us here hishospitality atThe Wharton School. Directors, theBoard of ourhostandmemberof Harker, Iwantto thankDeanPat Roundtable onChurch Management. theNational Leadership the annual membershipmeetingof It’s andgenuine appreciation delight thatIwelcome with you to Leadership Roundtable Director, Executive Robinson, Kerry A. Welcome e ic hn andmy hope ned since then, It isourconviction . engaged indeeperandmore waysengaged meaningful inthe Creating the Kerry Robinson Kerry

Welcome 5 6

Speaking of membership, the National Leadership Roundtable now consists of close to 180 senior-level executives from the secular world and from the Church. We have also been developing relationships with 40 key bishops from all 14 regions of the United States, who serve on important administrative Welcome committees and have expressed encouragement for our work and mission. They have agreed to be It’s a great sign of hope for the Church that called on for advice and have, in people of your faith, conviction, expertise, some instances, invited us into their and influence care so much . . . dioceses to tend to specific projects.

Finally, I am struck by how many of you I know well. I’m aware of the magnitude of your professional responsibilities; your presence today, your ongoing participation, your energy and focus in advancing the Roundtable mission to support the Church is truly commendable. We do not take lightly the sacrifice you have made. It’s a great sign of hope for the Church that people of your faith, conviction, expertise, and influence care so much and are determined to make the great- est possible contribution to the Church we all love.

Thank you for your commitment and for your ongoing participation. striking: are Thefindings choosing arepresentative samplefrom amongmany. andwell-managed Sees, typical outfinancialofficers atseveral Isought fairly But to prepare formy remarks, ers andfinancialofficers. Iaminregular Church touch with fundrais- Thanksto my dutiesat FADICA, cial challenges head-on. This year’s Roundtable conference tacklethe Church’s will finan- cutbacks. financialdifficultiesare whose leadingto significant the country dioceses across to alargertrend affectingagrowing number of Theproposed changes linked are inpart and adhoccommittees. boththeConference’s permanent tically reduce thenumber of haspresented aproposal thatwould dras- New Mexico, Santa Fe, Sheehanof Archbishop Michael J. CatholicBishops (USCCB). of Conference theU.S. of downsizing plansforasignificant sidering bishopsbegancon- We meettoday justtwo weeks after theU.S. (FADICA) Catholic Activities Foundations Interested andDonors in President, Butler, Francis J. Keynote Address for Ministry andService Finding theMeans Everyone Counts: icssapa ob unn hog hi eevsa naamn ae In thepast Dioceses appearto through theirreserves rate. berunning atanalarming • ing its net assets within thenext fourorfiveing itsnetassetswithin years. itdoes, If the trend islikely to accelerate. according to localchurch officials, And, them. many needhelp—some190of parishes largearchdiocese, In thisparticular ataloss. isoperating to sustainparishes grants of theoutflow reason The forthisissimple: year. per $16million awhopping a declineof Thisamountsto financialhealth. assets—this valueisprobably thebestbarometer of onearchdiocese experienced a47percent net declineinunrestricted years, eight hslclcuc ae h rseto deplet- this localchurch faces theprospect of Frank Butler

Keynote Address: Everyone Counts 7 8

• Another large, well-run archdiocese—boasting an impressive fundraising record in recent years—reports that those parishes that operate schools are mainly responsible for its deficit parish spending. The chief financial officer explains that impressive efforts to establish scholarship foundations as well as special diocesan campaigns to benefit inner-city schools are not sufficient. To keep parish-run schools afloat, the archdiocese is still forced to channel millions of dollars away from other essential ministries. What’s more, operating costs are rising faster than tuition levels and are projected to grow even more dramatically in the years ahead. All this has resulted in numerous underfunded parishes and Catholic social services, leaving the archdiocese increasingly hard pressed to meet its payroll. For this archdiocese, sharply rising

Keynote Address:Keynote Counts Everyone healthcare expenses are another burden.

• The financial officer for yet another archdiocese reports that taxes paid by parishes— in the form of a percentage paid of their weekend collections—do not allow the archdiocese to meet its obligations in a context of rapidly rising costs and stagnant parish contributions. Income from special archdiocesan appeals is diverted to help fund clergy pension funds, school scholarships, Catholic charities, and the running of the seminary. And still many needs go unaddressed, including a huge backlist of repairs and maintenance of parish facilities.

These are but some of the experiences of financial officers in what would be generally considered healthy and well-managed archdioceses. They are not bogged down in courtrooms, nor are they liqui- dating assets to meet legal settlements or fending off visits to bankruptcy court. Remarkably, even in the face of all the challenges just mentioned, these dioceses will not be closing any parishes or schools this year. They have not mismanaged their assets, nor have they suffered from any deliberate mishandling of funds. Although their investments generally have seen better days, they have avoided great losses and can claim balanced financial portfolios.

Indeed, these three examples illustrate a fairly common plight among dioceses across the country, which face:

• rising costs, • diminishing reserves, and • insufficient income—which is a result, in part, of increases in parish collections that are very modest and do not keep up with increases in costs.

Someday historians will benefit from the perspective of time to analyze the major causes of the Church’s present economic straits. These causes will surely include the shift of the Catholic population to the Sunbelt, the Boomer retirement wave, the drop in Mass attendance, the Church’s growing commitment to serve the poor, the huge loss of the human endowment once represented by men and women religious underwriting the work of the Church with their generous and essentially free labor, and the enormous and rising costs of salaries for laypeople taking their place. But if there’s any opportunity to stem the tide of ever more schools and parishes closing their doors, qualified staff leaving to find namte fjs e ek,caial epne ohmntra rsscnyedhnrd fmil- hundreds responses canyield charitable of to crises humanitarian justafewweeks, in amatter of When, thatcould doingthings andshouldbeemulated across theboard. mous generosity and away of enor- take acloselookatreally successful andadifferent dioceses andparishes picture emerges—oneof But You have thatCatholicsdonotgive heard all asmuch themantra astheirProtestant counterparts. Mile scholars schools. to localCatholichigh tuition feesinpredominantly African neig American Mile Foundation school inthediocese to wasableto $23million subsidize spend Catholicprimary theExtra And inPittsburgh, thecommunity atlarge. even theeducationalandsocialneedsof serve and programs, fundfaithformation long-term needs, andschools with parishes support yearly earnings community 2,000 donorsw foundationhasrallied theChurch’s Paul-Minneapolis, St. In the Archdiocese of inthecommunity. to sponsor150ministries they’ve enabledtheparish theirincome to theChurch, By donating more than3percent of life. way of have where 2,700parishioners embraced astewardship Washington, Michael’s Parish inOlympia, is St. There sufficientrevenue. localchurches with operating andparishes There are many otherexamples of in many are parishes three timesthenationalaverage. andwhere Sunday collections past andwhere any child wantsto who goto aCatholicschool candoso, the where Catholicschool tuitionisathingof comes to mind, Kansas, Wichita, TheDiocese of policies. embraced stewardship having wholeheartedly practices and thatareparishes reaping therewards of otherdioceses and Isay thisconfidently becausethere are examples of It doesn’t have to bethisway. theChurch’s financialplight. urgent discussionof faithinan thetimehascome community of to thewider engage . . . crowding outlook. outamore andgrowth-oriented evangelical otherSeesare anddesperate measures undoubtedly facingfinancialworries thatare numbers of growing pressures, archdioceses high-functioning such thesekindsof asthisoneare dealingwith If thepastfouryears. thepoor—hehasbeenforced to make serving parishes budgetcutseach of of andthemaintenance retired supporting priests, thegrowing costs of depleted self-insurance reserves, Yet—citing revenues years. thepasteight during ed archdiocese inthe West hasenjoyed adoublingof Here isonemore snapshotthatdrives thatpointhome: Church’s financialplight. the faithinanurgentdiscussionof thetimehascome community of to thewider engage Simply stated, outright thenwe must seize it. insolvency, casesof andagrowing number of diminishingpastoral services, employment elsewhere, ohv ul pafn f$5 ilo.Thissum’s $150million. ho have builtupafundof brod,andanother$5millionto sendExtra hborhoods, the chief financial officer for a highly respect- financialofficer forahighly the chief

Keynote Address: Everyone Counts 9 10

lions of dollars from parishes rich and poor across the country, one has to conclude that the capacity of Catholics to give is not only still there, but that it is greater than ever.

New affluence and the social mobility that accompanies it have meant that large numbers of Catholics occupy elite levels of American society. Catholics can be counted among the leaders of America’s Fortune 500 companies in numbers disproportionate to their percentage of the U.S. population, and armies of their children fill the classrooms of increasingly well endowed Catholic universities, as well as the ivy-covered variety (20 percent or more of today’s student body at Harvard, Stanford, Yale, and Princeton is Roman Catholic). Moreover, Catholics comprise a significant segment of beneficiaries in the wealth transfer that’s underway among generations in America—estimated to total $41 trillion in

Keynote Address:Keynote Counts Everyone the coming half century.

Church leadership must make it crystal clear that each individual’s gifts and personal involvement are . . . essential to the very life and mission of the Christian community.

With few exceptions, however, the growing super wealth and social standing of Catholics has not trans- lated into a commensurate gain in funding Catholic institutional life. Experts in Catholic giving insist that three conditions must be met for the Church to draw effectively and successfully on its members’ generosity. First, a vibrant theology and practice of stewardship must be in place. This means that the asking institution must not only educate the faithful about a Christ-centered life marked by a sense of gratitude and service, but must itself act as a responsible and accountable manager of resources. Second, the asking institution must present a goal that is clear, compelling, and strongly anchored in reality because the level of donations directly correlates to what people understand the need to be. (How many of us were shocked 20 years ago to discover that retired religious had no pensions, and how well the rank and file has responded since then!) Third, Church leadership must make it crystal clear that each individual’s gifts and personal involvement are not only welcome, but essential to the very life and mission of the Christian community.

Clearly, these three dimensions are present whenever we find a spiritually thriving Church. Even in the Boston Archdiocese, hard hit by clergy sexual abuse litigation and forced into many parish closings, there are encouraging signs in the wake of last spring’s financial disclosures. The local Church’s more open policy is already making huge strides toward reuniting the community and rebuilding trust.

Exercising good institutional stewardship, transparency, and accountability in an age of litigation and huge financial setbacks is not an easy task. Last year, U.S. dioceses reported that they paid out nearly $400 million dollars to the victims of priestly sexual abuse, in addition to $68 million dollars in legal fees. How painful it must have been for these Sees to make such facts public. It will also be painful to admit to the scope of other financial problems—a poorly managed portfolio, an underfunded pension service thattheChurch isrenderingservice through itsschools anditscaring elt fChrist’s presence among His people. of reality to the witness giving everyone counts—the when Church isbetter ableto fulfillitsmission of short, way—in transparent andfinancially participatory, widely inanauthentic, isrun a diocese orparish We aimto thatwhen demonstrate andoverall planning. cost control, fundraising, financial reporting, beexamining indetailatthebestpractices we indiocesan will thenext day andahalf, In thecourse of His people. Christ’s presence among to of thereality witness giving its missionof ...when everyone c to devote to thischallenge. here ourmindsandhearts awillingness we wantto by demonstrate ourpresence theRoundtable, of are uswho part For thoseof leaders face. this room isconvinced Catholicmust become thatevery more involved theproblems insolving Church Everyone in Church leadershiptoday. respect fortheburdens of We thisconference begin of inaspirit letthem.” onlywe will if to share us, ourproblems to andawillingness with ourfeelings sensitivity exception almostwithout demonstrate they a listening andbeingopento ourpeople, take of therisk “We bishopshave thatwhenwe atleastlearned putit, Vatican II, USCCB andaninfluentialfatherof the firstpresident of As thelate Cardinal John Dearden, Everyone shouldbe involved. change. graphic anddemo- cultural andcoping enormous with keeping itsfinancialinstitutionshealthy, community, Church alltheburdens leadersshouldnotbeexpected by themselves—leading to carry thefaith thisChurch. stewards of We are all itsmembers. all theChurch’s healthandwell-being are of theresponsibility said many times, As thelate Archbishop ThomasMurphy andthepublic-at-largetakely assumeparishioners to heart. we often wrong- a story ice thattheChurch institutions, isrendering through itsschools anditscaring theheroic serv- But we to must alsolearn tell more powerfully of thestory maintenance. and deferred Church theforced saleof deficit, anoperating plan, institutions. ...we m s lolant elmr oeflytesoyo theheroic toust alsolearn tell more powerfully of thestory ounts—the Church isbetter ableto fulfill rpry elnn otiuin,mountingdebt, declining contributions, property,

Keynote Address: Everyone Counts 11

ihpWlimB Friend B. Bishop William Bransfield Michael J. Most Rev. O’Brien F. Edwin Most Rev. (Moderator) Friend William B. Most Rev. Panel and Opportunities FinancialExploring Challenges in thediocese we are challenged when itcomes to obtainingqualifiedpeopleto insuch serve jobs sofewCatholics with We alsohaveinsurance premiums human resource thiscoming year. needs: meanforusa41percent Louisianawill increase in Beinginthestate of these days isinsurance. one andtheobvious Another challenge we face—like everyone else—isincreased costs, operating you when thinkaboutit. afrightening, That’s kindof 5 percent inthenation. which Iunderstandputsusinthetop in$308perparticipant, appealbrings Ourannual service ital. limited cap- andsowe have theissueof sections, mostlyintherural poverty, Our area hasalotof along with working folks, some professionals. middle-income, consists of forthemostpart, and, Catholics issmall massof lenge isthatthecritical ourchal- Part of at stewardship. enue stream efforts despite serious We have staticrev- arather area. theminthemetropolitan most of approximately 50,000Catholics, ers 11,000square milesandhas which cov- Shreveport, Diocese of SoIspeakforthe experiences. from ourpersonal opportunities explore financialchallenges and Our panelhasbeenasked to O’Brien (left to right) (left O’Brien Archbishop and Edwin Bransfield, Michael Bishop Bishop Friend, William 13 Exploring Financial Challenges and Opportunities 14

as school principals, school teachers, directors of religious education, and so on. So we are educating them from within our own ranks, though that takes time.

Also in the human resources area, we’re trying to fashion more precise job descriptions for our volunteers. We did a study of our volunteers recently, and they told us that they’re looking for more precisely defined descriptions of their positions. They also want better orientation, improved support services, and the option of limited terms in their positions. We have an office of mission effectiveness addressing those challenges.

We’re challenged, too, by the increasing complexity of government regulations. Those of you in business know it far better than me. There seems to be more and more intrusion demanding more and more of our time. It’s frightening to me to think that the state of Louisiana can have at times a session introducing 4,000 bills. Thanks be to God they don’t all make it through.

When it comes to grants, the challenge I’ve seen over the last 26 years as a bishop is that donors have

Exploring Financial Challenges and Opportunities Exploring Financial come to expect—and rightly so—greater accountability and transparency. But when you’re in a small missionary diocese, you don’t always have the level of sophistication or the staff that knows how to be the perfect grant writer. And so many of the smaller dioceses are not, in my opinion, on a level playing field when it comes to competing for grants. Three basic sources—the Catholic Church Extension Society, the Committee for Home Missions of the Bishops Conference, and the Catholic Negro and Indian Mission Fund—pretty much keep us going. But as foundations and grant agencies go more for innovative and cutting-edge opportunities, we have to focus increasingly on how we can keep the grant doors open.

Our people like being actively involved....They feel a real sense of the Church, and we get tremendous feedback from that dynamic.

And last, we’re working hard to address the need for increased stewardship, which Frank [Butler] encapsulated so nicely. We’re doing well, I think, on accountability. We have an open-ended process for planning, and for conducting and publishing annual audits with an independent CPA. Our people like being actively involved on both the planning and accountability/reporting sides. They feel a real sense of the Church, and we get tremendous feedback from that dynamic. Is it perfect? No. But we see the opportunities as awesome, and we’ll continue to do our part to develop them.

Archbishop Edwin F. O’Brien

For the last nine years, I have been Archbishop for the Military Services in the United States. Since 1986, we have been a separate entity, no longer part of the Archdiocese of New York, as the Military Vicariate had been since 1917. We now live and work out of Washington, DC. There are three other bishops who work with me: a vicar general, a chancellor, and a judicial vicar, as well as other concern isthatwe’re justnotreaching them. andmy great isfocusedon young adults18to 29, Our ministry apin eas eyo eea oosadapast u hpan,andhave adirect mailpro- We alsorely donorsandappealsto ongeneral ourchaplains, Campaign. We take inthecombined Federal part ask ourinstallationsfourtimes ayear to take upacollection. Where doesourincome come from? We where we have what’s anarchdiocesan called fund, support aswe didatonetime. CatholicBishops, Conference of theU.S. ment orfrom office thecentral of which we allof $3.5million, an annual budgetof we have In addition, which we justpurchased—we have capitalcampaign. an$8million building, For andothers—includingrefurbishing ournewoffices thisprogram attheDivine Word Seminary milliondollars which ahalf of cost usabout$4million, will program The too. But it’s expensive, very offersgreat hope. Christ CatholicsSeeking another team atCampPendleton onthe West we have about30marines. Coast with atTrinity University; DC, ourfirstsessionswasin Washington, Oneof hundred leaders. andhave abouta trained butwe’ve beenatitforaboutayear andahalf It’s task, atough leaders. involves reaching outto ouryoung in people butinstead It doesn’t involve from inpeople theoutside, bringing is peer-to-peer ministry. we decidedto be Faced thischallenge, with aninstitutionalcommitment to faithisnottheirfirstoption. aChurch, as linkingupwith But asfar aboutthem. oraspirituality, have They instincts, religious but notbelongers. believers, They’re called oneto isatough reach Theirgeneration underany conditions. not reaching them. andmy othergreat concern isthatwe’re just isfocusedonyoung adults18to 29, Our ministry seemecoming gatherings. they atvarious theother way run bishops usually when In fact, My biggestconcern isfindingmore chaplains. great. ourneedsare soobviously very We shouldhave chaplains, 800uniformed in ourveterans hospitals. andabout100chaplains working full-time our Armed ForcesServing are chaplains, 325uniformed inuniform. amillion of includingaboutaquarter world, We figure we have Catholicsinourarchdiocese about1.5million spread over all the embassies. beconstruction workers whetherthey in ordiplomatsinU.S.Afghanistan overseas, ernment andforany working civilians forourgov- ourveterans hospitals, have forall175of responsibility WeWe’re also includingtheirfamilies. responsible forallthemenandwomen inour Forces, Armed Washington andourchancery. working inthediocese—all togetherclergy has already beenspent. i rga aldCtoisSeigCrs,which calledCatholicsSeekingChrist, aprogram gin nfr n hpn hma vneies asCatholic andshapingthem asevangelizers, uniform about 30 full-time laypeople working outof about 30full-timelaypeople as usle.We getnohelpfrom thegovern- ourselves. raise 15 Exploring Financial Challenges and Opportunities 16

gram that’s been very successful. The remainder is raised from fees for documents and certificates that people request.

Most people know very little, if anything, about the Military Archdiocese and what we do. And so, what I’d like to ask the Roundtable is: how can we tell our story better? It has been suggested that we form a development committee made up of laypeople from around the country to provide direction. I’m convinced that if people knew more about us, we’d be better able to expand the good work we’re doing.

Bishop Michael J. Bransfield

The Diocese of Wheeling-Charleston, which covers 26,000 square miles and has about 100,000 Catholics, is quite unusual in its demography. Wheeling is almost a suburb of Pittsburgh, and Charleston is a southern city in the true sense of the term. Moreover, there are parts of the diocese where there are hardly any Catholics, other parts where the Church is growing, and still other parts

Exploring Financial Challenges and Opportunities Exploring Financial where it has a strong historical base. All told, we have 125 parishes and missions.

Coming into a new diocese [Bishop Bransfield was ordained and installed on February 22, 2006] gave me a fresh perspective, and one thing that struck me immediately was the shortage of priests we face. It’s a difficult problem to solve because you don’t like to “mission out” one parish to another. Several programs that have been helpful, though, are having pastors go out to various parishes, and maintaining permanent deacons in some of our parishes.

. . . audits are one of the most important processes that can occur within the parish and the diocese.

The other problem I noticed was transparency within the parishes and, more specifically, the aver- sion to audits that many people have. They think that others are looking over their shoulders or checking up on them. I’ve found, however, that audits are one of the most important processes that can occur within the parish and the diocese. And even though many people don’t feel comfortable reading them, there are others who appreciate the opportunity.

Finance councils also help promote transparency. They are essential to the life of the Catholic Church in the United States, and the more they become part and parcel of helping our parishes and dioceses, the less people will see them as threatening. I think many of our dioceses have been forced just by the culture to have finance councils. But many of our parishes don’t have finance councils— and need them. In the smaller parishes that can’t afford the expense, we should help them pay for it, if we can. the community in. you when bring competency andopportunity I seeagreatsenseof .I’ve thoughtthat theCatholic often Church inAmericahasthelargest unorganized Q. How helpfulhave you found thefinance councils inyour respective dioceses? Q. DiscussionHighlights Plenary you thecommunity when in. bring competency andopportunity sense of seeagreat I shouldbeinvolved. insidetheparish laypeople in order to keep aneye oneverything, And It helpsprotect theChurch. itcomes when to especially finances. what’sthe people happening, thinginkeeping today transparent ourdioceses Ithinktheimportant andparishes isshowing So, aemc fafnnilpolm ehv ayCtoi niista,you say, might … We have many Catholicentities that, afinancialproblem. have much of Idon’t thinkwe’d the top before taxes to theirparish, Catholic gave every 10percent off If Bishop Friend Catholics aboutitinadvance? know across thecountry itsothat andadvertise theseconda national collection Sunday ofevery month, itpossibleto harness thisforce by having,say, philanthropic potential intheworld.Is andIthinkthatby bealoteasier. next year will things responded well to very thechallenge, But the finance council has question thatthischange has been difficultinmany ways. andthere’s no things, We’ve hadto reorganize ourinvestment policiesandchange alotof Bishop Bransfield given ussomegreat advice. andthey’ve know They we dependonthem, andwe take themseriously. Washington area, We have competent afinance somevery council with andgenerous peopleinthe Archbishop O’Brien and resources amongthemselves. councils thathave getthechance really beenusefulbecausetheparticipants to share ideas And biannually we have aconvention of bothpastoral andfinance. a year forourcouncils, we have two seminars So, must benurtured. they However, areThey wonderfully helpful. Bishop Friend 17 Exploring Financial Challenges and Opportunities Exploring Financial Challenges and Opportunities 18 .How cantheRoundtable asagroup communicate better withyour brother bishops Q. oeo hmddjs ht eebr you’re d Remember, themdidjustthat. some of And theyear. He alsoincludedanenvelope could they mailinto catch upby theendof you needthisforyour taxreturn.” “Oh, as, He would couch itinsuch discreet language church—how much gave they year. theprior to remind justtheoneswhogoto Christmas allhisparishioners—not out aletter every whomails for example, know I apastor in Washington, pastorsideas thesegrassroots have. aboutthewonderfulAnd thatcanfeedusinformation buildingprograms we needto start There are creative somepretty pastors from. outthere whomthebishopsshouldbehearing Bishop Bransfield what works. watch—and They wantto know could provide modelsforbishopsandpastors to follow. themore successful ways would beto initiate inafewdioceses pilotprograms that One of Bishop Friend community? in key areas suchassystemically unleashing thegivingspiritwithinCatholic But Ithinkit’s adialogue. worth peopleto anotherparish. itwould probably seeatremendous shiftof didthat, aparish If andsendpeopleabill. congregants, itby divide thenumber of congregational ministries, the operating simplytake thecost of approach is onewhich ourJewish brothers often use: Another cash. many thefact younger don’t people come into Church today alotof with of Put thisinthecontextOne approach we haven’t inmany tried places yet isthecredit card. Archbishop O’Brien would suitpastors well. we could narrow itto that, if Sunday collection, Ithink asecond Soyes, but thefactisCatholicfaithfulare beinghitfrom allsides. ing, I’m notcomplain- theChurch’s purposes. to fundsforotherlegitimate raise efforts “raid” fsomebody would justhelpthem. if pastors would bereceptive to newprograms Ithinkalotof we needintheparishes. grams we shouldbemore aggressive aboutthepro- sive asaChurch we spend, about themoney beingsodefen- Instead of two orthreeparishioner timesayear could have agreat impact. Areminder letter goingoutto every I thinkthere are many creative ways to fundraise. So, travel who orpeople agreat dealanddon’t realize gave. they what much should, asthey ealing with peoplewhodon’tealing with goto massas .How dowe increase contributions by theCatholic to get community inthiscountry Q. hr nti ra And IhopetheRoundtable canhelpusaddress that. share inthisarea. Ithinkwe have alotto andalotto learn you canseethedifference immediately. it, with totithing andcanremain convince longenough onaninstallation to thepeople goalong And where we have chaplains whoare bigon very adiocese thattithes. a great example of Wichita is Diocese The of itual movement more asmuch effort—even so. asafundraising It’s aspir- to convince behindyou andto people to gettheclergy accomplish that. though, It’s agreat challenge, istheonlyway to go. asFrank [Butler] suggested, I thinktithing, Archbishop O’Brien is there anything theRoundtablecandoto help? colleagues? And to not mentionourJewish, to thepointofequalingourProtestant, 19 Exploring Financial Challenges and Opportunities

James Lundholm-Eades James Lundholm-Eades Harker(Moderator) Patrick T. Dr. Presentation Effective Planning Diocesan eec n epniiiyo hi at Ourexperience hassince proven thisassumptionvalid. petence ontheir part. andresponsibility andthatwe could expect com- we andcapable, are neededto assumethatparishes smart Second, than aninward focus. Thediocesan office neededanoutward rather towardoriented thanthedioceses. rather parishes any neededto diocesan be planningeffort Hence, level. not thediocesan, nurtured attheparish, conversion occurs to inrelationships Christ Firstwastheassumptionthatmissionof efforts. we developed three core ourdiocesan assumptionsthat would planning underpin Consequently, andprocesses. models, We needednewassumptions, ment. complex anddynamic environ- its relevance longinthat forvery ear five-year plancould maintain No simplelin- theChurch. sion of andfocusonthemis- new clarity and theotherwasneedfor ethnic andeconomic diversity, the diocese inraw numbers andin of Onewasthegrowth challenges. Minneapolis faced several major Paul & St. Archbishop Flynnof When hewasordained in1995, James Lundholm-Eades to right) andPatrick (left Harker 21 Effective Diocesan Planning 22

. . . diocesan work should be focused on building the capacity of parishes to fulfill their mission.

And the third core assumption was that diocesan work should be focused on building the capacity of parishes to fulfill their mission. This included the ability to: Effective Diocesan Planning Effective

• assess their current reality so that the local church remained relevant, • do adaptive planning based on that reality, • lead in the presence of ambiguity, • build a practice and culture of continuous improvement, and • make decisions using transparent processes in a timely manner.

These assumptions, of course, carried structural implications for the diocese. They implied the demise of silos of specialization at the diocesan level, as well as a reorganization to match the parish reality. For example, the need to clarify the catechetical mission of Catholic schools led to graying of the boundaries between the offices of schools and catechesis, then to merging them.

These assumptions also meant building new staff capacity. We needed higher-order, strategic thinkers whose capacities were larger than their expertise in areas such as catechesis, liturgy, or edu- cational administration. So part of the planning function has been to envision and predict new kinds of staffing needs, including systemic thinkers who could focus parishes and the diocese on what helps float all boats higher, and not just on individuals or parts of the organization. We found that not every content specialist at the diocesan level understands how healthy and vital parishes work, or can design processes that raise the capacity of parishes to be healthy and vital.

What’s more, we needed diocesan staff who constantly tended to the quality of information flow across the diocese. The planning process meant pointedly asking the questions: who owns information and why do we collect it? As a result, we decided to collect information from parishes only if they needed it, and always to analyze what we collected and give pertinent information back to the parishes.

In this context, diocesan planning is the role of a higher-order strategist, a systemic thinker who has a whole system view of the culture, resources, and organization. It involves critical thinking and a broad background in change management, organizational design, finance, and human resources. Most importantly, the diocesan planning function needs a deep understanding of the traditions and culture of the Church.

What the diocesan planning role does not include is doing strategic plans for parishes. The diocesan planning role raises the capacity of parishes to do this for themselves. It advocates for clarity of mission, vision at the diocesan level, and strategic direction on behalf of parishes so they can do asking the right questions. asking theright andabout thediocesan planningrole capacity, isaboutraising . . . smarter decisions and significant risk reduction across risk decisionsandsignificant thediocese.smarter thoseseekingto borrow from money thecommercial markets hasresulted inmuch demands of theCatholic Finance Corporation Therigor broker andmortgage forparishes. negotiation service, debt independentfinancial advisor, andorganizationally alegally Catholic Finance Corporation, hasbeento setupthe strategy mitigation Another risk charge. it available free to parishes of andmaking sophisticationatthe dataatthediocesan level, useof level has similarlygrown through thestrategic parish The level of isnow counted inthemillions. dollars, thousands of dreds of which usedto becounted inhun- planningdecisionshasalsogrown sothatrisk, Thescaleof sions. are They now askingformuch more ferent questions. over Theimpact thelastfour years anddiocesan leadersare isthatparish dif- askingvery charge. Informed of Ourmantra thecurrent basedongood data. reality understanding of We have effectively reduced byprocess developing that risk ashared caneasilybecome politicized. andthatthe hasanopinion, everybody you itcomes thatwhen to diocesan planning, to any of I’m sure it’s nosurprise way (seefigure 1). participatory thecurrent inahighly reality standing of is thoseframeworks The firstof doingbusiness. have indeveloping ournewway partnered of TeamWorks creative avery we whom consultant with International, DennisCheesebrowed with of which originat- two of key frameworks, Our diocesan planningoffice hascome to useanumber of atthistime? orstrategies practices, What must beeliminated from oursystem, • What issueshave animpactonaccess to our mission? • looklike inthiscontext? What ministry Thisisafarmore doesahigh-quality effective • andwhere are located? they Thisgetsto how many dowe serve, Whom dowe serve, • such as: questions, andaboutaskingtheright thediocesan planningrole capacity, isaboutraising In short, andtrend data. analysis, mapping, such asdemographic effective planning, themselves interms of cannotcost-effectively whatthey It with provides theparishes provide for planning. their own forces us to focusonmission. It resources. of aquestionaboutscarcity with question forplanningthanbeginning needs. andalsoadapting to future andresource distribution, relevance, scale, matters of sciia ee We mappingthatwe provide often atno to usedemographic parishes here. is critical Decision Making which isfocusedondeveloping ashared under- , sophisticated analysis before make they deci- Mission Driven andData Mission Driven 23 Effective Diocesan Planning Effective Diocesan Planning 24 Figure 1 Figure ems aetecpct ocet nawyta irr h elt ftheworld inwhich we live. We must have to create thecapacity inaway thatmirrors of the reality hardly aplanatall. it to say effective progress thataplanwithout implementation andbenchmarks formeasuring is suffice While timedoesn’t meto permit explain itindetailhere, ourframeworks. conjunction with When it comes to implementing our plans, we use a very pragmatic process pragmatic we we useavery call When itcomes to implementingourplans, anunacceptable meansto increased revenue. inmy diocese atleast, that would beconsidered, much neededrevenue with andsoprovide theparish facility parish-owned to fulfillitsmission, PlannedParenthood wanted to rent space ina if Here’s anextreme example: them. achieving There needsto be andvalues. vision, mission, thecontext of aswell asashared understandingof thecurrent reality, a shared understandingof hasto And have thatmeans everybody planning modelmust have to adaptcontinuously. the ability any diocesan Hence, environmentThe operating isdynamic. forthediocese and itsparishes The second framework thatour diocesan office as usesisknown oyih emok nentoa,Ic 03 Allrightsreserved. 2003. Inc. Copyright © Teamworks International, clarity abouttheendresults andthemeansfor clarity Guiding Change roadmapping (see figure 2). in Figure 2 Figure .Rcn eerhi scooysosta ru fwl-nomd empowered Recent research inpsychology shows that agroup ofwell-informed, Q. DiscussionHighlights Plenary twr el hni hne h utr fthedioceses becausepastors talkto otherpastors. thenitchanges theculture of it work well, andmake we canmake something work three timesinthree different parishes, If three.” of “rule we have akindof experience, Through we simplymove on. beingonboard, tion of andhasnointen- What we andthepastor foundisthatwhenwe isn’t goaparish onboard, James Lundholm-Eades make theplanningprocess pastor? work withanobstructionist How doyou who limitstheiractivities? doesn’t want this group to bewell informed, you have apastor who happens,though,if decisions thanany group ofexperts.What at theparishlevel) to makebetter hastheability often people (for ourpurposes, oyih emok nentoa,Ic 03 Allrightsreserved. 2003. Inc. Copyright © Teamworks International, 25 Effective Diocesan Planning Effective Diocesan Planning 26 Q. In the course of your planning work,how doyou definewhat constitutes aneffective Inthecourse ofyour planningwork,how Q. How doyou findpeoplewhoare capableofstrategic planning? Q. tive ministry is. It’s different from parish to parish, and what Iwould andwhat doischallenge those It’s different from to parish, parish is. tive ministry level to effec- definewhat helpthoseattheparish though, It ismy role, effective ministry. other thanto say it’s notmy role to define I don’t have agoodanswer to thatquestion, James Lundholm-Eades ministry? a great job. andusuallydo can, bestthey themdothevery tors whohave infront goodinformation of But my experience hasbeenthatpas- asyou’ll findinany group. competency isanissue, There’s apercentage forwhom pastors are justfine. and Icantell you that99percent of my working life, theChurch foragooddealof I’ve thebroken of dealtwith part process. competence around tablesintheconsultative I couldn’t tell you thecasesI’ve all seenof it. knowing the United even without people Health Thepastor hadassembledexactly Group.” theright “I’m plannerfor thestrategic And theothersaid, Minnesota.” fortheState of demographer I’m thechief themsaid,“Well, andoneof around theirhands, thepeople thetableraised of And two Just give ussomethinguseful.” we don’t understandthisstuff. “Look, pastor said, And the thegroup thathadbeenassembledby thepastor. mapsinfront of demographic andputoutasetof Iwent onenight to aparish Here’s agoodexample. has beenanissue. Theassumptionthatpeopleare notcapable Finding capablepeoplehasnotbeenanissue. James Lundholm-Eades Council. through the Presbyteral thedeaneries andinfluencingtheleadersof success, leading with theway we approach any resistance isby ontheirpart So, somethingout. to try willing andbe peopleonaperson-to-person basis, trust But will they It’s nottheirrole. MBAs. And pastors shouldn’t be expects thatpastor to beanMBA. after all, Nobody, apastor. with andhaving lunch sittingdown orcoffee andyou can’t overestimate of theimpact based, We’ve alsoadopted Irefer what to as Churches“management are relational- very by coffee.” diocese. the agenda onthethree thatcanreally thelong-term effectiveness affect orfourthings of we wantthemto focustheir refereuphemistically to as pursuit,” “meeting-based trivial thanplay Rather I what getting themto concentrate thatreally onthings matter. and members how thanjusthaving positionalinteractions, to indialoguerather engage thePresbyteral Council—teaching its theprocess timechanging of We’ve alotof spent .Hwd o naetedoee h rhics,andpastoral councils intheplan- thearchdiocese, How doyou engagethediocese, Q. Catholics experience ofCatholic Christthrough othertypes institutionsandcommu- Q. ne ahhaig We shopping thenstart under each heading. would be ministry them—andpostcomments thinkthehighest-quality they onwhat of leadersto goto thenasktheparish I thosesheets—we usuallyhave ornine eight and soon. financialmanagement, pastoral care, around like paper headings theroom worship, with of Oneprocess isto I’ve putupsheets parishes usedwith to answerat theparish thequestion. enn h ilo o eadn cest h hrh They’ve donenothing butthatfor Godregarding access to theChurch. of cerning thewill onwasdis- brainstormed And they what thepastoral council. theattention of ly grabbed It hasparticular- letalonethelast ten. inthelastfiveThis haschanged dramatically years, One example would bewhere we focused onthegrowing ethnicdiversity intheparishes. cese andfocusonthat. thedio- useadiscernment processThey to figure the attention of outwhatneedsto grab Then thearchdiocesean pastoral council getsinvolved indiscerning what’s important. and attention. forboththe archbishop enough andthecouncilpoint isthatitsignificant to give ittime Themain often itis in both. It may beinthepastoral orthefinancialarea; issue. a strategic you want, if or, issue, council significant together identifysomethingthatisaparticularly Thearchbishop andthepastoral archbishop) andthepastoral council isbased inthat. Therelationship between thearchdiocese (the anditusesadiscernment process. God, of thewill consultation thenisaboutadiscernment of So, principle. an organizational not When we lookattheconsultation intheCatholicChurch principle, itisatheological James Lundholm-Eades ning process? theseinstitutions. of process any capacity-building with which we know are—we they canusethesamekindof Assuming they’re competent— worked two orders religious with attheirnationallevels). orders religious (I’ve andwith personally thediocese, foundationswithin with tions, organiza- socialservices with we’ve education, usedour[planning]process higher with Thefactis, thediocese theseentities. ishaving relationships with thediversity of Part of James Lundholm-Eades How doesyour work theinsightsandpower reflect oftheseentities? Paul Society. de hospitalsto universities to nonprofit organizations liketheSt.Vincent nities,from expecting competence thelocalparish—and trusting ontheirpart. of It’s part meansintheirparish. ates ministry alively ahigh-quality discussionaboutwhat around for best ideas, and that usually gener- andthatusually around forbestideas, 27 Effective Diocesan Planning Effective Diocesan Planning 28 .How doyou realize synergies amongalltheseplanningentities? Q. ttentoa ee ntrso nertn h aiu ucinlpee ftheChurch. functionalpieces of thevarious integrating at thenationallevel interms of hasimplications course, of And that, diocesan office according to we what seeinparishes. thearch- andwantto design We’re paying attention to thesetrends, functions. liturgical are nor pastoral care are usedto asthey be, nolongerasseparate thedifferent of forms ple, For exam- theirministries. integrating parishes We’re seeingagrowing number of system. we’re breaking upthesilosandbuildingfeedbackloopsacross the In effect, departments. We’re thisinto integrating justthree andso on. appointments, clergy parishes, schools, administrative functionssuch asfinance andhuman resources—the peoplewhodealwith includes Thesupportive part theoffice. We currently have of missionandsupportive parts tion inthree months. We beadifferent organiza- will ourarchdiocese by 25to 30percent. administrative size of We are momentengagedinreducing atthisvery the Having lessismore. office. central thesystem isto aligning downsize the Another way of only oneortwo messagesatatime. really And alignment comes from keeping themessagessimple—from having beginning. to usfrom important the inasense—wasvery thesystem, of alignment Synergy—the James Lundholm-Eades view. Not pointof anorganizational view. pointof notademocratic view, ment pointof But it’s approached from adiscern- offer thearchbishop deepconsultation around that. And itisgoodthatthey’ve engagedthatdeeplyandbeenableto years. the lastcouple of e.J DonaldMonan J. Rev. Malcolm Visbal J. Tarantino Dominic A. McCarthy John H. DonaldMonan (Moderator) J. Rev. Panel Boston Transparency Project Theof Archdiocese Transparency: Church Financial Essentials of rienced panel. rienced That’s precisely whatwe’re goingto dotoday ourremarkably talented with andexpe- came about. andtheprocess by which it report, atransparent have notthus farexamined aclearexample of We financialtransparency. we have talked frequently of abouttheimportance In ourpastmeetings, ing thechallenges financialreporting. thatsometimesappearonlythrough transparent inresolv- aswell asameansforthemto fully participate GodintheChurch, of thepeople of part onthe to—and abasisfor—trust It’s alsoagenuine incentive ses. anddioce- ourparishes of the part soundstewardship on indicator of butit’s an certainly end initself, Not isan thattransparency ceses. anddio- ourparishes of reporting completeand very financial been onfinancialtransparency focuseshas ourprincipal one of National Leadership Roundtable, the From of beginning thevery John McCarthy, Malcolm Visbal, and Dominic andDominic Tarantino to right) (left Malcolm Visbal, John McCarthy, 29 Essentials of Church Financial Transparency 30

John H. McCarthy

I’d like to describe for you what we did in the Archdiocese of Boston with the Financial Transparency Project.

As you’re aware, we have a huge problem dealing with our sexual abuse cases. I think a lot of that is behind us, thanks to the arrival of Archbishop O’Malley, now Cardinal O’Malley. His first charge was to deal with the sexual abuse crisis, which he marvelously did. His “reward” was that he then had to deal with the financial crisis caused by many parishes not being able to support themselves. So the archdiocese went through a reconfiguration process, reducing its parishes to 303, and closing or combining 58 others. There was a lot of angst over this, and several parishes still have appeals before the Vatican to remain open.

The environment was further inflamed by proposed legislation that would have resulted in trans-

Essentials of Transparency Financial Church parency far beyond what was already required of other nonprofit organizations. Fortunately, that legislation was never enacted.

In the mist of this dark and bleak period, then Archbishop O’Malley made an extraordinary three- pronged commitment to financial transparency. He promised a complete accounting of the sexual abuse funds, a comprehensive description of the archdiocese, and consolidated financial statements.

In order to honor those commitments, we put together a volunteer team that included people with a variety of backgrounds. I was able to entice several of my CPA brethren from major firms in Boston who were experienced in dealing with nonprofit organizations, as well as several academ- ics, to join our committee. We also had several communications specialists who were hired by the archdiocese and, significantly, a number of pastors and parishioners.

We made it clear at the outset that this project would involve a very heavy time commitment. Indeed, it ended up being a lot more than any of us bargained for. But everybody stayed the course.

We had to coordinate all this, as you might well imagine, with the politics of the diocese and the Church. We also had to make sure that everybody was on board. That involved the archdiocese and the finance council; the pastoral council; the chancery financial staff (which had never been through an exercise like this before); and the communications department of the archdiocese, which was already on overload due to all the other issues I’ve described. It also involved the direct and heavy involvement of outside professionals—the auditors, lawyers, and public relations folks.

What we ended up collectively doing was actually much broader than just financial transparency. The archdiocese, under the old leadership, had followed practices that can best be described as secretive. That’s not an uncommon word when you talk about Church matters. There just wasn’t what I’d consider to be a full sharing of information; it was done on sort of a need-to-know basis.

So, the very first thing we did was to sit down with our central committee, as well as with the extended committee, including our professionals, and brainstormed a list of questions. We asked vlaino thediocese of evaluation But we alsowanted to to usethisreport provide anobjective . . . thesexual abusecrisis of primarily, occurred asaresult, forthecardinal to thathad once forall apologize again opportunity But we decided thatthiswasalsoamajor thediocese. zation of theorgani- of andadescription sexual abusesettlementinformation, thearchbishop hadpromised consolidated financialstatements, . . . every opportunity to express andhissensitivity. hisapologies opportunity every inaminute—you’ll describe which I’ll findthatCardinal O’Malley took pamphlet, transparency the thereport—including thecomponents of you read theletters thataccompany each of And if Boston’s web site atwww.rcab.org.] is available [Thisreport onthe Archdiocese of information. you’ll seethatitcontains quite abitof you have goneontheweb to lookatthisreport, any of If thesexual abusecrisis. of primarily, had occurred asaresult, But we forthecardinal to that once forall apologize again decided thatthiswasalsoamajoropportunity thediocese. of theorganization of andadescription ual abusesettlementinformation, sex- thearchbishop hadpromised consolidated financialstatements, As you recall, in thesereports. Sothenext thingwe didwasto rethink justwhatitwasthatwe neededto include about to disclose. What we wanted to to dowasmake from learn we what were sure everyone hadanopportunity from where? not, collections?the parish If And where come didthemoney from? Diditcome from been spentonsettlingsexual abusecases. how much had money forexample, People were anxiousto know, were much more substantive. course, of doeshehave? contract Otherquestions, kindof andwhat thediocese, and-so beenwith like how much doesthechancellor make? How longhasso- even basic, themwere simple, Some of We really this largelyacommunications project. andthereason Ikeep calling theprocess, of part thiswasprobably themostimportant Actually, financialandnonfinancial. We thenputthosequestionsinto two categories: asking? sexual abuse, of orthevictims ourcommunity, membersof ordisenfranchised the media, orin are who or pastors, people are sittinginthepews, what thequestionsthatpeople ourselves, etoto ourway outthequestions. to sort went outof 31 Essentials of Church Financial Transparency 32

But we also wanted to use this report to provide an objective evaluation of the diocese, and one of the tools here was a management discussion and analysis (MD&A) type of vehicle. Not quite what you’d find in a 10K report for a public company, but hopefully just as informative in that it provides information that’s intelligible, and lets you walk away with a sense of what the condition of the archdiocese really is, what they own, and what the overall operations look like.

We also included audited financial statements for the first time. Indeed, we realized how critical it was in light of all the travails of the archdiocese to have information that somebody independent of this committee, and independent of the diocese, on which they had audited and issued a clean opinion.

Essentials of Transparency Financial Church ...give them something relatively simple that answers some basic questions about what’s going on in the diocese . . .

And last, one of the things the archbishop was really excited about was the idea of a pamphlet. The rationale behind it was that 90 percent of the people in the Archdiocese of Boston are not interested in reading an audited financial statement, or a management discussion and analysis, or even a whole bunch of letters. But if you give them something relatively simple that answers some basic questions about what’s going on in the diocese, how it’s being resolved, and how the diocese intends to continue to honor its commitment to transparency, that’s something they can read—and appreciate—in 10 or 15 minutes.

And so on the Sunday after we presented our report, this pamphlet appeared in all of the Churches in the diocese, along with copies of The Pilot, our newspaper, in which was printed the entire management discussion and analysis. Parishioners had access to even more information on the web.

Speaking of presenting our report, the big day was April 19th. We started at 8 o’clock in the morn- ing when we met with the cardinal, his cabinet, and all of the bishops of the diocese, and walked them through the report. At 9:30, we had a town hall meeting with the chancery staff and took them through the report. At 11 o’clock, we met with the media for a very heavily attended, two-hour press conference. This was followed by an hour-and-a-half presentation to 600 pastors and priests of the diocese at Boston College High School and, after that, by a short TV interview. Finally, what I thought was going to be the easiest part of the day, was the meeting with the pastoral council that night to take them through the report. As it turned out, they asked more difficult questions than the media.

It proved to be a grueling day, but by the time we were done, all of the major stakeholders had been advised. And by the weekend, our pamphlet was in the pews. So, in a period of basically four days, all of the information was out there. And, most importantly, it had the impact that all of us who had worked on this project for so long wanted it to have. ...we m Dominic A.Tarantino n prv n iaca ttmnsfrpbiainaddsrbto.I diin auditcommit- In addition, and approve any financialstatements forpublicationanddistribution. ayear, thematleast twice meetwith Audit committees theindependentauditors, should engage educationalinstitutions. theauditsof indealingwith a financialexpert Mal is I’m Although aCPA questionsto and know askinanauditcommittee, Mal theright Visbal. onmy Icalled colleague SanFrancisco, ourauditcommittee wewhen started attheUniversity of So, acomparable entity. cer hasexperience inpreparing orauditingthefinancialstatements who of or financialoffi- orauditor, apublicaccountant, andbackground of thetraining be someonewith specifiesitshould Sarbanes-Oxley theauditcommittee shouldhave afinancialexpert. What’s more, theauditcommittee. be voting membersof Management officialsshouldnot itsexternal audit. aswell asoversight of processes andcontrols, anentity’s whileauditcommittees shouldprovide oversight ontheadequacyof ing revenues, Ibelieve thatfinance councils shouldbefocused tinct. But theirroles are dis- theirfinance councilssmall groups within to astheauditcommittee. serve outsome andthatsomecarve have parishes finance councils, of I realize thatthevastmajority andaccounting expertise. finance, preferably separate from thefinance committee—with business, thesecanbethree- orfive-member groups— theChurch, For of purposes ent auditcommittees. istheneedto by create Sarbanes-Oxley highlighted practices independ- themostimportant One of nosector because hasamonopoly onirregularities. that’s agoodthing, And butnow they’re to down theprivate andnonprofit trickling worlds. around foralongtime, have into incorporated thebestpractices Sarbanes-Oxley been Someof profit organizations. itsprovisions are beingimplemented by bothprivate companies andnon- many of lic companies, itdirectly onlypub- affects Although waspassed. which I’m sure you’re well informed, of Oxley Act, theSarbanes- In 2002, andothershave beenquite active inthisarena. the accounting profession, government, The accountability istheneedforgreater financialtransparency. Tied to theissueof We are allstakeholders inthisenterprise. to us. entrust thatdonors thegifts What to itboilsdown isthatwe must begoodstewards of being distributed. how current diocesan appealsare itbecamemore anissueof course, of Later, thatcrisis. ing outof where thefundscamefrom to pay thecosts grow- itwasaquestionof Initially, cial accountability. hascausedmore thesexual andmore abusecrisis concern aboutfinan- Within thatenvironment, cussed quite extensively today. theenvironment we’ve dis- theimpactongovernance you briefly very with I wantto of review ust be good stewards of the gifts that donors entrust to us. thatdonorsentrust thegifts ust begoodstewards of nbdes urn prtos andincreas- current operations, on budgets, 33 Essentials of Church Financial Transparency 34

tees should evaluate whether there is a need for an internal audit function. I’m intrigued by something Jack [McCarthy] said earlier: that perhaps internal auditors should be used as the vehicle to create an audited statement at the parish level. I think that makes a great deal of sense.

In keeping with the theme of governance, I think the Church should also consider adopting whistleblower provisions. I know this may sound draconian to some of you, but as I said earlier, nonprofit organizations—even churches—do not have a monopoly on fraud. I wonder how many incidents of pastors or parish bookkeepers misusing large amounts of money have occurred that could have been prevented if some sort of whistleblower hotline had been available.

How would such a program work? Any employee, vendor, or volunteer who detects fraud or mis- representation would be able to follow procedures the audit committee establishes for reporting and resolving such complaints. This function could even be outsourced to protect the whistleblower’s confidentiality. Or it could be referred to the audit committee for resolution. Essentials of Transparency Financial Church

No less important is the need for adopting a strong conflict-of-interest policy, which could be part of a formal code of conduct. This would help govern activities between parties—parishioners and the parish, for example, or finance council members and the diocese, or investment committee members and the endowment fund. A conflict-of-interest policy should preclude questionable types of transactions or relationships, and require that transactions between so-called related parties are fully transparent to other disinterested parties.

. . . that’s the reason why the Leadership Roundtable was itself created —to be a catalyst for change and for the sharing of best practices throughout the Church.

The suggestions I’ve just made are consistent, I believe, with the desire of the Church to develop a culture of excellence in fiscal matters. And not coincidentally, that’s the reason why the Leadership Roundtable was itself created—to be a catalyst for change and for the sharing of best practices throughout the Church.

Malcolm Visbal

I’d like to reinforce several points that have been made. First is that transparency, a term that’s being used a lot today, really involves more than just financial statements. And second, I can’t stress enough the importance of communication skills in designing the types of reports you’re going to prepare, particularly nonfinancial reports. . . . there is no substitute for disclosing all of the important information. theimportant there isnosubstitute fordisclosingallof . . . .What would you recommend to otherdioceses andcompre- interms of theclarity Q. did your in opinion, how, you After presented your Financial Transparency Report, Q. DiscussionHighlights Plenary information. theimportant substitute of fordisclosingall advice Icangive to you isthatthere isno piece But of themostcritical pare down. theinformation it’s to have important particularly communications somebody cantell with who you skills how to In thiscase, theaudited results. many of are summaries preparing theirown financial statements, don’t they publishaudited And if are butthey doingit. Maybe notasmany aswe’d alllike, ments. many dioceses are publishingfinancialstate- But thefactis, disclosures. itsbroad of array with Boston went through most dioceses won’t beinvolved inthearduous taskthatthe Archdiocese of I’m sure respect to with whatotherdioceses may ormay notbedoing. too, Here are somethoughts, lwr.I hudb h ido thingthatyou caninstitutionalize. It shouldbethekindof al work. addition- itshouldn’t involve agreat dealof tion onaregular basisaboutwhat’s goingon, the finance council isbeinggiven goodinforma- if And frankly, thefinancialstatement. of The onlythingthat’s really incremental isthemanagement discussionandanalysisportion confines alsodoaudits. theirgeographic andknow whatentitieswithin already doaudits, Most dioceses Idon’t effort. thinkitrequires anextraordinary otherdioceses, In terms of McCarthy John H. hensiveness ofinformation needed for financialdisclosure? positive.has beenvery themedia reaction But to date, be anywhere next year nearashigh we when dothisagain. themediawon’t theinterest Isuspect of commitment to help. continued will transparency But our isgoingto accomplish that. It isn’t certainly astep thatby itself the archdiocese. rebuilding for credibility step inthedirection of important ment isthatitwasavery assess- Ithinkourgeneral thisexercise. asaresult of oratleastsilent, been complimentary, ourmostaggressive have detractors But even someof I’m sure we mademistakes. Well, McCarthy John H. do you thinkyou made? ifany, the press portray it?Andwhat mistakes, 35 Essentials of Church Financial Transparency Essentials of Church Financial Transparency 36 .Atrorbaddcddt eur F rtesrrsfnnilsaeet,we’ve After ourboard decidedto require CFOortreasurer’s financialstatements, Q. context and heatingthebuilding. onthelights asturning inthesame beviewed auditswill thecost of And Ithinkonce we’ve madethatcase, mation. are extremely andthatwe’re credibility usefultools forensuring goodinfor- dealingwith thatauditsdonewell anddoneinatimelyfashion on thediscussionswe’ve beenhearing, based But there seemsto agreement, begeneral itneedsto incuradditionalexpenses. parish Ithinkthere’s always goingto bepushbackwhenyou tell a theaudit, As far as thecost of become Ithinkstandardization even will easier. software, there’s an accounting manual andarecommendation useQuickBooks thattheparishes Now that each yearparish were much pretty identicalto we thereports sentto thediocese. thatwe andthereports madeavailable to thefull the finance council chair inmy parish, as Iserved For sixyears, monthlybackto andforreporting thechancery. financial reports we have astandard forall format inBostonInsofar to ashelpingtheparishes comply, McCarthy John H. pays for them? who does theArchdiocese enableitsparishestoproduce ofBoston theseaudits,and How what theirassetbaseisbecausetheinformation iscontrolled by thechancery. ordon’t know don’t want to, because they eitherdon’t produce thesestatements, found that asignificantnumberofparishesandschoolsare unable tocomply eoe,communicate what?” becomes, management “Communication istheoxygen of Gerard Roche WilliamsCharmaine Paul Reilly Roche Gerard JoMary Moran (Moderator) Panel EvaluationThe Value intheChurch of r o h usinbcms communicate what? thequestionbecomes, So, er. you shouldn’t beamanag- you don’t useit, andif iscommunication. management, Communication is theoxygen of course, of outthisfunction, The number onevehicle forcarrying gr.You can’t dodgeit. agers. and fordeveloping themasman- their professional performance you’re responsible for ever level, atwhat- topeople reporting you, you have But if need to know this. you’re andyou don’t avirtuoso player, or violin golfer, dentist, you’re awriter, If through others. ment isgettinggoodwork done manage- definitionof The very (left to right) (left Roche andGerard JoMoran, Mary Charmaine Williams, Paul Reilly, thequestion . . . 37 The Value of Evaluation in the Church 38

Clearly, what should be communicated are mutually agreed upon goals, as measurable and as specific as possible. Put them in writing and then share them with the individual. If you don’t know where you’re going, any road will get you there. Second, evaluate performance against those pre- arranged and agreed-upon goals. It’s that simple. But execution is often another story. What’s the problem here? Well, it just isn’t done enough, nor is it given sufficient priority. In my view, the higher you go up the management ladder—and that can include the management of GE, of Heidrick & Struggles, or the Catholic Church—the less likely you are to get good reviews. It’s kind of looked upon as an HR thing—they’re the ones who know how to do it. When I step into a situation where I’m asked to fill somebody’s job, I typically ask to see a copy of their annual review. And the answer almost always comes back: “We don’t do that at this level.”

If you’re ever going to let somebody go, it should never come as a surprise. There ought to be effec- The Value of in the Church Value The Evaluation tive reviews leading up to it. And if the reviews aren’t working, or the areas for development aren’t working, then pull the trigger on them. But don’t make people go away shocked.

What exactly are the rules for reviewing and evaluating individuals?

So, what exactly are the rules for reviewing and evaluating individuals? Number one, let the person know that this is a formal review. It’s serious ...it’s me telling you what I think of you . . . it’s the two of us sitting down and discussing how you’re doing.

Number two, the evaluation should begin by comparing performance against the preset goals. “Hey, you think you’re batting .310, well I’ve looked at the statistics and it’s really only .220. So let’s get to the why.” Also set aside sacred time, as I call it, with no interruptions, no running clock, no limit to the discussions.

By the way, there are also continuous, informal reviews. As a manager, you shouldn’t save up everything you have to say for once a year. First of all, it’s too hard; and second, memories fade. So, as you go along during the year, you should be constantly coaching, cajoling, and communicating with your people.

Getting back to the ground rules of formal reviews: a priority should be establishing the essential components of the evaluation process. In judging someone’s performance against goals, we natu- rally want to consider what the gauges on the cockpit dashboard have to say—the quantifiable, the measurable and, to some extent, the soft stuff. But there’s another technique that I’ve used and found very effective. It consists of sitting down with someone and saying, “Before we get into the formal stuff, how do you think you’re doing?” Sometimes people are tougher on themselves than you are, and able to come up with better suggestions for improvement. Paul Reilly fareas forimprovement. of thanthediscussion however, ismore thereview important, No of part omnct etrwt epes ecnnruete,dvlpte,andhelp them dobetter. develop them, communicate sowe can nurture people them, better with isto 360reviews of The purpose They’re to tell notdesigned peoplewhatthey’re doingwrong. They’re system. notapenalty 360reviews. And that’s thewholepointof want to better. perform andthey abetter employee, wantto They beabetter colleague, that mostpeoplewantto dobetter. The subjectI’ve beenasked to discussisimpleme andto yourself. You owe itto your to your people, But dosomething. organization, do somethingelse. itdoesn’t work, If it. domore of works, it And if Just picksomethingthatworks foryou andthatworks forCharlie. or process you use. It’s whattechnique notimportant atyour evaluations disposal. there are allkindsof To summarize, take outthatthey clearly burned asabbatical. Isuggested to somebody theotherday was who andsometimeoff. hoursat home, environment, changes inthework classes, special in thefuture? Approaches to improvement includecoaching, What canwe doto helpeach other Charlie’s problems forimprovement. isdiscussingaprogram Just asairing asimportant meto thelastpointI’dThis brings like to make aboutevaluations. He wantsto gobackto hispositive points. Charlie doesn’t wantto hearabouthiswarts. uncomfortable. by nature, theirvery are, thatreviews thefact the reason dodgethem: mostpeople areview, themostdifficultaspectsof And thatgetsto oneof the key thingyou’re toward. driving awareness So butlet’s is talkaboutit.” I’m wrong, meoutif Straighten it. want you to beaware of Ithinkwe have aproblem andI “Charlie, it. And the best way to solve aproblem isto beaware of You’rerake themover thecoals. there to helpthem. to know onefrom You theother.” don’t wantto de andthewisdom thepatience to accept Ican’t, thethings me thecourage to change Ican, thethings give Francis pointed out,“God As St. to discussareas where isdeemedunimprovable. theindividual it’s not What important very are theways inwhich you canbetter your performance? Incidentally, areas forimprovement. thanthediscussionof however, ismore important, thereview No of part examples usingspecific whenever possible. the individual, And thatmeansbuildingonthestrengths of isto rule emphasize thepositive. Another important tn 6-ereeauto ytm It’s clear system. evaluation nting a360-degree rc rmta esnssneo efrset or self-respect, from thatperson’stract senseof 39 The Value of Evaluation in the Church 40

The purpose of 360 reviews is to communicate better with people so we can nurture them, develop them, and help them do better.

People often ask me why they should bother with 360-degree reviews. There are a number of reasons. First, we all have individual biases. I have great managers with whom I personally wouldn’t be friends. We just don’t click. But I don’t want my individual bias to affect my rating of them. I have a responsibility to get a broader view of what people think. They could be very effective and very caring for people, but I don’t see that from my seat. The Value of in the Church Value The Evaluation

Second, I often get insufficient data as a manager. I have an employee in Hungary, for example, whom I only see two or three times a year. So how do I get feedback? Well, a 360-degree review allows me to get input on that person from an assortment of their peers, colleagues, and others.

The downside is that 360 is a process most of us don’t want to confront. We have relationships with people and we don’t want to sit down and talk to them about sensitive issues or what they’re doing that’s having a negative impact on the organization. That fear is natural—but unwarranted. The 360 is a tool that forces us to talk about important issues. And when the person who’s being reviewed gets the feedback, they usually steer the conversation in constructive directions because they want to learn and to improve from the process.

Finally, 360 is important because people manage differently. Some people may seem great to me, but when I get their 360s I find they’re absolutely terrible with their colleagues—they’re tough and unfair. Some people may love them, but others can’t work with them. So, a 360 gives you a comprehensive view of how that person is behaving. Whether it’s a company, a diocese, or a parish, you get a wide-angle perspective that goes well beyond what you would normally see.

What are the major issues involved in implementing a 360 program? One issue, which I alluded to before, is fear. Most 360 programs never get off the ground because people are afraid of them. They’re afraid they’re going to be embarrassed, or that they’ll be used as a retribution tool. So, the first thing is make the purpose of the program clear. Make sure that people understand it’s a professional development tool. Sure, issues will crop up. But it’s designed to be positive.

Second, don’t be in a rush to implement your 360 program. I’ve been at four companies—three of which I’ve led—that have put these systems in place. My current firm took four years to get it up and running. My advice is to take your time. Form a committee, get people involved in the process, and let them understand what you’re doing and why it’s so valuable.

Third, you should stress that the process is confidential, both in terms of the people who give feedback and those who receive it. In our organization, the only people who see the 360 feedback are those receiving it and their immediate bosses, or the people they report to. Confidentiality is impor- Charmaine Williams in It’s thingto doto helppeoplebe better. theright tion. It’s notjust agoodbusinesspractice ot ot.I’ htmn atr o’ att eteoe ogv eiwt hi tf mem- It’s thatmany pastors don’tForth Worth. wantto betheonesto give to theirstaff areview to I have tell you about a theory basedonmy work over pastors theyears intheDiocese with of I’d like Before Igetinto more detail, forpastors andparochial and particularly vicars. degree review, My remarks are focused on whatdioceses are It’s thingto doto help peoplebebetter. theright obligation. It’s notjustag orparish. diocese, tion isabusiness, thatorganiza- whether positive system foreveryone intheorganization, is to make itanurturing, But thegoal my career. powerful hasbeenvery The 360review formepersonallyinthecourse of attempt to change theirbehavior feedback. basedontheir360-degree ouremployees were saidthey goingto inablindsurvey consider that92percent of process canbe, how powerful this To getanideaof personinthecompany. staff every finally, and, our partners we Then extended managementteam, itto ourglobal go through the process andgive mefeedback. committee Ihadmy operating global thefirstpersonto beevaluated by 360wasme. Korn/Ferry, When Icameto thekeys to installinganeffective atthetop. isto 360program start I believe oneof andsimplyhavemean-spirited noplace ina360system. could they be Second, tion thatisrelated to ageorotherissues—andmay needto beremoved. itisadiscrima- could Oneisthey bediscriminatory—whether need to bescreened fortwo reasons. and comments are much more personal, of Thesetypes doingto bemore shouldstart effective. they h here’s whatapersondoeswell, ments—for example, give actually where com- people ismore open, which we useinourcompany, other, The on these.” rate me Oneis “check thebox, 360s. There of are two types Next istheneedto screen comments. You conversation. getinto natural avery ment. Usually upareas theemployee bring forimprove- will “What didyou from learn this?” should add, And thenyou likeor “People“Here’s admire thisstrength inyou.” you what dowell,” positive, a always isthata360review with intraining starts learn they things themostimportant One of systemdegree isthatpeoplewhohaven’t review beenthrough 360sdon’t know how to give 360s. reason The it’s taken fouryears ourorganization to implementa360- issueistraining. The fourth leagues. shouldn’t thepersongettingreviewed by have theircol- aboutbeingembarrassed to worry ond, sec- shouldn’t colleagues andpeers have and, aboutretribution to worry First, tant fortwo reasons. it’s obliga- amoral practically , doing in the field of evaluation, particularly the360- particularly evaluation, doing inthefieldof o uiespatc,it’s amoral practically ood businesspractice, r’ htte ol obte,here’s what ere’s could whatthey dobetter, 41 The Value of Evaluation in the Church 42

bers. Because many of them have never experienced a review themselves, they’re hesitant to be the person conducting it.

That hesitancy is something that we need to overcome in the Church. And, fortunately, there are dioceses working on it. One of the advantages of the 360 review for pastors is that the folks who participate in it and give the feedback are, most of the time, parishioners-at-large. Parish staff is also part of that process, as are the folks who serve on the leadership committees, like the pastoral council and the finance council. Probably the most difficult group to get feedback from are peers of the pastor, since they tend to be other priests who don’t really have the experience of seeing them in their pastoring roles.

Nonetheless, 360-degree reviews designed to help priests improve their performance have been The Value of in the Church Value The Evaluation around in some dioceses for a number of years. The Archdiocese of Chicago, for example, requires a review of every priest every five years. This review contains many of the components of a tradi- tional 360 review process. The Office of Ministerial Evaluation is responsible for managing and implementing the review process in Chicago, with a developmental plan being one of the outcomes of the process. It includes goals to help the priest maintain and improve his strengths, and reduce or eliminate any problems.

Another very positive component of the Archdiocese of Chicago’s program is the statement that appears in the parish bulletin letting people know that the pastor or the parochial vicar has partic- ipated in the review process. Sometimes the priest himself develops this statement, other times it’s the regional bishop.

I’ve never met a priest who didn’t want to do a better job and provide better service to the people he’s leading.

In the Archdiocese of Baltimore, the review process is a function of the Office of Continuing Formation. Mandatory in the past, the 360 review fell out of practice there, but has been revived. Interestingly, it is today an Internet process, and the archdiocese works with an outside psychologist to assist each participating priest to develop a plan to address his strengths and weaknesses. The psychologist also serves as a coach for each of the priests. I’m told that some of the priests really appreciate the fact the coach is an outside party.

In the Diocese of Forth Worth, where I work, former Bishop Joseph Delaney led by example. The first thing he did was to bring in a priest—Father Bill Delaney— from the Continuing Formation Office of the Diocese of Cleveland to lead an evaluation workshop for priests of the Diocese of Fort Worth. Bishop Delaney urged the leadership, particularly the presbyteral council, to attend. At the workshop, Bishop Delaney agreed to participate himself in the review process, and asked all of the presbyteral council to do the same. It was his hope these leaders would have a good experience and .Fo htyuv bevdi h uieswrd to what extent does360-degree From what you’ve inthebusinessworld, observed Q. DiscussionHighlights Plenary leaders. ourChurch andthenimproving theeffectiveness measuring of processes theexpress with goalof They’re enablingusto develop andinstitutionalize new arereviews becoming soimportant. That’s why 360-degree forbishops. And thesameistrue to he’s thepeople ter service leading. I’ve didn’t never who metapriest wantto doabetter jobandprovide bet- As aconcluding thought, orany timeapastor moves from to another. oneparish example, for from parochial to first-timepastor, vicar transition, ceses timesof are during usingthereview otherdio- Still theculture foryoung priests. of andformakingitpart basis, onapermanent review And that’s forintroducing the360 awonderful opportunity this fieldfortherecently ordained. dioceses Some in programs are even orsupport providing training reviews. engage in360-degree we are to ordained will thatnewly expect beginning priests inourdiocese andothers, So, nation. before spendworking inaparish ordi- Thepastoral year thatseminarians isaperiod seminarians. are now woven into thepastoral year experience formany it, of or atleastparts The 360review, process. thereview There are otherways inwhich dioceses are introducing different components of to ordained ournewly priests. however, We have successfully introduced it, faltered. the program Unfortunately B process. champion thereview etrglrywt ml ruso epete ido pickthemrandomly—after the kindof people—they groups of small meet regularly with somepastors who Iknow of level. 360attheparish theimpactof Here’s asmallexample of WilliamsCharmaine canbeaneye-o evaluations 360-degree In otherwords, thisorganization.” I’m forthemissionof notthebestperson or “Maybe I’m place,” “Maybe notintheright endupsaying tofeedback might themselves, People whoconstantly receive negative 360-degree which inmany casesisnotabadthing. theorganization— to outof alsoserve pushpeople I shouldpointoutthat360reviews andto work together asateam. to mentor anddevelop people, we’re doingmuch more asacompany that, And becauseof people’s strengths. the valueof to aculture thatismuch more inclinedto talkabout didn’t or whatthefirm dowell, well, arough culture thatdwelled onwhatpeopledidn’t do We’ve gonefrom kindof erful tool. It’s pow- beenavery ourorganization thananything elsewe’ve done. thecultureform of I’d say feedbackthatincludesourclientsorcustomers 360-degree hasdonemore to trans- Paul Reilly theculturefeedback andeffectiveness impact ofanorganization? pener forsomepeople. ishop Delaney became ill, and without hisleadership andwithout becameill, ishop Delaney 43 The Value of Evaluation in the Church The Value of Evaluation in the Church 44 Q. One of the most important components ofaChurch minister hasto Oneofthemostimportant bethedepth Q. .Ihave apersonnelcommittee that’s madeupoffive priestswithwhomIconsult Q. Why doyou thinkit’s sodifficultto instillaculture ofshared andmutu- responsibility Q. councils on any evaluation of the clergy is faith questions: do they practice andlive practice dothey their isfaithquestions: theclergy councils onany of evaluation thenumber onethingyou’d wantfrom andthe parishioners I thinkinaChurch context, Paul Reilly shepherd’s care. which isalsobasedona priests, They’re basedonaplanforthecontinuing of formation thatyou’re take into consideration everything talkingabout. Chicago andBaltimore, processesThe evaluation thatIspoke about WilliamsCharmaine Does the360-degree evaluation process takethat into account? of hisfaith—how helivesand quality that faithandhow heexpresses itto others. that includesaperson’s strengths andweaknesses. and peoplethink, process 360-degree The tells you abroader what group of him regularly. i onis n ab h ics tef asoppose andmaybe thediocese itself, his councils, hisparishioners, audience: awider how he’s doingasseenthrough theeyes of of aview vide apastor itcould pro- butinthecaseof isnotmeantto beatotalA 360review evaluation, Paul Reilly evaluationsobjective ofpriests? Are 360reviews thesolution—will they provide a relatively smallgroup likethis. sometimessuffers given ofpeoplein Butobjectivity thefamiliarity I’m responsible. extensively before assignmentsfrom amongagroup of60priestsfor making whom concern given theotherresponsibilities have. all they andthemanagementsideisn’t amajor instead tospent onpreparing people bepriests, It’s inthisarea. either, My senseisthatnotmuch timeisspentintheseminaries, them. andwe don’t have goto for work,” much ongoingtraining “Okay Father, muchpretty say, we When are priests ordained, ourculture inthepast. itjusthasn’t of beenabigpart Well, WilliamsCharmaine withintheChurch?al accountability I’ve never heard say apriest theprocess wasanything otherthanagoodexperience. In fact, candoto andwhatthey improve. goodfeedbackabouthow they’re helpingothers, a lotof My get senseisthatthesepriests weekend inorder to liturgy getfeedbackontheirhomilies. before, particularly in the particularly Archdioceses of before, d to just the priests whointeract with d to just thepriests the organization, and not till the fourth part dowe getinto somebusinessissues. part thefourth andnottill the organization, thethird onhow represent they onhowthe second theemployee part treats otherpeople, you’d you isfocusedonvalues, looked seethatthefirstpart atmy company’s 360, If faith. 45 The Value of Evaluation in the Church

u niesceyi oiae yeooiso scale. isdominated ourentire by society economies of . . . Frederick Gluck James Smith Frederick Gluck Panel Church (Multi-Parish/Multi-Diocese) Scaleinthe Economiesof The Power of 1blin orrtrsral tr nraig o hs fyou whoare involved inChurch thoseof So, your increasing. returns really start $1 billion, you about outthatwhen worth anditturns getto aboutaportfolio theportfolio, thesize of of Astudy wasdone thatshows thereturns oninvestments asafunction investments foramoment. Let’s consider inareas from thatrange purchasing to investments to healthcare. scale, economies of dioceses to employ many exist for dioceses opportunities orgroups of Within theChurch, a goodideatoday. justisn’tmom-and-pop operation How aboutBoeing747s?Beinga werethey madeoneatatime? think automobiles would cost if What doyou scale. economies of isdominatedour entire by society And itoccurred to methat cept?” con- “Is thisanabstract myself, Iasked scaletoday, economies of Knowing Iwasgoingto talkabout Jim SmithandFred to right) Gluck (left 47 The Power of Economies of Scale in the Church 48

investments should think about your capacity to aggregate some very large investment portfolios. At the same time, you could attract some highly talented professional managers.

Economies of scale, I believe, have the potential to change the economics of the Church.

Economies of scale, I believe, have the potential to change the economics of the Church. But first, you need an understanding of the potential, and I don’t think we have that yet. By “understanding,” I mean taking the time to ask, what’s practical? For example, what could you expect to save by having a general contract with one or more of the big auto manufacturers where every vehicle pur- The Power of Power The Economies of Scale in the Church chased by the Church goes through that contract? Rest assured, you would get a very major dis- count. And that extends beyond automobiles to goods and services of all kinds.

In addition to understanding the potential of economies of scale, you need an effective process, and you need leadership. I don’t think you have either one of those now. You’ve got plenty of leadership, but none specifically in this area. And that’s unfortunate because the potential savings is enormous: $100 billion is spent each year by Church-related organizations, including hospitals and schools.

What can we learn from the experience of Texas in applying economies of scale to the purchase of healthcare insurance? The biggest lessons are that it can be done—and that the payoff can be enormous. But it takes courage and determination, and no one is better qualified to tell that story than Jim Smith, as we’re about to hear.

James Smith

Let me start by taking you back to 1989, when a group of us in the Diocese of Fort Worth got together to begin discussing the possibility of having a common health plan for all of the dioceses in the state of Texas.

That’s right, 1989. We don’t necessarily move fast, but more important is that we weren’t afraid to move slow. In 2004, the Catholic schools in the state sent a letter to the bishops of Texas, through their school superintendent, asking if they could get a common health plan for all of the Catholic schools in Texas. The bishops thereupon appointed a committee of three bishops and three finance officers—of which I was one—to revisit the issue and renew discussions.

As background, Texas has a population of about 23 million, including roughly 1.6 million Catholics. We are divided into two archdioceses and 15 dioceses across the state, and have approximately 11,000 employees. Nine of those dioceses have a total of just over 2,800 employees. Taking it down to the grassroots level, the Diocese of Tyler under Bishop Corrada covers 25,000 square miles in east Texas. We have 17,000 registered Catholic families spread across 68 parishes and otswrho oddt,we hadto take project we what coulditout. and actuarially gooddata, of months worth In caseswhere we couldn’t get12 data. sowe gotshort the dioceses hadrecently changed carriers, complicating Further matters someof wasthefact from others12months. data, of months worth From somedioceses we gotjust3 policies. dates theexpiration of extremely difficultbecauseof But itwas You’d thinkjustaskingforitwould besimple. thedioceses. claims datafrom allof we hadto have good To doourjob, wasachallenge. claimsdatainparticular The collection of mon ground existed. com- andwhat each diocese were, issuesandproblems theindividual andunderstandwhat of to try financialofficer chief bishopinthestate andevery every Godly Group meetingwith andIstarted the As aresult, thecomplex issuesourcommittee hadto with. wrestle That gives you someideaof ers didn’t. stop-loss levels anddifferent bene alsohaddifferent They But itwasn’t. “employee,” andyou’d thinkthatwould standard. bepretty of mostdioceses have adefinition For example, dioceses. individual issueswithin blocks to betheturf thebiggeststumbling Here we foundsomeof wetant when putoutdatarequests to each diocese. Thatproved impor- we didgettheirparticipation. we didn’tAlthough getbuy-in from everyone, Crucial to thatprocess from 15dioceses. all wasestablishingtimelinesandgettingparticipation theprocess. ourstudy andthedevelopment of ward to share thecost of stepped foryou are aware, which many of of We were blessedthatthe Kennedy very Foundation, course. of aconsultant hiring comes Alongwith cost, the GodlyGroup to asourconsultant. serve Sowe looked around aprofessional andcontracted called firm with asthisbyenormous ourselves. We alsorealized thatourskillsandexperience were such thatwe could notmanageaproject as thebuy-in. butnotnecessarily them, allof WeTexas. gottheattention of all15bishopsinthestate of aselectcommittee we formed thebuy-in of andsought in2004, So, pun—heavenly levels. thedioceseinsurance costs would forordained within have certainly priests reached—pardon the health themix, we took lay employees outof And if health insurance benefitsto ourlay employees. we were fastreaching thepointwhere we could Tyler, nolongerafford to provide In theDiocese of nonegotiatingpower. we hadvirtually Plus, We couldn’t even buythreshold. stop-loss insurance. we hadto low maintainavery stop-loss andbecausewe were self-insured, dioceses were sosmall, our15 employees in9of thenumbers Because of Texas waseven more challenging. entire state of providers across Tyler’s 25,000square mileswasextr Putting of together ahealthcare theappropriate planthatincorporated PPOandothertypes large. thegeography evenisvery though cese, We are smalldio- avery whomare priests. 91of ourdiocese are 242employees, Serving missions. ispcae.Sm icssofrdvr eeosbnft;oth- Somedioceses generous offered very benefits; fits packages. ml ifcl.But puttingtogether oneforthe emely difficult. 49 The Power of Economies of Scale in the Church 50

Within the state of Texas, the total cost of health insurance was running around $43 million a year for all of the dioceses. We found—and this gets to the turf issues I mentioned before—vastly different styles of managing these health benefits. I’m sure no one in this room would have a $43 million business that couldn’t be effectively managed. But that’s exactly what was happening within the Church.

So, it didn’t take long for us to see that the so-called law of the large numbers was going to work for us....

So, it didn’t take long for us to see that the so-called law of the large numbers was going to work for The Power of Power The Economies of Scale in the Church us—that by building a single Catholic benefits group we could, as originally predicted, realize a significant financial advantage. Conservatively, we projected the savings to all 15 dioceses—if they decided to participate—and their 11,000 employees to be $6 million. We also found that by coming together as a group we could purchase higher stop-loss levels, eliminate brokerage fees (which in some dioceses were very high) by being able to negotiate directly with providers, and consolidate administrative services for all of the plans.

But our work was hardly over. We now had to take the vast array of benefits plans throughout all the dioceses and come up with what I began to refer to as a “benefit mutual position.” This plat- form blended the best of this diocese and the best of that into a common benefits package upon which all of the participants could agree. We then developed a request for funding and sent it out to six insurance companies, four of whom submitted bids.

In the end, we selected Mutual of Omaha as the vendor for our new Catholic Employee Benefits Group. We initially have 1,100 lives, including dependents, covered, and a number of dioceses are expressing an interest in joining the program once their current policies expire.

Just as with any new venture or operation, we’re going to experience some growing pains. Because we know problems and issues are going to arise, we’ve set up a framework to deal with them effectively. We’ve also asked each participant for a three-year commitment; four dioceses to date have agreed. Based on my experience, I believe those commitments will be renewed at the end of the three years. And within five years, I think at least 11 of the 15 dioceses in the state of Texas will opt to become members of the Catholic Employee Benefits Group. er .Robinson A. Kerry Malloy Edward Rev. Michael Hoffman Robinson(Moderator) Kerry A. Panel Fundraising Laying theFoundation for Successful ild expansive ministry. filled, thosequalitiesto bearondeveloping afaith- bringing and and confidence about vision mentally andpassion, believe fortheCatholicChurch thatfundraising isfunda- I each. in bothrealms to foster abetter understanding of I’ve longadvocated forinternships andexperience Indeed, seemsto andfundraising philanthropists. to fundraisers, I’ve athow mysterious beensurprised philanthropy seems Catholic Church intheUnited States. potential theLeadership Roundtable the hasto transform life andinmany ways prepared meto appreciate the my Yale Thatexperience changed thecourse of University. theCatholicChapelandCenter at for SaintThomasMore, development asdirector Iserved of For ninerecent years, Raskob Foundation forCatholic Activities andFADICA. Catholic philanthropy through my membershipinthe formal I’ve spentmy entire adultlifeintheworld of ate. which Ihave become passion- andgratefully unwittingly Permit me to offerafewreflections onasubjectabout Kerry Robinson Kerry 51 Laying the Foundation for Successful Fundraising 52

Money follows mission....Keep in mind that donors are subjects, not objects.

Money follows mission. And fundraising is successful when the vision is compelling and the program aspires to be comprehensive, excellent, and always open to creative new initiatives. Keep in mind that donors are subjects, not objects. They are members of our faith community who con- tribute more than money, and have the right to be engaged in a successful expansion of ministry. As Frank Butler said in his keynote address, “Everyone counts.”

If you want to be successful at raising money, here are some lessons I’ve learned over the years:

Laying the Foundation for Successful Fundraising for Successful the Foundation Laying • Be a ministry, parish, diocese, or organization worthy of generosity. • Be transparent, accountable, grateful, and trustworthy. • Understand that donors are sophisticated investors, but also capable of ever-increasing levels of commitment, engagement, and generosity. • Alter your perception of fundraising so you see it as a ministry, as a means for evange- lization, and as a constitutive responsibility as members of this faith community. • Commit to heart that people invest in relationships, in competencies, and in success. • Never be stagnant; always be receptive to change. • Discomfort with fundraising—or even talking about money—is no longer an accept- able excuse for anyone who cares about their ministry. • Resist cynicism and negativity in all its insidious forms. • Be joyful and hopeful, and have confidence in the future, as people of faith, who trust in providence, are called to be.

Remember, finally, that nothing succeeds like success. Hold up your ministry, celebrate it, do everything possible to ensure it is excellent, well-managed, financially transparent, accountable, and just. Once you’ve achieved this mission, I can assure you the money will follow.

Michael Hoffman

By way of introduction, I am the founder, chairman, and CEO of Changing Our World, a leading philanthropic services consulting firm. Changing Our World specializes in major gift and capital campaigns, fundraising, capacity building for nonprofits, and corporate and private philanthropy. Our clients include the Archdiocese for the Military Services, the Archdiocese of New York, the Archdiocese of Boston, the Saint Vincent Catholic Medical Centers, and the Memorial Sloan- Kettering Cancer Center. is,don’t to beafraid askforassistance. First, • The archdiocese The entitiesmust have anditsvarious access to andshare world-class resources. • archdiocese The must build acoordinated butdecentralized fundraising/philanthropy • ommendations are: As forthephilanthropic report unteer leadership. strong very andinfluentialvol- share but they acommon trait: only are theseplansinterconnected, Not work plan. thearchdiocese planandaschools strategic hadundertaken onafinancial strategic andto ensure additional thatthisplansupported plan, itona philanthropicwork strategic with which asked our company aboutayear agoto Boston, The third case involves the Archdiocese of have they to take theinitiative andaskforit. catch The isthis: theirfundraising. with anddevelopmentschool directors principals intheroom are thatpeople available to helpthem endedmy I talkby telling andhigh themany elementary know thatit’s strategically. beingspent wantto andthey wantto butfirstthey know where isgoing, themoney andschools, local parishes alsopointed I outthatCatholicstoday their wantto support planning. goodstrategic particularly financialcontrols andfinancialtransparency, emphasized of I theimportance Changing World,” “Successful Fundraising inToday’s In my talk, School Development Professionals. Association of New York’s whenIgave atalkto the Archdiocese of 2005, The second casetakes usbackto thefallof flawlessly. anddistributed world, over from $216millionwasraised 200,000donorsaround the sion forcomplete transparency, andhispas- theFund, theclearfocusof Mayor Giuliani’s leadership, Becauseof did fortwo years. which we Themayor asked to ourfirm work on theFund pro bono, losttheirliveswho on9/11. rescue uniformed workers assist thefamiliesof New York setupto which Mayor Giulianiof The firstcaseinvolves theTwin Towers Fund, caseforfinancial strategic astrong, and • financial transparency; • andapositive hard work, leadership, • are: asyou’ll see, thesecases, each of Common to for successful today. fundraising theessentialelements I believe someof illustrate I’d like foryou to describe three casestudiesthat operation thatisbasedoninfluenceoperation andtrust. support. attitude; htw r urnl mlmnig two key rec- that we are currently implementing, Michael Hoffman Michael 53 Laying the Foundation for Successful Fundraising 54

There are several overarching lessons I believe we can learn from these three cases. First, don’t be afraid to ask for assistance. People want to help. Second, leadership, hard work, and positive attitude are essential to your fundraising endeavor. And finally, a strong strategic case based on financial transparency is pivotal to any successful effort.

Rev. Edward Malloy

With the help of anecdotal bits and pieces, I’d like to talk about the role that leadership can play in both mobilizing personnel resources for fundraising and in appropriately celebrating and thanking those who have been generous to the institution.

But to say that I raised the money would be foolish . . . Laying the Foundation for Successful Fundraising for Successful the Foundation Laying

In the course of my professional responsibilities with Notre Dame, I was involved in one way or another with raising about $1.5 billion. I was understandably delighted that we achieved those results. But to say that I raised the money would be foolish, because I was surrounded by and worked with some very talented, energetic, and committed people. So, in a sense, one of my responsibilities was to make sure that we had theorized properly about how to be effective in fundraising, that we had put together the right kind of staff to make it happen, and that we were tending to the thanking and celebration functions with as much enthusiasm for the thousand-dollar benefactor as for the multi-million-dollar benefactor.

In the field of higher education fundraising, the dynamics are such that momentum builds, research gets done, and successful fundraising begets more successful fundraising, especially if it looks as though the money is being used for good purposes. The key question in much of Church- related fundraising is, how do you get that momentum going? It seems to me that in a lot of Church settings, because of the limi- tations of personnel and the means for Father Edward “Monk”Malloy large-scale fundraising, outside expertise will have to be brought in, just as you do for other activities within the diocese. And although it would be unusual, based on my experience, for multiple dioceses to try to raise money together, if a diocese is quite small, I see no reason why it couldn’t coordinate that function with neighboring dioceses, or even with regions of dioceses. It’s an idea certainly worth further reflection. It’s notaburden….it’s anopportunity. .Are there any newandinnovative fundraising techniques the Church could useto Q. DiscussionHighlights Plenary It’s notaburden….it’s anopportunity. cess infundraising. suc- from learning otherinstitutionsthathave alevel known of great enthusiasm, to thetaskwith to commit andbewilling ourselves We simplyhave to findthemost effective ways to reach them, Catholics whobelieve deeplyinwhatwe’re trying themare committed And many of wealthy very would love to leave theirmark. who are very, Iknow thepeople Many of forusto pursueasfundraisers. opportunities of There isnoshortage canberefined Ourskills through bothhard work andoutsideexpertise. urally. itdoesn’t come to usnat- even if We thetask, needto with becomfortable levels aswell. and parish at thediocesan Ithinkthatshouldbetrue my time. events of comprised amuch smallerportion focused actual even if thing Ididinthatrole wasconnected insomeway to effective fundraising, That’s my time.” becausealmostevery- mostof butontheotherhand, little, very “On onehand, is: My answer my onfundraising. timeisspent I’ve percentage what often beenasked of ininterviews omtes o xml.W hnhv oeuaete bu h ito philanthropy. We thenhave to of educate themaboutthegift forexample. committees, to joinourboards and to findthemandget toeffort become active intheChurch, we have to make aconscious Nonetheless, andmay noteven goto Church. their families, may They betotally focusednow ontheirjobsand either wealthy orgoingto bewealthy. usisthatthere’s a The challenge forallof remain determine whetherthey givers.will how professionally they’re handledandhow sincerely they’re thanked theissuesof givers, they’re Because new to contribution made acharitable anything otherthantheirchurch. hadever itwasthefirsttimethey theseindividuals, For many of andKatrina. the tsunami, 9/11, aswe saw of thetragedies following peopleare now online, makingtheirgifts A lotof Michael Hoffman of thepeople? 80percent come from ofthegifts 20percent get beyond the “80/20”principle,where rmnosnme fyoung Catholicswhoare tremendous number of to do. They truly want to support theChurch. wantto support truly They to do. 55 Laying the Foundation for Successful Fundraising Laying the Foundation for Successful Fundraising 56 .Cnyuepn nteiprac fntjs utvtn it,butalsorecognizing Can you ofnotjustcultivating expand ontheimportance gifts, Q. theChurch Has pro- You talkedabout wealthy peoplewanting to leave theirmark. Q. .How cantheRoundtablehelpChurch withitsfundraising effort? Q. whole process. isnotbigenough their gift ...ifyou get to fthewholeprocess. of thenIthinkyou’ve losttheintegrity isnotbigenough, becausetheirgift thanking people Thethingto remember special recognition. how doyou thankthem?Sometimesit’s justaletter orahandshake of orsome otherform somebody gives amuch smallergift, If It reinforces forthefuture. do. they the samethings believe otherswho in often They feelgoodbeinginthecompany of thank themformally. to atadinner, perhaps it’s anexcellent themtogether ideato once bring ayear, ed gifts, ing educationcommunity have usinthehigher a you call what might Those of Malloy Rev. and celebrating them? see theoutcome forthemselves. Ourobjective isto tapinto theirdesire to make adifference sothey squander thatmoney. theways all could they Thinkof happenedto orthey getluckyinlife. earned, inherited, thewealth they’ve candowith accumulated—whether they them thinkaboutwhat it’s to help andotherslike me, My experience hasbeenthatthere are peoplewholookto me, Malloy Rev. use ofthiswealth? gressed to thepointwhere it’s ableto speakto thesepeopleabouttheresponsible could share. aspecialcommittee whoseresources theChurch people within of intheform perhaps such talent— SoIthinktheRoundtable canhelpby puttingtogether acadre of lanthropy. The Catholiccommunity needsworld-class itcomes talentwhen to andphi- fundraising Malloy Rev. fyuhv epea eti ee fgvn,or peoplewhomake annual unrestrict- giving, you have level peopleatacertain of If . the pointwhere you stop thankingpeoplebecause ,...you’ve sta fyou getto thepointwhere you stop is thatif otteitgiyo the of lost theintegrity yl fthank- cycle of Kerry Robinson and Geoffrey Boisi Robinson andGeoffrey Kerry Foundation forCatholic Activities. andtheRaskob Foundation, Lewis Frank J. Foundation, ElizabethandFrank Ingrassia Foundation, CassinEducationalInitiative F BoisiFamily Foundation, AMSFund, are They the Amaturo Family Foundation, thisconference. the costs of National Leadership Roundtable onChurch Management since itsinception to andhelped underwrite goestoOur profound thephilanthropic gratitude f andMichael Brough fortheirhard work theconference. inorganizing Eriksen, John Michael Costello, We would also like to thanktheLeadership Roundtable staff: Hernandez. andevent coordinators Lauren Roth andSusan forfacilitatingthebreakoutscribes sessions, themoderators and We would like to thankthespeakers comments, andpanelistsfortheirinsightful Healey. andThomasJ. Frank Butler, Monan, Don Fr. Brabeck, Mary Pat Harker, planning: andthoughtful port theConference PlanningCommittee fortheirconstant sup- We acknowledge gratefully themembersof dialogue. critical busysc theirenormously ops fortakingtimeoutof We would like mostespecially to thankthebish- many people. to thededicationandcommitment of its2006conference The National Leadership Roundtable onChurch Management owes thesuccess of Acknowledgments udto,CsmnFudto,Healey Family Cushman Foundation, oundation, hedules to lend their insight andleadershiptohedules to this lendtheirinsight oundations thathave generously the supported 57 Acknowledgments

Frederick Gluck John Eriksen Morin Roger P. Most Rev. Frederick Gluck New Orleans Archdiocese of Renewal andRebuilding inthe Appendix A o fteDprmn fCmuiySrie.It’s anhonorformeto introduce Bishop Morin. Community Services. of theDepartment tor of andhewastheexecutive direc- thecuria, andmoderator of general thevicar New Orleans, bishop of he’s theauxiliary now, Right pastoral and socialwork he’s theextraordinary doneinNew Orleans. of butsuffice itto say here he’s mostproud Bishop Morin, theaccomplishments of I have alonglistof andthe Archdiocese. theRoundtable, McKinsey, of a jointeffort which is detailsontheproject provide we’re further will who envisioning, lowed by John Eriksen, He’ll befol- Bishop Morin ishere to tell usalittlebitaboutthecurrent situationinNew Orleans. onJuly begins Thateffort 21. counted services. McKinsey with itsheavily dis- offering kindly Archdiocese figure outaplanforitsschool system, We’re goingto helpthe we’ve developed aproject. and Archbishop Hughes, John Eriksen, Boise, Geoff andafter much between Kerry discussionandinteraction Robinson, year a hasgoneby, Well, New Orleans. Archdiocese of ting McKinsey &Company to assistthe inget- Roundtable could beinstrumental the and wecameuptheideathatperhaps with Archbishopner thatnight Hughes, ushaddin- fewof A in thecity’s recovery. therole theChurch wasplaying specifically, more Hurricane Katrina and, the wake of talkaboutwhathadhappenedin inspiring Hughes from New Orleansgave avery Archbishop year’s Roundtable conference, you remember thatatlast will Many of Fred Gluck 59 Appendices Appendices 60 Most Rev. Roger P. Morin, D.D.,V.G., Auxiliary Bishop Auxiliary D.D.,V.G., Morin, RogerP. Most Rev. which isbeingadministered (CCUSA). through national CatholicCharities Bishop’s Conference (USCCB), theU.S. fundsprovidedplaced by personswith thecollection of Mississippiin southeastLouisianaand southern have been CatholicChurch agencies andhomelesspeopleseekingassistance. evacuees by thehuge number of butneighb New Orleans, Not onlythe Archdiocese of donothave they theresources to return andrebuild theirhomes. now, right but, home, People andwater madehomelessby damagewant to wind return and damagefrom flooddamage. distinguishbetween theinsurance damage from winds companies high rigidly Moreover, homes. fundsappropriated forrebuilding grant thefederal have theseindividuals received any of none of show Thesamesurveys that thedisplaced peoplesay wantto they come backto New Orleans. of Recently that90percent conducted evidence surveys about450,000have returned home. ulation of pop- anoriginal Current totals indicate thatroughly 210,000peopleoutof return to theirhomes. lessthan50percent have beenableto displaced thepeople by thehurricane, Of Hurricane Katrina. theNew Orleanspopulationasaresult of There have beentremendous shiftsinlocationof weredents who inthesystem before Hurricane Katrina. stu- thetotal number of Weare are now educating 80percent openthroughout the of Archdiocese. 107schools 83outof As forourCatholicschool system, thatareparishes already upandrunning. neighboring any peoplereturning to thoseareas hasbeengiven over to thepastors of toral care of In delay theinterim—the pas- period—the around those24parishes. theneighborhoods tion of bedeveloped to basedontherepopula- helpmeasure will future criteria viability setof A period. unfoldoverThe planwill an18-month now. inthoseareasfew peopleliving right hoods are sodevastated thatthere are very son forthedelay isthatsomeneighbor- rea- The delayed reopening. astatecall of closed andthere are inwhatwe 24parishes were sixparishes permanently mid-March, anewpastoral planin announcement of With the 112are upandrunning. parishes, 142 Outof stand inourrecovery efforts. where we to offeraquickrecap of wish I work to bedone inmetro New Orleans. recovery post-hurricane dous amountof You already know thatthere isatremen- New Orleans. consultation to assisttheparochial school system inthe Archdiocese of fortheRoundtable project aboutto beundertaken asastudy and too, He’s grateful, Roundtable. theLeadership of membersandstaff hisfollow-up with meetings you with andof hisvisit of ories He hasfondmem- you. Hughes hasasked to hisgreetings meto allof bring Archbishop Alfred C. Bishop RogerMorin oring diocesesoring aswell have beenoverwhelmed able to provide helpto anddis- evacuees lr esmtraitc escmotbelvs u oehls,lvssae yarbs at,an lives shaped by arobust faith, butnonetheless, lives, lesscomfortable lessmaterialistic, pler, “God iscallingusto live sim- which deeplytouched me: Archbishop Hughes offered thesewords, thearchdiocese, In hisstatement onMarch of 15thannouncingthepastoral plan to priests great need. We we doall possiblycandoto intheirhourof helpthe people will community. wider We continue will to bepresent forourpeopleandthe simply goingto andgoaway. closedown Church The isnot the Church inNew Orleansplaces itamongtheeldestdioceses inthecountry. of Thehistory thelocalcommunity. We believe thattheChurch of isanessentialfiber inthefabric thisproject. finances of Ourconsultants are goingto helpuswork outthegovernance andthe parishes. neighboring eight or seven, have might children school central A inadeanery from six, that are notupandrunning. only from where theparish theschool islocated butalsoto thechildren serve from theparishes schools isforsixcentral to children serve not ultimately, Theplan, New Orleans. Archdiocese of schools central inthe The othernewdevelopment Iwould like to tell of you aboutisthestart-up to helpthemwhenthepeoplefrom theirareas are ablecome backhome. We have thatwe pledgedto are theother24parishes goingto beable thatareparishes now open. ing someresources from thenationaldonationssowe don’t available all spend resources onthe isconserv- Archbishop Hughes, theleadershipof with The Archdiocese, ituninsured. mostof lion, around $70mil- lossesof with thatareThe 24parishes shuttered were damaged, themostseriously to God’sthat needsto bedoneinministry people. It reaches thepointwhere work you cannotdo theimportant diminishingreturns. seriously with You know thatyou canonlyreduce somuch personnel before you up ourdepartments. wind of all peopleworking in We have reduced significantly ouradministrative andthenumber of operations cal year. It fis- beasimilardeficitinthefollowing isanticipated thatthere will itwouldthan we be. thought less which isactually around $7million, ating deficitforthefiscalyear ending June 30th[2006]of Thearchdiocese islookingatanoper- causedby thedevastation thehurricane. months following andbenefitshadto thenumerous bemaintainedthrough those salaries whose priests of impact We have there’s thefiscal nocashflow from theseparishes. them—24—are notreally functioning, Since someof personnelexpenses. andclergy ongoinginsurance costs, administrative expenses, We have still receivables thesemany all onthebookswith parishes fortheirshare of Katrina. Hurricane isthe Archdiocese’s financialcondition own asaresult of though, Less encouraging, nificant results from thisinitiative. complexespre-existing apartment forseniorcitizens. includingtherestoration of unitsorapartments, eitherindividual producing 7,000housingunits, thecollaborative beinvolved will in over thenext five years, Theplanisthat, housing development. seven CatholicChurch–related groups thathave in someexpertise new collaborative ismadeupof “Providence This Community Housing.” called anentity of undertheaegis homes andapartments individual New Orleansinvolves of theconstruction A majornewinitiative inthe Archdiocese of We are enthusiastic andhopefulforsig- very 61 Appendices Appendices 62 John Eriksen ing: “Thank GodI’m “Thank here.” ing: thepeoplehave proclaimed theirfaithby say- Katrina hasbeenthetest, If andsurvived. been tested, saySome theologians thatfaithhasnotbeentested by doubtisn’t asstrong asfaiththathas me.” iswith my sonordaughter, band orwife, Godmy Thank hus- but thankGodI’m alive. Ilosteverything, “Father, would lookatusandsay, people When we theshelters, visited who have experienced Hurricane Katrina anditsaftermath. andthereligious, theclergy, thepriests, of deepeningspirituality hasbeenasenseof There truly sible pastoral response we canatthistime.” We have will to channel limited resources thecommon good. into makingthemostrespon- sake of We allneedto somepersonalpreferences sacrifice will forthe love. andasacrificial hope, earnest igt prt,andthosethatare goingto berebuilt. uing to operate, has asked usto lookatdeveloping processes andtemplates theschools thatare to support contin- constitute will asustainableCatholicschoand what constitute will ahealthy what Catholicschool thequestions: andanswering and the Archdiocese, New Orleans of thecity by of takingacloselookatthenewreality metrics viability develop asetof thisproject are five specificgoals At of theheart marshallingitinaneffective orsomeotherform—and way to theChurch. serve human capital, It’s really takingcapa Orleans goesonandon. New consulted andtalked to aboutthisinitiative to theChurch serve andthe Archdiocese of peoplewe’ve thenumber of Indeed, are who helpingout. thefaithfulacross thecountry sands of andthou- another175orsoRoundtable members, draws ontheRoundtable on20people Board, italso While itinvolves three inNew people Orleans, theoverall effort. not really representative of weeks inNew eight bespending that’s Orleans—though uswill agroup of As thisproject unfolds, consulting skills. ner atMcKinsey excellent with management andapart- experience intheChurch, years of numerous with He seminarian isaformer McKinsey. of leading theinitiative onbehalf is who want to recognize isGinoFernandez, The otherpersonI facilitating thisproject. vastlyunderstates who hisrole in Fred Gluck, I’d alsolike to extend thanksto warm you. itopenedupforusto serve ous opportunity andthewonderful andgener- extended, they Archbishop Hughes forthe great invitation like to express thanksto Bishop Morin and I’d theLeadership Roundtable, of On behalf city thatalreadycity exists—whether ittakes financial, rhihpHge a e ot.Thefirstisto Archbishop Hughes hassetforth. John Eriksen lgigfrad eod Archbishop Hughes Second, ol goingforward? Church across theUnited States. McKinsey be achance will for New Orleansto give way backinameaningful to theCatholic thearchdiocese theproject alongwith thattheRoundtable and isundertaking do, And asthey really goodpractices employed by standout. there down dioceses will andparishes dent thatalotof I’m confi- in theChurch As more we andhow learn aboutNew canwe spread itaround.” Orleans, “What I’d though we works often best usetheterm be justashappy to say, practices,” “best Finally, New Orleans. cal to thelong-term success of aboutwhere we beingsmart rebuild andhow we becriti- rebuild will real inavery sense, So, low. fol- peoplewill pointed they outwasthatwherever the things aninstitutiongoes, And oneof aster. adis- recently Iread anarticle by two economists aboutrebuilding inthewake of to beafterwards. have will they New Orleans isto prosper, andif were They theanchor before thehurricane, schools. it’s theCatholic theeducationalestablishmentthere isnotthepublicschools, andsoulof heart Another thingIwantto touch onisthatanybody who’s New familiarwith Orleansknows thatthe this resource. itdidn’t to develop themosteffective lookcloselyattheschools andtry andefficientway to use if Roundtable The would to the clearlyberemiss initsservice Archdiocese andsoon. expenditures, thegreatest healthcare generate themostsalaries, They intheseplacesgorilla istheschools. the800-poundfinancial you lookatmostdioceses andarchdioceses, if The second pointisthat, New Orleans. andstrengthen itsocanplay role intheturnaround avital of nourish, to feed, ty Thatmeanstheinstitutionisgrowing—and thatthisrepresents awonderful opportuni- now. right 107Catholicschools are open He saidthat83of that Bishop Morin cited before bearsrepeating. focus ontheCatholicschools inNew Orleans?Thatmay why andto ouroverall project: Which to thisdiscussion, usto aquestionIthinkispertinent brings we’ll beto serve. thebetter equipped themore we understandNew Orleansanditsneeds, So, we’re ableto learn. we andwhat canoffergoesupexponentially according to what Roundtable have much to offer, the I’ve foundthatmembersof more learning aboutthearchdiocese. period initial eight-week we’ll an spend As Inoted before, McKinsey. andoneassociate of manager, oneengagement ants, two consult- myself, which consists of thoseare thefive guideourcore objectives thatwill team, So, Archbishop Hughes hasasked usto consider. there respect to are archdiocesan questions with somespecific schools that high Finally, ioners. theparish- to lookatprocessesty whereby we canplanandbeflexible inorder to meet theneedsof And we shouldembrace thatasanopportuni- ornineyears. sixyears, exist inthreethat will years, Fourth involves thattheNew thecertainty Orleansthatexists today notbetheNew will Orleans orwhatever—is beingspent. human, canseehoweveryone sothey theircontribution—financial, The third goalisto take thefirsttwo pointsItalked aboutandmake andopento themtransparent emsl-vdn oyu butastatistic to you, seem self-evident 63 Appendices

efryT Boisi Geoffrey T. Remarks: Introduction: Transparency Project Boston Financial Archdiocese of Inaugural Best Practics Award: Appendix B a a rfudipc nm ie smn fyuko,Ia ru o fBoston College, Iamaproud sonof you know, As many of has hadaprofound impactonmy life. whentheBoard toI wasthrilled started focus theChurch spread theGospel. andfurther each otherto doourbestto advance themissionof we inspire excellence, of acts perform onthosewho By shiningthe spotlight all. for thebenefitof thosewhoselflesslystrive to strengthen andsupport theChurch honor, can provide isto identify, theRoundtable services themostimportant one of Indeed, have strengthened theCatholicChurch. through theiractionsandwords, for BestPractices to recognize who, institutionsandindividuals the Award theLeadership Roundtable we inaugurates what intend to beanannual event: Tonight, you. one of and every proud Iam to each beaffiliated with andIcannottell you how people, It impressive isavery group of country. oureconomy andour in allsectors of positions significant ers whoholdvery but alsointhoseCatholiclead- Church, members whoare leadersin the notonlyinour isevident This Church. the allmembersof ing onthetalentsof andfinances by capitaliz- development, human resource tices inmanagement, to promote excellence andbestprac- Roundtable onChurch Management is Our missionattheNational Leadership e.J ra ei,Peiet ahlcCaiis rhics fBoston Archdiocese of CatholicCharities, President, Hehir, Bryan J. Rev. efryT os,Car National Leadership Roundtable onChurch Management Chair, Boisi, Geoffrey T. Geoffrey Boisi and Rev. J. Bryan Hehir (left to right) Hehir(left Bryan J. BoisiandRev. Geoffrey noriagrlhnre foritisaninstitutionthat honoree, on ourinaugural 65 Appendices Appendices 66 ato h oyo hit n l fu hr nta ufrn.B h aetkn l fuscanshare allof By thesametoken, us share in thatsuffering. andall of Christ, thebody of of part But we are all this faithcommunity hassuffered inrecent so much andspiritually financially years. for There is somethingnoteworthy andspecialaboutourunanimousdecision to honorBoston, nationally. to promote the Leadership what Roundtable istrying It isalocalexpression of to theChurch. infinance whoalsoshare expertise acommitment with thelaity andmembersof together clergy Boston’s project exceptional isthatitbrings thatmakes thethings the Archdiocese of One of andgratitude. admiration He ourrespect, deserves certainly itspointperson. McCarthy, theBoston FinancialTransparency Project by Jack Earlier today we were treated to thedetailsof Christ. spread theword of thearchdiocese to hasstrengthened itsability this, becauseof And, circumstances. extremely trying in Boston—because itelected to wasright dowhat why we honortonight the Archdiocese of is This theirparishioners. andminister more effectively to theneedsof more studentsinthefaith, teach healmore They patients, ties—are better fundamentally positionedto spread theGospel. cially healthy Catholicinstitutions—w andwell-run DonaldMonan often remarks thatfinan- my andmentor Father goodfriend J. In thatsamevein, the Gospel.” ministry thecontext are onlywhenthey putwithin ingful of numbers onthese pagesare mean- the project’s report,“The Cardinal O’Malley saidinhisrelease of As isnotanendbutameans. inany diocese, for thatmatter, theChurch inBoston or, cal healthof we understandthatthelong-term fis- At thesametime, itsfinancialposition. consolidated of view cantly enhanced theinstitution’s to achieve ability long-term fiscalhealthby providing a clearand hassignifi- othersunderway inthe alongwith Archdiocese, initiative, Thisextraordinary Project. Boston foritsFinancialTransparency we recognize tonightthe Archdiocese of For thosereasons, transparent. and forthcoming, Theonlyway to achieve isto take thattrust andbepurely arisk honest, point. andthatrepresents areal turning trust, relationshipsnizes are thattrue builtonafoundationof thatrecog- courage, to goodnews—somethingthatIbelieve helpcelebrate isanactof sometruly I’m ecstaticto beable So, the pastfive years storm faithcommunity. inthishistoric astheperfect Boston hasendured over thatthe thechallenges andturmoil describe ArchdioceseSome might of to comfort. methrough theirsoundadvice andsacramental important theseinstitutionswere very questionsandsearching tough answers, formeaningful ing myself At apointinmy Iwasask- lifewhen thediocese affiliated thatIwould with visit. and thefriaries thehospitalchapels where Iwould go, inwhich Boston Iattended Mass, through theparishes of butsowasthe Archdiocese TheJesuits atBoston College were to my critical formation, angle. every andIcantell you thatIdidfrom questioningandtesting one’s faith, of are aperiod course, of College years, myand during fouryears inthiswonderful there Iwasaparishioner archdiocese. ehrte r icss optl,oruniversi- hospitals, arehether they dioceses, ...w ti h iso fspreading ithin themissionof Rev. J. Bryan Hehir Bryan J. Rev. hrht eoealann hrh fyou take thesethree andthenlook atthe characteristics If Church to become Church. alearning itallowed the teaching Third, itwasalay-led project. Second, thattheChurch trust faces. lem of theproject responded to thefundamentalprob- First, theLeadership Roundtable. the potential of theTransparency Project thathelpusto better understand I thinkthere are three of characteristics Management—the role ithasplayed andtherole itcanplay. Financial Transparency Project hasto say about theNational Leadership Roundtable onChurch around Idecidedto thecamera turn In thinkingabout whatto say tonight, thearchdiocese skills have will to rely uponinthedays ahead. preciselyare thekindsof blessedwith minewhohaslabored foryears onthe finance committee, people of aparishioner like Jack andJoe said, Finn, As Geoff credit hehas received. bitof He every deserves precise project. highly nical, to thesepursuitsserved tech- enhance thishighly onit—andallof andleft hisimprint inspired it, drove it, Jack ledit, you have to drive aproject like this. room whoknow you don’t simplylead, inthis There people are enough uponJack that hasbeenheaped praise McCarthy. of the chorus andIwantto addmy voice to award meaningful andsubstantively, This isavery bothsymbolically place.its historic Boston to the Archdiocese of seekthesuccessful uswho return of of andall O’Malley personally, includingCardinal Boston, the Archdiocese of of andtheprofound gratitude ustonight, be with Iconvey regrets thathecannot Onhis behalf, Roundtable onChurch Management forthisaward. andtheNational Leadership Cardinal O’Malley to Geoff byLet expressing mebegin thethanksof ourday. themostrespected churchmen of the Cardinal’s andoneof closestadvisors He isamong Boston. the Archdiocese of of CatholicCharities President of Hehir, Bryan is Father J. Cardinal SeanO’Malley of Accepting thisaward onbehalf and accountability inChurch finances. to itsoutstandingcontribution transparency Boston inrecognition of Practices to the Archdiocese of And soit’s my pleasure andhonorto present the itsmission. dioceses isachieving and ourparishes onhow andreports each of plans, strategic and user-friendly financialstatements, comprehensive, We to seemany start hopewe more will informative, emulatedioceses them. will have andwe They hopeother great leadershipinthiseffort demonstrated circumstances. trying but itinextremely forpreparing Boston notonlyforitsmodelreport, We honorthe Archdiocese of theChurch’s long-term financial health. become thebedrockwill of inproducing shouldalsobecommendedorganizations documentsthatwe fortheirefforts believe dioceses These and notasextensive perhaps although asBoston’s. createally financialreports, Ididn’t acknowledge there are otherdioceses andChurch thatannu- organizations I’d beremiss if trust. and therestitution of toward transparency steptonight incelebrating thislandmark toward healingandreconciliation, National Leadership Roundtable’s Award forBest andseewhatthe . . . 67 Appendices Appendices 68 seen forcenturies. intheCatholicChurch thelaity thanwe had therole of anddeeperdefinition of broader, a clearer, themost noteworthy abouttheSecond things Vatican Council isthatitprovided Oneof Council. theSecond Vatican theclosingof remember thatwe have justpassedthe40thanniversary of we should that, To appreciate of thesignificance is theBoston FinancialTransparency Project. as itisalay-led project, Second, financialaccountability in society. American trustworthy agentof The Leadership Roundtable isalong-term process to enhance theChurch’s to beseenasa ability organization. efc ti namshr nwihteei epr more profound scrutiny of we face itinanatmosphere inwhich there isdeeper, though, We Now, would have thestory. hadto face thisissueanyway. of part isanimportant ability, account- standards of higher requiring of thebroader trend inthenonprofit community, Certainly, society and within theLeadership Roundtable isfocusedon to putitanotherway, Or, trust. thelossof theLeadership Roundtable isonresponding to bothlevels of Thefocusof tant way. animpor- butitisstill trust, It’s respond to nottheway thequestionof we typically accountability. fiscal Church—its to betrustworthy asjudgedthrough thelensof anditsefforts fiscalstructure the It’s abouttheinternal lifeof adifferent nature. theTransparency Project isof The work of ticularly thosewhoare poorandvulnerable. par- thehuman person, it astrong voice andaneffective of andprotect agentto support thedignity apublicpresence fortheChurch intheUnited States thatmakes second, and, trust ecclesial lossof theChurch solidpastoral care within to respond to the good, first, require will two things: me, itseemsto trust, how oneultimately rebounds from alossof questionof The “Problem solved.” ly, becausetheproblem issodeepandcomplex we wouldn’t wantto say too quick- ful aboutittoo, butbecare- to Ithinkwe rejoice ought inthat, to across pre-crisis level. ed significantly thecountry andfaithintheChurch which foundthattrust have rebound- Research inthe Apostolate (CARA), thelastmonthby development theCenter wasthestudy heartening within for A very Applied theRoman CatholicChurch. thinksof society And there’s publictrust—how therest of Church. the theChurch thinkof There isecclesial of trust—how thepeople istwofold. trust The questionof trust. andby thelossof United States where theChurch hasnotbeentouched by thesexual abusecrisis, andwhatbecameclearto methroughout 2002wasthatthere isnoplace inthe cese to diocese, Globe Boston Let me first address the issue of trust. I’m a priest of the Archdiocese of Boston. I went I to Boston. Natio Washington the Archdiocese of to assumethepresidency of I’m of apriest trust. Let mefirstaddress theissueof andby Kerry Robinson andothers. by forward mybeen carried colleagues ontheBoard, andthathas andskills, generosity, theground by willpower, lifted Boisi off thatGeoff organization thisorganization—an directly speak to they theaccomplishments andthepotential of Roundtable, rk h tr ntesxa bs rss My newjobhasmeanttraveling from dio- broke onthesexual abusecrisis. thestory . nal Catholic Charities ontheweekendnal CatholicCharities thatthe regaining trust within theChurch within regaining trust any nonprofit n esn hsi o odsaaego oi iaca nweg.To thatandto harness make it isnotto goodsolid financialknowledge. This disparage one person. And andsaints. witness andsocialpolicy, philosophy, ology, It needsthe- TheChurch needsmuch more thanthat. andhuman resources. finance, management, intheworld secular skills of setof The Leadership to specific to Roundtable bearavery bring tries knowledge onhistory. andchange to itinaway bearsecular thatbrings it, shape to enter asthecapacity theworld, laity the TheCouncil of talksaboutthecharism notforthemselves. others, to apersonforthesake of given isagrace Charism It hasamore technical meaningintheology. popular culture allthetime. isaword Charism we usein American thelaity. of embody whatthe Council callsthe “charism” agroup like this to thelay-led FinancialTransparency of Projecttheability highlights Once again, producing? andcapitalize ontheoutcomes thatthiscommunity iscapableof the projects, guide How doyou buildtheinstitutionsthatchannel theenergy, Murrayly what wastalkingabout. talented community thisextraordinarily isprecise- how onemobilizes theresources of question of The CatholicstheChurch hasseeninits2,000-year history. the mostwell educated of generation Theedgeisthatthisarguably edgeto it. that hasaparticular In Catholicism, American munity. thelay engaging com- ourinstitutionalpractice of isaheadof thelaity of ourtheology To besure, to createour capacity into institutionsto practice. putthevision aheadof run renewal will challenge we live inthepost-concilliar Church with of isthatourvision re renewal isaboutideas, If political arena aboutit. the Reform hastheatmosphere of aboutit. thelibrary doesnothave theatmosphere of argued, Murray Reform, ideasandvision. Vatican IIunleashedagreat wealth of the way we seethings. It is vision. It isaboutideas, themind. He saidthatrenewal isanaffairof tension between them. the indeed, we failto understandthedifference between thosetwo terms, headded, But, reform. Murray renewal and saidtheproblem isthatwe have talked about Vaticanliar era. IIasacouncil of thefundamentalchallenge wouldwhat hethought befortheCatholicChurch inthepost-concil- Murray gave atalkinwhich hedescribed After theCouncil wasover before hedied, andshortly the JesuitAmerican whobasicallyautho Murray, ThatnameisFather John Courtney why thathasnotyet happened. Council gives usahintof Another greatnamefrom the lay peopleintheCatholicChurch. mobilizingtherole of terms of thatCouncil in have commented onthefactthatwe have never beenableto fulfillthepromise of many newbreadth wasdeveloped anddepthinsight, with thelaity Even of thetheology though theChurch. thedifferent roles inthehierarchy of community intermsa structured of We thenbecome madesoby ourbaptism. equals, isthatwe are acommunity of on theChurch says, Godreally people of The intheChurch. thelaity therole of Vatican different IIprovided avery definitionof lection. thecol- hishandinpocket on hiskneesbefore of thealtarandwith atthebeginning Church: Congar remarked thatthelay hastwo usually person postures inthe thisbook, opening pagesof Co Vatican II, before theopeningof Twenty Yves Vatican years Congar. IIwastheFrench Dominican, multiple texts of A great authorof are h epeo o.Tefrttigw a bu usle,asthedocument Thefirstthingwe say aboutourselves, God. the peopleof ngar had written abookcalled ngar hadwritten red the declaration of religious liberty. religious red of thedeclaration omi bu ntttos n,Mra ad the Murray said, And, isaboutinstitutions. form they aren’tthey allnecessarilyembodiedin Lay People intheChurch In the . 69 Appendices Appendices 70 Thank you much. very seed thattheNational Leadership Roundtable now to canhopefully theentire bring Church. What’s beingcelebrated inthisproject isreally managed institution. Transparency Project isprecisely theway itmeansto what we beaqualitatively learn organized and the once So again, to understandtheHoly Spirit. even oneistrying reason when isnecessary thatthelongslow awarning road to Thatisabitof understandingonitswayrifices to certitude. nw ury noeo hischaracteristical inoneof Murray, know. whatitmay not andhasasenseof Church a thatknows whatitdoesknow, Church, be alearning forateaching It Church isimportant to also ourtreasures. The teaching Church isclearlyoneof and reason andnotcontradictory. are complementary butalways thatfaith beingserious notalways beingright, thinkingaboutproblems, 2,000 years of with to struggle whatitmeansto beCatholic, Thatisakey characteristic of the human sciences. andinall intheology, inphilosophy, grounded intheScriptures andarticulated tradition lectual itmeansto what beCatholicandto beguidedby anintel- of thatisagreat gift indeed, Church and, We talk abouttheCatholicChurch thetimeasbeingateaching all itself. show adifferent sideof theFinancialTransparency Project andtheLeadership Roundtable allow theChurch to Finally, order to to allow live. theology institution-buildingthatMurray saidwe needin available to theChurch isprecisely thekindof ysapmmns saidthatCatholicismsometimessac- moments, ly sharp oeo theearlyseedsbeingbrought to fruition—a oneof er .Robinson A. Kerry andMember Planning Services Director of Michael Brough, Director Executive Robinson, Kerry A. Update ontheLeadershipRoundtable Appendix C eradsrea hiso ayo ourcommittees. many of year aschairs andserve of come they together fourtimesa Despite having many professional responsibilities, andpersonal andcommitment to theChurch. skills, seniorexecutive insight, abreathtaking level of ber brings which metforthefirsttime Our 25-memberBoard, positive. andremarkably thesekey bishopsandthelargerepiscopacybuilding with isconstantly improving, we’re Therelationship andtrust administrative committees. on important serve who United States, the representing of all14regions We’re approximately working with 40bishops, theChurch. of We have recruited closeto 180seniorexecutive leadersfrom boththesecularworld andtheworld theChurch thatwe love? us, the Church thathashelpedform canwe dofor what ple question: coming together andaskingasim- theChurch by pressing needsof who responded to theincreasingly tionally skilledmenandwomen andexcep- committed, honest, thoughtful, faith—a group of acommunityfundamentally of It is planted nearlyfouryears ago. The seedsfortheRoundtable were Leadership Roundtable. the update you onthework of toI wantto take thisopportunity Kerry Robinson, Dominic Tarantino, and Charles Geschke (left to right) (left Geschke andCharles Dominic Tarantino, Robinson, Kerry nJl 1 05 setariay Every mem- isextraordinary. 2005, on July 11, 71 Appendices Appendices 72 Last October’s conference waseven more focuse andnationallevels. diocesan, theCatholicChurchwithin attheparish, andhuman resource development finance, from theRoundtable forimproving themanagement, theseconferences ledto 48recommendations you, from manydiscussions andobservations of theseminal In of addition to edited transcripts and lastOctober’s membershipmeeting. inaugural 2004, inthesummerof ourgatherings We have publishedtwo basedontheproceedings reports of when ourambitiousplanswere stillinchoate. nevertheless which hadfaithinusfrom beginning, thevery We to thesefoundations, grateful are particularly Oneotherfoundationhasasked to remain anonymous. andtheRaskob Foundation. Foundation, Lewis theFrank J. Foundation, theElizabeth andFrank Ingrassia Healey Family Foundation, theCassinEducationalInit Family Foundation, theBoisi BetsyBliss, the AMS Fund, are They the Amaturo Family Foundation, cial assistance. 11foundationshave come to forward provide finan- Since theLeadership we Roundtable, started onDuPont right Circle. our newoffices in Washington, you to visit Iinvite of all thesetwo are. organizations by now how themissionsof complementary thinkit’s I evident we whom share somecommunal with office space. philanthropic foundations, Catholic of theconsortium We are to happy FADICA, neighbors 2005. mally openedonJuly 11th, which we for- DC, in isourheadquarters Washington, thisactivity centerThe nerve formuch of andMembership Audit, Finance, Development, Committees. theExecutive, theBoard: committees of there are thestandard Finally, share theproducts we’re how to bestpromote developing andtheresearch and we conduct. andthedetermination of ourDVD project, thedisseminationof site, ourweb Communications Committee projects such thatisspearheading asthedevelopment of anda thework we do, Research andBestPractices Committee thatundergirds much of training, ongoingformation, others require years of theseare several Somerequire timeline; ashorter projects theRoundtable hasidentifiedandisworking to develop. Under each of andhuman resource development. finance, management, focus: I wantto draw attention to three committees programmatic thatcorrespond to ourcore areas of bring some of our expertise andbestprac ourexpertise some of bring to New Jersey, Paterson, We also have theDiocese anevolving relationship of with sound health. andtemplates to helprestore designed theschool system to processes, to develop specificmetrics, We’ll McKinsey be working with Hurricane &Company Katrina. school system there inthewake of theCatholic New Orleansto take inthereconstruction of part byengaged the Archdiocese of We’ve been theLeadership Roundtable isbringing to New activity Another Orleans. important level to work onthesespecificprojects. Committees have attheBoard beenformed committed to developing themover thenext fewyears. Action and theBoard incorporated theminto aPlanof After adopting them, ects andthemes. tices to bearonitsoperations. ,rsligi h dniiaino 21specificproj- resulting intheidentification of d, aieFudto,teCsmnFudto,the theCushman Foundation, iative Foundation, n etrto ftut nadto,there isa In addition, trust. and restoration of omte,which hestaffs. Committee, theCommunications of theactivities I’d like to askMichael someof to describe At thispoint, andloves theChurch. ership skillsandinsights, He exceptional brings lead- RENEW International where hewasexecutive director years. foreight whocomes to usfrom planningand member services, ourdirector of isMichael Brough, to thestaff An even newer addition earlierthismonth. John capacity butinfact inafull-time started for years, It almostseemsthathe’s us beenwith research andclientservices. ourdirector of is John Eriksen, We’re Another blessing to great andtheChurch theorganization blessedto have very that. Mike. of accountant andisatrained andauditor ontop hasimpeccable skills, organization flow smoothly, to He enableseverything operations. ourdirector of includesMike Costello, The Roundtable staff committed to professional theChurch. thesegifts andhighly andwantto bring whoare are abouttheirfaithandconversant well informed very anddiscourse, inCatholictheology hopefortheChurch thatthere are young adultswho thinkit’s I of agreatsign members are young. Ilove thatits thefact attheLeadership Roundtable. I’d like to introduce my staff full-time Finally, we doattheRoundtable. believe thattheHolyI truly breathes Spirit through everything to theChurch. formaximum service ourmembers, you, of andexpertise insight, experience, bility, It isourintention capa- to capitalize ontheextraordinary discussions we hadyesterday andtoday. We wantwonderful ideasto emergefrom thekindsof canbe. thiseffort take inhow pride catalytic we Third, All we wantto doisidentifyitandenhance itscapability. the Church. works well within We don’t wantto re-create anything thatalready we do. efficiencyisbehindeverything Second, to emulate. try should all andtheRoundtable’s missionisto recognize themandholdup asmodelswe tional work, anddioceses thatdoexcep- thoseparishes We shouldbeproperly humility. proud of in thenameof Ithinkit’s Church to amistake thewider to andadisservice hidethesehelpfulbestpractices them. well andwhatbestpractices already exist We’re ourfundamentalrole isto emphasize thepositive. committed works what to identifying First, National Leadership Roundtable onChurch Management. I’d like to to alsocomment take onthree thisopportunity or characteristics andthenanationalbasis. a regional you feedbackaswe take itandprovide to uswith view steps to unveil on thesebestpractice videos We encourage ourDVD set. theseminalproduct of you were given copies of Following thedinner, Boston foritsgroundbreaking FinancialTransparency Project. the recipient wasthe Archdiocese of Asannouncing atlastnight’s you know, Roundtable dinnertheinaugural Award forBestPractices. andwe in took pride toRecognition we what doasanorganization, important isincreasingly in theChurch—and andpromoting thencelebrating charisms that definethe 73 Appendices Appendices 74 Michael Brough it getsdistributed. andI’llmake sure thenIencourage you to directly sendthatinformation to me, need to hearabout, theRoundtable you thinkit’s somethingthat membersof If inyour localpaper. or agoodarticle ataskforce, of orthefindings It could even beastudy you conducted, you feelreally goodabout. anationwide orshare audience inyour with ordiocese aprogram that parish forexample, project, You’ll beable to interest findoutwho’s to you. headingupa to take you directly to thoseareas of which isabou newsletter onourweb site, members’ communications beabi-monthly Avital tool will andbusinesses. travel schedules, time zones, all thedifferent membersspread andwith across thedifferent committees, stay allof intouch with That’s theonly way we’ll beableto beelectronic. ourcommunications will alotof Going forward, diocesan level. andparish We planto take theDVD to thebishopsforimplementationatboth orfinance council. toral, pas- your or with diocesan, any useitwith board you’re amemberof, Also, a Roundtable member. theroll outsothatany feedbackiscoming directly from andforyou of to bepart or your diocese, We encourage you to useitinyour andwe to lookforward parish your feedback. called betatesters, You received ourpremier itfirstasourso- projects. one of abouttheDVD, too, Let mesay aword, to theChurch.”service even greater peopleand talentwe have assembled sowe canbeof caliberof theextraordinary with andwe wantyou to network we ourskills, wantto bring We ourgifts, wantto bring the Church. inNewdown “We Orleanswhere we’re ableto gooutto of are peopleandsay, here attheservice ourDVD andnewservices point with we’re now justreachingMoreover, the It’s positive. very all ahead. period Action Planto take usthrough the andan andsuccinct, clear, powerful, We alsohave amissionthat’s very we otherpeople.” canshare thatwith and for usinourdiocese,” “Here’s how iswhatworked to others,”“This bring isanexperience Ihave “This to like, hear conversations atthisconference And it’s really exciting formeto room. We have great potential sittinginthis projectsvarious underway. andwe don’t in12monthsto beupdated waitforthenext gathering onthe each otherisdoing, thecommunication isto assistwith flows sothatwe know all what essentially, My job, Directors. theBoard of membersof andwith andMike, John, It’s to Kerry, beworking agreat privilege with Michael Brough Michael t to be redesigned. It will have It will linksandclicks t to beredesigned. Roundtable—one that’s prepared fully to make animpact. make It will forastronger Leadership diversity. others to helpusbuildthatgeographic continue to seekout Soplease, we’re to do—we’ve starting gotlocalpeopleonwhomwe cancall. ic spread from to theLeadership thedioceses—as Roundtable we sothatwhen offerourservices The finalpointaboutbeingambassadorsisthatwe’re to make sure we have trying agoodgeograph- since we’re onourcommittees. lookingto includeoutsideexperts use theirexpertise, And we could ple inyour company beinterested oryour will we’re who inwhat organization doing. peo- You’ll Talk beamazed to atthenumber people. of ambassador fortheLeadership Roundtable. aswell asan you to beanambassadorfortheCatholicChurch, I’d alsolike to encourage each of 75 Appendices

CC). (NOCER- Roman CatholicClergy Education of the National forContinuing Organization James Alphen Mr. the Wisconsin Corporation. Energy and CEOof Abdoo Richard A. Mr. and Laity Religious, Clergy, NY. Brooklyn, theDiocese of bishopof iliary Sullivan Joseph M. Most Rev. for theUnited States Services. Armed O’Brien Edwin Most Rev. LA. New Orleans, the Archdiocese of of Roger Morin Most Rev. IN. Gary, the Diocese of Melczek Dale J. Most Rev. LA. Shreveport, the Diocese of Friend William B. Most Rev. NY. Rochester, theDiocese of of Clark Matthew H. Most Rev. WV. Wheeling-Charleston, theDiocese of op of Bransfield Michael J. Most Rev. GA. Savannah, the Diocese of Boland Kevin J. Most Rev. Bishops Participants Appendix D is theexecutive director of is theretired chairman is an auxiliary bishop is anauxiliary is thearchbishop is thebishopof is thebishopof is thebishopof is aretired aux- is thebishop is thebish- Roundtable onChurch Management. theNational Leadership the board of andamember of DC, Washington, America, of CanonLaw attheCatholicUniversity School of J.C.D. Beal, John P. Rev. Marquette University. Bausch Thomas A. Mr. ThirteenWNET. William Baker Mr. School. Divinity theNew Testament at YaleClaus Professor of Harold Attridge Mr. project. Roundtable onChurch Management DVD fortheNationaland writer Leadership Nancy Ambrose Ms. (left to right) (left andFred Gluck Bishop Friend, William James Davidson, is president andCEOof is theexecutive producer is deanandLillian is aprofessor at is aprofessor inthe 77 Appendices Appendices 78 icnai OH. Cincinnati, CatholicHealthcare Partners in CEO of Connelly Michael D. Mr. Caron International. John Caron Mr. LA. Loyola University inNew Orleans, S.J. William Byron, Rev. Gillette. and Development Learning for Organizational Paul ButlerMr. Church Management. theNational Leadership Roundtable on of theboard Activities (FADICA) andamemberof Foundations andDonorsInterested inCatholic Butler Francis J. Dr. Leadership Roundtable onChurch Management. fortheNationalning andmemberservices Michael Brough Mr. Leadership Roundtable onChurch Management. theNational theboard of a memberof Education and University’s Steinhardt School of Mary Brabeck Dr. Roundtable onChurch Management. theNational Leadership of and thechairman LLC Roundtable Investment Partners, of partner Boisi Geoffrey T. Mr. Church Management. theNational Leadership Roundtable on board of the Stearns andCompany andamemberof Betsy Bliss Ms. Association.Campus Ministry DeeBernhardt Ms. the Americas. Mercy of theSisters of Buffalo Regional Community of the the Apostolate (CARA)andamemberof theCenter for Applied Research in director of Ph.D., RSM, Bendyna, Mary E. Sr. is a managing directoris amanaging forBear is the former presidentis theformer of stedrco fGlobal is thedirector of steda fNew York is thedeanof stecaro theCatholic is thechair of is president of stedrco fplan- is thedirector of is chairman andsenior is chairman is pastpresident of is president and is executive rhics fBoston. Archdiocese of Malta forthe andafinancialadvisor Finn Joseph F. Mr. Roundtable onChurch Management. fortheNationaland clientservices Leadership John Eriksen Mr. Paul andMinneapolis. St. of theDiocese Catholic Community Foundation of Marilou Eldred Ms. Cultural Center. ment director for theMexican American Eguia-Garcia Elizabeth Ms. specialprojects Investments. forFidelity of CynthiaEgan Ms. America. Catholic University of Duggan Robert Rev. theSupportive Care Coalition. tive director of RN Ph.D., Dufault, Karin SP, Sr. DE. Wilmington, Raskob Foundation forCatholic Activities, Doordan Helen Ms. DonnellyFoundation andFADICA. J. Mary Donnelly Elizabeth Ms. Union.Graduate Theological James Donahue Mr. Devlin Hugh J. Mr. at Purdue University. James DavidsonMr. Milwaukee. for the Archdiocese of Cusack Barbara Anne Ms. Foundation. Curran Charitable and Constance A. Curran John P. Mr. on Church Management. ations fortheNational Leadership Roundtable Michael Costello Mr. stedrco fresearch is thedirector of samme ftheOrder of is amemberof is executive president vice stefudro Tritar. is thefounderof is a trustee fortheJohnis atrustee P. stepeieto the is thepresident of sapoesro sociology is aprofessor of stepeieto the is thepresident of is aresearcher for the stepeieto the is thepresident of stedrco foper- is thedirector of samme fthe is amemberof is thechancellor is thedevelop- is theexecu- ahlcRle Services. Catholic Relief Hackett Kenneth Mr. the National CatholicEducation Association. Guerra Michael J. Mr. the CatholicHealthcare Partners. Mission and Values with Integration president of Gottemoeller Doris Sr. theFidelGoetzFoundation. tor of Goetz Chantal M. Ms. Roundtable onChurch Management. theNational Leadership theboard of member of anda Inc. McKinsey &Company, ing director of Gluck Frederick W. Mr. Roundtable onChurch Management. theNational Leadership the board of of andisamember Inc. Adobe Systems, board of Geschke Charles Dr. and Religious EducationatBoston College. Theology (IREPM)andprofessor of Ministry Religious Education andPastoral Institute of Thomas Groome Mr. NY. York, New Meagher &FlomLLP, Arps, law Skadden, firm Frank William P. Mr. University. ZeniFox Ms. Roundtable onChurch Management. theNational Leadership the board of Chicagoandisaconsultant to Archdiocese of Personnel forthe Services of Department Carol Fowler Ms. Leadership Roundtable onChurch Management. theNational theboard of and isamemberof refining andmarketing Petroleum forBritish DougFord Mr. SeanFoley Sr. Fort TX. Worth, of Flynn Peter M. Mr. is aprofessor atSeton Hall stepeieto lnaa Inc. Glencara, is thepresident of stefre he executive of chief is theformer sdrco fthe is director of is theCFOforDiocese stedrco fthe is thedirector of is a senior partner atthe is aseniorpartner stecara fthe of is thechairman is thepresident of is theexecutive direc- is thepastpresident of is the former manag- is theformer is theseniorvice fLeChase Services. Construction of WayneMr. LeChase Pastoral LifeCenter in New York. EugeneLauer Rev. Anne CatholicCommunity. forSt. operations Joseph Kelsch Mr. on Church Management. theNational Leadership Roundtable the board of Catholic Health Association andisamemberof Carol Keehan Sr. Brothers theChristian Conference. of Thomas Johnson Br. NJ. thePresentation inUpper SaddleRiver, of Thomas IvoryRev. IL. DePaul University inChicago, dent of CM DennisHoltschneider, Rev. DC. Catholic University in Washington, Hoge DeanR. Mr. Inc. Our Changing World, CEO of Michael Hoffman Mr. Morgan Stanley. James Higgins Mr. Boston. the Archdiocese of of Charities Bryan Hehir J. Rev. Management. the National Leadership Roundtable on Church theboard of He isamemberof Government. of fellow atHarvard University’s Kennedy School andcurrently asenior Sachs &Co. Goldman, Healey Thomas J. Mr. Pennsylvania. University of SueHarte Ms. Roundtable onChurch Management. theNational Leadership theboard of member of Management andPrivate andisa Enterprise School andtheReliance Professor of Patrick Harker T. Dr. is thecampusminister atthe speietadCOo the is president andCEOof is a professor of sociology at sociology is aprofessor of is a senior advisor for is asenioradvisor sdrco ftheNational is director of stedrco fbusiness is thedirector of stepso ftheChurch is thepastor of stepeieto Catholic is thepresident of is the chairman and CEO is thechairman is theexecutive director is a retired partner of is aretired partner sda fThe Wharton is deanof is the chairman and is thechairman is thepresi- 79 Appendices Appendices 80 Church Management. theNational Leadership Roundtable on board of the Walt Company Disney andisamemberof Kathleen McChesney Ms. theNew York office. charge of Promontory FinancialGroup andpartner-in- McCaul Elizabeth Ms. University. Government atHarvard Kennedy School of CPA John McCarthy, Mr. Buckeye Company. Pipeline man of Alfred Martinelli Mr. Roundtable onChurch Management. theNational Leadership theboard of member of Notre Dameanda theUniversity of of emeritus CSC, Malloy, EdwardRev. A. FADICA. member of NYanda New York, Humanitas Foundation, Kathleen Mahoney Ms. NJ. Paterson, theCuria fortheDiocese of moderator of James Mahoney Msgr. Mary Macchiarola, Mrs. Francis College inNew York. St. Macchiarola Frank J. Mr. MN. Minneapolis, Paul and St. planning forthe Archdiocese of James Lundholm-Eades Mr. Brothers Harriman. Michael Long T. Mr. University.Santa Clara Paul S.J. Rev. Locatelli, Religious Men. of Superiors Major theConference of tive director of OFMCONV, PaulRev. Lininger, LayMaryknoll Missioners. Gerry Lee Mr. stepeieto the is thepresident of is a partner atBrown is apartner is the vicar general and general is thevicar is a partner at is apartner is the former chair- is theformer is thepresident of stepeieto the is thepresident of is aprofessor atthe observer. is vice presidentis vice of is thepresident of is thedirector of is thepresident is theexecu- New Orleans. the CatholicFoundation forthe Archdiocese of Quirk Peter R. Mr. DE. Wilmington, Activities, theRaskob Foundation forCatholic dent of Perella Frederick Mr. New York. Initiative attheNational Pastoral LifeCenter in dinator fortheCatholicCommon Ground RSHM, Patten, Catherine M. Sr. Greater New York. the RedAmerican Cross in of and atrustee College, Middlebury of emeritus trustee Freres, Jonathan O’Herron Mr. John Carroll University. S.J. Robert Niehoff, Rev. NACPA. director of Ph.D. Mary Jo Moran, Dr. IN. Mary’s College inSouthBend, Mooney Carol Ann Dr. FisherScientificInternational Inc. CEO of Montrone Paul M. Mr. Inc. Marketing Strategic forSodexho, president of Michael Montelongo Mr. Management. National Leadership Roundtable onChurch the theboard of andisamemberof ident, 24years having served asitspres- Boston College, S.J. Donald Monan, J. Rev. CA. SanJose, of the Office forParish &PlanningfortheDiocese SFCC, PatriciaSr. Mitchell, Fordham University. S.J. Joseph McShane, Rev. States &Canada. theUnited CatholicPress Association of of Owen McGovern Mr. is theexecutive director of is theexecutive director is executive presi- vice is the chairman and is thechairman stepeieto St. is thepresident of is a partner atLazard is apartner is thepresident of is thepresident of is thechancellor of is theexecutive is theseniorvice is thedirector of is thecoor- cisy&Cmay Inc. McKinsey &Company, Watters C. Don Mr. Fairfield University. S.J. von JeffreyArx, P. Rev. Thornton.Grant Malcolm Visbal J. Mr. Price Waterhouse WorldFirm. of chairman Tarantino DominicA. Mr. Church Management. theNational Leadership Roundtable on board of the Freddie Mac andisamemberof CEO of Syron Richard F. Dr. Religious Brothers Conference. Stephen Synan Br. Catholic News Services. Anthony Spence Mr. USA. Charities Larry Snyder Rev. the Jesuit Conference USA. S.J. Thomas Smolich, Rev. Texas.Tyler, JimSmith Mr. Fathers andBrothers.Maryknoll John SivalonRev. Brothers.La SalleChristian Robert Schieler Br. NY. New York, Heidrick &Struggles, Roche Gerard R. Mr. Church Management. theNational Leadership Roundtable on tor of Robinson Kerry A. Ms. Church Management. theNational Leadership Roundtable on board of the Korn/Ferry International andamemberof Paul ReillyMr. is theCFOforDiocese of is the chairman andCEOof is thechairman is the superior general of general is thesuperior stepeieto Catholic is thepresident of stepeieto the is thepresident of is the former directoris theformer of is aprovincial intheDe steeio-ncifof is theeditor-in-chief is the chairman and is thechairman is the senior chairman of is theseniorchairman is a retired partner with is aretired partner is theexecutive direc- is thepresident of is thepresident of is theretired nvriyo Pennsylvania. University of Zlock Charles Rev. Villanova University. Church Management at Center fortheStudy of Zech E. Charles Dr. Association. thePaulist National CatholicEvangelization of SND SusanWolf, Sr. TX. Worth, Fort human resources fortheDiocese of of Williams Charmaine Ms. Inc. & Co., Werwaiss John A. Mr. is thechaplain atthe stedrco fthe is thedirector of is theexecutive director steCOo Werwaiss is theCEOof is thedirector 81 Appendices

9:00–10:00am...... Exploring Financial andOpportunities Challenges 9:00–10:00am...... Exploring Finding andService theMeans for Ministry 8:45–9:00am...... Everyone Counts: Prayer 8:30–8:45am...... Opening 8:00am...... Registration ...... Breakfast 7:30am...... Continental 2006 29, JUNE THURSDAY, ...... Welcome Reception...... 6:00–8:00pm 2006 JUNE28, WEDNESDAY, Conference Agenda Membership Conference National Leadership Roundtable onChurch Management Annual Health intheChurch Creating ConditionsforFinancial OurGifts toBringing theTable: Appendix E otRv ihe .Basil,Doeeo Wheeling-Charleston Diocese of Bransfield, Michael J. Most Rev. Services Military Archdiocese of O’Brien, F. Edwin Most Rev. Shreveport, Diocese of Friend, William B. Most Rev. FADICA President, Butler, Francis J. Dr. ExecutiveDirector Robinson, Kerry A. Ms. Welcome andIntroduction Gary Bishop of Melczek, DaleJ. Most Rev. Huntsman Hall, The Wharton School Wharton The Huntsman Hall, School Wharton The Huntsman Hall, moderator 83 Appendices Appendices 84 :053p ...... eerto fteEcait...... theEucharist of ...... Celebration 4:30–5:30pm Church Financial Transparency: of ...... Essentials 2:00–4:00pm ...... Lunch 12:30–1:45pm Back SessionReport ...... Plenary 11:50–12:20pm :093p ...... aqe ...... Banquet 7:00–9:30pm ...... Cocktails...... 6:00–7:00pm Diocesan Planning 10:45–11:45am...... Effective ...... Break 10:30-10:45am Discussion 10:00–10:30am...... Plenary Mr. J. Malcolm Visbal, CPA, Retired Partner, Grant Thornton Grant Partner, Retired CPA, Malcolm Visbal, J. Mr. Price Waterhouse World RetiredChairman, CPA, Tarantino, A. Dominic Mr. Hauser Center atHarvard University Fellow, Senior CPA, McCarthy, John H. Mr. Boston College, Chancellor, S.J., DonaldMonan, J. Rev. Transparency Boston Project The Archdiocese of Research andClientServices Director of John Eriksen, Mr. New Orleans Auxiliary Bishop of Morin, Roger P. Most Rev. McKinsey &Company Former Managing Director, Frederick Gluck, Mr. New Orleans Renewal andRebuilding inthe Archdiocese of The Wharton School of Dean Patrick Harker, Dr. Planning, Director of James Lundholm-Eades, Facilitated by Mr. ooe:Acdoeeo Boston Honoree: Archdioceseof Chair Boisi, Award presentation—Geoffrey T. Invocation Savannah, Bishop of Kevin Boland, J. Most Rev. Celebrant: Most Rev. Edwin F. O’Brien, Archdiocese of Military Services Military Archdiocese of O’Brien, F. Edwin Most Rev. Celebrant: Planning, Director of James Lundholm-Eades, Mr. Firm and Paul &Minneapolis, St. Archdiocese of rhics fS.Paul inbreak-out &Minneapolis sessions) (video St. Archdiocese of oso al alo lg,3417Spruce Street Flags, Hall of Houston Hall, 3417Spruce Street Flags, Hall of Houston Hall, t gta&S.James Catholic Church Agatha &St. St. moderator :0m...... Adjourn 3:00pm and Next ...... Summary Steps 2:30pm theFoundation ...... Laying for Successful Fundraising 1:30–2:30pm ...... Lunch 11:45–1:15pm Session 10:45–11:30am...... Breakout 10:30–10:45am...... Break ScaleintheChurch (Multi-Parish/Multi-Diocesan) Economies of Power10:00–10:30am...... The of Evaluation intheChurch Value8:15–10:00am...... The of Breakfast 7:30am...... Continental 2006 30, JUNE FRIDAY, r efryT os,Chair Boisi, Geoffrey T. Mr. Notre Dame President Emeritus, CSC, Edward Malloy, Rev. Inc. Our Changing World, CEOandPresident, Michael Hoffman, Mr. Robinson, Kerry A. Ms. Planning andMember Services Director of Michael Brough, Mr. ExecutiveDirector Robinson, Kerry A. Ms. Update ontheLeadershipRoundtable Tyler Diocese of CFO, James Smith, Mr. McKinsey &Company Former Managing Director, Frederick Gluck, Mr. Discussion Plenary Fort Worth Diocese of Human Resources, Director of Charmaine Williams, Ms. Korn/Ferry International &CEO, Chairman Paul Reilly, Mr. Heidrick &Struggles SeniorChairman, Gerard Roche, Mr. Executive Director NACPA, Jo Mary Moran, Ms. moderator moderator 85 Appendices

LC tef ahhsteptnilt fettefl ag fChurch businessoperations. toaffectthefullrangeNLRCM of eachhasthepotential itself; bythe andimplemented thatcanbedeveloped refer toactivities NLRCM ProgramThe eight Priorities PRIORITIES NLRCM PROGRAM years. fortheNLRCM several action overthenext of course initial ed, Action isarecommend- of thePlan Collectively, CatholicChurch hierarchy. theU.S. bers of mem- with together thecountry’s from andnonprofit topleaders thecorporate worlds, of some thinkingof andcreative insights, reflect theknowledge, They at The School. Wharton thetwo-day 2005NLRCM Conference of are outgrowths recommendations The following Action of Plan Appendix F .Etbiha nulNtoa etPatcsAad rga sawyo eonzn,reward- recognizing, Establishanannual National BestPractices Awards Program asaway of 4. Clearly defineandadapt 3. human Church management, intheareas bestpractices of of Develop andpublishalibrary 2. manage- leadingprofessionals inthefieldsof Establishandcontinually of update a directory 1. iac,andpersonnel. finance, management, and promoting excellence inthe areas among dioceses andparishes of ing, 2007. anationalrollout by the endof the with andotherCatholicorganizations expectation of communities, religious parishes, dioceses, tion” Nonprofit Sector website (www.nlrcm.org) andothermedia. and otherChurch andwould organizations bepromoted through theNLRCM communities, religious parishes, would Thesebestpractices beaimedatdioceses, andfinance. resources, site (www.nlrcm.org). through itsweb- theseexperts The NLRCM would identifyandpromote thecompetencies of andfinance to asavaluableresource serve to dioceses andparishes. human resources, ment, Church Management National Leadership Roundtable on for use by the Church. This activity would be carried outthrough would becarried activity This “demonstra- for useby theChurch. The Standards for Excellence: An Ethics and Accountability Code forthe 87 Appendices Appendices 88 Management orfinance. humanresources, management, each affectsChurch operations intheareas of andparishes; thedioceses PracticeThe 13Best Diocese/Parish of Actions require participation theactive BEST PRACTICE DIOCESE/PARISH ACTIONS Human Resources .Provide experienced managementcounsel andassistance to are thosebishopswho working 8. to helptheChurch designed and regain trust along-term strategy Oversee thedevelopment of 7. theNLRCM to discussand bishopsandmembersof Planandsponsoranannual meetingof 6. Promote anddisseminate NLRCM DVD anddioceses thatallow setsforparishes localfaith 5. 2. Develop the framework for a centralized diocesan database of skilled individuals andservices individuals skilled Develop fora centralized theframework diocesan databaseof 2. whatconstitutes clearandpowerful planningwithin strategic Defineandpromote models of 1. .Create comprehensive jobdescriptions, 3. Hurricane Katrina. diligently to rebuild theChurch inLouisiana andMississippi inthewake infrastructure of and developing acomprehensive human resources program. excellence requires actively promoting aculture of inturn, This, intheUnitedcredibility States. Action inaway thatprovides maximum benefit to theChurch. Plan of refine theNLRCM andfurther monitor, andset, tical solutionsto problems facingtheChurch; prac- develop creative, theChurch intheUnited States; thoroughly assessthetemporal needsof andwork toward bestpractices intheseareas. incorporating nities, andhuman resource challenges andopportu- finance, communities to assessthemanagement, ment. and human resource develop- finance, technology, information aswell asmanagement, ing, andprint- insurance, fundraising, music, insuch areaswould offersupport asyouth ministry, Thisgroup thoselackingintheseareas. particularly that could beshared amongparishes, the dioceses. ucms riig andmotivational systems. training, outcomes, compliance, performance, objectives, and vocational development—would includemission, accountability, excellence, to Theseparameters—designed helpfoster aculture of laypeople. heldby thediocese Church andparish positionwithin leadersandprofessionalfor every efrac erc,andcompensation benchmarks performance metrics, Finance 1 mlyeooiso scaleby establishingmulti-diocese cooperatives ormulti-parish forthe Employ economies of 11. inChurch andtransparency finances by publishinganddissemi- honesty, Promote openness, 10. Develop andpromote succession andlay thoughtful plansforpriests leaders. 9. forlay Develop andtheological) andpromote eccle- (bothmanagerial educationandtraining 8. Create thathelppastors programs mentoring andother Church leadersto better handle the 7. .Adopt theconcept of 6. feedbackonthe andprovide parishioner enhance, Identify asystem to andspotlight review, 5. thediocese and Personnel a360-degree ReviewSystem foremployees of Develop modelsof 4. Church budget. realize onitsannual savings operating significant andcould potentially helpthe procedureoperating theprivate and government within sectors, centralized purchasing hasbecome standard Thisconcept of goodsand services. purchase of questionsorexpressto raise concerns may they have to Church leaders. where are parishioners free Reinforce system thisreporting through periodic “town meetings” friendly ina itshouldbewritten In addition, and bothbackward- andforward-looking. trol), which the bishoporhisrepresentative hastitularcon- and any otherassetsof health facilities, should becomprehensive onall (reporting Thisdocument thediocese orparish. thefinancialhealthof aswell asdescribing receipts, nating to expenditures all membersanannual financialstatement and summarizing orreport andbishops. priests, religious, sial ministers, es ormentors. experienced coach- themwith theirjobsby pairing thelonelinessof attimes, complexities and, program. thistraining/formation their tremendous resources of could part beanintegral Catholicuniversities with management. andpersonnel finance, administration, areasgeneral of setsinthe skill Lifelongeducationshouldfocusonstrengthening critical and businessschools. thenation’s top colleges patterned after theexecutive foundatmany leadershipprograms of initiative thislearning could be At levels, higher CatholicBishops. United States Conference of tenets of ult fceg rahn ntesii fguidance andcontinuous improvement. preaching of inthespirit clergy of quality in thediocese would beeasiestto implement. thebishop APersonnel System Review of participation andfull thatenjoys thesupport uation. be aimedatcontinuous improvement andpositive reinforcement eval- thanoncritical rather It shouldalso and(e)boards/councils. staff, (d)parish (c)diocesan staff, (b)pastors, bishops, (a) It shouldbefocusedondeveloping andcompetencies theskills of Church are accountable. andothersto whomemployees andthe higher-ups, jobperformance feedbackfromvide peers, Thissystem—which hasbecome thegoldstandard intheprivate sector—would pro- parish. way to thatisintelligible Church memberswhodonothave financial backgrounds. The Basic Plan forOngoingFormation forPriests Plan The Basic lifelong dcto o vr hrhepoe,inaccordance the with Churcheducation forevery employee, hrhoeain,icuigshos cemeteries, including schools, Church operations, that wasrecently adopted by the reader- 89 Appendices Appendices 90 3 Develop andpromote acomprehensive 13. Improve andcost-efficiencies productivity by standardizing computer hardware andsoftware 12. l ees n hudifr n naeCtoismr epyi h iso ftheChurch. andengageCatholicsmore andshouldinform deeplyinthemissionof all levels, shouldpromote andcelebrate excellence at thanobjects, rather understand donorsassubjects should Thisapproach shouldbegrounded inScripture andCatholictenets, community. onthewhole effect transforming andaspires to have apositive, transparent, financially driven, thatismission- andotherCatholicorganizations communities, religious parishes, dioceses, tial problems andmake appropriate adjustments. benefit ishaving access to thatallows information finance to personnel spotandanalyze poten- One accounting. inthearea of particularly andCatholicschools, amongparishes platforms and strategic fundraising approach fundraising forCatholic and strategic These proceedings are part of a series of publications on the Church in America:

• The Church in America: The Way Forward in the 21st Century, 2003

• The Church in America: Leadership Roundtable, 2004—Challenges and Opportunities in Governance and Accountability for Institutions in Transition

• The Church in America: Leadership Roundtable, 2005—A Call to Excellence in the Church

• The Church in America: Leadership Roundtable, 2006—Bringing Our Gifts to the Table: Creating Conditions for Financial Health in the Church

These publications are available for free as a download from our website at www.nlrcm.org or can be ordered online in printed format.

To view video clips of presentations on major issues of management, finance, and human resources in the Church, visit www.nlrcm.org and click on “Conference Videos.”

The Leadership Roundtable has also produced DVDs and Planning Resources for Dioceses and Parishes. For further information, visit www.nlrcm.org.

For further information on the work of the Leadership Roundtable please visit www.nlrcm.org and use the “Join Our Email List” button to receive our electronic newsletter.

National Leadership Roundtable on Church Management 1350 Connecticut Avenue, NW, Suite 825 Washington, D.C. 20036 Tel: (202) 223-8962 Fax: (202) 296-9295 E-mail: [email protected] www.nlrcm.org To order additional copies of Bringing Our Gifts to the Table: Creating Conditions for Financial Health in the Church or any other NLRCM publications, please send your request to:

National Leadership Roundtable on Church Management 1350 Connecticut Avenue, NW Suite 825 Washington, D.C. 20036 or visit our website at www.nlrcm.org

National Leadership Roundtable on Church Management 1350 Connecticut Avenue, NW, Suite 825 Washington, D.C. 20036 Tel: (202) 223-8962 Fax: (202) 296-9295 E-mail: [email protected] www.nlrcm.org