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3 days ago
- Business
Can an American pope apply US-style fundraising and standards to fix troubled Vatican finances?
VATICAN CITY -- As a bishop in Peru, Robert Prevost was often on the lookout for used cars that he could buy cheap and fix up himself for use in parishes around his diocese. With cars that were really broken down, he'd watch YouTube videos to learn how to fix them. That kind of make-do-with-less, fix-it-yourself mentality could serve Pope Leo XIV well as he addresses one of the greatest challenges facing him as pope: The Holy See's chronic, 50 million to 60 million euro ($57-68 million) structural deficit, 1 billion euro ($1.14 billion) pension fund shortfall and declining donations that together pose something of an existential threat to the central government of the 1.4-billion strong Catholic Church. As a Chicago-born math major, canon lawyer and two-time superior of his global Augustinian religious order, the 69-year-old pope presumably can read a balance sheet and make sense of the Vatican's complicated finances, which have long been mired in scandal. Whether he can change the financial culture of the Holy See, consolidate reforms Pope Francis started and convince donors that their money is going to good use is another matter. Leo already has one thing going for him: his American-ness. U.S. donors have long been the economic life support system of the Holy See, financing everything from papal charity projects abroad to restorations of St. Peter's Basilica at home. Leo's election as the first American pope has sent a jolt of excitement through U.S. Catholics, some of whom had soured on donating to the Vatican after years of unrelenting stories of mismanagement, corruption and scandal, according to interviews with top Catholic fundraisers, philanthropists and church management experts. 'I think the election of an American is going to give greater confidence that any money given is going to be cared for by American principles, especially of stewardship and transparency,' said the Rev. Roger Landry, director of the Vatican's main missionary fundraising operation in the U.S., the Pontifical Mission Societies. 'So there will be great hope that American generosity is first going to be appreciated and then secondly is going to be well handled,' he said. 'That hasn't always been the circumstance, especially lately.' Pope Francis was elected in 2013 on a mandate to reform the Vatican's opaque finances and made progress during his 12-year pontificate, mostly on the regulatory front. With help from the late Australian Cardinal George Pell, Francis created an economy ministry and council made up of clergy and lay experts to supervise Vatican finances, and he wrestled the Italian-dominated bureaucracy into conforming to international accounting and budgetary standards. He authorized a landmark, if deeply problematic, corruption trial over a botched London property investment that convicted a once-powerful Italian cardinal. And he punished the Vatican's Secretariat of State that had allowed the London deal to go through by stripping it of its ability to manage its own assets. But Francis left unfinished business and his overall record, at least according to some in the donor community, is less than positive. Critics cite Pell's frustrated reform efforts and the firing of the Holy See's first-ever auditor general, who says he was ousted because he had uncovered too much financial wrongdoing. Despite imposing years of belt-tightening and hiring freezes, Francis left the Vatican in somewhat dire financial straits: The main stopgap bucket of money that funds budgetary shortfalls, known as the Peter's Pence, is nearly exhausted, officials say. The 1 billion euro ($1.14 billion) pension fund shortfall that Pell warned about a decade ago remains unaddressed, though Francis had planned reforms. And the structural deficit continues, with the Holy See logging an 83.5 million euro ($95 million) deficit in 2023, according to its latest financial report. As Francis' health worsened, there were signs that his efforts to reform the Vatican's medieval financial culture hadn't really stuck, either. The very same Secretariat of State that Francis had punished for losing tens of millions of euros in the scandalous London property deal somehow ended up heading up a new papal fundraising commission that was announced while Francis was in the hospital. According to its founding charter and statutes, the commission is led by the Secretariat of State's assessor, is composed entirely of Italian Vatican officials with no professional fundraising expertise and has no required external financial oversight. To some Vatican watchers, the commission smacks of the Italian-led Secretariat of State taking advantage of a sick pope to announce a new flow of unchecked donations into its coffers after its 600 million euro ($684 million) sovereign wealth fund was taken away and given to another office to manage as punishment for the London fiasco. 'There are no Americans on the commission. I think it would be good if there were representatives of Europe and Asia and Africa and the United States on the commission,' said Ward Fitzgerald, president of the U.S.-based Papal Foundation. It is made up of wealthy American Catholics that since 1990 has provided over $250 million (219 million euros) in grants and scholarships to the pope's global charitable initiatives. Fitzgerald, who spent his career in real estate private equity, said American donors — especially the younger generation — expect transparency and accountability from recipients of their money, and know they can find non-Vatican Catholic charities that meet those expectations. 'We would expect transparency before we would start to solve the problem,' he said. That said, Fitzgerald said he hadn't seen any significant let-up in donor willingness to fund the Papal Foundation's project-specific donations during the Francis pontificate. Indeed, U.S. donations to the Vatican overall have remained more or less consistent even as other countries' offerings declined, with U.S. bishops and individual Catholics contributing more than any other country in the two main channels to donate to papal causes. Francis moved Prevost to take over the diocese of Chiclayo, Peru, in 2014. Residents and fellow priests say he consistently rallied funds, food and other life-saving goods for the neediest — experience that suggests he knows well how to raise money when times are tight and how to spend wisely. He bolstered the local Caritas charity in Chiclayo, with parishes creating food banks that worked with local businesses to distribute donated food, said the Rev. Fidel Purisaca Vigil, a diocesan spokesperson. In 2019, Prevost inaugurated a shelter on the outskirts of Chiclayo, Villa San Vicente de Paul, to house desperate Venezuelan migrants who had fled their country's economic crisis. The migrants remember him still, not only for helping give them and their children shelter, but for bringing live chickens obtained from a donor. During the COVID-19 pandemic, Prevost launched a campaign to raise funds to build two oxygen plants to provide hard-hit residents with life-saving oxygen. In 2023, when massive rains flooded the region, he personally brought food to the flood-struck zone. Within hours of his May 8 election, videos went viral on social media of Prevost, wearing rubber boots and standing in a flooded street, pitching a solidarity campaign, 'Peru Give a Hand,' to raise money for flood victims. The Rev. Jorge Millán, who lived with Prevost and eight other priests for nearly a decade in Chiclayo, said he had a 'mathematical' mentality and knew how to get the job done. Prevost would always be on the lookout for used cars to buy for use around the diocese, Millán said, noting that the bishop often had to drive long distances to reach all of his flock or get to Lima, the capital. Prevost liked to fix them up himself, and if he didn't know what to do, 'he'd look up solutions on YouTube and very often he'd find them,' Millán told The Associated Press. Before going to Peru, Prevost served two terms as prior general, or superior, of the global Augustinian order. While the order's local provinces are financially independent, Prevost was responsible for reviewing their balance sheets and oversaw the budgeting and investment strategy of the order's headquarters in Rome, said the Rev. Franz Klein, the order's Rome-based economist who worked with Prevost. The Augustinian campus sits on prime real estate just outside St. Peter's Square and supplements revenue by renting out its picturesque terrace to media organizations (including the AP) for major Vatican events, including the conclave that elected Leo pope. But even Prevost saw the need for better fundraising, especially to help out poorer provinces. Toward the end of his 12-year term and with his support, a committee proposed creation of a foundation, Augustinians in the World. At the end of 2023, it had 994,000 euros ($1.13 million) in assets and was helping fund self-sustaining projects across Africa, including a center to rehabilitate former child soldiers in Congo. 'He has a very good interest and also a very good feeling for numbers,' Klein said. 'I have no worry about the finances of the Vatican in these years because he is very, very clever.' Franklin Briceño contributed from Lima, Peru.
Boston Globe
3 days ago
- Business
- Boston Globe
Can an American pope apply US-style fundraising and standards to fix troubled Vatican finances?
Leo already has one thing going for him: his American-ness. U.S. donors have long been the economic life support system of the Holy See, financing everything from papal charity projects abroad to restorations of St. Peter's Basilica at home. Leo's election as the first American pope has sent a jolt of excitement through U.S. Catholics, some of whom had soured on donating to the Vatican after years of unrelenting stories of mismanagement, corruption and scandal, according to interviews with top Catholic fundraisers, philanthropists and church management experts. Advertisement 'I think the election of an American is going to give greater confidence that any money given is going to be cared for by American principles, especially of stewardship and transparency,' said the Rev. Roger Landry, director of the Vatican's main missionary fundraising operation in the U.S., the Pontifical Mission Societies. Advertisement 'So there will be great hope that American generosity is first going to be appreciated and then secondly is going to be well handled,' he said. 'That hasn't always been the circumstance, especially lately.' Reforms and unfinished business Pope Francis was elected in 2013 on a mandate to reform the Vatican's opaque finances and made progress during his 12-year pontificate, mostly on the regulatory front. With help from the late Australian Cardinal George Pell, Francis created an economy ministry and council made up of clergy and lay experts to supervise Vatican finances, and he wrestled the Italian-dominated bureaucracy into conforming to international accounting and budgetary standards. He authorized a landmark, if deeply problematic, corruption trial over a botched London property investment that convicted a once-powerful Italian cardinal. And he punished the Vatican's Secretariat of State that had allowed the London deal to go through by stripping it of its ability to manage its own assets. But Francis left unfinished business and his overall record, at least according to some in the donor community, is less than positive. Critics cite Pell's frustrated reform efforts and the firing of the Holy See's first-ever auditor general, who says he was ousted because he had uncovered too much financial wrongdoing. Despite imposing years of belt-tightening and hiring freezes, Francis left the Vatican in somewhat dire financial straits: The main stopgap bucket of money that funds budgetary shortfalls, known as the Peter's Pence, is nearly exhausted, officials say. The 1 billion euro ($1.14 billion) pension fund shortfall that Pell warned about a decade ago remains unaddressed, though Francis had planned reforms. And the structural deficit continues, with the Holy See logging an 83.5 million euro ($95 million) deficit in 2023, according to its latest financial report. Advertisement As Francis' health worsened, there were signs that his efforts to reform the Vatican's medieval financial culture hadn't really stuck, either. The very same Secretariat of State that Francis had punished for losing tens of millions of euros in the scandalous London property deal somehow ended up heading up a new papal fundraising commission that was announced while Francis was in the hospital. According to its founding charter and statutes, the commission is led by the Secretariat of State's assessor, is composed entirely of Italian Vatican officials with no professional fundraising expertise and has no required external financial oversight. To some Vatican watchers, the commission smacks of the Italian-led Secretariat of State taking advantage of a sick pope to announce a new flow of unchecked donations into its coffers after its 600 million euro ($684 million) sovereign wealth fund was taken away and given to another office to manage as punishment for the London fiasco. 'There are no Americans on the commission. I think it would be good if there were representatives of Europe and Asia and Africa and the United States on the commission,' said Ward Fitzgerald, president of the U.S.-based Papal Foundation. It is made up of wealthy American Catholics that since 1990 has provided over $250 million (219 million euros) in grants and scholarships to the pope's global charitable initiatives. Advertisement Fitzgerald, who spent his career in real estate private equity, said American donors — especially the younger generation — expect transparency and accountability from recipients of their money, and know they can find non-Vatican Catholic charities that meet those expectations. 'We would expect transparency before we would start to solve the problem,' he said. That said, Fitzgerald said he hadn't seen any significant let-up in donor willingness to fund the Papal Foundation's project-specific donations during the Francis pontificate. Indeed, U.S. donations to the Vatican overall have remained more or less consistent even as other countries' offerings declined, with U.S. bishops and individual Catholics contributing more than any other country in the two main channels to donate to papal causes. A head for numbers and background fundraising Francis moved Prevost to take over the diocese of Chiclayo, Peru, in 2014. Residents and fellow priests say he consistently rallied funds, food and other life-saving goods for the neediest — experience that suggests he knows well how to raise money when times are tight and how to spend wisely. He bolstered the local Caritas charity in Chiclayo, with parishes creating food banks that worked with local businesses to distribute donated food, said the Rev. Fidel Purisaca Vigil, a diocesan spokesperson. In 2019, Prevost inaugurated a shelter on the outskirts of Chiclayo, Villa San Vicente de Paul, to house desperate Venezuelan migrants who had fled their country's economic crisis. The migrants remember him still, not only for helping give them and their children shelter, but for bringing live chickens obtained from a donor. During the COVID-19 pandemic, Prevost launched a campaign to raise funds to build two oxygen plants to provide hard-hit residents with life-saving oxygen. In 2023, when massive rains flooded the region, he personally brought food to the flood-struck zone. Advertisement Within hours of his May 8 election, videos went viral on social media of Prevost, wearing rubber boots and standing in a flooded street, pitching a solidarity campaign, 'Peru Give a Hand,' to raise money for flood victims. The Rev. Jorge Millán, who lived with Prevost and eight other priests for nearly a decade in Chiclayo, said he had a 'mathematical' mentality and knew how to get the job done. Prevost would always be on the lookout for used cars to buy for use around the diocese, Millán said, noting that the bishop often had to drive long distances to reach all of his flock or get to Lima, the capital. Prevost liked to fix them up himself, and if he didn't know what to do, 'he'd look up solutions on YouTube and very often he'd find them,' Millán told The Associated Press. Before going to Peru, Prevost served two terms as prior general, or superior, of the global Augustinian order. While the order's local provinces are financially independent, Prevost was responsible for reviewing their balance sheets and oversaw the budgeting and investment strategy of the order's headquarters in Rome, said the Rev. Franz Klein, the order's Rome-based economist who worked with Prevost. The Augustinian campus sits on prime real estate just outside St. Peter's Square and supplements revenue by renting out its picturesque terrace to media organizations (including the AP) for major Vatican events, including the conclave that elected Leo pope. But even Prevost saw the need for better fundraising, especially to help out poorer provinces. Toward the end of his 12-year term and with his support, a committee proposed creation of a foundation, Augustinians in the World. At the end of 2023, it had 994,000 euros ($1.13 million) in assets and was helping fund self-sustaining projects across Africa, including a center to rehabilitate former child soldiers in Congo. Advertisement 'He has a very good interest and also a very good feeling for numbers,' Klein said. 'I have no worry about the finances of the Vatican in these years because he is very, very clever.'
Kuwait Times
21-05-2025
- Politics
- Kuwait Times
US VP invites Pope Leo to make official visit home
Meeting comes ahead of US-led push to end the Russia-Ukraine war VATICAN CITY: US Vice President JD Vance met on Monday at the Vatican with Pope Leo XIV, the first leader of the global Catholic Church from the United States, and extended an invitation for Leo to make an official visit home. Vance, who was sharply criticized by the late Pope Francis over the Trump administration's hardline immigration policies, gave Leo a letter he said was from US President Donald Trump and First Lady Melania 'inviting you to come'. Leo, sitting across from Vance at his official desk in the Vatican's apostolic palace, took the letter and was heard to say 'at some point', according to handout video provided by the Vatican. The Vatican did not immediately respond to a request for comment about the invitation. A Vatican readout confirmed that Vance and Leo had met but offered no details about their discussions. A Vance spokesperson said they met one-on-one before being joined by Secretary of State Marco Rubio, who is also Catholic. As part of the meeting, Vance gave Leo a navy blue and orange jersey for the Chicago Bears, a US football team. It was adorned with his name, 'Pope Leo', and his number, 'XIV'. Leo, the Chicago-born former Cardinal Robert Prevost, is a relative unknown on the global stage, elected as the new pope on May 8. While a cardinal, he issued several disapproving posts about the administration's policies on his X account, reflecting his concern about migrants. The Vatican has not confirmed or denied that the posts were authentic. The late Pope Francis, who died on April 21, was a champion of the poor and of immigrants and who frequently criticized the Trump administration. He called Trump's plan to deport millions of migrants a 'disgrace' and rebuked Vance for arguing that the Bible calls on Christians to prioritize love for their families and countrymen over strangers and foreigners. Vance met briefly with Francis on Easter Sunday, the day before the pontiff died. Ukraine ceasefire Vance and Rubio have been in Rome to lead the US delegation at Leo's inaugural Mass as pope, held on Sunday among crowds of an estimated 200,000 people in St Peter's Square. After meeting Leo, Vance met on Monday with officials at the Vatican's Secretariat of State, the Church's top diplomatic office. A Vatican readout called those talks 'cordial'. 'There was an exchange of views on some current international issues, calling for respect for humanitarian law and international law in areas of conflict and for a negotiated solution between the parties involved,' it said. The meeting was ahead of a US-led push to end the Russia-Ukraine war. Leo, 69, has made peace the key word of his papacy so far and was expected to talk to Vance and Rubio about the US administration's role in pushing for an end to the Russia-Ukraine conflict in particular. There was a flurry of diplomatic meetings on the sidelines of Leo's inauguration, with world dignitaries discussing both the Zionist entity's offensive in Gaza and the Ukraine conflict. Ukraine's President Volodymyr Zelensky, who was present at the inauguration mass, met with Leo for his first private audience Sunday. He also sat down with Vance and Rubio to discuss 'their shared goal of ending the bloodshed in Ukraine,' according to the vice president's office. Leo offered last week to mediate between leaders of countries at war, saying that he himself 'will make every effort so that this peace may prevail'. And the pope's number two, Secretary of State Pietro Parolin, said Friday Leo 'may offer the Vatican for a direct meeting between the two parties', according to media reports. — Agencies
Daily Maverick
19-05-2025
- Politics
- Daily Maverick
US vice president meets Pope Leo, an American known for past criticism of Trump
A Vatican readout confirmed that Vance and Leo had met but offered no details about their discussions. A Vance spokesperson said they met one-on-one before being joined by Secretary of State Marco Rubio, who is also Catholic. Vatican handout photos showed Vance and Rubio smiling as they were seated across from Leo at the pope's official desk in the Vatican's apostolic palace. Leo, the Chicago-born former Cardinal Robert Prevost, is a relative unknown on the global stage, elected as the new pope on May 8. While a cardinal, he issued several disapproving posts about the administration's policies on his X account, reflecting his concern about migrants. The Vatican has not confirmed or denied that the posts were authentic. The late Pope Francis, who died on April 21, was a champion of the poor and of immigrants who frequently criticised the Trump administration. He called Trump's plan to deport millions of migrants a ' disgrace ' and rebuked Vance for arguing that the bible calls on Christians to prioritise love for their families and countrymen over strangers and foreigners. Vance met briefly with Francis on Easter Sunday, the day before the pontiff died. Vance and Rubio have been in Rome to lead the U.S. delegation at Leo's inaugural Mass as pope, held on Sunday among crowds of an estimated 200,000 people in St. Peter's Square. After meeting Leo, Vance met on Monday with officials at the Vatican's Secretariat of State, the Church's top diplomatic office. A Vatican readout called those talks 'cordial'. 'There was an exchange of views on some current international issues, calling for respect for humanitarian law and international law in areas of conflict and for a negotiated solution between the parties involved,' it said.
Yahoo
19-05-2025
- Politics
- Yahoo
First American pope welcomes Vance and Rubio for private Vatican audience
Pope Leo XIV on Monday held a private meeting with U.S. Vice President JD Vance and his wife, Usha, according to the Holy See Press Office. U.S. Secretary of State Marco Rubio and his wife, Jeanette, were also at the private meeting, according to Vatican News. Vance, Rubio and their wives had attended the pope's inaugural mass on Sunday. Pope Leo Says Family Based On 'Union Between A Man And A Woman,' Defends Dignity Of Unborn After the private audience with the first American pope on Monday, Vance met with Archbishop Paul Richard Gallagher, Secretary for Relations with States and International Organizations, the Holy See Press Office said. Vance and Gallagher had "cordial" talks in the Secretariat of State, where they reiterated good bilateral relations between the U.S. government and the Holy See. Read On The Fox News App Pope Leo Xiv Vows To Work For Unity, Peace During Inaugural Mass The two also discussed the collaboration between the Church and the U.S. government as well as "some matters of special relevance to ecclesial life and religious freedom." "Finally, there was an exchange of views on some current international issues, calling for respect for humanitarian law and international law in areas of conflict and for a negotiated solution between the parties involved," the Holy See Press Office article source: First American pope welcomes Vance and Rubio for private Vatican audience
