Even without supporting a big social welfare system or bloated defense establishment, the Vatican is running a large deficit for such a country…I mean, church…I mean, country, according to the Associated Press.
The Vatican has registered one of its worst budget deficits in years, plunging back into the red with a (EURO)15 million ($19 million) deficit in 2011 after a brief respite of profit.
The Vatican on Thursday blamed the poor outcome on high personnel and communications costs and adverse market conditions, particularly for its real estate holdings.
Not even a (EURO)50 million gift to the pope from the Vatican bank and increased donations from dioceses and religious orders could offset the expenses and poor investment returns, the Vatican said in its annual financial report.
I predict a new revelation from God raising the tithe to 12%.
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TGAP Dad
July 22, 2012 at 9:45 am (UTC -4) Link to this comment
I would not be surprised if this is a bit of “creative accounting” which results in a spike in
revenuetithings. After all, they let this story get out, didn’t they? Judging by the gilded palaces and temples they own, overtu isn’t in their immediate future.Jasper of Maine (I feel safe and welcome at FTB)
July 22, 2012 at 9:49 am (UTC -4) Link to this comment
I’m surprised that they so readily admit that this whole church/religion thing is nothing but business.
Doubting Thomas
July 22, 2012 at 9:50 am (UTC -4) Link to this comment
No worries, they can just pray the deficit away. Can I get an Amen?
Marcus Ranum
July 22, 2012 at 9:55 am (UTC -4) Link to this comment
The fire-sale could be impressive.
frankb
July 22, 2012 at 10:09 am (UTC -4) Link to this comment
I.m surprised they are not blaming all the lawsuits and secular society and hte gay.
Pierce R. Butler
July 22, 2012 at 10:21 am (UTC -4) Link to this comment
If only they had someone in authority there whose judgment never fails, and a magic chair to activate his superpower…
dingojack
July 22, 2012 at 10:24 am (UTC -4) Link to this comment
Maybe they could try and
screwwring some more cash out of German Catholics by selling ‘get out of Hell/purgatory early’ certificates, it worked so well in the early 16th century!Dingo
Randomfactor
July 22, 2012 at 10:28 am (UTC -4) Link to this comment
Wonder how their deficit compares to their court-ordered settlements for losing child-molestation suits.
dingojack
July 22, 2012 at 10:40 am (UTC -4) Link to this comment
Don’t tell me – the next successful suit they will claim they’re bankrupt and so not pay a cent. :(
Still I’m sure St. Francis would be pleased (if he could be).
Dingo
cptdoom
July 22, 2012 at 11:01 am (UTC -4) Link to this comment
There’s nothing new here – the Vatican always runs with a deficit. When I was a kid in the Catholic church, there was an annual collection to pay down the Vatican’s debts.
It actually makes sense when you think about it. The Vatican may be wealthy on paper, but assets like the Sistine Chapel are both priceless and valueless at the same time – you can’t exactly sell them. And when your leader likes $1,000 Prada loafers, expenses are going to be high.
Draken
July 22, 2012 at 11:33 am (UTC -4) Link to this comment
There’s of course one reason why income may have dropped which the Church, SA will never mention in its annual report. Although, it could be covered by “communications costs and adverse market conditions”.
I suspect the RC Church has most of its assets in real estate and art, much of which is cultural heritage and can’t really be sold. On the other hand, restoration of many of these buildings often receives grants from the state or external parties- the Sistine Chapel seems to have been subsidised by Japanese television.
No doubt Ratzinger will sigh for himself, “Where are those times when we could arrest the Jews for heresy and seize their property?”.
Dr X
July 22, 2012 at 11:43 am (UTC -4) Link to this comment
As cptdoom says, this is a perennial problem. The once-a-year collection for the Vatican is called Peter’s Pence. It’s the only money that goes to the Vatican from local churches and dioceses. The rest of the Vatican income is from investments, Vatican businesses–museums, commemorative coins/stamps and a working post office.
Catholics don’t tithe–there’s no prescribed amount Catholics are expected to give.
Chris from Europe
July 22, 2012 at 12:21 pm (UTC -4) Link to this comment
Doesn’t church tax in European countries also go to the Vatican?
Chiroptera
July 22, 2012 at 12:39 pm (UTC -4) Link to this comment
cptdoom, #10: The Vatican may be wealthy on paper, but assets like the Sistine Chapel are both priceless and valueless at the same time – you can’t exactly sell them.
That’s because they aren’t actually a real country. If they were, there’d be tremendous pressure on them to sell of assets and privatize basic functions.
democommie
July 22, 2012 at 2:04 pm (UTC -4) Link to this comment
Well, when you’ve got a country the size of Disneyworld and it has several hundred princes to support…
Re: Catholic tithing. Back in the mid 60′s, my archdiocese did “Fair Share” which WAS a sort of “scaled tithing”. My dad was leaning on a rake watching me and my siblings doing yard work one sunday afternoon when a couple of the parish “elders” stopped by. They talked to my dad for a minute, he said something and laughed and they went on up the block.
When they were out of earshot he said that they had told him that based on the size of the family and so forth (they can’t have known his income) that they thought his “Fair Share” should be about $3/week–he was probably making $100 or so a week and supporting a wife, 11 children AND making periodic donations to the HTSTETOK* Fund at a local donation center.
He said that would be fine, as he’d been giving $5.
Knowing my dad, he was jerking their chains.
* Horses Too Slow To Earn Their Own Keep
dean
July 22, 2012 at 5:02 pm (UTC -4) Link to this comment
Perhaps not officially, it doesn’t mean local officials can’t be pricks about asking for money. My wife gets “reminders” from the local diocese that tell her not only is she expected to give each week (“as much as possible, preferably at least ten percent”) but in addition contribute to the special appeals on top of this. Further, one of the priests at the church she attends says “if you don’t want to give then don’t attend so that others who do wish to give can have a seat”.
That makes it very easy for me to stay home.
cag
July 22, 2012 at 5:28 pm (UTC -4) Link to this comment
Obviously the cost of toilet paper suitable for Holy Shit does not come cheaply. Also, the cost of silence has gone up.
tfkreference
July 23, 2012 at 12:23 am (UTC -4) Link to this comment
The Vatican on Thursday blamed the poor outcome on high personnel
They really shouldn’t be getting high at work.
laurentweppe
July 23, 2012 at 1:32 am (UTC -4) Link to this comment
His Holiness Panzer the first tried but it caused an outcry. Besides, Germans have spent the last four years bitching about Greece giving to much money to its church (but bitching so much about orthodox priest buying german cars), le moment serait mal choisi
matty1
July 23, 2012 at 7:32 am (UTC -4) Link to this comment
Investments, debt? I do hope the church isn’t involved in the sin of usury.
left0ver1under
July 23, 2012 at 5:44 pm (UTC -4) Link to this comment
Ah, if there were only another Charles Keating willing to steal money from depositors at financial institutions and give it to the vatican. Keating gave them $20 million, more than enough to cover this year’s loss.
Then again, right now there are plenty of cretins willing to steal money from depositors at financial institutions. The problem is, now they give it to shareholders or pocket it themselves.