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Answers to Commonly Asked Question about Fruitful Harvest How is a parish’s Fruitful Harvest goal calculated? A parish’s goal is determined by its size and offertory income relative to the entire Local Church. The parish goal is determined by two criteria: 1) the number of families as a percentage of the total number of families in the Local Church, and 2) the parish offertory income as a percentage of the total offertory income of the Local Church. The two numbers are then applied in relation to the overall appeal goal, added, and divided by two to arrive at the parish goal for a particular appeal. Here is a graphic representation for a parish with 330 families and $500,000 per year offertory in a $6.5 million appeal. EXAMPLE OF HOW THE GOALS ARE CALCULATED1) Parish goal if based on number of families alone:
330 (# families in parish) 1% x $6,500,000 (FH 2006 Appeal Goal) = $ 65,000* (Goal if based on # of families only) 2) Parish goal if based on offertory income alone:
$
500,000 (Parish offertory income) 2% x $6,500,000 (FH 2006 Appeal Goal) = $ 130,000** (Goal if based on offertory income only)
3)
The Fruitful Harvest
goal weights these equally: $
65,000* Why has the overall goal risen? The overall goal for Fruitful Harvest 2006 is 12.5% higher than the goal for the Fruitful Harvest 2004 which was $5,800,000. It is important to remember that this is a 12.5% increase over a two-year period. In the last two years, the inflation rate has been approximately 2.5% each year or just over 5.5% over the duration of the appeal. This means that at least half of the increase in the goal is attributable to inflation. Factors have contributed to the increase -- the permanent Diaconate, youth and adult formation, vocations, diocesan deficit and Hispanic ministries. What does it mean that 90% of the goal must be guaranteed? — A 10% rebate to each parish is included in the overall Fruitful Harvest 2006 appeal goal of $6,500,000. Therefore, of that amount, $650,000 is budgeted for the 10% rebates. The remaining $5,850,000 represents that portion of the 2-year operating budget of the Local Church to be funded by Fruitful Harvest, and it is this amount, which parishes are guaranteeing. — In the first four appeals, parishes guaranteed 100% of goal and were required to make up from parish funds the difference between the amounts received in paid pledges and 100% of goal. Since Fruitful Harvest V, there has been no required “make-up” payment for parishes that reach at least 90% of goal in paid pledges. — Appeal policy continues to require that a parish achieve 100% of goal in paid pledges in order to receive a 10% rebate. When are rebates and overage amounts paid When a parish reaches goal in paid pledges, a 10% rebate is issued on the first day of the next month. For all parishes except “dovetail” parishes, the first overage payments are made at the clergy conference, which kicks off the next biennial appeal, usually in mid-August of even-numbered years. The final payment of any additional overage is paid at the conclusion of the current appeal. Fruitful Harvest 2006 officially concludes on Sept. 15, 2008. Can our parish run a capital campaign concurrently with Fruitful Harvest? — In order to conduct a concurrent capital campaign, a parish must apply for “dovetail” status. The application should be directed to the Pastoral Office for Stewardship and Development before the commencement of the biennial appeal. — However, any parish may certainly make a case for parish needs to be funded from Fruitful Harvest rebates and overage sharing and then undertake a vigorous Fruitful Harvest Appeal to maximize the funds available through overage sharing. Indeed, the raising of additional revenue for parish needs through Fruitful Harvest rebates and overage is an important dimension of the appeal. What does it mean when a parish “dovetails”? — A “dovetail” parish is one that has received permission to conduct a parish stewardship fund-raising campaign concurrently with Fruitful Harvest. The parish drive is generally for capital needs associated with building construction or major debt reduction. To avoid the confusion and complexity of conducting two separate, simultaneous fund-raising appeals, the parish capital stewardship fund raising campaign is “dovetailed” into Fruitful Harvest. — When a parish is granted, “dovetail” status, it guarantees its full Fruitful Harvest goal and receives no rebate. But 100% of the overage is returned to the parish, quarterly, as soon as the parish Fruitful Harvest goal has been reached. — Parishes may apply for “dovetail” status through the Pastoral Office of Stewardship and Development. Applications for “dovetail” status are usually invited in January and reviewed in March of the year in which a new appeal begins. Why is the appeal conducted in phases? — Fruitful Harvest is conducted in two phases, Advance and Parish, in order to maintain an orderly and efficient appeal. The appeal challenges potential donors to consider gifts consistent with their means. Again, the principle of “equal sacrifice, not equal gifts” is the standard. Therefore, donors are invited to consider their gifts at the same time as other donors of similar means. — In addition, Fruitful Harvest is a “grass roots” appeal. Donors are invited not only to make a monetary gift, but also to help the Church by helping to solicit gifts from others. Often, people are more comfortable soliciting gifts at the same level at which they have contributed. — The organization of an appeal reaching more than 33,000 households across 10,000 square miles in sixty-three parishes is inherently complex. — The objective is to make the process as simple, clear, and unencumbered as possible in each parish. This means developing, printing, and disseminating materials; providing training for clergy, parish leadership, and volunteers; and assuring that every gift is solicited, received, credited, and acknowledged accurately. The sheer magnitude of the operation, therefore, requires a phased approach. — Gifts of any amount are gratefully received. Gifts also may be received at any time; for example, some parishes invite new registrants to consider their gift to Fruitful Harvest at the time of registration, and not exclusively during the period of the official appeal. — It is an invitation to a donor, not a suggestion that other amounts are less meaningful or of less value. Effective fundraising (and good stewardship) seeks equal sacrifice, not equal gifts. The widow who offered her “mite” in the Gospels surely gave more than was expected, putting in “more than all the rest; for those others have all made offerings from their surplus wealth, but she, from her poverty, has offered her whole livelihood” (Luke 21: 3-4). Monetarily, the widow’s gift was certainly small -- just two copper coins -- but her sacrifice was not small; indeed, hers was greater “than all the rest.” Where can I get “accountability” information? — A financial accounting for the Diocese is published each fall as insert in The Catholic Moment and is mailed to every Catholic household in Northcentral Indiana. In addition, this manual includes a graphical representation of projected allocations for 2007-2008. — The Fruitful Harvest staff and the members of the Bishop’s Cabinet are also available to respond to your questions regarding the Appeal. — Call 765-742-7000 or 800-617-7466 or write: Fruitful Harvest Office, PO Box 1687, Lafayette, IN 47902-1687 Why does my parish have so many second collections? I thought Fruitful Harvest was supposed to take care of all special collections. — Seven special collections are funded through Fruitful Harvest -- Indian and Black Missions, Holy Land (Good Friday), Haiti, Peter’s Pence, Latin America Cooperative, Catholic University, the Catholic Communications Campaign, and Home Missions. Several others are mandated which cannot be funded through Fruitful Harvest -- Religious Retirement Fund, Propagation of the Faith, Aid to the Church in Central & Eastern Europe, American Bishops' Overseas Relief, Solidarity Fund for the Church in Africa, World Mission Sunday and the Campaign for Human Development. What was done with the Local Church’s share of the overage money received after the goals were reached in the previous Fruitful Harvest Appeals? — Much of the diocesan share of Fruitful Harvest overage has been used to fund a just pension program for lay employees of the Local Church. In the past, pension benefits for lay retirees were virtually non-existent. The Church also has been able to make modest additions to the investment portfolio. Most years, Fruitful Harvest funds about 45-55% of the total operating budget; the remainder comes from investment income and various other sources such as fees, direct bequests, and the like. Investing some of the Local Church’s share of overage helps lessen the burden on Fruitful Harvest income and helps keep increases in the goal to a minimum. — Also, money for the purchase of land for new parishes has been provided, and overage funds have allowed the Central Administration to respond to previously unforeseen and unbudgeted expenses such as asbestos abatement, unfunded mandates, care of infirmed priests, support for pastoral year interns, extended Hispanic Ministry, and pledges to seminary and Newman Center campaigns. Why do some parishes get 92% of the overage money and others just 50%? — From the beginning, it was intended that overage from this diocesan appeal be shared with parishes, and all parishes receive 50% overage share as a matter of Fruitful Harvest policy. In Fruitful Harvest III, Bishop Higi elected to return to parishes with schools an additional 42% of overage to be placed in parochial school trusts. His intention was to encourage and hasten the growth of these trusts so that, in time, the interest income earned would provide additional revenues to benefit Catholic schools. Has the amount of money paid back to parishes in overage “shrunk” over time? — The total amount of overage and rebates to parishes per appeal is as follows: I: $989,000; II: $390,000; III: $709,000; IV: $476,000; V: $584,000; VI: $593,000, VII: $ 539,000 VIII: $654,000; FH 2000: $474,000, FH 2004, $452,000. — These amounts depend on a variety of factors within each appeal. Some of these factors are the number and size of the parishes, which are “dovetailing,” the inclusion of 42% overage sharing with parochial school parishes, and economic conditions within the Local Church. The enthusiasm (and the method) with which a parish carries out the solicitation phase of the appeal has a direct effect on the amount of overage, which a parish will realize. What happens to the 8% of the overage funds not returned to the parishes? — The original plan for Fruitful Harvest was for the parishes and the Local Church to share any overage money equally -- 50% to the parish and 50% to the Local Church. Both entities were free to use those funds for expansion of programs, necessary repairs or renovations and/or unforeseen or unbudgeted “emergencies.” Beginning in Fruitful Harvest III, Bishop Higi elected to use most of the share allotted to the Local Church to increase the amount of overage sharing available to parishes with schools from 50% to 92%. The additional 42% was to be paid to a parochial school trust. — The 8% of overage retained by the Bishop’s Office is used to help pay administrative costs, such as for personnel to coordinate the appeal, develop materials, and respond to requests from parishes for information and assistance. The 8% also helps to pay for the printing of appeal materials, such as pledge cards, information packets, posters, case statements, stationery, and etc. as well as ongoing appeal expenses such as the mailing of monthly statements. It was initially intended that the marginal 8% of overage retained also be used to help fund ongoing endowment and development efforts. However, please see the next question... In years past, we were told that the 8% overage retained by the Local Church was for “administration” and that was understood to mean the cost of the appeal itself. Now that we’re doing it in-house, surely it doesn’t cost as much. What’s happening to the extra money? — First it’s important to understand that “8% of overage” does not represent a specific amount of money. “92%” is also an unknown quantity because the 8% and the 92% are percentages applied to “overage,” that is the amount collected in excess of the parish goal. It is only when paid pledges are totaled at the end of the appeal that there is any realistic way to compute how much money is represented by these percentages. The 8% was therefore set as a somewhat arbitrary, minimal contribution to the cost of fund raising and has never, in fact, paid the full cost of fund raising. — Since Fruitful Harvest V, conducting the appeal “in-house” has reduced expenses. Reduced expenses do not mean the elimination of expenses, however. Based on past experience, it is not anticipated that 8% of projected overage will defray the cost of the appeal, and there is, therefore, no “extra money.” |
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The ministries of our diocese and this web site are made possible through the generosity of Fruitful Harvest donors. Thank you! ©2008 Diocese of Lafayette-in-Indiana |