Organizational Structure of the Roman Catholic Archbishop of Boston, a Corporation Sole
Terms
The Archbishop of Boston operates under both civil law and Canon (Church) Law:
- The Roman Catholic Archbishop of Boston, a Corporation Sole (under civil law)
This is a legal entity created under Massachusetts law in 1897 to provide the Roman Catholic Archbishop of Boston with a means to operate under civil law. For financial reporting purposes, Corporation Sole consists of four divisions: Parishes, Central Fund, Insurance Fund and Endowment Fund. Under Massachusetts civil law, the legal entity of Corporation Sole has ownership of the assets of these divisions. - The Roman Catholic Archbishop of Boston (under Canon Law)
The person holding the office of the Roman Catholic Archbishop of Boston (without the Corporation Sole) holds the responsibilities established by Canon Law. The Archbishop is the representative of the Holy Father here in Boston and, as such, leads and guides Catholics and Catholic institutions. The Archbishop of Boston has specific duties and responsibilities (depending on the specific canonical structure of each) but not ownership of a number of institutions referred to as Related Organizations.
Note: As used here, the term Archbishop refers to scope of responsibility. Therefore, while Cardinal Seán O’Malley is a cardinal, he is also the Archbishop of this Archdiocese.
Corporation Sole
Corporation Sole includes:
- Parishes: As of June 30, 2005, there were 303 parishes located within the geographical boundaries of the Archdiocese. Each parish is a separate entity under Canon Law, known as a public Juridic Person, established by decree of the Archbishop of Boston. Each parish is operated by its pastor in ordinary matters subject to the norms of Church law.
Within the parishes, Mass attendance ranges from 100 to 3,400 parishioners. The parishes range in annual collections (offertory, grand annual, tithing and other donations) from $60 thousand to $1.5 million. Some parishes have elementary schools, high schools, middle schools, cemeteries and/or multiple worship sites. As of June 30, 2005, there were 99 parochial grammar schools, 5 parochial high schools, and 44 cemeteries. Parishes range in the number of full-time lay employees from zero to 98. There are approximately 3,000 full-time employees throughout the parish network. Each parish is under the direction of its pastor and maintains its own bank accounts and, for payroll purposes, its own employer tax identification number. Many parishes may have their own perpetual care funds, endowment funds, scholarship funds and restricted funds. Likewise, parishes range in financial viability from one that has almost $6.9 million in cash and investments to a parish that has almost $5.0 million in debt.
The parishes report their financial activity to the central office of Corporation Sole. Parish financial information includes parish operations, as noted above, a school tax fund, and a savings-and-loan fund. The School Tax Fund houses the contributions remitted to the central office by parishes that do not operate schools to support parishes that do operate elementary, middle and high schools. Parishes can also directly remit their school contributions on a direct parish-to-parish level. Each parish without a school is asked to contribute six percent of its parish offertory to support Catholic education in the Archdiocese. The savings-and-loan fund, known as the Revolving Loan Fund, effectively serves as a “mutual” savings-and-loan fund, with parishes its principal depositors and borrowers. - Central Fund: Next to parishes, the division within Corporation Sole that Catholics are most familiar with is the Central Fund, as it includes many of the Church's ministries. The Central Fund represents the operations and assets of the central administration for Corporation Sole, including the Cardinal’s Office and Regional Bishops’ Offices. It also includes many of the Church’s ministries, such as the Office of Religious Education, the Vocations Office, various Campus Ministries, support of certain parishes, Clergy Formation, etc. The Central Office provides services in the areas of financial management, human resource and benefits administration, information technology, facilities management, and parish-support systems.
The Central Fund's principal source of revenue is the annual Catholic Appeal. The Fund also receives income from contributions, investment interest, rental income, program fees, and administrative and management fees from Related Organizations.
In fiscal year 2005, Central Fund also includes the Parish Reconfiguration Fund because the assets and liabilities of the various closed parishes became those of the Central Administration of the Archdiocese of Boston. The unrestricted net assets of the affected parishes (approximately $33.9 million) were transferred to Central Fund at net book value. A portion of the net asset transfer included funds owed to the Revolving Loan Fund, School Tax Fund, Hospital Chaplaincy program, and Insurance Fund within Corporation Sole. The transfer also included funds owed to various Archdiocesan benefit trusts. A significant portion of these parish debts were subsequently paid in full to each fund during the first quarter of fiscal 2006 from the sale proceeds of parish reconfiguration real estate. - Insurance Fund: The Insurance Fund provides risk management, insurance and loss protection, as well as associated services to approximately 420 participating parishes and Catholic institutions. Within the institutional component, there are approximately 120 institutions that are not part of Corporation Sole. These programs are provided through master insurance policies and self-insurance funds created with program revenues from participating employers. Participants are provided with access to insurance and risk management services and protection that are in keeping with, and sensitive to, the unique issues of the Catholic Church and its mission. In addition, coverage is broader than in the commercial marketplace, where in some cases it is even unavailable. The program minimizes the impact of substantial fluctuations in insurance coverage and cost.
- Endowment Fund: The Endowment Fund consists of permanently restricted funds donated to Corporation Sole. In recent years, the Endowment Fund has received funds from the Promise for Tomorrow Capital and Endowment Campaign of the Archdiocese of Boston. The income earned from the Endowment Fund is distributed in accordance with any applicable restrictions to support pastoral, educational, social and ministerial programs throughout the Archdiocese.
Related Organizations
The term “Related Organizations” as used in this report means and refers to those entities that have some connection with or nexus to the Roman Catholic Archbishop of Boston, a Corporation Sole, to the Roman Catholic Archdiocese of Boston or the Archbishop of Boston either personally or as the Roman Catholic Archbishop of Boston, a Corporation Sole. Notwithstanding this connection these Related Organizations (although a part of the Roman Catholic Church within the Archdiocese of Boston) are independent entities. The inclusion of these Related Organizations within this report does not mean that the Roman Catholic Archbishop of Boston has civil jurisdiction over their finances.
Organization Chart
The organization chart that follows this narrative shows details related to Corporation Sole and lists Related Organizations. Click on the chart for a full size PDF document.