Sunday, August 17, 2008

Diocese looks to raise funds to battle bankruptcy

The Roman Catholic Diocese of Davenport may undertake a major fundraising campaign to help it bounce back from bankruptcy after its clergy sexual abuse scandal.

The diocese said Thursday it has hired Community Counseling Services, a fundraising consulting and management firm based in New York, to conduct a feasibility study to determine how much money could be raised.

The firm is working on a capital campaign for the Diocese of Tucson, Ariz., which also filed for bankruptcy because of a clergy abuse scandal.

The Davenport diocese also announced that Sister Laura Goedken of Iowa City will guide its fundraising efforts when she becomes the diocese's first development director Oct. 1.

In May, a federal bankruptcy judge approved a $37 million settlement between the diocese and 162 people who said they were abused by diocese clergy.

The diocese -- with 105,000 parishioners in 22 counties in southeast Iowa -- was responsible for $17.5 million, with the other $19.5 million coming from its insurance carrier.

Of the diocese's share, $5.9 million was contributed by four parishes and the St. Vincent Home Corp., which funds organizations that help children.

The diocese liquidated all of its assets and sold its property, including its headquarters in Davenport, as part of the bankruptcy case.

"After the first of the year when we began to realize we'd be coming out of bankruptcy, we saw a need for us to get back on our feet," Msgr. John Hyland, chairman of the diocese's Campaign Steering Committee, said in a statement.

"The only way that could take place was to begin the process of a campaign to raise money for the needs of the diocese."

At a court hearing in April, Judge Lee Jackwig said the use of a capital campaign to help pay the diocese's share seemed unusual.

But Char Maaske, the diocese's chief financial officer, said it was believed there would be enough parishioners willing to contribute to help put the matter behind them.
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