Monday, November 19, 2018

More News On Financial Accountability And The Papal Foundation

In the context of the last post, in which Matthew O'Brien questioned the legal sustainability of the Papal Foundation's forwarding grant money to the Vatican Secretariat of State without confirming that the money was going for its intended purpose, it appears that another prestigious US Catholic charity has raised the same question and is acting on it. According to Church Militant, Legatus Chairman Thomas Monaghan issued a letter to members making clear it was not yet "prudent" to send money to the Vatican:
"Events over the past few weeks have prompted many members to contact the national office and members of the Board of Governors regarding the current crisis in the Church," the Sept. 6 letter from Monaghan states.

"We have also had discussions regarding our (Legatus') annual tithe to the Holy See, specifically pertaining to how it is being used, and what financial accountability exists within the Vatican for such charitable contributions," the letter continues. "The Board has begun a dialogue along these lines, and in the meantime has decided to place the Holy See annual tithe in escrow, pending further determination (by the Board).

"We certainly pledge our continued devotion to Holy Mother Church, and recognize the tithe has been an important commitment of Legatus since our founding," Monaghan wrote. "However, in light of recent revelations and questions, we believe it appropriate to respectfully request clarification regarding the specific use of these funds."

A second Church Militant story brings the O'Brien First Things piece up to date:
After Cdl. Donald Wuerl spearheaded a $25 million grant to the Vatican earlier this year through the Papal Foundation, sources confirm the money remains unaccounted for, the Rome hospital designated as beneficiary apparently never having received the grant.
This reinforces the issue raised in the O'Brien story, that there is no guarantee that money solicited by the Vatican for one charitable purpose will even be used at all for that purpose. The Church Militant story continues,
Media reported in March that, after the internal uprising within the foundation, Pope Francis cancelled an annual meeting with the organization. Although the move was reported as originating with the pontiff, inside sources confirm with Church Militant that Wuerl was behind the cancellation. The cardinal had contacted the pontiff and suggested the move in order to send a clear message and muscle the trustees. His tactic worked, and the board agreed to give the pope the remaining $12 million. To date, however, the remaining amount is pending distribution.

. . . The Pennsylvania attorney general's office is mulling the possibility of investigating the Papal Foundation, a 501(c)3 corporation registered in Pennsylvania and bound by state law, after it was revealed the vote to send $25 million to Rome could be voided for potential fraud; McCarrick, under investigation by the Vatican since May 2017 over a sex abuse allegation, voted to send the enormous sum of money to the very entity investigating him — a material conflict of interest that would amount to little more than a bribe.

"The Charitable Trusts and Organizations Section (CT&O) of the Office of Attorney General is in receipt of your email complaint regarding The Papal Foundation," wrote Daniel Sanchez, financial investigator for the Pennsylvania attorney general's office, in a letter obtained by Church Militant. "Please be advised, this matter is currently under review and the office will take any action deemed appropriate."

The Church Militant article clarifies other earlier reports on the revolt within the Papal Foundation. The earlier version of the story was that Jim Longon, former chair of the Audit Committee, was the only lay resignation from the board. According to Church Militant, a total of three stewards resigned from the Audit Committee. In adition,
According to inside sources, Wuerl at the time considered Longon a lone maverick, confident the vote to send the $25 million would be approved almost unanimously. He was shocked to find that nine of the 24 board members rejected the proposal after a secret vote.
It seems to me that the issue here is not so much a withholding of charitable donations simply due to disagreement on doctrine, but more seriously, on whether it is prudent to keep sending money to the Vatican when it isn't clear that the money will be used for charitable purposes. This could affect the non-profit status of the charitable foundations, and conceivably the non-profit status of the Church in the US.