DIOCESE OF VIRGINIA IN FINANCIAL CRUNCH OVER LAW SUITS
By David W. Virtue
www.virtueonline.org
1/4/2008
The Diocese of Virginia is taking out a $2 million "line of credit" to pursue lawsuits against a dozen parishes that have fled their ecclesiastical grip. Revenues from remaining parishes have fallen short of expectations as parishes cease to pledge or fall behind on their payments.
The diocese also plans to sell "real properties" to raise cash. The Virginia Episcopalian, the official publication of the Diocese of Virginia, is reporting in its current edition that the Executive Board has "authorized the treasurer to open a $1 million line of credit to cover anticipated legal expenses for the near-term. That line has since been increased to $2 million and about $1 million has been accessed."
In addition, the Executive Board of the Diocese of Virginia authorized diocesan staff to plan "the sale of non-strategic diocesan real property" to raise needed cash.
The Diocese also revealed that nine churches have not paid any of their pledges, which Mike Kerr, Treasurer of the Diocese, estimated as a loss to the diocese of $50,000. In addition, other churches have not paid their pledges in full causing the diocese to run a deficit of expenses over income from those pledges.
