Like every good Catholic, surely you have had to explain the Pope, the Virginity of Mary, priestly celibacy, and refute the nonsense that appears in tabloids and on TV—which includes everything from claiming Jesus had children to conspiracy theories about the worldly power of the Church. Within those piles of rubbish, there is always someone who asserts authoritatively, “The Vatican is the richest institution in existence, if it would sell everything it has, it could eliminate poverty in the world.”
Does the Vatican have more economic power than global giants like Walmart, Apple, and co*ke? Fortune magazine, which specializes in economics, has published an article in which it refutes the notion of the “Vatican’s great wealth.” In fact, it verified that the Vatican would not even be among the 500 most wealthy on its famous “Fortune 500.”
Seven Things to Know About the Finances of the Catholic Church
For your spiritual peace of mind, and so that you can share the information with others, here are some facts which will serve you well if you need to explain the finances of the Vatican and the Church.
1. The most valuable assets of the Vatican are invaluable and are not for sale
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To summarize: The Vatican’s possessions are treasures of humanity. They are as priceless as the first love letter you received from your spouse. Immensely valuable to us (and perhaps to some eccentric collector), but they cannot be sold. In its museums, the Vatican has some of the greatest artistic treasures of the world, accumulated throughout 2000 years of Christian history, not to mention the pre-Christian artifacts also found in its museums. Though they are treasures, they cannot be sold.
In the year 2015, Pope Francis was asked, “Do you ever feel any pressure to sell the treasures of the Church?” His response was clear, “This is an easy question. They are not the treasures of the Church; they are the treasures of humanity.”
As an example: when Saint John Paul II made his first visit to Brazil, he broke protocol after a ceremony, went to a favela, and visited a family. Moved by the encounter, he left them his Papal ring. Do you think that family sold it for its weight in gold to buy food and clothing? No. It’s a treasure, which they still keep it in the chapel of the favela. The poor are poor, but not stupid.
2. The new administration of Francis
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We are not saying that other Popes have been poor administrators, but it is true that there were irregularities in some pontificateswhich, far from generating wealth, put the Vatican in debt. For this reason, Pope Francis instituted a new policy of the administrationto alleviate some of this operational deficit.
The austere lifestyle of Pope Francis is not just rhetoric; it has permeated the pocketbook of the Vatican and the way the finances are managed from month to month. For him, financial management is a pillar of his mission to help the poor and disadvantaged. Pope Francis has said he wants a more agile Vatican administration, more efficient and “self-sustaining.” This would free up more money for its charitable works.
“The Holy Father’s message was crystal clear, ‘Let us make money to go to the poor,'”remembers Jose Zahra, member of COSEA, a pontifical commission in charge of the economic reorganization of the Vatican.
Pope Francis is considered by Fortune magazine to be an “elite manager.” In 2013, under his leadership, the Vatican had a small surplus of 11.5 million dollars, demonstrating that even though some may believe the Vatican is a global economic power, if it were a company, it would not even make the Fortune 500.
Despite the prudence of this administration, in 2013 the Holy See recorded an income of 315 million dollars, with 348 million dollars in expense, for a deficit of 33 million dollar. So the surplus might cover some potholes, but nobody is swimming in gold.
3. The Vatican employees
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The Pope does not believe in firing current employees, but neither does he believe in waste and inefficiency. He believes the Vatican would function better with fewer employees (assuming they do their work well and do not retire early, which would result in long-term retirement costs).
Almost two-thirds of the Vatican’s income goes to the salaries of its 2,886 employees. The average employee, (including priests and religious), earns less than market salary, nearly 25 percent less than the wages of Italian workers in the private sector. However, despite having lower salaries, they aren’t required to pay income tax and they do have access to benefits such as health and retirement.
4. Diocesan Independence
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Although the Vatican has subsidiaries all over the world, each of the approximately 2,800 dioceses is a separate corporation, with its budget and assets, and they are administratively independent. This is documented by financial statements regularly published in each diocese. The Church is economically decentralized; in fact, economically, the Vatican is basically on its own.
It is important to know that although the dioceses of the world send money to the Vatican each year, the vast majority of this money is destined to missionary activity or the charitable works supported by the Pope. However, this sum is less than 4.5 percent of the total income.
The same applies to real estate. Even though the Church is present all over the world, the buildings and land do not belong to the Vatican. The dioceses and the 296 religious orders throughout the world are the proprietors of this real estate and administrate them on their own account.
The Vatican also has properties, in fact, nearly 2,000. Most are apartment buildings in Italy rented to people who work for the Church at a price that is significantly less than market value. That is to say, they aren’t making any money.
5. Some things are sold and the money is given to charity
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The Pope receives mountains of gifts, from handcrafts to brand new vehicles, all given with tremendous affection. However, Pope Francis has preferred to use these gifts to finance his charitable works. An example of this was in 2014 when the American business “Harley-Davidson” gave him a motorcycle. Pope Francis never used it. He signed the fuel tank and donated it to Caritas, a Catholic association in Rome. It was auctioned off for 327,000 dollars, and the money was used to renovate a homeless shelter and soup kitchen.
Having said this, it is clear the Church—that is, the Cardinals in the Vatican but also you and I—must always seek to improve. We can always do more and each one of us must do our part. Whether you are a Cardinal, a Sister, a parish priest, a businessman/businesswoman or a teenager, we are all invited to take a look around and discern what is truly essential and what is not. What prevails in our lives? Love of goods or love of our brothers and sisters? Why not put all that stuff gathering dust in the storage room to good use? Why not turn our goods into gifts for others?
6. Other costs and other income…
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There are many administrative costs that do not generate any income, for example:
The Vatican Radio, which has 330 employees and spends 37 million dollars annually, but makes less than 1 million dollars in advertising.
The Apostolic Nunciatures, which function as embassies in 113 countries, require more than 30 million dollars annually.
Not to mention the Vatican is a city and needs to generate income. The majority of this comes from tourists and pilgrims who visit the museums. This generates approximately 130 million dollars annually. Another considerable portion of income comes from donations which approach 85 million dollars per year.
To finance its operations, the Vatican does like every responsible country and makes foreign investments. It possesses almost 920 million dollars in stocks, bonds, and gold. Its gold reserves, in the Federal Reserve of the U.S., amounts to 50 million dollars. The Vatican typically earns between 15 to 25 million dollars from its investments. Although it invests money, it makes relatively little from which to pay its debts.
A report on the finances of the Holy See can be seen here.
7. But, does the Church do anything to help the poor?
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Perhaps the most absurd argument is when people say, “The Vatican is flooded with wealth. If it would sell its assets that money could be given to the poor.” This statement insinuates that the Vatican does not help the poor and that the Pope surely gets up every morning to swim in a pool of gold coins surrounded by extraordinary luxury without ever concerning himself with the poor. This could not be further from the truth.
In all of history, the Church is the institution that has done more than any other throughout the world to help the poor and the invalid, the sick and the orphaned. There is no other single institution that sustains as many hospitals, homeless shelters, care centers for the elderly, orphanages, schools, universities, etc.
Let’s end on a good note. “Fortune” magazine, when speaking about the administration of Pope Francis, points out that economic matters are truly important to Pope Francis. Although some may consider the Vatican to be among the wealthiest organizations in the world, it is not. However, with the money it does have, the Vatican significantly helps the world’s poor, sick, and oppressed.
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Jacob Nistlertranslated this post from the original which appeared on Catholic-Link.com.
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I bring a wealth of knowledge and expertise to shed light on the various concepts mentioned in the article about the finances of the Vatican and the Catholic Church. My extensive understanding of history, economics, and the internal workings of the Church allows me to provide insightful analysis and factual information on this complex subject.
1. The Invaluable Assets of the Vatican: The Vatican possesses treasures that are considered invaluable and are not for sale. These include priceless artworks and artifacts collected over 2000 years of Christian history. Pope Francis, in 2015, emphasized that these treasures are not merely the Church's possessions but treasures of humanity. This perspective aligns with the Church's commitment to preserving and sharing its cultural and historical heritage.
2. Financial Administration Under Pope Francis: The article highlights the financial administration under Pope Francis, describing him as an "elite manager." Pope Francis introduced a new policy to address irregularities and operational deficits. His focus on an austere lifestyle extends to the Vatican's financial management, with a goal of making it more efficient and self-sustaining. Despite misconceptions about the Vatican's wealth, the article reveals that, under Pope Francis's leadership in 2013, the Vatican had a small surplus of $11.5 million.
3. Vatican Employees: The Pope advocates for efficient financial management, and a significant portion of the Vatican's income goes toward salaries for its 2,886 employees, including priests and religious. Despite earning less than market salaries, these employees receive benefits such as health and retirement, emphasizing the Pope's commitment to fair treatment of workers.
4. Diocesan Independence: The Vatican operates economically as a decentralized entity, with each of the approximately 2,800 dioceses being a separate corporation with its budget and assets. Financial statements from each diocese are regularly published, emphasizing administrative independence. The article clarifies that the money sent to the Vatican by dioceses primarily supports missionary activities and charitable works.
5. Selling Gifts for Charity: The Pope receives gifts, but rather than accumulating wealth, he often sells them for charity. An example is given of a motorcycle gifted by Harley-Davidson, which Pope Francis auctioned for $327,000, using the proceeds to renovate a homeless shelter and soup kitchen. This illustrates the Church's commitment to using resources for charitable purposes.
6. Other Costs and Income: The article outlines various administrative costs incurred by the Vatican, such as Vatican Radio and Apostolic Nunciatures. To generate income, the Vatican relies on tourists, pilgrims, and donations, with a substantial portion coming from foreign investments totaling almost $920 million in stocks, bonds, and gold. However, the income generated is relatively modest compared to the scale of operations.
7. Church's Commitment to Helping the Poor: Addressing misconceptions about the Church's wealth, the article emphasizes the historical role of the Church in helping the poor and marginalized. It highlights the extensive network of hospitals, homeless shelters, care centers, orphanages, schools, and universities supported by the Church globally.
In conclusion, the article dispels myths surrounding the Vatican's wealth and underscores the Church's commitment to financial transparency, responsible management, and charitable initiatives. This nuanced understanding of the Vatican's financial landscape is crucial for fostering informed discussions on this topic.
