Excerpts from Fr. Patrick O’Loughlin, Speaking at the Parish Meeting

Excerpts from Fr. Patrick O’Loughlin, speaking at the parish meeting
Sunday, December 7, 2008


In my short time at the parish, I have realized some remarkable things about St. Matthew:
•    We are a small medium-sized parish of about 1000 families, yet we support a fine school.  Not many parishes our size do.
•    Our 1000 families not only support a school, but have built a new Gathering Space that cost more than $1.5 million.

This is an incredible testimonial to the generosity of the people of St. Matthew.  What is even more amazing to me is the fact that you have been giving money toward the parish building plan for at least seven consecutive years.  This is financial stamina such as I have never seen.  Moreover, this giving occurred after a period of years in which the long-term financial health of the parish was carefully maintained.  As a context for my remarks, allow me to offer a very brief review of St. Matthew’s financial stewardship over the last 50 years, and how this relates in particular to our Gathering Space.

The construction of the current school and church complex in 1961-62 almost bankrupted the parish.  Yet this gift from a previous generation still provides the foundation of our parish life today.  From then until approximately 2001, careful stewardship allowed St. Matthew to accumulate reserves – the funds all parishes should have to cover emergencies and unbudgeted major expenditures – of more than $600,000.  Some portion of this total is legally set-aside to cover particular projects or responsibilities; for example, there is a reserved fund set up to finance perpetual-care expenses for our parish cemetery.  The majority of our reserves, however, remain available for use.

Now, as this relates to the Gathering Space:  As you know, Phase I fundraising did not cover the full cost of the new building.  Therefore, the “Generations of Joy” campaign, the first part of a larger Phase II, was undertaken with a double goal: Paying off the Phase I debt, and saving money for a new church building.  The loan remaining on Phase I debt was due to be paid in full in September 2009.

However, since interest rates were falling – and the interest rates we were earning on our parish reserve funds, which are kept in certificates of deposit, were less than the interest charged on our loan – a decision was made to pay off the balance of the loan from our reserves.  In essence, we paid off the mortgage by borrowing money from ourselves.   As of November 30 the amount we owe to ourselves is $214,992, leaving a reserve balance of slightly more than $400,000.

Our reserves will be repaid by future donations to the parish building fund.  The pledge period for “Generations of Joy” was scheduled to extend to May 2011.  If all pledges were to be collected, the expectation was that St. Matthew would, in May 2011, have its reserves repaid in full and we would have $200,000 - $250,000 dollars toward a new church.

Enter now the complication.  Two years ago, Archbishop Dolan announced that the Archdiocese of Milwaukee would conduct a $105 million fundraising effort on behalf of Catholic education and faith formation.  This is the “Faith in Our Future” campaign to which you have heard me refer and, I hope, have read about in the Catholic Herald if not the Journal-Sentinel or other sources.  St. Matthew’s begins its participation in “Faith in Our Future” in January.  What I want to do at this time is to explain why this campaign is vital and why it is worth the sacrifices I hope our parish is willing to make.

Archbishop Dolan is a long-time advocate for, and known champion of, Catholic education.  It has consumed a large part of his energy during his time as our bishop, and it is his desire to assure its strong continuance in the archdiocese.

The archbishop is also very much aware of the psychological and spiritual toll that Church scandals have taken on Catholics here and throughout the world.  Yet he recognized with great clarity that Catholic education provides a rallying point around which this archdiocese could focus its energies for the greater good of the Church and the people we serve.  He was also aware that there has never been a major capital campaign undertaken in the archdiocese.

No time is ever the perfect time to raise $100 million.  As the archbishop himself has said, reasonable people could consider him crazy for proposing so ambitious a plan.  Nonetheless, his advisors counseled him that this was the time to act.  The archbishop leaped into the effort because, he has said, it is a most deserving cause, and stewardship of the great gift of Catholic education is all the more meritorious in challenging times.  The archbishop proposed his plan against the backdrop of these ominous realities:

•    The Archdiocese of Milwaukee is essentially broke.  Archdiocesan offices have been thoroughly downsized and fungible assets have been sold.
•    Recent court rulings in Wisconsin expose the Church to further potential liabilities in 2009.  On June 26th a Wisconsin Supreme Court ruling on the state statute of limitations put the archdiocese in the unenviable position of defending itself for allegedly fraudulent actions taken 37 years ago by Church authorities who are now deceased.  On August 14th a Milwaukee County Circuit judge declared that the Archdiocese of Milwaukee will be solely responsible for any potential settlements resulting from these allegedly fraudulent actions because its insurance policies do not cover intentional acts such as fraud.
•    As a result, the archdiocese faces the very real prospect of bankruptcy.

Archbishop Dolan is dealing with these situations in the most responsible way he can.  You can imagine the pressure and stress of his particular job at this moment in history.  But you also need to see how “Faith in Our Future” will assure the strength of Catholic education no matter what happens.

This is accomplished by the design of the campaign itself.  Contributions to “Faith in Our Future” are not the property of the archdiocese, but will be placed directly into a distinct legal entity independent of the archdiocese, the “Faith in Our Future Trust.”  It is the trustees of the trust who will disburse funds for particular purposes.  The trust structure assures to the greatest legal extent possible that donor intent will be respected and that contributions to “Faith in Our Future” cannot be seized to pay legal damages against the archdiocese.  Nor will “Faith in Our Future” contributions be used to pay any lawsuits or any operating expenses of the archdiocese.  Thus, even in the dire event that the archdiocese should declare bankruptcy, the work of Catholic education in the archdiocese will continue to be supported.

Archbishop Dolan’s hope is that each parish in the archdiocese will raise, over a period of three years, a sum of money equal to one year of stewardship and offertory collections.  For our parish, that sum is between $675,000 and $700,000.  But as we send our contributions in to the “Faith in Our Future” trust, 60% is returned to us to be spent on what we perceive to be our greatest needs pertaining to Catholic education and faith formation.  This 60/40 split is very generous, and the trust is footing the bill for almost all expenses, including postage, professional guidance, materials, and printing.

As members of the Archdiocese of Milwaukee, we owe our respect and cooperation to the bishop when he exercises his authority as the chief steward of the goals and resources of the archdiocese.  It can be easy to forget that just as we have dreams for our parish, he has dreams for the Church of Milwaukee, and that there are appropriate times to postpone our own wishes and timetables on behalf of the bishop. Over time I hope to convince many of you that it is both our responsibility and in our best interest to help the archbishop achieve his goals for the archdiocese.

Allow me now to explain the precise nature of our difficulty.  The five-year pledge period for “Generations of Joy” overlaps the three-year pledge period for “Faith in Our Future.”  St. Matthew parishioners would have to donate approximately $93,000 a month for two years for us to meet our expenses for parish operations (which average about $60,000 per month), “Generations of Joy” pledges (averaging about $15,000 per month) and “Faith in Our Future” contributions (expected to average about $19,000 per month).  To expect such a level of contributions is manifestly unrealistic.  

During his visit to St. Matthew in September, Archbishop Dolan reiterated his archdiocese-wide policy that all major fundraising in parishes must cease during the “Faith in Our Future” campaign.  Therefore, it is necessary to bring the “Generations of Joy” campaign to a conclusion earlier than expected.  I have been advised that March 31, 2009 would be optimal, in order to give us a brief respite before pledging for “Faith in Our Future” takes place in mid-May.

I do so in the firm belief that the goals of the “Generations of Joy” campaign—paying off Phase I debt and making a start on a new church—can be incorporated within our “Faith in Our Future” efforts.  If we reach our parish goal, we will complete some projects beneficial to the parish, repay our reserves, and have some money left over toward the church.  In fact, I believe that “Faith in Our Future” can serve as a bridge between Generations of Joy and our future Phase II plans.

A substantial part of the money St. Matthew hopes to raise from “Faith in Our Future” – perhaps 50% or more—will be put toward repaying our reserves and a new church.  Final details of our spending plan have not yet been worked out, but they will be spelled out very clearly when they are.

In order for all of this to succeed, this is what I believe must happen:

1.    Some people who have not yet fulfilled their “Generations of Joy” pledge are willing to donate what remains of their pledge to “Faith in Our Future” instead.  Since “Faith in Our Future” will advance the goals of our “Generations of Joy” campaign, in my opinion donating to the former fulfills the moral obligation of a pledge to the latter.
2.    Some people who have not yet fulfilled their “Generations of Joy” pledge are willing to postpone doing so until after “Faith in Our Future” is concluded—and, of course, contribute what they can toward it.
3.    Parishioners who have not contributed to Phase I or “Generations of Joy” contribute to “Faith in Our Future.”
4.    Everyone in a position to give generously to “Faith in Our Future” does so.

Let me be clear.  Bringing “Generations of Joy” to a conclusion does not mean that Phase II has been abandoned, nor that the building fund is closed to future donations, nor that a new church is no longer our goal.  

I will acknowledge, however, my worry that too many parishioners will continue to contribute to the building fund instead of contributing to “Faith in Our Future.”  Obviously, choosing not to donate to “Faith in Our Future” will weaken our effort.  But I cannot control where you send your charitable donations, and it is my duty and my promise to respect, as always, your intentions as donors.

To conclude my remarks this morning, I would like to offer an overview of four areas about which I have some concern at the present time.

1.  I am impressed and gratified by the generous spirit that motivates the parishioners of St. Matthew toward the construction of a new church.  Yet in my brief time here I have heard many very different estimates of when this task will be completed.

As I mentioned near the beginning, the most optimistic estimate suggested that we might have about $250,000 in building funds in May 2011.  Before building a new church, St. Matthew would need to have approximately $2.5 million in the bank, and would have to be prepared to service another $2.5 million in debt.  I say this not to discourage you, but simply to make clear that, on our current financial trajectory, a new church is not immanent.  

Even if the present generation does not accomplish this ambitious goal, it is no black mark against the parish. Few generations make the gift of a multi-million dollar building to future parishioners as you have done through the Gathering Space.  We are a medium-sized parish, we have a school, and we have lots of needs. You cannot be expected to do everything, but I greatly admire your desire to try.

2.  My chief task as pastor is to assure that the mission of the larger Church continues at our parish.  It can be difficult to maintain what we have when so much of parishioners’ money is solicited for other major projects. You need to know, however, that it is not my intention to eliminate jobs or programs so that even more resources can be committed to future buildings.  The archdiocese is clear that parish expansion or renovation projects should not be undertaken unless the parish can maintain both the stewardship it requires for operations and the ministries it offers.  I am a firm believer that, if a choice must be made, people always trump buildings.

That said, as a result of Phase I and “Generations of Joy,” donations to the operating expenses of the parish – what is accomplished through our parish stewardship and envelopes – has not kept pace with inflation.  Some would describe our stewardship level as “flat.”  This fact does not surprise me, since parish leadership has sought, and often received, upwards of $10,000 per month over many years for the purpose of building campaigns.

As you know, St. Matthew has expenses not only for suppliers, insurance, utilities, and maintenance, but also for employees’ salaries and benefits.  I consider it a moral duty and a necessity that we compensate our employees fairly.  Again, if tough choices have to be made because of insufficient stewardship, cuts will come from other parts of the budget rather than from employee compensation.

This does not mean that the parish will suddenly become profligate with your money.  St. Matthew’s is blessed with excellent committees who are very careful stewards of your donations.  But it is my responsibility to see to it that the priorities of parish budgets continue to reflect that our people come first, and that just salaries are not simply an optional category of expenditure.  

3.  It is my fervent hope that when “Faith in Our Future” ends in about three years, St. Matthew’s will take a break from major fundraising.  After eleven straight years, I suspect you will all need one.  Of course, this does not mean that people cannot donate to the building fund, nor does it mean that other capital projects may not arise.  Rather, my hope is that, absent numerous solicitations for major giving, the parish could focus upon its normal and generous stewardship of the parish.  In the long-term it is our prayer, our programs, and our hospitality that will assure the health of St. Matthew.  If we build a second St. Peter’s Basilica but sacrifice what makes us great, we will have accomplished nothing.

4.  Lastly, on the subject of long-term planning:  I must say frankly that the archdiocese has offered only the most minimal guidance regarding the future of our cluster and our district.  I have seen no plan for any future merging of parishes, sharing of pastors, or anything else.  Nonetheless, let me offer you some sobering statistics. Since my ordination in 1999, the total number of archdiocesan priests (including those who are retired) has decreased by 111.  In the next five years, the number is expected to decrease by another 50.  These numbers indicate that changes are coming; the absence of a concrete plan simply means that these will be implemented in a more seat-of-the-pants manner than I would wish.

However, the fact that St. Matthew has a school makes us exceptional in our area.  The fact that we have plans for a new church shows that we are paying attention to the future spiritual needs of our section of the archdiocese.  So how do we best assure that our parish continues to flourish?  We need to get people into the church.

If I could pick one non-financial goal for the next three years, it would be an explosion of grassroots recruiting by St. Matthew parishioners of their inactive Catholic friends and neighbors to consider what this parish has to offer.  There is every reason to believe that you are the best ambassadors, and that the first flock in need of your attention consists of those individuals and families who already have one foot in the door through our school, religious education, and athletic programs, but who do not come to church.  Reaching out to them is the heart of stewardship and evangelization, and is it your job as much as mine.

Aside from the most important spiritual benefits that could be gained by this, consider how much greater our parish life would be, and our parish mission easier to bear, with 300 to 500 new families to help carry the load. We are a 1000-family parish that is crying out to be 1400-families or more. If you help get them in the door, I will do my best to make sure they come back…