Archdiocese outlines $200 million capital campaign

While acknowledging that the depressed economy is "cause for concern," Cardinal Justin Rigali yesterday unveiled a $200 million capital campaign for the Roman Catholic Archdiocese of Philadelphia.

"Some may say this is not a good time," he said at a news conference at St. Barnabas Parish in Southeast Philadelphia. "But the needs of the archdiocese cannot wait for the future."

Called "Heritage of Faith - Vision of Hope," the drive seeks to raise $70 million directly for parish needs, with the rest for schools and tuition assistance, improvements to the Cathedral Basilica of SS. Peter and Paul and St. Charles Borromeo Seminary, and support of retired clergy and the archdiocese's broad array of human services.

Rigali said he decided to go ahead with the campaign in light of a very positive response last year to "pilot" fund drives in 12 parishes, and because of the high level of giving by donors prior to yesterday's announcement.

The donors and pilot parishes have raised $43 million in pledges and gifts, the cardinal said, adding that he was "confident this campaign will succeed."

Some dioceses elsewhere are not so confident, said professor Charles Zech, director of the Center for the Study of Church Management at Villanova University.

The Dioceses of Marquette, Mich., and Davenport, Iowa, recently decided to postpone capital campaigns in light of the economic downturn, according to Zech, who teaches economics and statistics. In the Archdiocese of Milwaukee, he said, only 20 of 47 parishes met their goals in an early phase of its capital campaign.

"More power to them if they can pull it off," Zech said of the Philadelphia effort. "They couldn't have picked a worse time."

Launched in September, the campaign's pilot phase did show broadly positive results.

Of the dozen parishes, seven raised pledges at least 10 percent above the assessments set by the archdiocese. Two received pledges 35 percent and 64 percent above their goals.

Msgr. Francis Beach, chairman of the priests' advisory committee, said the pilot parishes were chosen because they were geographically and demographically representative of the whole.

Founded in 1808, the archdiocese counts about 1.46 million baptized Catholics in Philadelphia and the four Pennsylvania suburban counties. Its 269 parishes serve about 415,000 Catholic households.

Auxiliary Bishop Joseph McFadden said at the news conference that 35 percent of the amount each parish raises would remain in that parish. Parishes that exceed their assessments will keep 65 percent of that surplus.

If it meets its goals, the campaign will provide:

$10 million for the support of poor parishes.

$50 million for schools, including "seed money" for the construction of two new high schools in Bucks and Montgomery Counties, with the remainder used as tuition endowments to assist elementary school students and youngsters in five special education schools.

$25 million for renovations at the 150-year-old Cathedral Basilica in Center City, including repairs to the roof and its brownstone exterior.

$20 million for tuition assistance for seminarians and for improvements to the seminary in Wynnewood, which serves 31 dioceses, including Philadelphia.

$15 million to expand the priests' pension fund and renovate Villa St. Joseph, the priests' retirement home in Darby.

$10 million to expand services provide by Catholic Social Services, Catholic Health Care Services, and the Nutritional Development Services of the archdiocese, which serve area residents of all faiths.

Even if the capital campaign meets its goals, McFadden said, the archdiocese could choose to close some parishes or schools in the years ahead.

Zech, the Villanova economist, noted that the archdiocese last released a financial statement in 2003, soon after Rigali became archbishop here. "How can they justify this [capital campaign] when they won't tell us how they spend what they already take in?" Zech asked.

McFadden said yesterday that the archdiocese would release a financial statement this year, and that it had created a nonprofit corporation to manage the flow of funds into and from the campaign, which he said would be "transparent."