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Home / News & Publications / Michigan Catholic News / 2007 / Parishes to be incorporated

Parishes to be incorporated individually by year's end

Robert Delaney of The Michigan Catholic
Published October 5, 2007

Detroit –All parishes in the archdiocese will be individually incorporated as non-profit corporations by the end of this year, Cardinal Adam Maida announced Sept. 19.

The new structure will replace the "corporation sole" model, under which the archbishop has been considered the legal owner of all archdiocesan property, including parishes, the cardinal wrote in a letter sent to pastors throughout the archdiocese.

The change will help to ensure that parish property is not put at risk by future legal action against the Archdiocese of Detroit that does not involve the parish.

"Creating non-profit parish corporations is the simplest and most effective way of ensuring that the rights of parishes regarding Church property are respected not only in Church law, but also in civil law," Cardinal Maida said.

He noted that, according to Church law and Catholic theology, each parish has rights and responsibilities.

After incorporation, parish property will clearly belong to the parish, which will — for legal purposes — have a four-member board. The board will consist of the pastor, who will hold the title of president of the corporation, and a lay representative — either the parish pastoral council president or head of the stewardship commission — and two archdiocesan officials: the vicar general and chancellor.

Each parish's articles of incorporation and by-laws will reflect the archbishop's authority over the parish as set forth in canon law.

"Be assured that the day-to-day life of the parish will remain the same. There will be no major changes in our current practices and protocols," Cardinal Maida wrote in his letter.

He added that there are no pending civil or canonical court proceedings that call the status of parish property into question.

"Parish incorporation simply adopts a civil law model that more fully reflects the nature of the relationship that already exists within the archdiocese," the cardinal said.

Parish-sponsored schools are considered property of the parish, and will not be incorporated separately. Each parish in a cluster will be incorporated individually.

Individual incorporation of parishes was suggested by some people during the Together in Faith process, said Msgr. Robert McClory, chancellor of the archdiocese.

The idea is hardly new, however. Msgr. McClory said it has been under consideration for 17 years, ever since Cardinal Maida was first appointed archbishop. The cardinal had experience running a diocese with that legal structure as bishop of Green Bay, Wis. All Wisconsin parishes are individually incorporated.

The Holy See has been urging U.S. dioceses to incorporate parishes individually since the 1910s, after Vatican officials reviewed a 1911 case from New York State involving parish property, Msgr. McClory said.

He explained that the corporation sole model "arises out of an ancient tradition that in its time was designed to protect the patrimony of the Church" by ensuring that Church property would not go to a bishop's personal heirs after his death.

But Msgr. McClory stressed that parish incorporation would not alter the basic relationship of the parish to the archbishop or to the archdiocese.

"The parish will still need to file an annual budget and financial report with the archdiocese," he said.

And he added that parishes would also still need to obtain permission when making major decisions regarding their property. So, the kinds of decisions that have traditionally needed to go to the archdiocesan College of Consultors — about construction or buying and selling of property, for instance — will continue to do so.

Following incorporation, the parish board will be required to hold an annual meeting and file a simple annual report with the state. "Except for these annual meetings and filing the annual report, there should be no substantial difference in the operation of the parish," he said.

Msgr. McClory added that incorporation would not affect employee health and benefit programs, participation in the archdiocesan Loan Deposit Program, insurance or any services provided by the Michigan Catholic Conference.

Incorporation will, however, bring the possibility of an investigation — and perhaps action arising from that investigation — by the Michigan attorney general in the event of allegations that the business affairs of a parish corporation were not being managed properly, Msgr. McClory pointed out.

He said the archdiocese would seek to indemnify members of the parish board of directors from personal liability to the extent permitted by Michigan law.

Related Links:

• Questions and Answers Regarding Parish Incorporations