When to withhold parish donations?
CTA now has available a packet of materials to advise parishioners who wish to use the leverage of their contributions as a last resort in resolving disputes with pastors over justice issues.

The materials were developed in connection with St. Francis Xavier Parish in New York City in 1997-98 (see article in ChurchWatch, May 1998). In the packet are a case study from St. Francis Xavier, factors to consider in deciding whether withholding is an appropriate response, and sample legal agreements. The packet is available from CTA for $5 to cover costs.

At St. Francis Xavier, parishioners clashed with an autocratic new pastor. After all attempts at mediation and conciliation failed, a parish meeting called for the withholding of financial contributions until the pastor was replaced. Legal mechanisms were put in place, parishioners contributed $30,000 to a special fund instead of to the parish, and the pastor resigned. Later, the parishioners voted to forward the $30,000 to the parish. They felt that if the money had not been collected and "preserved" this way, it would have been lost to the parish even after the resolution.

What are the options for a parish in a similar situation?

1. A group of parishioners can incorporate, apply for status as a not-for-profit charity, and accept tax-deductible donations. If the dispute is resolved, they can donate the money to the parish. If not, they can donate it to other charities and justice organizations.

2. Because the legal steps of incorporation and receiving tax exempt status take time, parishioners may prefer to ask an existing 501(c)(3) organization to hold the funds. The St. Francis Xavier parishioners turned to CTA. They believed that the pastor would be replaced soon, and did not want to send signals that they expected a protracted conflict. CTA was able to establish a mechanism which met the needs of the Friends of Xavier, and also agreed with CTA's belief in the rights of laity to be part of decision-making in church matters.
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