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Sunday, 15 July 2012 01:00

Diocese implements new parish, diocesan legal structures

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Beginning July 1, the Diocese of Springfield in Illinois has implemented a restructuring process of the civil law entities of the diocese and each of its parishes.

In a recent memo to pastors, parochial administrators and parish life coordinators, Bishop Thomas John Paprocki explained that planning for the restructuring process began when Archbishop George Lucas was bishop of the Springfield diocese. The process was finalized by Bishop Paprocki in May after consultation with the deans, the Presbyteral Council, the College of Consultors and the Diocesan Finance Council.

"The principal objective of the restructuring is to create a civil law structure which mirrors as closely as possible the relationships established in canon law among the diocesan bishop, the pastors, the diocese and the parishes, and which enables the civil courts and administrative agencies to deal with these church entities through civil law entities which are understandable to those accustomed to dealing only with civil law entities," Bishop Paprocki's memo said.

Under Illinois law, which is similar to most other states, a nonprofit corporation is governed by a member or members who hold what is called "reserved powers" that enables them to direct fundamental aspects of the corporation such as appointments to the board of directors, approval of changes to bylaws, borrowing or lending money and, ultimately, merging or dissolving the corporation. An appointed board of directors or trustees handles day-to-day business.

Under the restructuring, the diocesan bishop is the member with reserve powers in both diocesan and parish corporations.

In diocesan corporations, the board of directors is the bishop, the vicar general and the chancellor.

In parish corporations, the board of directors is the pastor or parochial administrator, the vicar general and the dean of the deanery in which the parish is located. In cases where the same person occupies two of these offices (e.g., the pastor is also the dean), the diocesan chancellor will be the third director.

In a similar way, real estate (land, structures, etc.) held by parishes and dioceses will be placed in separate real estate trusts, in effect allowing the parish real estate trust to "lease" property back to the parish. These trusts, in turn, will be controlled by a trustee corporation with the diocesan bishop as reserved member and the bishop, vicar general and one other appointee as directors.

"What we are doing is taking how we operate and showing it in a civil law structure that courts, attorneys and anyone in the legal profession can easily relate to," said John Maxwell, director of the diocesan Office for Finances. "The new structures will have very little impact on parishes and how they operate on a daily basis."

Most notably under the new structures is the fact that parish lay trustees will no longer be required, Maxwell said. The Code of Canon Law — and the bylaws of the new parish corporations — include provisions for parish pastoral and finance councils as consultative bodies through which lay voices are heard.

"The new civil law structure is intended to mirror canon law," Bishop Paprocki said. "In canon law, the laity are heard through the parish pastoral council and the parish finance council, hence the role of lay trustee is discontinued. As we begin functioning with this new structure, I thank the parish trustees for their dedicated service. Their continued involvement in other ways in the life of our parish will be much appreciated. May God reward them!"

Bishop Paprocki said he has written letters of appreciation to former parish trustees, thanking them for the service over the years.

One final adjustment to the diocesan structure is that the Diocesan Deposit and Loan Fund will be established as a separate charitable trust, with the diocesan bishop as trustee.

The Deposit and Loan Fund holds funds and assets on behalf of diocesan and parish corporations, and provides regular reports on its earnings. Bishop Paprocki will appoint a committee to manage investments for the fund and to review and approve loan requests.

For more information, contact Maxwell at (217) 698-8500 or email . Or, visit the Office for Finances on the diocesan web page at www.dio.org/finance.