Catholic parishes, charities will be asked to give $60M to church bankruptcy settlement

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In 2023, Archbishop Gregory Aymond told New Orleans’ 500,000 Roman Catholics in a letter that they would eventually be asked to contribute to a settlement in the archdiocese’s long-running bankruptcy case.

Now, that number — and what it would mean to the church’s parishes and charitable organizations — is coming into greater focus.

Court documents filed last week show that the archdiocese’s 104 parishes and 19 of its charitable organizations will be required to pay $60 million toward a financial settlement that will eventually total around $180 million. That does not include $45 million or so from the anticipated sale of Christopher Homes, a portfolio of elderly senior housing.

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If Grabill sticks to that timeline and the settlement is accepted and confirmed by the end of the year, the parishes and charities would be required to come up with their portion of the $60 million in less than six months.

Court documents do not say how much each parish and organization would be assessed individually or what would happen if they cannot come up with the money by the time the plan goes into effect.

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One thing is apparent: Many local parishes are struggling financially. In a bankruptcy court hearing last week that delved into the value of church assets, financial consultant Chris Linscott testified that “roughly two-thirds of the parishes do not break even. … they do not generate enough to pay their expenses.”

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Sources familiar with the case and other church bankruptcies say each parish and charitable organization will be assessed according to its financial situation and will not be asked to pay more than it is able.

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