Diocese makes centennial campaign distributions

By RENEE WEBB, Globe editor
September 4, 2003

Checks totaling $60,000 have recently been distributed to various entities in the Diocese of Sioux City. The money represents the majority of the first-year investment income from funds raised through the diocese's Centennial Campaign for Excellence.

According to Julie Luft, controller for the Finance Office in the diocese, the campaign investments earned about $80,000 and the corporate board of the diocese and the board of the Catholic School Foundation opted to distribute about 75 percent of the income.

"Everyone realizes that last year market-wise has been a real challenge in terms of return on investments," said Jim Wharton, director of stewardship and planned giving for the diocese. "While the distribution this year is small, it is non-the-less important that the funds are going to the various entities across the diocese. To me, it is a real demonstration that these endowed funds are doing what we said they would."

The income may have been smaller than hoped, but it is better than what was expected just a few months ago.

Luft acknowledged that as of February, the diocese had only made about $2,000 on the invested $1.79 million. The schools and other benefactors of the campaign were even told not to count on any return this year.

"We had a great fourth quarter - the second quarter of the calendar year - and had significant earnings so we were able to do the distribution after all," she said.

In the end, the centennial campaign endowed funds earned 4.5 percent interest. Both Luft and Wharton mentioned that the centennial campaign dollars are invested conservatively, in bonds and dividend paying stocks.

The Centennial Campaign for Excellence, which raised $14.2 million in pledges, was set up to raise money for four specific areas - Catholic schools, multi-cultural ministries, Catholic Charities and Adult faith formation: religious education and youth ministry.

Through this first distribution of investment income Catholic schools received $31,500, adult faith formation: religious education and youth ministry received $9,000, multi-cultural ministries received $6,000 and Catholic Charities received $13,500.

Every Catholic school in the diocese received money.

"There are two components for the schools," Luft explained. "If donors specifically designated their school, then they will receive a check related to the earnings on those donors' pledges. They also receive a check in relation to the number of full-time teachers they have."

The Catholic school funds are to be used for teacher salaries and benefits.

Set up as a five-year campaign, most donors have three to four years left in payments on their pledges. In late July of this year another $2 million was added to the $1.79, so as of late August just over $3.8 million is invested in the centennial endowed funds.

Luft estimated that by next year, another $2 million will be turned in by donors and then invested. She anticipates that a second distribution will be made in August of 2004.

Once the market improves, coupled with greater dollars invested, Wharton said he believes the distributions should have a much greater impact for the four areas of need.

At the same time, while income is expected to increase over next several years as pledges are collected, it will vary from year-to-year based on market conditions and investment performance.

"We are in the second year of a five-year campaign," explained Wharton. "Up to now, we are very pleased with the response of the people in the diocese."

People are responding to their pledges and the cancellations have been minimal. The pledges that have been cancelled, he noted, are mainly due to family illness or job situation. New pledges have offset these losses.

"In terms of delinquencies, that number is very small, too," he said. "Overall, we have been really thankful for the responses we have received from the people of the diocese in payment of their pledges."

Over the next few months, Wharton explained that the Office of Stewardship and Development will be contacting donors who gave a one-time gift to see if they would be willing to help the campaign in its second year.

"Given all of the challenges we have had over the last two years, essentially since the campaign began in January of 2001, the response has been nothing short of miraculous for the people to make gifts of that magnitude," he said. "It's humbling when you see people take part in sacrificial giving. We've seen it in a lot of instances and we appreciate it."