In a series of short articles, Chicago Catholic will look at how finances work in parishes and the archdiocese, addressing questions often asked by parishioners.
What happens to my donation to my parish?
It depends on whether your donation falls into one of three categories: ordinary income, restricted income or a second collection.
Ordinary income includes the Sunday collection (whether that be donations offered in person, by mail or online), as well as monetary gifts for weddings, funerals, baptisms and other events. Together, this ordinary income pays for a parish’s day-to-day operating costs.
Restricted income includes gifts that are designated by the giver for specific requests, such as contributions to a parish school or building project. Restricted income can only be used for the purpose named by donors.
When it comes to second collections, 100% of donations received by a parish are sent to the associated charitable organizations such as the Church in Africa or Catholic Charities’ Mother’s Day Appeal.
In other words, regular, weekly gifts are part of a parish’s ordinary income. Gifts designated for a specific fund, such as a capital campaign project, go strictly to that effort. Second collections go to the intended organization.
On average, about 50% of every dollar in ordinary income that a parish receives (which can include more than parishioner donations, such as revenue from general fundraisers or leasing vacant buildings) goes toward the salaries and benefits of the staff who serve the parish. About 20% of each dollar goes to cover the maintenance, repairs, utilities and insurance of the campus facilities. The remainder covers general administrative expenses.
The majority of these expenses are paid by the parish. A portion, however, is paid by the parish to the archdiocese in order to cover the parish’s portion of shared services, such as property insurance, staff health care insurance, payroll and financial systems and accounting services. By pooling resources for shared services, parishes are able to receive higher quality services at lower prices.
The financial health and sustainability of a parish depends heavily on the stewardship of parishioners. No matter the size of a parishioner’s gift, donations support the mission of one’s local parish.
The next article will take a closer look at how the Pastoral Center handles direct donations to the archdiocese.