MINNESOTA
Canonical Consultation
2/05/2014
Jennifer Haselberger
In a week when much attention has been paid to the financial operations of the Holy See (mainly due to an article by Cardinal Pell, Prefect of the Secretariat on the Economy, in the Catholic Herald), the Archdiocese of Saint Paul and Minneapolis took steps to reassure priests and donors that contributions to its annual campaign, the Catholic Services Appeal, would not be used to pay for litigation or abuse related expenses, but instead would support 17 ministries that, according to the fifty-four pages of material distributed at a meeting in New Brighton, have no other money to fund’ them (see materials below, page number 1).
Frankly, I don’t buy it.
The Archdiocese is clearly very intent on presenting the Catholic Services Appeal, its foundation, and the ministries it supports as something separate from the scandal-ridden and allegedly nearly bankrupt Central Corporation. Once again though, I think the Archdiocese’s statements in comparison to its actions demonstrate that this separation is little more than ‘smoke and mirrors’, and I will explain why.
First, the Catholic Services Appeal foundation is being presented as an independent tax exempt corporation, with the materials provided last week also stating that it is an ‘501(c)3 listing on [sic] the USCCB’ (materials, page 1). In other words, the Appeal Foundation is an independent 501(c)3 that receives its tax exempt status through the group ruling of the United States Conference of Catholic Bishops (USCCB). However, the group ruling only applies to organizations that are ‘operated, supervised, or controlled’ by the Roman Catholic Church under which they are listed. In this case, that would be the Archdiocese of Saint Paul and Minneapolis. Prior to being included under the group ruling, an attorney must review the Articles of Incorporation and Bylaws of the organization to ensure that the necessary control is maintained by the diocese. In general, the control requirements are met through provisions regarding the appointment of members of the corporation, and through dissolution clauses and other provisions regarding operations.
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