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 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 The Value of Evaluation in the Church....................................................37 Moderator Mary Jo Moran, Executive Director, NACPA Panelists Gerard Roche, Senior Chairman, Heidrick & Struggles Paul Reilly, Chairman & CEO, Korn/Ferry International Charmaine Williams, Director of Human Resources, Diocese of Fort Worth TAble ofTAble Contents Plenary Discussion Highlights ...............................................................43 The Power of Economies of Scale in the Church (Multi-Parish/Multi-Diocese)..........................................................................47 Panelists Frederick Gluck, Former Managing Director, McKinsey & Company James Smith, CFO, Diocese of Tyler Laying the Foundation for Successful Fundraising ........................51 Moderator Kerry A. Robinson, Executive Director, Leadership Roundtable Panelists Michael Hoffman, CEO and President, Changing Our World, Inc. Rev. Edward Malloy, CSC, President Emeritus, Notre Dame Plenary Discussion Highlights ...............................................................55 Acknowledgments...................................................................................................................57 Appendix A: Renewal and Rebuilding in the Archdiocese of New Orleans............................59 Frederick Gluck, Former Managing Director, McKinsey & Company Most Rev. Roger P. Morin, Auxiliary Bishop of New Orleans John Eriksen, Director of Research and Client Services, Leadership Roundtable Appendix B: Inaugural Best Practices Award: Archdiocese of Boston Financial Transparency Project ..........................................................65 Geoffrey T. Boisi, Chair, Leadership Roundtable Rev. J. Bryan Hehir, President, Catholic Charities of the Archdiocese of Boston Appendix C: Update on the Leadership Roundtable ..............................................................71 Kerry A. Robinson, Executive Director, Leadership Roundtable Michael Brough, Director of Planning and Member Services, Leadership Roundtable Appendix D: Participants.........................................................................................................77 Appendix E: Conference Agenda.............................................................................................83 Appendix F: Plan of Action ......................................................................................................87 1 Introduction Introduction Kerry A. Robinson, Executive Director The National Leadership Roundtable on Church Management grew out of an important conference held at The Wharton School in June 2004 called The Church in America: Leadership Roundtable. Hundreds of Catholic luminaries from the secular world and the Church, with high levels of executive experience, met to discuss, assess, and contribute substantively to improve the temporal affairs of the Catholic Church in the United States in order that the mission of the Church might be advanced more effectively. A seminal result of this gathering was a list of 48 recommendations for positively impacting the Church’s management, finances, and human resources development at the local, diocesan, and national levels. It is notable that this effort, from its inception, has concerned itself exclusively with the management, finances, and human resource development of the Church, focusing solely on temporal affairs and is, in this focus, entirely non-doctrinal. Also notable is the strong emphasis on the positive, namely to identify what already works well in the Church and those examples of excellence in our Church that merit emulation. In March of 2005, the National Leadership Roundtable on Church Management was incorporated, and on July 11 the Board of Directors met for the first time in Washington, DC. Three months later the Leadership Roundtable held its first annual membership conference, which many of its 180 members attended together with prominent U.S. bishops. Out of this conference emerged a Plan of Action for the Leadership Roundtable consisting of 21 specific objectives, informed by the original 48 recommenda- tions, to be developed in service to the Church in the United States over the next few years. The Leadership Roundtable’s second annual membership conference was held on June 29–30, 2006, and the proceedings of that conference are provided in this volume. It is a testament to the constructive ethos of the Leadership Roundtable that everything that is developed is intended to be shared and dis- seminated openly and widely for maximum application. The conference focused on the broad theme of creating conditions for the financial health of the Catholic Church. Under that rubric five specific areas of focus were highlighted for further development in working sessions at the conference. They are Effective Diocesan Planning, Essentials of Church Financial Transparency, The Value of Evaluation, The Power of Economies of Scale, and Laying the Foundation for Successful Fundraising. I hope that you enjoy these proceedings, but more importantly I hope that this serves to stimulate your own imagination about what is possible, and productive and beneficial to the Catholic Church in the 2 United States, especially in terms of your own parish, diocese, religious community, or Catholic non- profit. Our Church and its leaders deserve our support, expertise, insight, and participation to achieve excellence in management and mission. Introduction 3 Opening Prayer Prayer Opening Most Rev. Dale J. Melczek, Bishop of Gary Before opening our session with a prayer, I’d like to express a word of gratitude to Geoff Boisi and Kerry Robinson and all of the other organiz- ers of our conference. I also wish to thank all of you for your interest in the mission of the National Leadership Roundtable on Church Management, and for your presence today. Everyone here has been generously endowed with many gifts, and has Bishop Dale Melczek experienced much success in life. You could be using your talents and resources in other directions. I am truly edified that your love for Jesus and your love for the Church has motivated you to offer yourselves and your gifts on behalf of the Church. Within a sound ecclesiol- ogy of communion, I am confident that I speak for my brother bishops here in saying that we welcome what you will share by way of best practices and organizational standards of excellence in management, finances, human resources, and pastoral planning. These are necessary supports for our mission of proclaiming the gospel and helping people live more completely in the life and love of the trinity, and helping them to share that life and love in right rela- tionships with others. May God bless all that you do on behalf of the Church. And may all of our dis- cussions serve to build up the Church for the transformation of the world. Let us bow our heads in prayer. In the name of the Father, and of the Son, and of the Holy Spirit. Father, we gather in your name this day, deeply grateful for your love. We thank you for manifesting your love in the fullness of time through your eternally begotten son, Jesus. We