Vatican City (AP) – Peruvian Bishop Robert Previst often sought out affordable used cars that he could repair himself for use in parishes. He once turned to a YouTube tutorial to learn how to fix up a particularly broken vehicle.
This pragmatic, modified approach could serve Pope Leo XIV well as he confronts some of the most pressing challenges facing the Vatican, such as a shortage in the pension fund and dwindling donations, which threaten the very foundation of the Catholic Church’s central governance.
Born in Chicago and holding a degree in mathematics, the 69-year-old Canon lawyer has led his global Augustine religious order twice. He likely possesses a solid understanding of the Vatican’s intricate financial landscape, which has been marred by various scandals. However, whether he can truly shift the financial culture of the Holy See and effectively implement the reforms initiated by Pope Francis remains uncertain, especially in convincing donors that their contributions will be used wisely.
Leo already has an advantage: his American background. For a significant time, U.S. donors have contributed to all aspects of the Holy See’s economic framework, from overseas charity projects to restoration efforts for St. Peter’s Cathedral in the U.S. Interviews with Catholic fundraisers and church management experts reveal that Leo’s election as the first American pope has sparked excitement among American Catholics.
“I believe having an American in the role will inspire greater confidence that funds donated are managed according to American principles, particularly stewardship and transparency,” said Rev. Roger Landry, director of the Vatican’s primary missionary funding agency.
“This brings great hope that America’s generosity will not only be acknowledged but also managed effectively,” he remarked. “That hasn’t always been the case, especially of late.”
Reform and Unfinished Business
Pope Francis was elected in 2013 with a mandate for financial reform within the Vatican, making progress primarily through regulatory measures during his 12-year tenure. With support from the late Australian Cardinal George Pell, Francis established a Ministry of Economics and a Council of Economy, comprised of clergy and financial experts, to oversee the Vatican’s finances, aligning them with international accounting and budgeting standards.
He approved significant measures, such as a corruption trial related to a failed real estate investment in London that resulted in the conviction of a prominent Italian cardinal. He also penalized the Vatican secretariat for allowing questionable transactions by restricting their asset management capabilities.
Nonetheless, Francis leaves behind unresolved issues, and his overall performance may not meet the expectations of some donors. Critics point to ineffective reform efforts and the dismissal of the Holy See’s first audit general as signs of insufficient accountability. Instances of financial misconduct abound.
Despite implementing austerity measures and employment freezes, Francis has left the Vatican in a precarious financial position. The Peter’s Pence fund, which addresses budget gaps, appears depleted. A billion-euro ($1.14 billion) pension fund shortfall that Pell cautioned about a decade ago still looms, and a structural deficit persists, with the Vatican reporting an 83.5 million euro ($95 million) deficit in 2023, according to the latest financial statement.
As Francis’ health has declined, it has become apparent that his efforts to reform the Vatican’s archaic financial culture have not fully taken root. The same office involved in the scandalous London real estate deal, which resulted in millions in losses, has been tasked with the management of a newly formed Pope Funding Committee, announced while Francis was hospitalized. Per the committee’s charter, it is led by state secretariat officials with little expertise in fundraising and lacks external financial oversight.
For some observers, this move appeared to leverage the ailing pope’s condition as justification for reassigning management of a 600 million euro ($684 million) sovereign wealth fund to another office as a disciplinary measure in response to the London debacle.
“There are no Americans on the committee. I wish representatives from Europe, Africa, and the U.S. were included,” said Ward Fitzgerald, chairman of the U.S.-based Pope Foundation. This organization comprises affluent American Catholics who have contributed $250 million (EUR 229 million) in scholarships for the pope’s global charitable initiatives since 1990.
Fitzgerald, who has a background in private equity and real estate, acknowledges that American donors, particularly younger individuals, expect transparency and accountability from recipients of their funds and often prefer non-Vatican-affiliated Catholic charities that align with these values.
“We expect transparency before we begin addressing any concerns,” he stated.
Nonetheless, Fitzgerald mentioned he has observed a significant willingness among donors to support project-specific contributions for the Pope Foundation’s initiatives. In fact, U.S. donations to the entire Vatican have remained relatively steady, even as contributions from other countries have dwindled, with U.S. bishops and individual Catholics contributing more than any other nation to the pope’s cause.
The Head of Numbers and Funding Background
Francis appointed Prevost to lead Chiclayo Parish in Peru in 2014.
He bolstered the local Caritas charity in Chiclayo, where the parish collaborated with local businesses to establish a food bank for distributing donated food, as reported by Pastor Fidel Purisaka Vigil, a spokesperson for the parish.
In 2019, Prevost opened a shelter at Villa San Vicente de Paul on the outskirts of Chiclayo for desperate Venezuelan migrants fleeing their country’s economic crisis. The immigrants still remember him for his effort to evacuate them and their children, even providing live chickens sourced from donors.
During the Covid-19 pandemic, Prevost spearheaded a fundraising campaign to establish two oxygen plants to provide essential oxygen for locals. In 2023, he personally delivered food to flood victims following significant rainfall.
Shortly after the May 8 election, a video of Prevost standing in a flooded street wearing rubber boots went viral as he launched a solidarity campaign called “Peru Reach Out” to raise funds for flood relief efforts.
Rev. Jorge Millán, who lived with Prevost and eight other priests in Chiclayo for nearly a decade, remarked that Prevost has a “mathematical” mindset and is adept at getting things done. Prevost mentioned his penchant for acquiring second-hand cars for parish use, highlighting the need for bishops to travel long distances to reach their congregations or visit the capital, Lima.
He enjoys repairing these vehicles himself and, when unsure of how to proceed, remarks that he often resorts to looking up solutions on YouTube, which frequently proves effective, Millán told The Associated Press.
Before his time in Peru, Prevost was involved with The Global Augustine Order. While the provincial branches of the order maintain financial independence, Prevost was responsible for auditing the balance sheet and overseeing budget and investment strategies for the Rome headquarters, as noted by Rev. Franz Klein, a Roman economist based in Rome who worked with Prevost.
Augustine’s campus occupies prime real estate just outside St. Peter’s Square, enhancing revenue through the rental of scenic terraces to media outlets (including AP) for significant Vatican events, including the Conclave that elected Pope Leo.
However, even Prevost acknowledged a pressing need for better funding to assist underprivileged provinces. Towards the end of his 12-year tenure, under his guidance, the committee proposed the establishment of foundations dedicated to Augustinians around the globe. At the conclusion of 2023, it had assets of 994,000 euros ($1.13 million), supporting various projects, including one that rehabilitates former Congolese soldiers.
“He possesses a strong interest in and understanding of financial matters,” Klein commented. “He’s quite astute, and thus not overly concerned with the Vatican’s finances.”
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Franklin Briceño contributed from Lima, Peru.
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Source: apnews.com