Looking back at the weekly messages of Father Paul Counce, first published in The Carpenter, our weekly Parish Bulletin
Published: July 19, 2020
Last weekend the secular press around the country (including Baton Rouge) published an Associated Press article criticizing both the Catholic Church and the federal government for permitting a forgivable federal loan (known as the Paycheck Protection Program of the Small Business Administration) to benefit churches, religious schools, and similar institutions. It was mostly directed against the Catholic Church, alleging that undue pressure was put upon the President and both houses of Congress, who permitted this.
A cousin of mine actually griped about it publicly on social media, thinking that Catholics are “ripping off” tax payers, claiming that “They don't pay Taxes!” He’s a reasonable and smart guy, and probably just over-emotionally posted something without thinking, so I wrote a polite answer back to him, correcting that misconception. Here’s what I basically said:
Actually, of course, individual Catholics do pay taxes, to the federal government, to the State, and to their local counties (what civil parishes are called everywhere else!) and municipalities. The military, other first responders, infrastructure like roads and bridges, public schools and universities, and civil service structures are all funded by you and me. But he was probably thinking of our Church’s institutions, as if they are tax-exempt.
Many people are surprised to learn that Catholic parishes, schools, and institutions indeed do pay most federal taxes and state taxes. We have to participate in all applicable tax programs of national, state and local taxation, such as social security. Also, we must pay all state and local sales taxes.
Now it is true, that most states and counties in the USA do waive property taxes for nonprofits, and this includes religious organizations. And there are some “corporate taxes” imposed on commercial businesses at the national and state level that don’t apply to nonprofits.
The worst thing about that poorly researched and written Associated Press story was that it misunderstood that there is no centralized corporate and operating structure of Catholic institutions. As we all know here at the Cathedral, our little downtown Parish is a separate corporation from the diocese and other parishes, something that’s true in both civil and canon law. On the practical level, this means they’re not responsible for our expenses, and we don’t get any income from them. Our income comes only from the 160 or so “Identified Giver” parishioners and friends who mail in their checks, or who attend Mass here and drop donations into the collection plate.
As you know from reading my column each week, we did avail ourselves of that Paycheck Protection Program. It allowed us to pay all 7 of our employees for two months in April and May (the SBA required at least 75% of the monies go to help employees, with the possibility of the rest paying utility costs only. We used 90% of the money on our people.) I’m loathe to let anybody go, and hopefully won't have to for quite some time, but last month the diocesan corporation laid off 10% of its employees and is hinting at more to come soon. Other Parishes and especially schools are facing similar unpleasant choices. It will not be easy.
Many wonder if payments to criminal priests and persons they victimized and their lawyers are still being paid, maybe with these government funds? I don't know, but I’d bet not: insurance companies tend to fund those expenses. I do know that none of it is paid directly by any Parish. Fortunately, also, our diocese has not had the problems others have had.
In the end, that article said at least $1.4 billion was paid out to Catholic Parishes, schools, nursing homes, hospitals, etc., by the SBA. That’s a lot of money, but spread out among so many institutions, it doesn’t sound out of line. Any individual institution with less than 500 employees could apply. And the feds will get some of it back, since those employees’ income has to be reported to the IRS!
Anyway, now you know too. I hope most people are not shocked or scandalized by inaccurate articles like that one. In the long run we just want to keep on praying, teaching, and ministering the message of Jesus to everyone – our resident poor and the homeless are really missing our Food Pantry and snack bags too. Be assured that wherever we get donations I'll do my best to keep doing the right things with them.
Yours in the Lord Jesus,
Fr. Paul D. Counce
