Diocese makes distribution from centennial campaign

By RENEE WEBB, Globe editor
September 15, 2005

Checks totaling more than $223,000 were recently sent out to various Catholic entities that were designated to benefit from the Diocese of Sioux City's Centennial Campaign for Excellence, which was held in 2002. The distribution represents the majority of the third-year investment income from the capital campaign.

Jim Wharton, diocesan director of stewardship and planned giving, pointed out that this is the third year for campaign distributions. Last year, $140,000 was distributed and in the first year, it was about $60,000.

According to Julie Luft, controller for the diocese's Office of Finance, pointed out that there was a five percent return on investments in the past year.

"The investments for the centennial campaign are invested very conservatively because we need to be able to generate income in order to make a distribution on an annual basis," she noted. "Both the corporate board of the diocese and the Catholic School Foundation board review the centennial investments on a quarterly basis."

Luft mentioned that these boards opted to distribute just 75 percent of the investment earnings so that they can grow a cushion in the event that some year there are negative returns. That way they could still get to make a distribution.

Wharton pointed out that most people made five-year pledges, so with that in mind there are less than two years left in the campaign.

"The distributions that the diocese makes are earmarked toward the four initiatives that the centennial campaign was designed around," he noted.

The initiatives identified in the campaign - deemed to be four critical areas of need - were Catholic schools, Catholic Charities, diocesan faith formation programs and multi-cultural ministries.

The $223,118 campaign distribution is as follows: $116,243 to Catholic schools including $9,403 to Catholic School Foundation, $50,625 to Catholic Charities, $22,500 to multi-cultural ministries and $33,750 to faith formation programs of the diocese.

Each Catholic school in the diocese received a check to help offset costs of teacher salaries and benefits.

While Catholic schools received a direct benefit, all parishes benefit in some way as the money that goes to the diocesan Offices of Adult and Family Ministry, Catechesis and Youth Ministry is intended to help fund programs that offer such things as adult faith formation and catechist in-services.

Wharton mentioned that the services of both Catholic Charities and multi-cultural ministries of the diocese are both needed now more than ever.

"What is interesting about this campaign is that it was the largest campaign in the history of the diocese, but it's also interesting that it is 100 percent endowed funds," noted Wharton. "This means that the principal continues to grow as people make their pledge payments. We spend the interest off of the initiatives every year to fund the initiatives."

If investments go well, it is estimated that the distributions will continue to grow for the next two years as the principal gets larger via the campaign pledge receipts of the final two years. This year's distributions were calculated on the third year investment income ending June 30.

Luft pointed out that to date the diocese has received about $8 million in cash receipts.

"It's important that the people in the parishes of the diocese who have been so loyal in making their pledge payment that they see the benefits coming back to their parishes. Even when this campaign is over - 10 years out, 20 years out - people will continue to see the positive impact the centennial campaign has because the funds are endowed," said Wharton.

He pointed out that there were nearly 13,000 donors to the campaign.

"The great majority of those donors have either paid off their pledge in full or continue to make the payments on their pledges as they said they would do," said Wharton. "Those people need to know how much we appreciate their loyalty to the campaign. Because we can see all the positive impact that the campaign will have on these programs and Catholic schools, it is more important than ever for people to continue to make their pledge payments."