No organisation operating in today’s complex economic realities can survive without sound financial management. The Catholic Church is no exception, even if many still believe that divine providence will always bail out a Church that struggles to balance its books.
The Catholic Church’s role in Maltese society has changed over time and many argue it is no longer as extensive as it used to be. But it still has a pivotal function in the education and social care of disadvantaged members of society, besides providing religious services to practising Catholics in the various parishes throughout the island.
The publication of the archdiocese’s accounts for 2016 gives an important insight into how the Church is managing its books in a way that helps it to continue its philanthropic activities in society. The headline figure is that, last year, the Church made an overall profit of €1.1 million. A good part of this surplus came as a result of the substantial donation of less than €1 million from the MMDNA winding down.
Considering that the Church employs more than 1,000 lay people and pays monthly wages to 269 diocesan priests, the 2016 results must have eased the earthly concerns of the Church’s administration.
The history of the Church’s finances has changed radically over the last few decades. In the past, the Church used to rely for its income on donations from the faithful, who contributed by their offerings in church services, as well as by giving money and property to the Church before and after their death. In 2016, the Church had an income of €36 million with the largest contribution still coming from the pockets of the faithful.
The Church is no longer as asset rich as it used to be following the handing over of various properties to the government. In return, the government supports with subsidies to Church schools, homes for children and disabled persons, and the elderly. These subsidies are, in fact, relieving the government from substantial financial burdens that it would otherwise have to carry had the Church not been in a position to offer such social services.
The management of the Church’s financial resources may be conservative but still very creative. The installation of solar panels on Church properties is generating an important and sustainable source of income. Traditional low-risk financial investments are an added source of income that should avoid the recurrence of bad investment losses that occurred in the 1970s when the Church’s financial management was less professional than it is today.
The Catholic Church is different from all business organisations. Its success can only be measured in terms of how effective it is in passing on its message in the society it serves. The times have long gone when hospital wards were run by nursing nuns. The number of Church schools have decreased as have the various youth centres run by religious organisations in towns and villages. But a regular income stream is still needed to support the Church’s activities in today’s more secular society.
Many would agree that the main challenge to the Catholic Church today is not about the earthly concerns of finance but more about the spiritual ability to attract more vocations to the priesthood to continue its important mission in society.