Churches oppose bill on disclosure

The major mainline Protestant and Orthodox churches of Massachusetts have decided unanimously to oppose legislation that would force religious organizations to make public their finances, throwing an obstacle in the path of efforts by some Catholics to require greater disclosure by the Archdiocese of Boston.

The Massachusetts Council of Churches, an umbrella organization representing about 1,700 non-Catholic Christian congregations, said the proposed legislation would violate the independence of religious organizations promised by the federal and state constitutions.

''Many churches have deep historical memories of an experience of undue influence by the state in the affairs of the church, and thus many churches are wary of giving the state unnecessarily intrusive powers over their internal workings," said the Rev. Diane C. Kessler, executive director of the council. ''Our churches are committed to transparency, and in many cases sizable representative groups of clergy and laity vote on operating budgets, and there is an enormous amount of financial information that is transparent, but our churches would continue to advocate for voluntary transparency, rather than for any further required reporting."

Kessler called the idea of mandatory reporting by churches a ''threateningly slippery slope," and said that as a result of the council's unanimous vote, taken Tuesday night, she will be lobbying legislators to oppose it. The council's members include, among others, the state divisions of the United Church of Christ, the Episcopal Church USA, the Evangelical Lutheran Church in America, the United Methodist Church, the African Methodist Episcopal Church, and the Greek Orthodox Church.

The legislation, proposed by Senator Marian Walsh, would require religious organizations, including churches, to disclose financial information now required of other nonprofit organizations. The reports would include a summary of financial data and the salaries for the five highest-paid employees and the five highest-paid consultants.

The bill would also require all charitable organizations, including churches, to list their real estate holdings on an annual financial report.

''I can't imagine that any organization that has been allowed to exist in the darkness and then is asked to be treated like any other nonprofit charity is going to be happy about it, because they've had a nice thing going," Walsh, a Boston Democrat, said yesterday. ''But this legislation is respectful of church-state separation. It does not get involved in the governance or belief system of any church."

Walsh, a longtime legislative ally of the Catholic Church, began to explore greater legislative oversight of the archdiocese because of her concern about the clergy abuse crisis. She said the financial-disclosure legislation was prompted by concerns from lay Catholics who want more information about the financial health and holdings of the Archdiocese of Boston, which is in the process of closing 83 parishes, citing, in part, financial woes. The closings have been controversial and, in some areas, have touched off anger and protests.

Walsh said the Catholic Church may be the largest charity in the state, and it should be subject to the same reporting requirements as other charities.

''In Massachusetts every nonprofit, other than religious organizations and some military groups, files, and we can't find any public policy reason or responsible tax reason for the exemption, especially when so many of my constituents have given donations to and made sacrifices for charities called churches, and then they learned that the financial health of their church was quite ill," Walsh said. ''They wanted to have a dialogue about what happened, and they found those conversations to be unproductive. Maybe they [archdiocesan officials] are closing food pantries and viable schools when they own land on the waterfront -- maybe we should learn what their revenue is, what their salaries are, and what they're paying their p.r. firm."

Walsh said her measure has at least 33 legislative cosponsors. She said she expects to ''work as hard as we can" to pass the legislation once the Legislature returns to session in January.

The Catholic Church has kept a low profile on the legislation and has promised greater financial transparency in the face of questions from some Catholics about how the church has managed its resources.

''The archbishop and the archdiocese are very committed to financial transparency," said archdiocesan spokeswoman Ann Carter. ''The commitment is extremely strong."

The Massachusetts Catholic Conference, which represents on Beacon Hill the four Catholic dioceses in the state, has not taken a position on the proposed legislation.

Attorney General Thomas F. Reilly drew some criticism two years ago for advocating a state role in the development of archdiocesan policies covering the education, training, and monitoring of Catholic priests. He also has concerns about the new legislation.

''There are good reasons for the religious exemption, and we have concerns about removing that exemption," said Reilly's spokesman, Corey Welford.

Protestant church leaders are lining up to oppose the legislation.

''We are very careful not to fly the church-state flag around too much, but there is an issue here -- we are not a normal charity, we don't get a tax exemption on the same basis as other charities, and this is a First Amendment right," said Mary Alice Stahleker, a member of the First Church of Christ in Sandwich and a representative of the United Church of Christ to the Massachusetts Council of Churches. ''We've got no problem with transparency, and, for the most part, churches are transparent, but the issue is whether this should be legislated."

A United Methodist representative to council, the Rev. James McPhee, also expressed concern.

''All of our financial and property records are public and audited, and every municipality has a record of what our properties are, so I don't understand what the intent is," McPhee said. ''And this kind of reporting places a burden on government and church."