Restructuring provides clarity between civil and canon law

Parishes will see few changes in their daily operations

Criterion staff report

The Archdiocese of Indianapolis recently moved to have each of its parishes recognized as separate, non-profit corporations—a restructuring process that aligns its civil law structure with its already established canonical structure.

While the move is designed to provide greater legal clarity about the relationship between the archdiocese and its parishes, it will have minimal impact on the day-to-day operations of parishes, according to archdiocesan officials.

“I don’t think it really changes anything, but it does help people understand the rights and responsibilities of a parish, a parish’s pastor, the archbishop and the archdiocese,” said Jeffrey Stumpf, the chief financial officer of the archdiocese. “Parish members should not notice any changes. Parish leaders will have a little more documentation to take care of.”

The connection between a parish and the archdiocese won’t change either, according to John “Jay” Mercer, the attorney for the archdiocese.

“The archdiocese still retains the hierarchical structure required by canon law and recognizes the archbishop as the principal pastoral officer entrusted with the care of the diocese,” explained Mercer, who filed the paperwork for the parishes’ incorporation with the Indiana Secretary of State’s office on Oct. 28.

Archdiocesan agencies and high schools were incorporated in June of 2009.

In anticipation of the restructuring, Stumpf and Mercer met with pastors and parish leaders across the archdiocese to discuss the process. One of the tools they used is a set of “Frequently Asked Questions,” starting with the reason why parishes in the archdiocese are being separately incorporated.

The answer to that question reads, “According to canon [Church] law, every parish in the archdiocese has its own unique set of rights and responsibilities, including the right to hold and administer Church property. Under our current civil structure, however, parishes have no recognized legal identity, and thus no right to buy, sell, hold or administer their own property.

“After much study and prayer, we have determined that creating non-profit parish corporations is the most effective way to ensure that a parish’s rights regarding its property will be respected not only under Church law, but also under civil law. In other words, by separately incorporating our parishes, we will be adopting a civil law structure that will most accurately reflect our ecclesiastical identity and our canonical structure.”

As part of its incorporation, each parish will be required to have a board of directors with the pastor, priest ­administrator or priest moderator serving as the chairman of the board.

The board will also have to have at least one annual meeting and be required to file an annual report with the Indiana Secretary of State.

The move to separate parish incorporation will help parishes isolate their liability risk. There are also other potential benefits to parishes, according to Mercer.

“With local boards of directors, there may be better accountability for local decision making,” Mercer said. “There may also be a better understanding of the relationship and the role of a parish, its pastor and the parishioners as it relates to the archdiocese as a whole.”

Parishes will continue to interact with the broader archdiocese, and the archdiocese will continue to provide administrative support to the parishes, Stumpf said. All parishes will also remain in communion with Archbishop Daniel M. Buechlein and be accountable to him.

In choosing this restructuring process, the archdiocese is following the ­recommendation of the U.S. Conference of Catholic Bishops and joining other dioceses which have incorporated their parishes.

“After years of study and prayer, we have decided that we are now ready to move forward with this transition,” archdiocesan officials noted in the set of “Frequently Asked Questions.”

“In some cases, civil courts have misinterpreted the actual manner in which a diocese holds its property, creating confusion between the canonical and civil identity of the parish property. By separately incorporating the parishes, we strive to clear up this confusion and, through a civil law structure, reinforce the canon law principles.

“While there are no current civil cases that require us to make these structural changes, we are doing so to avoid potential future issues.” †