• What is risk?
• When and why do we take risks with the temporal goods of the Church?
• Why is choosing to do nothing sometimes a risk?
• What is the “happy medium” between foolhardiness on one hand and complete avoidance of risk on the other?

For additional informaiton on this topic, please see Patrick’s presentation Opportunity, Risk and the Hierarchy of Goods in the Economic Order — presented November 19, 2011 in Toruń, Poland for the IVth International Congress – Catholics and the Economy: Opportunity and Risk.

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Marian University is currently constructing a new College of Osteopathic Medicine, only the sixth medical school in the country associated with a Catholic university. This project reflects the vision of President Dan Elsener and the Board and is a truly transformative undertaking for the University. To provide assistance in realizing this goal, the University hired O’Meara Ferguson to prepare a Long-Term Capital Plan (the “Plan”) and serve as financial advisor to the University for any financings related to the Plan.

Marian University is a Catholic, co-educational, comprehensive liberal arts university located in the City of Indianapolis, Indiana. The University traces its beginning to a school for teacher training founded by the Sisters of Saint Francis at Oldenburg, Indiana in 1851. The program was formalized in 1860 as the Academy of the Sisters of St. Francis. In 1864 it was renamed the Institute of the Immaculate Conception, and the following year it became the Academy of St. Francis. On April 8, 1885, the institution was chartered by the State of Indiana and called the Academy of the Immaculate Conception. In 1937, the college was chartered by the State of Indiana as Marian College with a four-year liberal arts program for young women and a teacher training department. Marian College moved to Indianapolis for the fall semester of 1937. In 1954 Marian became Indiana’s first Catholic coeducational college, and in June 2009, Marian College became Marian University.

Over the past several years, the University grew and progressed through expansions of the academic curriculum, enhancing the faith dimension on campus, creating a more vibrant campus life with the addition of a football team and marching band, and adding and renovating buildings. The University now provides undergraduate and graduate degree programs and leadership development opportunities to more than 2,000 students from 20 states and 12 countries and has a student to faculty ratio of 17:1. The University currently has 407 faculty and staff.

O’Meara Ferguson’s first step in developing the Plan was to meet with the University leadership team, its key advisors and Board members to gain a better understanding of their vision of the University’s future, the scope and timing of its operating and capital needs, the historical and desired approach to development and fundraising, and the use of long-term financing to fund future capital expenditures. This information was used to establish the Plan objectives and define any philosophical constraints within which the Plan must operate. Tactically, these discussions helped us to define our initial modeling assumptions.

O’Meara Ferguson created a consolidated 30 year financial model of the University’s operations and capital utilization. The model established all of the important sources and uses of capital, financing structures, projected debt service obligations, donation and campaign proceeds, construction, working capital, and contingency spending needs. Once the base model was constructed we reviewed the model and its assumptions with the University’s leadership team. The model was then used to test various capital structures to design the optimum long-term capital structure for the University.

When the key elements of the Plan had been determined, O’Meara Ferguson drafted the Plan that included a discussion of how the Plan elements will work together, the timing and scope for the implementation of the Plan components, and a final working financial model to test and validate the Plan’s economic viability.

Upon approval of the Plan, O’Meara Ferguson worked with the University to implement the financing delineated in the Plan, a $105 million tax-exempt bond issue. O’Meara Ferguson’s role as financial advisor included the following:

• Determination of the University’s overall debt capacity;
• Assessment of the University credit profile;
• Preparation of materials to obtain a credit rating;
• Identification and solicitation of likely lenders and underwriters;
• Review and evaluation of lender proposals and term sheets;
• Remodeling and assessment of lender proposals within the context of the Plan;
• Negotiation with potential lenders on behalf of the University; and
• Management and coordination of work among the University’s various representatives and counsels including civil and canonical legal counsel, accountants, and current lenders as it relates to the closing of the bond issue.

The projects financed through the bond issue consisted of the construction, renovation and equipping of various facilities on Marian’s campus. The center piece of the new projects is the construction and equipping of a new 140,000 square foot building, the Marian University Center for Health Sciences and the Healing Arts, to house the new Marian University College of Osteopathic Medicine as well as the Marian University School of Nursing and future advanced medical studies programs. The new College of Osteopathic Medicine, upon opening in August 2013, will be only the second medical school operating in the state of Indiana and will have facilities for 600 medical students at full enrollment. Other projects financed by bond proceeds included a new dormitory on campus, the implementation of various technology and deferred maintenance projects throughout Marian’s campus and the refinancing of existing debt.

Marian University is well on its way to realizing its vision of being a premier Catholic university that has expanded its mandate to include the education of physicians. O’Meara Ferguson is honored to have played a role in helping the University reach its goal.

This article is featured in our newsletter, Tertium Quid – Vol. 3, Issue 1

As a stewardship consultant I am often asked, “What makes for a successful campaign?” That is a difficult question because each pastor, chairperson, leadership team, parish, and locale is so different. And yet, there are elements of successful capital campaigns that keep reappearing.

A capital campaign is an exciting adventure for most parishes because it is a process that allows them to move from dreams to reality. It is the combination of prayer; inspiration, drive and conviction; well-crafted plans; effective communications; the employment of gifted individuals and teams; and the sacrifices and financial resources on the part of many people that turn dreams
into reality.

While all these elements are present in a successful campaign, further analysis of campaign results indicate that the role that the pastor and campaign chairperson assume as the campaign unfolds is critical to success. The following elements are found in pastors and chairpersons leading successful campaigns.

1. The pastor and chairs of successful campaigns are people seeking God’s guidance in prayer while encouraging the parish staff, campaign team, and parish to do the same.
   Very simply, God has great hopes and dreams and plans for us as individuals, families, and parish. In order for us to come to know these hopes and dreams we must be people of prayer, seeking God’s path forward, praying, “Lord, what do you want to do through us?” “What are you calling us to?” And once we have spent time seeking God’s will in prayer, we must get involved and invest our resources in God’s plan. Time in prayer, talent through involvement, and treasure through the giving of resources is the only way dreams become reality.
2. Successful pastors and chairpersons turn God’s dream into a plan for the parish.
   Whether it is building a new church or campus or school, renovating our facilities, developing new ministries, or paying off debt, our dreams must be turned into a plan with clear outlines and detailed estimates of costs needed to achieve the goal. A parish’s case should be crystallized and in place by the time the campaign begins.
3. Successful pastors start casting the vision early and often to all parishioners.
   Spend some time imagining what your project will look like when it is completed. What groups will be touched and impacted? Whose lives will be changed?

   It is often helpful to get together the dozen people who will make the most significant investments in your project, make a presentation to them, and then ask them, “Who will be impacted by this project?” How will they benefit from this project?” Have them spell out on flip charts as many benefits as possible. Later on, group these responses together, use them in your presentations and employ them in your communications. The responses gained in this exercise will go a long way in opening peoples’ eyes and gaining their support.

4. Successful pastors recruit chairs and team leaders who are enthusiastic about the vision.
   The pastor is the spiritual leader of the campaign, casting the vision, leading prayer and worship, writing homilies and articles, and soliciting lead gifts. The chairpersons are the functional leaders of the campaign. The chairpersons should share the vision. They should be excited about impacts and benefits to individuals, groups, the parish, and the whole community.
5. Successful pastors recruit chairpersons who have the demonstrated ability to lead people and complete projects.
   The chairpersons are the functional leaders of the campaign. They are the public face of the campaign, they are involved in the recruitment of effective team leaders, and they coordinate and oversee the teams as they complete their tasks.

   The chairpersons should be able to “stir the waters,” while being reliable. They should be able to complete tasks on time, and be able to get things done. Sometimes a pastor may wish to recruit a key parishioner who is an influencer, inspiring and charismatic, but this person is not known for completing tasks well. In this case, the pastor should also enlist one or two co-chairpersons who can “stir the waters” and get things done.

6. Successful pastors and chairpersons recruit team leaders who are supportive of the vision, who have demonstrated abilities in the areas called for, and who also know how to “stir the waters” and get things done.
   Pastors and chairpersons are responsible for recruiting team leaders and building a leadership team. They will therefore want to recruit people who support the parish vision. Since there are various teams needed and tasks to be completed, they must also recruit team leaders who have demonstrated abilities in these areas. This cannot be stressed too strongly. A campaign is like a Rubik’s cube with many moving parts. Failure to meet deadlines can bog a campaign down, or worse, ruin it. Again, you want team leaders who are “short on talk and long on action.”
7. Involve as many people as possible in the leadership, the work and the presentations.
   Generally, it is better to involve as many people as possible on leadership teams. More people involved on the various teams means more people have a greater understanding of the vision. This often translates into more people becoming invested in the vision, which gives campaign a greater chance of success.
8. Pastors and chairs of a successful campaign must be praying about God’s call to them and their sacrificial gift, and they should be sharing the fruits of their prayer with others.
   Pastors and chairpersons should be praying about the sacrifices God is calling them to make. When they are seeking God’s leadership, He may take them to places they never thought they would go and be calling them to things they never thought they could do. There can be resistance and significant challenges. And it can be difficult.

   Sharing your call to sacrifice with the folks is itself inspiring and helpful. They are going through the same thing. Pastors and chairs who share their stories and even the sacrificial gifts they’ve made tend to have the most successful campaigns.

   Pastors and chairpersons who sacrifice and invest will lead their people to sacrifice and invest. We all can take great comfort in remembering that we are neither the first nor the only ones to sacrifice and invest. Our parents and grandparents and great-grandparents built beautiful churches and schools and institutions across this country, not because they had more, but because they sacrificed.

9. Successful pastors and campaign chairpersons are prepared to reach out to the top 30-75 donor prospects.
   A successful campaign requires large gifts among the many gifts received. Every donor and every gift is important. And each parishioner is called to give back to God for God’s work and to sacrifice. In fact, the message of the campaign needs to be, “Not equal gifts, but equal sacrifice.” The business leader and the retired nurse, because they will make sacrifices in their own way, will not be making the same kind of gift.

   Though all gifts are necessary, it is important to keep in mind that the larger gifts of a campaign will make up at least 30-40% of all funds received. Therefore, the pastors, chairs, and major gifts team will need to approach people of financial means for the first gifts and lead gifts of the campaign. They must also encourage everyone to participate as everyone has a part to play and everyone will receive a benefit. As Mother Teresa said, “No one is so rich that they have nothing to receive, nor so poor that they have nothing to give.” The larger financial gifts of some parishioners and the sacrificial gifts of all parishioners lead to the combined result of an effective and successful campaign.

10. The pastors and chairs of successful campaigns oversee and support all the teams comprised of the leadership team.
    After good and effective leaders have been recruited and trained, it is up to the pastors and chairpersons to guide the individual teams, coordinate their efforts, support them in their work, and appreciate them for all they will be doing. Again, the abilities of the chairpersons will be important in fulfilling these tasks. And when it comes to the team leaders and the people who make up their teams, you can never say “thank you” enough.

In conclusion, pastors and chairpersons who are entering into a campaign wish it to be successful. No one who is going to put that much time, effort, prayer, and resources into such an effort will want it otherwise. Following these ten elements of careful planning and leadership will lead you to the successes you are seeking, taking you a long way down the road of turning God’s dreams and your dreams into reality.

This article is featured in our newsletter, Tertium Quid – Vol. 3, Issue 1

For Pat O’Meara, asking a donor to give a gift is to invite that person to do something eminently personal, for giving to the Church is “in the highest form, the incarnation of an individual’s self donation to Christ.”

For a complementary presentation of this topic in written form, please see Pat’s essay entitled “Giving — The Incarnation of One’s Self Donation to Christ: The Authentic Disposition of the Giver.”

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Today, having a clear faith based on the Creed of the Church is often labeled as fundamentalism. Whereas relativism, that is, letting oneself be “tossed here and there, carried about by every wind of doctrine”, seems the only attitude that can cope with modern times. We are building a dictatorship of relativism that does not recognize anything as definitive and whose ultimate goal consists solely of one’s own ego and desires. (Ratzinger, Joseph Cardinal. Pro Eligendo Romano Pontifice, April, 2005)

The day before he was elected Pope and received the name Benedict XVI, Joseph Cardinal Ratzinger proposed the descriptive phrase “a dictatorship of relativism” to define the central threat of Postmodernism, the prevalent belief system of the early 21st Century. Postmodernism, a philosophical worldview that is highly skeptical of any system which claims to be valid for all groups, cultures, traditions, or races, vehemently denies all truth statements in favor of a more enlightened position that all truth is relative to the individual. Nothing is definitive. There is no Truth.

It should be no surprise that the Church faces a challenge from relativism at the dawn of the 21st Century. As Rene Girard has pointed out, the predisposition towards relativism has evolved, in part, from the necessities of our time. Societies are mixed. A plurality of peoples and belief systems dwell side-by-side on the local and global stage. Mankind inhabits a truly “global village.” Such diversity of beliefs living in close proximity to one another requires a sense of tolerance and, at the very least, an acknowledgment of the worth of the individual regardless of beliefs.

However, the “dictatorship of relativism” which Pope Benedict XVI speaks of is not this type of pluralistic tolerance that respects other beliefs. The dictatorship of relativism is Postmodernism taken to its logical conclusion, a conclusion that cannot tolerate the presence of any system that posits Truth. The result is a dictatorial worldview that opposes all belief systems, including Christianity and the tenets of the Church. Postmodernism extends beyond a pluralistic tolerance. Postmodernism requires a dictatorship of relativism, an “indifferent tolerance” that refuses to believe there can be any superior Truth.

Thus, in a world where it is no longer fashionable to believe in anything other than yourself, where society frowns upon and sometimes makes it illegal for individuals to live out their beliefs, those who propose belief – any kind of belief – are viewed with mistrust, disregard, and occasionally anger for even the suggestion that there is Truth. The Christian belief system opposes, in direct counterpoint, this “indifferent tolerance” of relativism. Christian doctrine teaches that there is Truth. It goes even further to state unequivocally that we can experience and understand that Truth through Jesus Christ and the Sacraments of the Church. It is no surprise, therefore, to find animosity towards Christians. It is no wonder that Pope Benedict sounded the alarm.

The Church must offer response to this dictatorship of relativism. Recently, Pope Benedict reminded the Church: “The evangelization of culture is all the more important in our times, when a ‘dictatorship of relativism’ threatens to obscure the unchanging truth about man’s nature, his destiny and ultimate good” (Pope Benedict XVI. Mass Homily, Glasgow, Scotland. September 16, 2010). It is not enough to “stand” against the tide of relativism. The threat against human identity and a future of hope is imperiled. The Christian must be involved proactively, and not just passively, to counter the dictatorship of relativism by evangelizing the very culture of our times.

The practice of Christian stewardship is the life-affirming response to this dictatorship of relativism. The Postmodern challenge of relativism requires a response that links the practice of Christian Stewardship to the clarion call for a New Evangelization. The battle for the life-affirming teachings of Sacred Scripture and the traditions of the Church will not be won solely in the public sector through skillful rhetoric and philosophical debate. As never before, victory must also be won in the minds and hearts of the many disillusioned, disheartened and disenfranchised peoples throughout the world. When the popular belief system teaches that the highest expression of love is self-love, that the highest form of good is self-actualization, and that all that matters is to “live and let live,” an unequivocal, doctrinally sound Christian stewardship is required. The Christian disciple living out Christian stewardship is the most concrete representation of the teachings of our Lord who instructed his followers to provide for the homeless, to care for the widows and the orphans, to share with the destitute, to heal the sick, to proclaim freedom to the captives, to visit those in prison, to share light in the darkness, and to proclaim “this is the day of the Lord.” The ultimate Truth of Christianity will be experienced as legions of the clergy and laity alike live out the Gospel message to “love your neighbor as yourself,” shining forth in the midst of dark, impersonal, difficult times. A life of Christian Stewardship is the definitive stand taken by the individual which says, “This I believe. This is important to me. This is how I want to be remembered.”

It is important at this point in the discussion to make clear distinctions between the many forms and strategies of fund-raising that are present in the postmodern world. Christian stewardship must address the disciple’s use of money, as the main form of exchange in this present world is a transfer of funds in order to purchase goods and services. But stewardship is about much more than money. Stewardship, at its most basic, defines a lifestyle that affirms the relationship between the Giver, the Gifts, and the Receiver.

Stewardship, by its very definition, affirms the existence of the greater One. There can be no steward without a Lord. The existence of the steward assumes that the properties and goods he is watching over are not his own – they belong to the Other, his Lord. There is no sense of stewardship until one affirms this most basic relationship. On this one point, the dictatorship of relativism must concede: if we are stewards of our world, we care for that world on behalf of another. Someone other than “me” and “mine” has intrinsic value. The Other exists. We are not our own, we owe a responsibility to the Other. This first affirmation of Stewardship begins to put the lie to the dictatorship of relativism.

Christian Stewardship teaches that everything in our life, all of our reality, is a gift from God. A prevailing concession in postmodern thinking involves an acknowledgment of the “Other” as some impersonal, theoretical life-force. Christian Stewardship opposes this view. The Other is not some unknowable, impersonal, force or karma. Christian stewardship affirms that a personal, knowable God is the greater One. This God is creator of the universe and all that is in it. But further, God allows us to know Him, to have a relationship to Him. He is not just a Creator who wound up reality and then walked away; He seeks to make Himself known to his creation, and to know His creation in return. Intrinsic to His revealed nature is his personal identity as provider, father and husband. He provides for Adam and Eve. Later he is known as the Good Shepherd who watches over the flock and provides for His sheep. He is the Father of Israel. And He is the Son of Man, the Servant of Israel. His is the one who gifts His children “with all good things.” God is Giver. Indeed, the revealed nature of God answers that ages-old question, “If God is the owner of the ‘cattle on a thousand hills,’ why does He need my gift?” The only appropriate answer to this question is found in the nature and desire of God as Giver. God loves us and wants us to be like Him. An intrinsic part of the nature of God is that God is Giver. Therefore, God wants us to grow in our relationship to Him by becoming givers as he has given to us.

Christian Stewardship affirms that the true Owner of our existence has expectations about its use and development. From the beginning, Sacred Scripture teaches that mankind is but a steward of God’s creation, and that God has expectations about the way mankind will use and share His gifts. In His many encounters with Abraham, God teaches these truths. When Abraham is about to sacrifice his son, God provides a ram for the offering. At that moment, Abraham names God as “the One who Provides.” Throughout God’s encounter with Abraham, God promises a blessing upon Abraham and his descendents, both biological and spiritual. But God also makes this clear: His blessing is not to be squandered in selfish desire; His blessing comes with responsibility. God affirms that he is blessing Abraham so that through the descendants of Abraham, all nations will be blessed. (Genesis 12 ff). This theme of “blessed to be a blessing” runs like a golden thread throughout Sacred Scripture as God unfolds His purpose for His people. What we receive is not for our own good only; we are blessed so that we may bless others. God expects his stewards to nurture what they have been given, and share it with others with a sense of justice.

It is this concept of the benevolent care of God, that we are “blessed to be a blessing”, which must shape and inform our acts of Christian Stewardship in our battle with the dictatorship of relevance. Stewards must communicate that they share their gifts of Time, Talent and Treasure because it is the intrinsic nature of God to care about His creation; our grateful response to His love in our own lives must be a visible expression of His care for our world. God is the first one who tells each of us to “Pay it Forward.” Each act of Christian Stewardship must affirm that behind the Gift is the Giver. In the onslaught of the dictatorship or relevance, the reality of God and His intrinsic love for His creation can have no stronger argument than the concrete, specific acts of kindness and deliverance that occur in His name. Each act of kindness, each “cup of water” given in His name, is vital. Evangelization at its most basic level occurs each time that the Christian community takes seriously the responsibility of Stewardship and is unequivocal in expressing such acts as the Acts of a loving God. These acts of sacrificial love given in His name are outward signs of the New Evangelization.

Christian Stewardship in the Twenty-First Century will require the Participation of the Disciple. S. Truett Cathy and Kenneth Blanchard are best known for their business acumen and their success in the corporate world. Cathy is the founder of the very successful fast-food chain Chic-fil-A. Kenneth Blanchard is the author of a multitude of One Minute Manager books. In 2002, Cathy and Blanchard co-wrote a small volume titled The Generosity Factor. In this parable, Blanchard and Cathy addressed the challenge of stewardship in a postmodern world. In their novel, a young businessman is challenged to live a life that has meaning. The young man’s mentor in this novel proposes to his charge that it is no longer enough to share just Time, Talent and Treasure. He says that if one really wants to make a difference in his own world, he must be willing to Touch it as well.

This addition of a fourth element , Touch, to the classic “Time, Talent, and Treasure” equation of stewardship is profound. In the 21st Century, it is too easy to develop a proxy stewardship. Sharing of Time, Talent and Treasure becomes something we delegate or relegate to the periphery of life. It is much too easy in the current environment to “throw money at it” or just “pray for it.” As Cathy and Blanchard so poignantly illustrate, our current world demands more. Indeed, authentic Christian stewardship in the 21st Century demands that the disciple be involved. It is time to share the Touch of Christ with the needy, the destitute, the demanding. Each disciple must be actively engaged; each must reach out and touch. Each steward must be willing to say, “I will become personally involved.” Proxy stewardship is not sufficient and cannot fulfill an authentic call to be Christ to the world.

In conclusion, there is some glimmer of hope on the horizon. Our research at O’Meara Ferguson seems to indicate that this current postmodern generation is no longer content to simply “pray and give.” They want to be a part of the solution. This postmodern generation wants to reach out; they seek to Touch. And it is just this type of participation and involvement that provides the strongest argument against the dictatorship of relativism. A fully-committed growing steward of Christ who is a part of the solution for a hurting, needy world is the best weapon in the battle against the dictatorship of relativism.

Today it is a matter of the greatest urgency to show a Christian model of life that offers a livable alternative to the increasingly vacuous entertainments of leisure-time society, a society forced to make increasing recourse to drugs because it is sated by the usual shabby pleasures…. The Christian model of life must be manifested as a life in all its fullness and freedom, a life that does not experience the bonds of love as dependence and limitation but rather as an opening to the greatness of life.
(Ratzinger, Cardinal Joseph. Without Roots: The West, Relativism, Christianity, Islam. New York: Basic Books, 2006. pp. 125-126)

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 9

I write this article as I am flying over the Sudan on a trip that I never imagined I would take. When Pope Benedict’s Caritas en Veritate first came out, I was asked to speak on it around the country. I primarily spoke to Legatus Chapters and similar groups. As I spoke to them I stressed the Pope’s affirmation of our obligation to assist in the development of our fellow man. For those able to assist those beyond their Polis, there exists a similar obligation to utilize the influence that exists in potencia. The Holy Father writes “The idea of a world without development indicates a lack of trust in man and in God. It is therefore a serious mistake … to overlook the fact that man is constitutionally oriented towards ‘being more.’” (paragraph #14). Throughout my talks, I prayed to more deeply understand what the Lord was calling me to do and what He was calling O’Meara Ferguson to do.

At O’Meara Ferguson, we are now doing more than we ever have for the Church. The quality of our work and our impact, we believe, only continues to grow. We have been invited in to conduct campaigns, as well as wonderful and exciting projects for parishes and schools involving finance, development, planning, and greater recruitment and training of the laity for a number of diocese and archdiocese. We have been growing at a very brisk pace and we continue to see that growth in the future. This is all what we have hoped for. Yet in my prayer and that of our entire staff, I asked the Lord to lead and asked what He was calling us to do and I had an unfortunate experience of the Lord speaking to me, and with an answer that was not within my comfort zone. I felt certain that these wonderful things that we are currently doing are enough and I was not disposed to stretch beyond my vision for our work.

Yves Congar says that all heresy lies fundamentally in a denial of the incarnation. It is easier and certainly neater if God remains in the Heavens. Fortunately He chose to come down and break the chains of death and sin. We are challenged today to see if we believe that He still does incarnate himself. This implies a certain openness to action if we believe that we are hearing him speak to us. This past weekend I flew to Africa with Jim Grant, Albert Holder, Fr Dan Mahan, and Bob Chronowski. As we send this newsletter, I have begun a series of meetings with Archbishop Lwanga in Kampala Uganda.

Over the years we have been asked again and again if we could help the Church in Africa and in every instance we could not come up with a response that was convincing to ourselves that the work would bear fruit. So in response to what I was hearing in my prayer times, that we set out into the deep, we set down on paper a short piece on how we would get involved in Africa through investment (as opposed to aid) for the development of the individual. Primarily, this investment will be focused where there is already religious or cultural renewal occurring, where the individual already believes they are the primary agent of change in their life. I sent this paper on to 6-10 people and the response was more than I expected. (O’Meara Ferguson African Development Fund)

I expected to be told that we should let these ideas go, but overwhelmingly I heard loud support, including from several University presidents’. Interestingly the Archbishop of Kampala reached out to me directly because he had received my white paper. When we spoke, he asked that we “come and see.” I told the Archbishop that I truly wanted to help but that, in addition to our existing projects, we are engaged in several large campaigns and we are in the early stages of preparing for two others that would be the first and second largest campaigns in the history of the Church – yet he was clear in his request for us to do this work. I told our board that I believed we should get involved in Africa, but that the time and the temporal realities were such that we could not go right now. My Board agreed whole heartedly. Then the Lord began to speak clearer.

I was contacted by Archbishops and Abbots who called to say it was on their mind that I should think about going to Africa. Over the course of two weeks, I had two bishops from Africa visit my office and ask me to come. I spoke to my staff and we all agreed that this was not the time, but acknowledged that we needed to be open to the Lord and needed to continue to pray. My scriptural reflections at the time led me to the great commission, and the Isaiah pericope “Then I heard the voice of the Lord saying, ‘Whom shall I send? Who will go for us?’ ‘Here I am,” I said; “send me!’.” (Isaiah 6:8-12) A university expressed interest in possibly (after appropriate due diligence) putting $10 million in such a development fund. The final straw was a call from an Abbot who began his conversation with me by saying, “Pat I have a strange request for you, but have you ever considered going to Africa …”

This challenge, again and again in my prayer time and in sign after sign that the Lord was calling me to Africa, finally came to a head when I asked two people if I could go. First, I asked my wife (who is pregnant with our eighth child), and after weighing all that had occurred, she agreed we should explore this work. I then called my other boss, Jack Whelan. He is our CEO, the Chairman of the Board of O’Meara Ferguson, and a man of great faith. I told Jack that I truly felt called to go to Africa and that, while I would cede to his authority, I asked for his endorsement and support. On the Feast of the Birth of the Virgin Mary, he gave me permission and his blessing to move forward. This process was extremely slow and evidences my own shortcomings in listening to the Lord, but also clearly lays out that the Lord is calling us to more. I see this project in Uganda as an opportunity to respond to the needs where the reality for men and women to “be more,” as the Pope says, is so visibly present. This is a due diligence trip and we have quite a team looking to see if we can produce fruit in the vineyard, should we be given the vineyard by the Master.

Some of the temporal problems that plagued our decision have been solved, while some remain. But we move forward in faith that the Lord will handle these issues as we “step out of the boat” as we have discerned He beckons us. I ask all of you to pray for us to have the sense of Magnanimity to do what the Lord envisions, not just what we seek to accomplish. The greatest work He seeks to accomplish is in each of our souls as He does wondrous things within us, and He desires so much more. Pray that if it is His will, we will make possible the full development of some of our Brothers, for He thirsts for them, and how wondrous it will be if we can be His hands.

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 8

When the American bishops published their pastoral letter on stewardship in 1992, the title they chose for this historic document was Stewardship: A Disciple’s Response. How does the title for this document contribute to our understanding of stewardship as a way of life?

Stewardship is a relatively new term in the Catholic vocabulary. The underlying principles (gratitude, accountability, generosity and giving back with increase) are ancient—dating back to themes in the Old and New Testaments and to the earliest Christian writers. But their application to the choices of modern living is new. Until recently, Catholic Christians were asked to approach stewardship as an obligation—either to support the work of the Church or as an expression of Christian charity. There was not much emphasis on the personal, spiritual dimension of Christian stewardship as a way of life.

The bishops’ pastoral letter sought to change the emphasis from giving out of a sense of obligation to giving as a response to God’s love for us. Stewardship is not simply an obligation, the bishops say, but it is also a joyful response to the Lord’s invitation: Go, sell what you have. Give it to the poor and come follow me. Stewardship is a response in faith. It is our “yes” to God’s invitation to totally give ourselves to him.

Stewardship is a form of spirituality. It is a way of responding to the invitation/challenge we have received from the Lord to follow him without counting the cost. In fact, how we respond to God’s call determines whether or not we are good, generous or responsible stewards. The pastoral letter calls attention to the many ways that a disciple of Jesus Christ can respond in faith to this radical, life-changing invitation, but the way we respond determines whether or not we are faithful stewards of the gifts and talents we have received from God.

Mary is the first Christian steward and the model for all who wish to follow her son because her response to God’s call was an immediate and unreserved “yes.” The saints also provide us with powerful examples of how to respond in faith to the Lord’s call to be his disciple—without counting the cost. In a very real way, the saints help us to understand the spirituality of stewardship. They show us that there are many different ways to respond to God’s love and still be faithful, generous stewards of all God’s gifts.

For example, Franciscan spirituality is nothing more (or less) than the way St. Francis responded to the Lord’s call through simplicity of life and solidarity with all God’s creation. The spirituality of St. John Vianney, a humble parish priest, was very different, but it was no less genuine and no less powerful as a witness to Christian discipleship. Blessed Mother Teresa of Calcutta responded to Jesus by serving the poorest of the poor. St. Thomas More responded to the Lord by living a life of integrity and choosing to die for his faith. When we say that stewardship is a way of life, and an expression of Christian spirituality, we mean that it is a way of responding to God’s personal call—a way that respects the gifts and talents of each individual and that seeks to discern and do God’s will in the specific circumstances of every person’s life. As the bishops’ pastoral letter tells us, the supreme model of Christian stewardship is Jesus himself. He was the Good Steward— the one who shared himself with others completely and perfectly and who gave himself back to the Father in the fullness of love.

Stewardship is a form of spirituality because it challenges us to develop and use the gifts and talents God has given us and then to “give them back with increase” by making a generous, grateful response to whatever the Lord asks of us. The spirituality of stewardship is profound. But it is also practical. It involves the choices we make every day: how we spend our time, what we do with the skills and talents God has given us, how we care for the environment, what we do with our money. Stewardship is a way of saying “yes” to God through the actions of our daily lives. It is a way of living the Gospel in the real world.

How do I respond to God’s invitation to be his disciple? The way we answer this question determines our personal spirituality and the quality of our response to the Lord’s call to be a generous and loving steward.

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 8

Is creating an endowment(1) wrong philosophically, conceptually or practically for a Catholic institution? In this article, I will provide some limited background on opposing views and their rationale and argue that it is well within Christian principles, and in keeping with mission fulfillment, sound operating practices and good stewardship, to establish a foundation (or an endowment).

Catholic thinking on the use of economic or temporal resources is greatly influenced (as it should be) by religious order (monastic and otherwise) traditions. When St. Ignatius of Loyola searched for God’s will in the founding of the Jesuit Order, he delved into and prayed about the practical aspects of the new organization and considered the relative benefits of “Radical” versus “Mitigated” poverty. Following centuries of Church tradition which had seen the rise of mendicant orders, the sustenance and mission support for the formative Society of Jesus was more than an academic question needing to be resolved for the Order’s Constitutions. St. Ignatius very objectively listed the pros and cons of each direction and came to the following observations: mitigated poverty would enable a greater focus on prayer, preaching and other apostolic work, while radical poverty would force the Order to more readily acknowledge and trust in God’s provision in a daily, direct manner, enhance humility and help foster a direct imitation of Christ’s material poverty that would set an example.

More contemporarily, I recently had some dealings with a very accomplished, financially savvy, devout, for-profit, Catholic business owner. This faithful businessman believed that the typical Catholic institution’s annual appeals and constant need to fund raise was healthy in keeping the leadership and organization humble (“begging”, as he put it, helps promote humility). While there may be salutary effects of this modus operandi, and it is, more often than not, the Not for Profit (NFP)/Catholic default(2) MO, one should consider the benefits of revamping this mindset in the context of an equally valid, faith-based concept that offers a different approach: the establishment of a foundation to ensure and perpetuate mission fulfillment.

Why would a Catholic institution(3) that is legally deemed a not-for-profit entity and is not intended to accumulate wealth or produce profits consider establishing a foundation or endowment? There are four primary reasons that will be put forth, in order of priority:

1. Mission fulfillment. Sets a framework that focuses on organizational objectives and the use of temporal resources in fulfillment of the mission.
2. Avoidance of continually acting in a ‘crisis’ mode that is deleterious to mission fulfillment, the underlying organization and its staff.
3. Promotes prudent financial management. This concept builds on fundamental stewardship principles of increasing and looking after goods God has given or entrusted to us.
4. Financial/Legal/Operational. Financially, an organization should be developing plans to meet known, upcoming or projected liabilities. Legally, a foundation helps to separate funds designated (e.g. by the donor) or destined (e.g. by the bishop) for a specific purpose, while protecting those assets. Operationally, the segregation of funds helps establish the programmatic use or budgeting of these endowed funds.

With Pentecost fresh in our minds, we are reminded that the birth of the Christian Church and its theological mandate to make disciples of all nations (Matthew 28:19), required logistical organization and material support. While it is true that the disciples were told to go as they were, we know that an apostolic lineage was created, with the attendant organizational challenges for meeting the practical needs of the new Christian community (Acts 4:32-35). The parable of the Talents (Luke 19:11-27) is a well-known instance where we are asked to be good stewards and return, with increase, what the Lord has given us. But without discussing the need for ‘investing’ or using one’s talents, we should bear in mind that God really does not need us at all, but rather He is providing us opportunities to grow in faith and trust in His providence. In other words, yes, God will provide, but He expects us to cooperate with, be active and play a role in His salvific plan.

An endowment allows for the essential mission to be met by forgoing consumption today for anticipated, projected or future needs. “If the Vatican sold all its ‘treasures’ it could feed the poor of the world,” is a common refrain. Yes, it has some immediate truth to it, but what happens after, presumably, the ‘poor are fed’? Who decides on the definition of “poor”(4), which parts of the world are to be fed and for how long? An endowment, by investing the corpus (the initial investment sum), helps provide ‘meals,’ as the case may be, or mission fulfillment long after the donor makes the initial gift. Properly managed, the endowment can theoretically last into perpetuity. How much good can that do, not just for today but for tomorrow and beyond!

Often times, major donors and corporate benefactors will be much more generous knowing that there is a formal investment and programmatic plan in place versus responding to an episodic fund-raising need. Seeing an established program devoted to carrying out their intentions long beyond their lifetime provides comfort that their giving is making a difference. So, on another level, an endowment is beneficial in creating a plan and forcing the implementation of processes and disciplines that many NFP entities overlook or dismiss.

A perennial crisis-driven way of functioning is not healthy for the organizational mission, clients, employees, donors or volunteers. Seldom does a foundation meet 100% of the financial needs of the underlying entity, but it does usually provide for a certain predictable stream of revenues. For example, if a foundation is seeded with a $20 million corpus and has an annual spending policy of the typical 5.0%, then staff can count on $1 million per year and know which programs and administrative overheads can be covered and how much additional fund-raising remains to be accomplished. In setting-up a foundation, the leadership is laying the groundwork for a more methodical, deliberate form of operation. Planning and budgeting is now a more meaningful exercise that is to be adhered to and improved upon.

Christian principles of good stewardship involve returning with increase and ensuring prudent, responsible use of resources. In pursuing an endowment approach, one need only note the results of many university endowments(5) that have consistently bested market returns by investing in a broader, more diversified investable universe. The never-ending search for yields and returns continues to be challenging as fixed income returns and overall interest rates remain relatively low compared to historical trends. Few investors can keep up with inflation and the needs of a growing constituency by investing in “risk-less” U.S. Treasury 10 year bonds at (or below) 3.0%. An endowment allows Catholic institutions to approach their investment portfolio more thoughtfully, judiciously considering their liquidity needs and allocating to additional asset classes that can actually reduce the volatility of the overall portfolio. Responsibly looking after and investing endowment funds can help develop “intergenerational equity” that will sustain the organizational mission despite changes in continued donor support and in the operating environment. This long- term development of patrimony is not intended to serve as a material anchor that creates a spiritually deleterious attachment. This intergenerational can serve to maintain St. Peter’s Basilica, for example, for the praise and glory of God for many future generations.

University and other NFP endowments do not attempt to drive donor engagement by asking to support a noble but financially struggling cause, but rather by presenting a viable case-for-support that is transparent, forward-looking and tangibly makes an impact to the organizational mission. While some aspects have to be tailored to a faith-based organization, there are lessons to be learned from their experience. Attracting top staff is one positive (possible) outcome of using endowments as an organizational tool. One smaller, Catholic university recently endowed a teaching chair and was able to attract a highly acclaimed professor that otherwise may not have accepted the offer from a smaller higher education institution.

Another aspect of the sound financial management that an endowment can help foster (although somewhat different from the returns and investment horizon advantages noted above) is the development of asset-liability matching programs. Simply put, this means that the investment or asset side of the organizational balance sheet is organized so as to be responsive to the liability side of the balance sheet. Concretely, assets are invested by the foundation to anticipate, say, the maturity of debt or pension fund obligations or periodic lawsuit settlement payments.

Some critics of building an endowment by Catholic institutions believe it will make the organization and/or leadership complacent. In relying on the endowment and not its constituents for support, there is a danger that the connection with the Body of Christ can become severed as the organization does not need the support of the laity. While this is a risk for any organization, the responsibility for maintaining organizational focus is a managerial and governance issue that depends on hiring the right team and recruiting the proper Board. Studies have shown that building safer cars actually makes drivers more complacent in their driving habits, but the answer is not to remove the air bags but rather to put in place structure in the form of laws and education that seek to remedy the issue. If the right personality and competency profile of person is attracted to and retained by the organization, complacency will not set in. In addition, a mission focus which continues to seek to draw as many of the laity into their mission will avoid this complacency which ultimately can lead to the organization becoming insulated and insular instead of outward focused and mission oriented.

From a legal perspective, there is a trend(6) for Catholic dioceses to establish foundations. Despite being driven by more legal considerations of asset protection, compliance with donor intent, and governance, this trend seems to be accelerating and is complementary to many of the financial and other mission fulfillment points noted.

In conclusion, while it may not be a solution for all instances or all organizations, and there are legitimate counterpoints, creating an endowment can be used by Catholic institutions looking beyond the immediate time frame and beyond the role or impact of any single individual. Establishing a foundation or endowment can yield many benefits that range from sharpening focus on the mission, to helping ensure operational or programmatic sustainability to offering a formal legal vehicle that, when professionally and properly managed, can help us (individually and corporately) to give our best for God and neighbor.

(1) While there may be legal and practical nuances, the use of the terms “Endowment” and “Foundation” will be used interchangeably in this article. – (return)

(2) Here a distinction is drawn between a conscious, informed choice to operate an organization in this manner, as opposed to functioning this way circumstantially due to lack of organizational clarity, poor decision-making or inaction. – (return)

(3) The institution can take the form of a diocese, religious order, high school, cemetery, hospital, university, foundation, etc. – (return)

(4) Without entering into Scriptural interpretation, much has been written on the “Poverty of Spirit”. A temporally wealthy person can be spiritually bankrupt and desperately require pastoral care. One’s attitude toward material wealth is more spiritually important than actually having wealth or not. – (return)

(5) For example, using FYE 2009 results (and without including the 2010 investment return recovery) Yale’s endowment was down 24.6% for that (2009) fiscal year, but had a 10 year, 11.8% average return. – (return)

(6) A more thorough treatment of this legal trend is beyond the scope of this article. – (return)

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 6

The benefits of a diocesan capital stewardship campaign are numerous, surprising, and – frequently serendipitous. I have run into people who actually look forward to capital campaigns. They enjoy the challenge and are looking forward to working with like-minded people, meeting new people, and helping to build God’s Kingdom. Perhaps they’re the type of persons who have it in their DNA to be positive about everything, or they remember the good from a previous campaign that left a lasting impression on them.

But in spite of these brighter notes, diocesan campaigns can be difficult and challenging. My intention here is not to be negative or to offend anyone, but to be transparent and acknowledge the challenges a campaign faces. For until those difficulties are named and there is a willingness to go through the struggle to address and overcome them, a successful campaign will not take place.

Even in the best situations the prospect of a capital campaign is often met with reluctance, suspicion, fear, apathy and, at times, anger. One can overhear comments like: it’s the wrong time, the economy is bad, people are already doing all they can, we’re busy enough without one more thing to do, all the church ever does is ask for money, things are fine the way they are.

Issues of trust, whether perceived or real, present significant hurdles. Others feel that it is hard to send money “downtown” when there are so many needs right at the parish. Such parochialism separates many parishes from the larger mission of the church. And when it comes to ecclesiology some people are not well informed and there are others who simply don’t agree with the ecclesiology of the Church. All these issues can foster an atmosphere of tension and negativism between the diocese and parishes, regardless of the original causes and history.

With that being said, you might wonder why I am a proponent of diocesan campaigns. Let me share with you why despite all the challenges, I see diocesan-wide capital stewardship campaigns as a way to strengthen, energize, and deepen the spiritual life of all who prayerfully participate.

First, a diocesan campaign sharpens the vision of each parish and the diocese as a whole. Proverbs 29:18 is translated in various ways. One of the most common is “Where there is no vision the people perish”. A more literal translation is “Where there is no vision the people are unrestrained.” In other words where no vision exists people go off in all directions doing their own thing. When this occurs unity is broken, effort is depleted, and the impact the Church has on the world is diluted. While not all people will always agree on a leader’s vision, a clear vision provides purpose and direction, maximizing the effort of those who serve, and the resources available for ministry.

The Bishop’s vision for the local church provides the centerpiece for every campaign. While components of his vision may include such diocesan-wide emphases as priestly formation, Catholic school tuition assistance, cathedral renovation, or ministry development (these vary from diocese to diocese), O’Meara Ferguson recommends that individual parishes also have an opportunity to receive great individual benefit from a campaign. To quote one of our clients, “strong parishes create a strong diocese”. For that reason the individual parish vision is also critical. Parishioners are encouraged to work with their pastors to build the campaign around their understanding of their parish’s mission. If a parish does not have a clear vision for ministry, consultants are able to guide parish leaders as they seek to discern what God’s will is for their parish, thus building the campaign around fulfilling critical mission components. A clear statement of mission transforms the campaign effort from raising money to fulfilling God’s purpose for the parish at this time. The campaign becomes the “plan” or strategy that will help the parish fulfill their calling in Jesus Christ.

As the Bishop casts his vision and encourages each parish to shape and fulfill their own mission within that vision, something else happens. The “we versus them mentality” begins to ease and is replaced with a realization that everyone in the diocese is about the same work: making God’s kingdom visible and influential here on earth. Admittedly, coming to this realization is a slow process and a united campaign is just the beginning. Nevertheless, as parishes enter into a campaign, the atmosphere begins to change. Bishops have opportunities to connect with people by listening to their concerns, hearing their stories, correcting misinformation, and getting to know each individual on a more personal level. This leads to another benefit that is realized through a diocesan-wide capital stewardship campaign: leadership development and engagement.

I have yet to serve in a campaign where new leaders did not come to the fore. A central part of every campaign is providing settings where bishops and other diocesan leaders can influence people on an individual basis. The development of these relationships motivates people to step forward to take a leadership role. When they are listened to, valued, and when they understand their leader on a personal level, they are inspired to serve. In fact I witnessed one person who moved from the skeptic of all skeptics to a supporter of the bishop and diocesan ministries because his bishop took the time to talk with him, answer his questions, and follow up. As a result this individual became the catalyst who gradually helped the entire parish re-embrace their bishop and collectively take up their role as a leading parish in the diocese.

As relationships grow, trust grows. Few would disagree that there are trust issues in many dioceses. It exists in parishes toward the diocese and in the diocese toward parishes. A diocesan campaign, for lack of a better way of saying it, forces communication. Divisive issues are out of necessity brought to the table. During the ramp up phase of a campaign, derisive meetings may take place. Because we are people of faith who are grounded in Christ’s love we try to avoid such meetings and discussions. In doing so there is often the danger that an undercurrent of pain and negativism may grow and dominate. Unless we are willing to engage in these discussions the pain and negative undercurrent will continue to exist. The dialog and discussion in these meetings can lead to healing and hope. They can form the foundation for a new relationship of openness, understanding and trust. In one case a parish’s first campaign meeting of about 120 people was filled with anger, resentment and accusations. After an hour and a half the meeting drew to a close with little resolution, but a window had been opened. At one of the final meetings of this campaign, once again approximately 120 people attended. But unlike the first meeting, this meeting was one of joy and celebration. Were all the problems solved? No. But there was a new sense of purpose and trust as people responded to the bishop’s vision and the vision and needs of their parish.

Let me close with a few examples of things that have happened as a result of diocesan campaigns, things you might not expect, and conclude by sharing some thoughts about the spiritual dimension and benefits of a campaign.

Keep in mind that the events described below happened because people stepped forward in faith, although sometimes reluctantly, and were willing to work through the tough issues:

• A pastor, now a bishop, commented that his parish experienced a 4% increase in weekly giving following a campaign. He attributed the increase to the spiritual focus of the campaign and to people’s deeper understanding of what it means to be a steward of God’s gifts.
• In another parish the campaign prayer team of 80 people decided to continue as an ongoing parish ministry.
• Yet another parish, as a result of one of the strategic activities of the campaign, learned that they needed to strengthen their ministry to the elderly and shut-ins.

We would all agree that it takes money to conduct ministry. Indeed, one of the objectives of a capital campaign is to raise money for ministry. But the campaign is not just about money. It’s about seeking God’s will, discovering God’s will, and responding to him individually and as a community of faith. Too many companies, organizations and individuals view giving and raising money as something that takes place outside of and in addition to our walk of faith. But in our modern world where money has become the agent of exchange and purchase, giving of one’s financial assets is the act that most often enables each of us to engage in the corporal works of mercy that are so central to our faith. To put it simply, giving is an act of faith that is central to our faith. It is an acknowledgement that God is the source of all that we have and all that we are, and we are privileged to be stewards of his blessings. Our giving demonstrates our dependence upon God as we respond not by doing what we think we can do but by doing what God is calling us to do. And many times, this level of sacrificial giving reveals to us that what we think we can give and what God is calling us to give are quite different. O’Meara Ferguson believes that every capital campaign is a journey of faith during which transformation takes place as people, guided by the Holy Spirit, commit themselves to prayerful discernment.

The most gratifying part of our work is not the amount of money that is raised, but the people who come up to us at the end of a campaign and share with us how their lives have been changed and their faith deepened.

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 6

Seems simple enough, fill the schools and they will be financially stable. All references to long dead fictional British detectives, notwithstanding.

The problem for many Catholic schools that are struggling financially is that they simply do not have enough students enrolled at the right tuition rates to pay the bills, let alone pay for mounting deferred maintenance and fixed operating costs. In many situations, especially at older schools, pastors and principals see additional students as leading to added costs for teachers, aides, and supplies and so are reluctant to increase enrollment. This zero sum game approach leads to underutilized schools, with empty seats, and lost opportunities for thousands of kids. (1)

Underutilized schools, long thought to be the result of changing demographics and higher tuition rates, are in truth a management problem. While demographics and increasing costs do indeed play a role in the demand for Catholic education, enrollment is in fact, far more dependent on management behavior and sound revenue management practices. Based on our study of hundreds of Catholic schools, operating characteristics like tuition rates, household income, ethnicity, Catholic versus non-Catholic student bodies, and test scores have little or no statistical correlation to school enrollment. Rather, management focus on enrollment and the strategic use of tuition assistance are far better enrollment drivers. Principals and pastors who focus on school enrollment and effectively leverage tuition assistance get more students.

While somewhat counter to conventional thinking in the world of Catholic education, none of this is a surprise to those in the airline, hotel, or cruise line industries. They, like Catholic schools, each run business with inventory that “goes bad” or spoils with time. Airlines know that every empty seat represents lost revenue. Hotel operators live with rooms that spoil at the stroke of midnight. And cruise lines hate to set sail with empty cabins. To avoid spoiling inventory, they all manage inventory and pricing minute-by-minute to maximize revenue from each available seat and room. As rooms fill up, prices increase – to a point. If it looks as though rooms or seats might go empty, prices on the remaining inventory drop. Not all passengers or hotel guests pay the same price – this is revenue management 101.

Of course Catholic schools are mission driven first, but they too must use effective revenue management techniques to attract as many students as possible. Secular businesses set published rates and use discounts to capture every available customer. It is important not to simply reduce prices across the board, lest the business’s value proposition be equally devalued. Similarly, Catholic schools can use tuition assistance rather than reduced tuition rates or discounts to fill partially empty classrooms.

Just as with the empty seats on a half-full airplane or empty cabins on a cruise ship, when the plane takes off and the cruise ship sails, the cost of each empty seat in a partially full schoolroom has already been spent. As a result, any tuition paid by even one additional student falls right the school’s bottom-line. Offering significant tuition assistance on empty seats costs a school nothing, but each tuition dollar collected on those same seats has a profound impact on the school’s net income and financial viability. (2)

Even a marginal increase in enrollment can be significant. Imagine a diocese with 50, K-8 parochial schools with a total enrollment capacity of 22,500 students. If, like most dioceses these hypothetical schools operate at 70% of capacity, there is room for approximately 6,750 children. Then, if each new student paid just one-third the stated tuition rate (assuming a tuition rate of $3,000 per year) the schools would realize $6.7 million of combined incremental revenue, most of which is pure net income.

Catholic school administrators have long grappled with the “fairness” of variable tuition pricing. Our sense of justice seems violated if one student pays more than another, unless of course, one can afford it and the other can’t. Financial need remains the conventional rationalization for discounting tuition. While we would not argue with this approach, we would also offer the parable of the Laborers in the Vineyard (Matthew 20) as an additional guide. The parable of course tells of a vineyard master who pays each laborer the same full day’s wage even though only some worked the entire day. The vineyard master cheats no one, but through his generosity offers the gift of a job and a wage to workers who would otherwise go without. In the work of evangelization, we are called to do the same and invite others to join us in this vineyard; no matter when they are called or when they respond the reward of eternal happiness is the same for all. This same spirit of generosity should permeate the work of evangelization which goes on in every venue in which the Church is present, particularly in our schools where our Lord reminds us “Let the children come to me … for the kingdom of God belongs to such as these.” (Luke 18:16). Therefore the mission of evangelization must come before money and perception.

Our many wonderful Catholic schools represent thousands of classroom vineyards waiting for laborers. By being better stewards of the gifts we have already received, we can fill classroom seats that will otherwise go empty. Filling empty seats means full classrooms and more viable Catholic schools.

It’s not just the money. Full schools enjoy many other benefits from a healthy dynamic, including a more engaged student body and parent community. The school becomes not just another decaying part of a dying neighborhood, but a sign of hope and a rallying point for revitalization. It also drives greater parishioner involvement through increased financial support and in-kind-services, even in schools that are predominately populated with non-Catholic students. Of course, more students and parents attract more donors and donor support enabling fixed costs to be spread over a broader community further driving down per student costs.

Finally, full schools mean waiting lists, the ultimate sign that something good, vibrant, and healthy is happening. Full schools are self-fulfilling and self-sustaining if we not only employ sound revenue management practices to fill empty seats, but also keep as our primary motivation and inspiration the generosity of our Lord by constantly seeking ways to make the opportunity of a Catholic education available to as many children as possible.

O’Meara Ferguson is gathering together some of the most effective practitioners and brightest minds in Catholic Education for a symposium. We will discuss how integrating finance, development, planning and operations can help put our institutions of learning on the path to a better tomorrow. We’d like you to join us.

• Catholic Education: Sustaining the Mission     Integrating Finance, Development, Planning and Operations to Strengthen Catholic Education   • February 8 – 10, 2012   • San Antonio, Texas

(1) In some situations, particularly with inner-city schools, many have argued that there is no student demand even with a zero tuition rate. Framing the problem as a pricing issue of course denies the entire value proposition of the school in question. Alternative school operating models are the solution here. – (return)

(2) Revenue management strategies employed in the business world are very sophisticated, driven by complex computer models that track demand continuously. They are also run in tandem with equally well crafted marketing and advertising campaigns. More on how these strategies can be modified to fit the needs of Catholic schools will be addressed in future Tertium Quid articles. – (return)

This article is featured in our newsletter, Tertium Quid – Vol. 2, Issue 5