February 18, 2005

New director of parish financial services
helps parishes in debt

By Brandon A. Evans

Like other non-profit organizations, many parishes in the archdiocese can have a hard time making ends meet—especially when they are serving a low-income community.

“From 2002 to 2004, parishes of the archdiocese requested $4.6 million in home mission grants,” said Jeffrey Stumpf, the archdiocese’s chief financial officer. “Unfortu-nately, only $1.3 million was available to be awarded.

“Total parish debts are reaching approximately $5 million, and it’s important to begin reducing these debts,” Stumpf said.

One of the things that the archdiocese has done to help parishes that are having financial difficulties is to hire a director of parish financial services.

Michael Witka, who has spent the last six years as a pastoral associate at Our Lady of Grace Parish in Noblesville, Ind., (Diocese of Lafayette), was asked to fill that position. He and his wife, Charlene, are still members of the Noblesville parish.

Not only is Witka working closely with about a dozen parishes and a couple of high schools on financial matters, he also handles the property, auto, casualty and risk-management insurance programs for the archdiocese.

“Many times, financially challenged parishes are unable to afford the expertise to turn around a deficit budget,” Stumpf said. “Mike can assist parishes with linking their budgets to their strategic plans, developing realistic budgets, identifying ways to increase revenues and decrease expenses, and communicating financial challenges to parishioners in clear and understandable language.”

Witka said his goal is to help “make parishes financially sound enough to be able to do the ministries they need to do.”

Witka said that when helping a parish in debt, he first talks to the pastor, then anyone involved with the parish finances, and eventually most of the parish leadership.

One of the biggest things to do is help the parish communicate its financial needs to the parishioners.

“I think it’s a matter of educating the parishioners about what is the financial status of their parish—I think they have a right to know,” Witka said.

“I’ve always been a strong believer that if you communicate your needs to the parish, they will come through,” he said. “Sometimes you’ve got to at least paint the picture, and then ask.”

Of course, he said, it is also the case with some parishes that “the giving is just not up to where it needs to be to offset the bills that are there.”

Often, this is in parishes where membership is declining, but expenses are not.

Witka said that he helps parishes look at their expenses and personnel, but he does not come to parishes to fire people or make budget cuts. Ultimately, it’s up to the parish to put a plan in place to resolve any financial problems.

“While Mike’s assistance may make some parishes uncomfortable,” Stumpf said, “it will certainly help them realize what is realistically possible given their financial position.”

Witka said his main goal is to “help parishes understand their problem, if they perceive it as a problem, and understand the opportunities to make some changes so that it gives them some breathing room.” †

 

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