Catholic Foundations: An Analysis of Governance Structures, Transparency, and Financial Performance

Catholic foundations are little-known but highly significant sources of funding for Catholic dioceses in the United States. These foundations exist in over three-quarters of U.S. dioceses, and manage assets that average in the millions of dollars, including several with assets valued in the hundreds of millions of dollars. The purpose of this study is to better understand these foundations and how they operate. Specifically, this study analyzes the types of governance models used by the foundations, the transparency of the foundations, and their financial performance. Three types of governance models are found among the 114 foundations analyzed in this study, based on the role of the bishop of the diocese. Results indicate that governance boards chaired by the bishop (Model 1) have a greater proportion of clergy and diocesan employees than boards on which the bishop does not serve. Similarly, financial transparency depends on model type. Model 1 boards are less likely to make their audited financial statements publicly available. Analyses of the financial performance of the foundations, as measured by asset growth over the four-year period of the study, also find differences based on the type of governance model.