Diocese of Charlotte Annual Report 2024

A MESSAGE FROM THE MOST REVEREND

Michael T. Martin, OFM Conv.

BISHOP OF CHARLOTTE

Dear Brothers and Sisters in Christ,

Although I arrived in the Diocese of Charlotte at the end of Fiscal Year 2024, I was immediately filled with gratitude for all God is doing across western North Carolina. From Hamlet to Murphy, we can see His hand at work in powerful ways – ways in which I have been privileged to witness alongside all of you. Relying on the Holy Spirit, the people of our growing diocese continue to build the Kingdom of God –proclaiming, with one voice, the Good News of Jesus to a world longing for His love. This discipleship is at the heart of who we are and what we do.

A snapshot of our work from July 1, 2023, through June 30, 2024, is provided in the annual report that follows. The financial health of our diocese remains strong, and this report highlights the remarkable progress made in our parishes and schools, vocations, charitable work and financial stewardship.

Some highlights:

n In June 2024, we celebrated the ordination of seven new priests and six deacons who are preparing for priestly ordination next year.

n Our Catholic schools saw another year of record enrollment, and the number of people joining the Church reached a new high.

n With your support, Catholic Charities served more than 24,000 people in FY 2024 – then in September marshalled an extraordinary relief effort in the aftermath of Tropical Storm Helene.

n Our parishes and schools undertook more than 30 building, renovation or expansion projects to accommodate growth.

While I have served as bishop since May, the accomplishments highlighted in this report were made possible under the leadership of my predecessor, Bishop Peter Jugis. His 20 years of service laid a strong foundation for the efforts we celebrate today.

Ultimately, however, none of this would be possible without God’s grace. Let us give thanks and praise to God for all He has done and continues to do in our diocese.

To all of you who support the Church in western North Carolina – through your time, talent and treasure – I thank you for your commitment. Let us continue to reach out, united in our mission to build the Kingdom of God by serving and loving our neighbors.

You remain in my prayers, and I hope you will keep me in yours.

Queridos Hermanos y Hermanas en Cristo, Aunque llegué a la Diócesis de Charlotte al final del Año Fiscal 2024, inmediatamente me llené de gratitud por todo lo que Dios está haciendo en el oeste de Carolina del Norte. Desde Hamlet hasta Murphy, podemos ver Su mano obrando de manera poderosa, manera que he tenido el privilegio de presenciar junto a todos ustedes. Confiando en el Espíritu Santo, el pueblo de nuestra creciente diócesis sigue construyendo el Reino de Dios, proclamando, con una sola voz, la Buena Nueva de Jesús a un mundo que anhela Su amor. Este discipulado está en el corazón de lo que somos y lo que hacemos.

Un panorama general de nuestro trabajo desde el 1º de julio de 2023 hasta el 30 de junio de 2024 se presenta en el informe anual que sigue. La salud financiera de nuestra diócesis sigue siendo sólida y este informe resalta el progreso notable logrado en nuestras parroquias y escuelas, vocaciones, trabajo caritativo y mayordomía financiera. Algunos puntos destacados:

n En junio de 2024 celebramos la ordenación de siete nuevos sacerdotes y seis diáconos que se están preparando para la ordenación sacerdotal el próximo año.

n Nuestras escuelas católicas vieron otro año de matrícula récord, y el número de personas que se unieron a la Iglesia alcanzó un nuevo máximo.

n Con su apoyo, Caridades Católicas sirvió a más de 24,000 personas en el Año Fiscal 2024 y luego, en septiembre, organizó un esfuerzo extraordinario de ayuda tras la Tormenta Tropical Helene.

n En nuestras parroquias y escuelas se emprendieron más de 30 proyectos de construcción, renovación o ampliación para acomodar el crecimiento.

Aunque he servido como obispo desde mayo, los logros destacados en este informe fueron posibles gracias al liderazgo de mi predecesor, el Obispo Peter Jugis. Sus 20 años de servicio sentaron una base sólida para los esfuerzos que hoy celebramos.

Sin embargo, en última instancia, nada de esto sería posible sin la gracia de Dios. Demos gracias y alabanzas a Dios por todo lo que ha hecho y sigue haciendo en nuestra diócesis.

A todos ustedes que apoyan la Iglesia en el oeste de Carolina del Norte ya sea con su tiempo, talento y bienes, les agradezco su compromiso. Sigamos alcanzando a los demás, unidos en nuestra misión de construir el Reino de Dios sirviendo y amando a nuestros vecinos.

Ustedes permanecen en mis oraciones y espero que me mantengan en las suyas.

Paz,

+ El Reverendísimo Michael T. Martin, OFM Conv. Obispo de Charlotte

Peace,

+ The Most Reverend Michael T. Martin, OFM Conv. Bishop of Charlotte

Table of contents Tabla de contenidos

GROWTH

CRECIMIENTO

418 Demand for construction surges La demanda de construcciÓn aumenta

519 Vital statistics

Estadísticas vitales

620 Map: Building for the future Mapa: Construyendo para el futuro

PASTORAL MINISTRY

MINISTERIO PASTORAL

822 Making disciples, reaching out Formando discípulos, alcanzando más personas

CARIDAD CHARITY

1024 Responding to the need Respondiendo a la necesidad

EDUCATION & CATECHESIS

Teaching the young, sharing the faith

EDUCACIÓN Y CATEQUESIS

1125

STEWARDSHIP

Enseñando a los jÓvenes, compartiendo la fe

CORRESPONSABILIDAD

1226 Practicing good stewardship Practicando una buena corresponsabilidad

HUMAN CAPITAL

CAPITAL HUMANO

1327 Driving the mission Impulsando la misión

FINANCIALS

FINANZAS

1416 Report from the CFO Informe del Director Financiero 1517 Combined Financial Statements Estados Financieros Combinados

SAFE ENVIRONMENT

AMBIENTE SEGURO

2828 Protecting God’s children Protegiendo a los niños de Dios

Financial statements and footnotes are online here: www.charlottediocese.org/annualreport www.charlottediocese.org/annualreport

Los estados financieros y las notas al pie están online aquí:

On the day he was named Bishop of Charlotte, Father Michael Martin made Charlotte Catholic High School one of his first visits in the diocese.

Demand for construction surges as churches and schools manage growth

Growth and change continued to be watchwords for the Diocese of Charlotte in Fiscal Year 2024, reflecting a continuous process of transformation through faith.

The diocese bid farewell to Bishop Peter Jugis – who retired in May after two decades of guiding its parishes, schools and ministries through unprecedented growth – and welcomed Bishop Michael Martin, a Conventual Franciscan, who immediately began his “ministry of presence.” In visiting parishes across the diocese, he has seen firsthand the challenges of growth, including congregations that spilled into overflow rooms or have outgrown churches and shifted to worship in gyms and parish halls.

In the year ending June 30, 2024, the diocese hit new highs in Catholic population, vocations, school enrollment and receptions into the Church. Part of a historic migration of Catholics to the southeastern U.S., the population growth is driven largely by new Hispanic families and people relocating from the Northeast and Midwest. To accommodate the influx of people, the diocese’s parishes, schools and ministries began planning or executing more than 30 expansion,

renovation and new-build projects during the fiscal year – representing a total forecasted investment by those entities of more than $170 million.

“Over the past two years, we’ve seen an incredible surge in demand for construction as our parishes and schools in all corners of the diocese seek to respond to

$170 million

Estimated investment in building projects by parishes, schools and ministries in the Diocese of Charlotte

growth,” says Emmett Sapp, the diocese’s director of construction and real estate. “This is a wonderful sign of the vitality of the Church and a testament to the witness our churches and schools provide through the grace of God.”

From a new church underway in Highlands, to renovations and additions in Statesville and Lincolnton, to Christ the King High School’s expansion on tap in Huntersville, the improved facilities will offer places of communion, formation, education and worship for an estimated 539,000 baptized Catholics living in the diocese, which covers the western half of North Carolina. St. Joseph College Seminary in Mount Holly also moved closer to construction of a new chapel during the year, which will accommodate many more visitors as well as its seminarians who one day will serve the diocese as priests.

Diocesan leaders also began evaluating options for establishing a new, larger cathedral that will likely seat up to 2,000 people at signature diocesan liturgies such as ordinations and the annual Chrism Mass. The current St. Patrick Cathedral seats just 350 people and is among the smallest cathedrals in the U.S. It

Bishop Michael Martin and parish and diocesan leaders break ground for Our Lady of the Mountains’ new church in Highlands.

was built initially as a parish church and elevated to cathedral status to serve as the seat of the bishop when the diocese was established in 1972 with just 34,000 Catholics. Its constraints have forced the diocese to move its most significant liturgies – including the 2024 ordinations of Bishop Martin, a record seven priests, and six deacons – to St. Mark Church in Huntersville.

Bishop Martin has embraced the opportunities that growth brings, both structural and spiritual, reminding the faithful of Jesus’ call to “go and make disciples” by encouraging everyone in the diocese to deepen their commitment to spreading the Gospel.

“It will take me some time to get to all the many places where the Holy Spirit is at work in our growing diocese…,” the bishop wrote in a letter to parishioners, a few weeks after being installed in May. “One of the ways in which you can help me is by asking yourself to what extent you have engaged with your local faith community?”

A UNIFYING FORCE

With Mass attendance rising and offertory collections surpassing pre-pandemic levels, the diocese’s churches, schools and other institutions are responding both by improving facilities and by expanding ministries.

Among parishes in FY 2024, more than a dozen engaged in a new pastoral planning process now required every six years to create a strategic plan and seek the bishop’s approval for any significant construction. Among schools, seven of the diocese’s 20 schools began planning to add classrooms and/or renovate space, and five are working on improvements of athletic facilities. School leaders are now exploring new school construction and further enhancements to existing facilities.

Catholic institutions located in the diocese also took steps to respond to growth: In February 2024, Belmont Abbey College announced it had reached a $100 million fundraising goal for facility and program improvements – and that it was increasing its target to $150 million.

A

– Emmett Sapp, construction director

“We have been inundated with calls from parishes and schools seeking to welcome growing numbers of people but facing challenges with limited space,” says construction director Sapp, whose office offers project management and other services to guide construction. “It’s amazing to see how communities come together to face these challenges. Major building projects can be difficult but they can also be invigorating and

bond-strengthening for a community united behind a common vision in service of the mission of the Church.”

Magnifying the demands of growth, Sapp says, restrictions on fundraising and the economic downturn during the COVID-19 pandemic left churches and schools particularly eager to get started with improvements during FY 2024.

In some communities, such as Mount Airy, parishes found it more economical to buy existing church buildings to renovate than to build a new church.

At St. Mark in Huntersville and St. Dorothy in Lincolnton, additional activity space and an adoration chapel were identified as the best way to provide more faith-filled opportunities for their increasing numbers.

In Highlands, Our Lady of the Mountains mission church broke a fundraising record even for parishes across the diocese as donors contributed more than $8.5 million to build a new church. And in Denver, Holy Spirit’s groundbreaking on a new church was the culmination of a decade of planning and fundraising.

Beyond increasing numbers of parishioners, the diocese continues to grow in diversity, too. Hispanic congregations are especially seeing growth; Hispanics now make up more than half of the Catholic population in the diocese. The Vietnamese congregation at St. Joseph in Charlotte has also outgrown its church and is planning to build anew, while the Vietnamese community in Greensboro acquired a church building to accommodate its growing needs, as well.

“When you have a lot of growth, one of the challenges is keeping people unified, especially as you have more newcomers and diversity of backgrounds,” Sapp says. “A new church building or a renovation project can help people build bonds working together to create places that unite their community for worship, education and fellowship. This helps people grow in their faith and deepen their relationship with Jesus, inspiring them to become disciples who go out and share the Good News of the Gospel.”

With a church that holds fewer than 100 people, this growing congregation has been worshiping in its parish hall for nearly 30 years, but recently purchased an existing church with capacity for 300; cost $235,000. A $1.5 million capital campaign is underway for renovations.

With a congregation that has doubled in size over a decade to 1,000 families, Holy Spirit’s multiple campaigns and hard work to build a bigger church have finally been realized; it broke ground on a $12.5 million church with capacity for 675 people.

Building for the future

During FY 2024, more than 30 parishes, schools and ministries took steps to expand capacity to accommodate growth – planning or executing renovation and new construction projects generally costing $1 million or more. Some purchased existing churches or buildings. e total investment by the various entities across the diocese is estimated to be about $170 million.

Lady of the Mountains, Highlands

gatherings, meetings, a kitchen and sports. A campaign is underway to raise $2 million to add to $2.5 million in savings and financing that will pay for the $6 million project.

St. Joseph is planning to build a church to accommodate 1,000 people and to renovate its existing church for faith formation classes, meetings, and community events. The project is estimated to exceed a cost of $15 million. The church is known for its Stations of the Cross and annual “Tet” celebration.

Christ the King High School, Huntersville Additional classrooms, renovations 21

A school that began with 35 students in 2011 has grown to 450 students and soon will embark on a $12 million expansion and renovation, boosting capacity to 650 with more classrooms and activity space. A separate capital campaign to improve athletic facilities is underway.

The diocese is evaluating options for establishing a new, larger cathedral with seating likely for up to 2,000 people.

Diocese of Charlotte

St. Peter, St. Patrick Cathedral and St. Lawrence Basilica underwent or were approved to pursue renovations to preserve the historic properties for future generations.

With the growth of vocations, the following churches are building, renovating or purchasing existing homes for use as rectories for their priests:

Our Lady of the Assumption (Charlotte) Sacred Heart (Salisbury)

St. John the Evangelist (Waynesville)

St. Joseph (Charlotte)

St. Leo (Winston-Salem)

St. Margaret of Scotland (Maggie Valley)

St. Mark (Huntersville)

St. Patrick Cathedral (Charlotte)

St. Thomas Aquinas (Charlotte)

Immaculate Conception (Hendersonville) renovated a residence on its property for use by lay missionary sisters of the Mother of Life Association, who are working in the school and parish.

St. Joseph, Charlotte New church construction

PASTORAL MINISTRY

Making disciples, reaching out

At the heart of the Church is its people, and its mission is to provide them with spiritual guidance, teaching and comfort to deepen their relationship with Jesus and share the Good News with others.

The diocese’s Catholic population reached 539,000 people in 2024, with a record 1,104 people welcomed into the faith. To serve the People of God, the diocese is supported by 139 active and retired priests, 101 active permanent deacons, 82 women religious, 2,576 employees, and countless volunteers. Signs of growth are reflected in the life of the local Church and in the numerous ministries that serve our increasingly diverse community.

NURTURING VOCATIONS

The diocese’s vocations program is thriving – nearly tripling from 16 seminarians in 2016 to 46 this year. Seven seminarians were ordained diocesan priests in June 2024, and six others became deacons, continuing their formation toward priestly ordination in 2025. Nine young men were accepted at St. Joseph College Seminary in Mount Holly for the 2024-’25 year, bringing to 20 the total number of college seminarians discerning a call to the priesthood close to home while attending nearby Belmont Abbey College. Nearly 300 young people attended vocations summer camps in June, including a new one-day retreat for young women called “Talitha Koum.”

The growth is fueled by an ongoing emphasis on vocations awareness and seminarian formation, with Father Brian Becker, diocesan vocations promoter, also appointed director of the new Propaedeutic, or FirstYear, Stage of Formation at St. Joseph College Seminary. In January 2024, the diocese formally accepted 16 men into the Permanent Deacon Program – one of the largest incoming classes in recent years. After further formation, they will be considered for ordination as deacons in 2027.

Women from 17 religious communities continued ministering to some of the poorest and most vulnerable among us, including the sick and disabled, seniors, homeless pregnant women, those escaping domestic violence, people with AIDS, and migrants and refugees.

REACHING OUT

The diocese dedicated more resources and pastoral efforts to serve various groups within the local Church. Hispanic Ministry’s mission continued to grow significantly, with half of the diocese’s population now estimated to be of Hispanic origin. Serving this quartermillion-strong community are clergy and full-time coordinators in all 10 vicariates, providing spiritual care,

faith formation and outreach. They focused on pastoral ministry, faith formation, charitable outreach and other support – guiding Spanish-language apostolic groups such as Cursillo and Emmaus with conferences, retreats and workshops that last year garnered a combined attendance of 9,700 people; offering the Spiritual Exercises (3-day Retiro de Silencio) to more than 400 people; and putting on educational workshops, classes and retreats that together reached more than 6,000 people.

Hispanic Ministry also emphasized more youth and young adult outreach, sending young people for leadership training at Southeast Pastoral Institute (SEPI), promoting the Eucharistic Congress, and

Salem vicariates.

Incoming Bishop Michael Martin made young people an immediate focus – making Charlotte Catholic High School one of his first visits in the diocese and designing a special prayer-and-worship service for young adults as the first event of his threeday ordination festivities in May. With a background in high school and college Catholic education, the bishop has made outreach to youth a pillar of his ministry.

African American Ministry saw increased participation in programs aimed at fostering Black Catholic identity. A diocesan Day of Reflection focused on Black Catholic issues ahead of the 2024 National Black Catholic Congress, where the diocese’s delegation connected with over 2,500 Black Catholics nationwide. The experience is informing the development of a new fiveyear pastoral plan to address the spiritual needs of Black Catholics in the diocese.

hosting a Holy Week retreat for over 200 young adults at Table Rock Retreat Center in Pickens, S.C., led by Father Julio Dominguez, Vicar of Hispanic Ministry. Engagement with young people also increased through the Youth Ministry Office, which sponsored diocesan events, including the 47th annual Diocesan Youth Conference in April, which attracted a record 200 teens, and launched youth advisory councils in the Asheville, Smoky Mountain, Greensboro and Winston-

Another outreach effort within the Black Catholic community in 2023 was the founding of a Charlotte chapter of the Knights of Peter Claver, based out of Our Lady of Consolation Parish.

Vietnamese Ministry continued to flourish, with expanding communities in Charlotte and Greensboro. In Charlotte, St. Joseph Vietnamese Catholic Church launched plans to build a new church, while Greensboro’s Vietnamese community purchased a church for its new Holy Family Vietnamese Mission.

Two years after its founding, the diocese’s Family Life Office expanded its efforts to strengthen marriages,

Seven men were ordained priests for the Diocese of Charlotte in 2024. Another six are expected to be ordained in 2025.

support families and promote respect for life at all stages. In 2024, it reached hundreds of people through its marriage enrichment conference, marriage prep workshops and pro-life marches. The office also added more Spanish-language Natural Family Planning workshops, promoted education for mothers and teen daughters, and supported Catholic healthcare professionals, hosting a fifth annual healthcare conference in Charlotte. It also cosponsored a Consolation Mass for parents grieving the loss of a child, the first of an annual event.

With the Family Life Office’s guidance, eight more parishes launched “Walking with Moms in Need” outreach that assists pregnant and parenting mothers, bringing the total number of parishes to 17. The office also expanded participation in local, state and national pro-life marches.

Catholic Charities Elder Ministry program brought nearly 200 seniors from 15 parishes together for the 36th annual Senior Ministry Spring Fling, with another 700 participating in educational and social programs around the diocese or online.

The diocese also advanced a three-year effort to assume oversight of Pennybyrn at the request of the

Sisters of the Poor Servants of the Mother of God, who founded the High Point retirement community in 1947. Father Steve Hoyt was appointed chaplain in July 2023, and the gradual sponsorship transfer will conclude in 2025 when the sisters retire.

The diocese launched Courage and EnCourage chapters to serve people with same-sex attraction and their families.

It also welcomed priests to serve the small but growing French-speaking and Eritrean Catholic communities in Charlotte, and renewed its clergy partnership with the Diocese of Buea, Cameroon.

The Tribunal saw its annulment caseload increase nearly 30% in FY 2024 over the prior year. To manage cases even more efficiently and compassionately, the Tribunal launched an online case management system and continued to expand its network of parish-based advocates. Every parish now has an annulment advocate who accompanies and guides people throughout the sometimes-complex annulment process.

Outreach to the incarcerated also took on a renewed focus, bringing hope, love and the mercy of Jesus. Parishbased teams provided spiritual guidance at 12 correctional facilities around the diocese and organized prayer chains

and retreats, such as the “Residents Encounter Christ” retreat at Mountain View Correctional Institution in August. The powerful weekend retreat for 36 inmates included Catholic talks and prayer, as well as the sacraments of confession and Mass.

LISTENING AND CONNECTING

The local Church continued to engage in a multiyear dialogue on unity, engagement and missionary outreach, as part of Pope Francis’ Synod on Synodality, titled “For a Synodal Church: Communion, Participation, and Mission.” In 2024, Bishop Martin followed the example of his predecessor by supporting the Synod’s work, urging all to embrace the worldwide effort and pray for the guidance of the Holy Spirit to build a Church that extends inclusively to all.

The diocese also worked to elevate its communications outreach to tell the stories of the local Church, reaching new digital audiences, engaging with local media outlets, and delivering news and information through its award-winning website and Catholic News Herald to tens of thousands of people – seeking to inspire them to become disciples and share the Gospel message across western North Carolina.

Responding to the need CHARITY

Embracing God’s call to serve those living on the margins, people across the diocese responded – donating time, talent and treasure to help Catholic Charities Diocese of Charlotte serve a record 24,165 people in need during FY 2024.

Nearly $8 million was allocated for Catholic Charities’ programs, which reached more than 1,000 people over the prior year with a range of services through seven offices across the western half of North Carolina. These efforts do not include the widespread charitable outreach of individual parishes, from food pantries and diaper drives to massive efforts such as St. Matthew’s annual drive to feed the hungry in Haiti.

Catholic Charities saw significant increases in refugee assistance and resettlement during FY 2024, working with the U.S. government to help those fleeing war in Ukraine and other conflicts to start new lives in Charlotte or Asheville. It also served more veterans experiencing homelessness, as well as families needing help burying departed loved ones. In a year marked by significant inflation, the agency saw an increase in people at their food pantries and provided more diapers, clothing and direct cash assistance to help clients pay rent and utilities.

Catholic Charities opened its seventh location in North Wilkesboro. Going into the Fiscal Year 2025, the agency also opened an eighth outreach location to serve people in need in Salisbury, and in October began ramping up staff and services to help those impacted by the devastating destruction of Tropical Storm Helene.

16,693 101

24,165 Catholic Charities Provided people served

199 people received food at 3 pantries homeless veterans

543

CATHOLIC CHARITIES DIOCESE OF CHARLOTTE

EDUCATION & CATECHESIS

Teaching the young, sharing the faith

As we embrace the teaching of the Catholic faith as a collective responsibility, the work of the Education Vicariate and Catholic Schools Office is fundamental to our mission of shaping and inspiring disciples to spread the Good News of the Gospel.

From schools and faith formation programs, to campus and youth ministries, to summer programs and catechist training, these initiatives reached more people than ever in FY 2024.

SCHOOLS: The diocese’s 20 schools saw its third straight record enrollment with 8,300 students – up 21 percent since 2020 – a surge school leaders say reflects a growing recognition of the value of a Catholic education. To accommodate the influx of students, the diocese is exploring new school construction and enhancements to existing facilities. The schools also adopted a multi-year curriculum enhancement program that includes new textbooks, religion standards and virtue training – all rooted in rigorous academics and Catholic identity.

EUCHARISTIC CONGRESS: In August, the 20th annual Eucharistic Congress featured more offerings than in previous years – including the first appearance of Bishop Michael Martin, who celebrated the closing Mass. With inspiring speakers, praise-and-worship concerts, a play and movie, and Adoration and Mass, the event drew more than 10,000 people from across western North Carolina to the Charlotte Convention Center. It also included one of the nation’s largest Eucharistic processions, through the streets of uptown Charlotte.

FAITH FORMATION: More than 38,000 children and adults participated in religious education in the diocese in FY 2024, a testament to parish leadership and outreach, with a record 1,104 people joining the Church. To “teach the teachers,” the diocese rolled out a new partnership with the Catechetical Institute by Franciscan University to provide ongoing ministry formation to more than 700 catechists charged with passing on the faith. The annual Diocesan Catechetical Conference brought more than 500 catechists together for professional development, prayer and fellowship.

YOUTH MINISTRY: The diocese blended faith and fun in its outreach to young people, as hundreds of families turned out for a ropes course event in Greensboro, a trampoline park in Asheville, and Catholic Family Day at Carowinds – where Bishop Martin celebrated Mass then hopped on the Thunder Striker rollercoaster with the kids.

The Bishop’s Youth Pilgrimage in March saw more than 800 middle and high school students come together for the annual event hosted by Belmont Abbey College. And the diocese expanded its summer “Totus Tous” program in 2024 to 18 parishes, where 1,800 students participated in the week-long day camp of faith and fun.

In Campus Ministry, 400 college students regularly attended Sunday Masses as part of the diocese’s programs at Davidson, High Point, UNC-Greensboro, Wake Forest and Western Carolina universities. At least 22 students received sacraments to join the Church.

STEWARDSHIP

Practicing good stewardship

The people of the diocese continued to provide generous financial support to ensure the work of our parishes, schools and ministries continues.

Parish offertory collections in Fiscal Year 2024 were up 5.7 percent from the prior year and 20 percent over pre-pandemic levels.

In addition, diocesan ministries received 344 gifts of $5,000 or more – nearly one a day – and 89 gifts of $25,000 or more. And as of June 2024, 1,740 people in the diocese noted they have or will remember the Church in their estate plans.

The diocese reached a milestone in early 2024 when it received its 50th gift of $1 million or more.

The diocese also added 25 endowments in FY 2024 – bringing the total to 367, with more than $97 million in assets. Managed through the Diocese of Charlotte Foundation, these endowments support parishes, schools, Catholic Charities, priest retirement, seminarian education, and outreach programs.

Distributions by the foundation to fund various good works totaled $2.6 million

for FY 2024 and $17.5 million since the foundation was established in 1994.

In addition, the annual Diocesan Support Appeal (DSA) enabled the diocese to provide comfort to those in need and many other services throughout our diocese. Gifts to the 2023 appeal totaled $6.8 million from more than 13,360 donors, supporting over 50 ministries and programs, including seminarian education, Catholic Charities, educational programs, the permanent diaconate, multicultural ministries, and the Eucharistic Congress.

The average gift among contributing households was $529 – up from $476 in 2022. More than 80% of parishes and missions reached or exceeded their goal for the appeal.

The DSA is one of five annual funds supporting the local Church. Others help fund priest retirement (nearly $1.3 million), priests’ continuing education and seminarian education (a combined $1.7 million), Catholic schools ($3.6 million) and Catholic Charities (nearly $2.1 million).

Launched a decade ago, the diocese’s “Forward in Faith, Hope, and Love” campaign also continues to make an impact. Seven endowments formed with the campaign have distributed $1.8 million to benefit Campus Ministry, Catholic Charities, faith formation, multicultural ministries, parish/mission support, tuition assistance and vocations/seminarians.

“In our stewardship work, we focus on connection, engagement and gratitude,” notes Jim Kelley, diocesan development director. “Stewardship is about helping people get more connected to Christ and more engaged in their parish and in the diocese. When people are more engaged in their faith, they want to respond in gratitude for all the blessings they’ve received from God.”

HUMAN CAPITAL

Driving the mission

D iscipleship – allowing the love of God to transform us so that we can share His love with others – continued to characterize the efforts of 2,576 full- and parttime employees in our parishes, schools, ministries and offices who provide support wherever it is needed in the diocese.

The diocese maintained its focus on efforts to attract and retain diverse talent to help carry out our evangelizing mission, increasing a diocese-paid life insurance benefit, investing in a new paid parental leave policy and expanding its pregnancy leave time. The diocese’s Human Resources Office also launched a nurse hotline to report and respond to non-life-threatening, work-related injuries and illnesses. Financial highlights for the fiscal year ending June 30, 2024, follow. A detailed financial report can be found online at www.charlottediocese.org/annualreport.

More than 1,100 people were welcomed into the Church in 2024 – a record number for the Diocese of Charlotte.

REPORT FROM THE CHIEF FINANCIAL OFFICER

Dear Brothers and Sisters in Christ,

Through the continued generosity of the faithful, the Diocese of Charlotte remains in sound financial health. To continue our commitment to accountability and transparency, I present to you the Annual Financial Report for the Diocese of Charlotte. In support of these efforts, I wish to thank the Diocesan Finance Council, which serves in an advisory capacity to Bishop Michael T. Martin, and all of you for the support you provide to our parishes, schools and ministries across the diocese. Net operating income for the fiscal year ended June 30, 2024 (before considering capital campaign activity), was $0.4 million.

Financial resources (donor-restricted and general-purpose funds) spent during the past fiscal year went toward the following diocesan priorities:

n Catholic Charities programs for our neighbors in need, $7.9 million;

n Capital additions and improvements at our regional and diocesan schools, $6.2 million;

n Our retired priests, seminarians and other clergy serving the faithful, approximately $5.2 million;

n Parish faith formation and support for our 20 schools by the Catholic Schools Office, $2.9 million; and

n Multicultural pastoral programs for our Catholic immigrant brothers and sisters, approximately $1.1 million.

All of our initiatives are dependent on the good work of our many dedicated clergy and lay persons. During the fiscal year just ended, employee salaries and benefits totaled approximately $67.7 million, up from $63.1 million in fiscal 2023. This increase was primarily driven by support of our regional and diocesan schools. Employee benefits include three health insurance programs from which employees may select, term life insurance, numerous employeepaid optional benefits, a generous schedule of paid time off and a 403(b) defined contribution pension plan. Non-temporary employees working at least 1,000 hours in a calendar year receive a contribution to their 403(b) account totaling 5% of their annual salary. In addition, they receive a match equal to 50% of the first 4% of pay they contribute to their pension account

Of course, the heart of the diocese is our parishes and schools. And, while this report covers the financial activities of many diocesan ministries and entities, it does not include those of our parishes (and parish and inter-parochial schools), which are independent entities and report separately to their parishioners.

Results of operating activities for the year ended June 30, 2024

Expenses in support of our various program (ministry) services totaled $77.5 million, while all other operating expenses (excluding capital campaign expenses) totaled approximately $44.9 million, for a total of $122.4 million. We were blessed to receive $114.8 million in financial support without donor restrictions (excluding capital campaign income), and reclassified donorrestricted revenue totaling $8.8 million to unrestricted operating revenue as a result of fulfilling donor restrictions, for a total of $123.6 million in revenue without donor restrictions (excluding capital campaign revenue).

The diocese recorded a net decrease in donor-restricted operating funds (excluding capital campaign activities) of approximately $0.8 million for the year ended June 30, 2024. This represents the net of $8.0 million in donorrestricted donations/grants received and $8.8 million in donor-restricted gifts whose restrictions were fulfilled during the fiscal year.

The pie charts included depict the major sources of revenue and summarize expenditures for the fiscal year just ended. Additional detail about revenue and a breakout of expenses by functional area, along with a comparison to fiscal 2023, are presented within the Statement of Activities on the next page.

Capital campaign activity for the year ended June 30, 2024

There were four capital campaigns with activity during fiscal 2024. The FFHL campaign recorded net income of approximately $12,000 as a result of the recovery of previously recognized losses on uncollectible pledges. The campaign for development of St. Joseph College Seminary chapel recorded revenue, net of campaign costs, totaling $3.9 million during the fiscal year. Mecklenburg Area Catholic Schools (MACS) had two campaigns in the collection phase: (1) for the Fine Arts Center at Charlotte Catholic High School and (2) for the expansion of the gymnasium and athletic facilities at Christ the King Catholic High School. The MACS campaigns recorded total revenue, net of campaign costs, of approximately $190,000 during fiscal 2024.

Results of nonoperating activities for the year ended June 30, 2024

Nonoperating activities consist of the return earned on diocesan investments. The diocese reported a gain on investments this past year of approximately $22.0 million, of which $6.7 million represents donor restrictions. During the prior fiscal year ended June 30, 2023, the diocese reported a gain on investments of approximately $14.2 million, of which $4.8 million represented donor restrictions.

Net Asset Credit for the year ended June 30, 2024

The diocese recorded an $8.4 million credit to (increase in) net assets in fiscal 2024 due to our pension and post-retirement benefit plans’ most recent

SOURCES

actuarial valuations. The primary drivers of this credit are better than expected net asset performance during the fiscal year, change in the discount rate, and funding in excess of the actuarial recommended contribution.

The cumulative charge against net assets related to our pension and postretirement benefit plans through June 30, 2024, totals approximately $0.4 million, leaving a balance in net assets without donor restrictions of approximately $229 million, of which approximately $124 million is designated for certain diocesan activities. Additionally, the accrued liability for the pension and post-retirement benefit plans was approximately $22 million at June 30, 2024.

Cash flows for the year ended June 30, 2024

Cash generated from operating activities totaled approximately $10.9 million (including $0.3 million of pledge receivables collected), which assisted in providing the funds needed for the acquisition of property and equipment, which totaled $7.5 million. The remaining resources were allocated to investments as part of our strategic approach in support of our long-term diocesan goals and initiatives.

Liquidity as of June 30, 2024

Although the pension and post-retirement benefit liabilities have a significant impact on our unrestricted net assets, they are long term in nature and do not affect our liquidity in the short term. As the Statement of Financial Position shows, cash and investments totaled $300.9 million at June 30, 2024, of which $97.1 million is invested in donor-restricted endowments, leaving a balance of $203.8 million. Receivables and other assets totaling $12.0 million are due within the coming year, resulting in liquid assets of $215.8 million. Of this amount, $124.7 million is either restricted as to use by donor stipulations or management designations or is required for FFHL and endowment distributions and grant commitments, further reducing funds available to $91.1 million. Of this amount, $64.8 million represents parish deposits held by DL Catholic, leaving a balance of $26.3 million for general operations, including payment of liabilities reported on the Statement of Financial Position at June 30, 2024.

The complete audited financial statements, including notes, are located on our website. The QR code provided here will take you to that report, or you can locate it on our website at www.charlottediocese.org/annualreport.

Matthew P. Ferrante Chief Financial Officer

INFORME DEL DIRECTOR FINANCIERO

Queridos Hermanos y Hermanas en Cristo, Gracias a la continua generosidad de los fieles, la Diócesis de Charlotte se mantiene en buena salud financiera. Para continuar con nuestro compromiso con la responsabilidad y la transparencia, les presento el Informe Financiero Anual de la Diócesis de Charlotte. En apoyo a estos esfuerzos, quiero agradecer al Consejo Financiero Diocesano, que asesora al Obispo Michael T. Martin y a todos ustedes por el apoyo que brindan a nuestras parroquias, escuelas y ministerios en toda la diócesis. El ingreso operativo neto para el año fiscal que terminó el 30 de junio de 2024 (antes de considerar las actividades de la campaña de capital) fue de $0,4 millones.

Los recursos financieros (fondos restringidos por los donantes y fondos de propósito general) gastados durante el último año fiscal se destinaron a las siguientes prioridades diocesanas:

n Programas de Caridades Católicas para nuestros vecinos necesitados, $7,9 millones;

n Adiciones y mejoras de infraestructura en nuestras escuelas regionales y diocesanas, $6,2 millones;

n Apoyo a nuestros sacerdotes jubilados, seminaristas y otros clérigos que sirven a los fieles, aproximadamente $5,2 millones;

n Formación en la fe parroquial y apoyo a nuestras 20 escuelas por parte de la Oficina de Escuelas Católicas, $2,9 millones;

n Programas pastorales multiculturales para nuestros hermanos y hermanas inmigrantes católicos, aproximadamente $1.1 millones.

Todas nuestras iniciativas dependen del buen trabajo de nuestro numeroso clero y de los laicos dedicados. Durante el año fiscal recién terminado, los salarios y beneficios de los empleados sumaron aproximadamente $67,7 millones, frente a $63,1 millones en el año fiscal 2023. Este aumento fue impulsado principalmente por el apoyo a nuestras escuelas regionales y diocesanas. Los beneficios para los empleados incluyen tres programas de seguro de salud entre los cuales los empleados pueden elegir, seguro de vida a término, numerosos beneficios opcionales pagados por los empleados, un generoso programa de tiempo libre pagado y un plan de pensiones 403(b) con contribución definida. Los empleados no temporales que trabajen al menos 1,000 horas en un año calendario reciben una contribución a su cuenta 403(b) que equivale al 5% de su salario anual. Además, reciben una aportación igual al 50% de los primeros 4% del salario que aporten a su cuenta de pensiones. Por supuesto, el corazón de la diócesis son nuestras parroquias y escuelas. Y, aunque este informe cubre las actividades financieras de muchos ministerios y entidades diocesanas, no incluye las de nuestras parroquias (y escuelas parroquiales e interparroquiales), que son entidades independientes y presentan sus informes por separado a sus feligreses.

Resultados de las actividades operativas para el año fiscal terminado el 30 de junio de 2024

Los gastos en apoyo a nuestros diversos programas de servicios (ministerios) totalizaron $77,5 millones, mientras que todos los demás gastos operativos (excluyendo los gastos de la campaña de capital) sumaron aproximadamente $44,9 millones, para un total de $122,4 millones.

Fuimos bendecidos al recibir $114,8 millones en apoyo financiero sin restricciones de los donantes (excluyendo los ingresos de la campaña de capital), y reclasificamos los ingresos restringidos por los donantes que sumaron $8,8 millones a ingresos operativos no restringidos como resultado de haber cumplido las restricciones de los donantes, para un total de $123,6 millones en ingresos sin restricciones (excluyendo los ingresos de la campaña de capital).

La diócesis registró una disminución neta de fondos operativos restringidos por los donantes (excluyendo las actividades de la campaña de capital) de aproximadamente $0,8 millones para el año terminado el 30 de junio de 2024. Esto representa el neto de $8,0 millones en donaciones/subvenciones restringidas por los donantes recibidas y 8,8 millones en obsequios restringidos por los donantes cuyas restricciones fueron cumplidas durante el año fiscal. Los gráficos circulares incluidos muestran las principales fuentes de ingresos y resumen los gastos para el año fiscal recién terminado. Información adicional sobre los ingresos y un desglose de los gastos por área funcional, junto con una comparación con el año fiscal 2023, se presentan en el Estado de Actividades en la página siguiente.

Actividades de la campaña de capital para el año fiscal terminado el 30 de junio de 2024

Hubo cuatro campañas de capital con actividad durante el año fiscal 2024. La campaña FFHL registró un ingreso neto de aproximadamente $12,000 como resultado de la recuperación de pérdidas previamente reconocidas por promesas no cobradas. La campaña para el desarrollo de la capilla del Seminario Universitario San José registró ingresos, netos de los costos de la campaña, que totalizaron $3,9 millones durante el año fiscal. Las Escuelas Católicas del Área de Mecklenburg (MACS) tuvieron dos campañas en fase de recolección: (1) para el Centro de Bellas Artes en la Escuela Secundaria Católica de Charlotte y (2) para la expansión del gimnasio y las instalaciones deportivas en la Escuela Secundaria Católica Cristo Rey. Las campañas de MACS registraron un ingreso total, neto de los costos de la campaña, de aproximadamente $190,000 durante el ejercicio fiscal 2024. Resultados de las actividades no operativas para el año fiscal terminado el 30 de junio de 2024

Las actividades no operativas consisten en el rendimiento obtenido de las inversiones

FUENTES DE INGRESOS

45% Matrículas y cuotas escolares

USOS DE NUESTROS RECURSOS

37% Educación

2% Cuotas y alquileres

2% Recaudación de fondos

4% Programas de beneficios para empleados parroquiales

18% Otras fuentes incluyendo ganancias de inversiones

16% Evaluaciones y apoyo parroquial

9% Donaciones y regalos

4% Diocesan Support Appeal

3% Campañas de capital

3% Subvenciones, contratos y premios

20% Administración Escolar

11% Otros gastos del programa

7% Pastoral

7% Servicios y apoyo administrativo

6% Depreciación

6% Servicios Sociales

de la diócesis. La diócesis reportó una ganancia en inversiones este año pasado de aproximadamente $22 millones, de los cuales $6,7 millones corresponden a restricciones de los donantes. Durante el ejercicio fiscal anterior, terminado el 30 de junio de 2023, la diócesis reportó una ganancia en inversiones de aproximadamente $14,2 millones, de los cuales $4,8 millones correspondían a restricciones de los donantes. Crédito de activos netos para el año fiscal terminado el 30 de junio de 2024

La diócesis registró un crédito de $8,4 millones (aumento de los activos netos) en el ejercicio fiscal 2024 debido a las valoraciones actuariales más recientes de nuestros planes de pensiones y beneficios post-jubilación. Los principales factores de este crédito son un mejor desempeño de los activos netos durante el año fiscal, el cambio en la tasa de descuento y la financiación por encima de la contribución recomendada por los actuarios.

El cargo acumulado contra los activos netos relacionado con nuestros planes de pensiones y beneficios post-jubilación hasta el 30 de junio de 2024 es de aproximadamente $0,4 millones, dejando un saldo de activos netos sin restricciones de aproximadamente $229 millones, de los cuales aproximadamente $124 millones están designados para ciertas actividades diocesanas. Además, la obligación acumulada por los planes de pensiones y beneficios post-jubilación fue de aproximadamente $22 millones al 30 de junio de 2024.

Flujos de efectivo para el año fiscal terminado el 30 de junio de 2024

El efectivo generado por las actividades operativas totalizó aproximadamente $10,9 millones (incluidos $0,3 millones de promesas de pago cobradas), lo que ayudó a proporcionar los fondos necesarios para la adquisición de propiedades y equipos, que sumaron $7,5 millones. Los recursos restantes se destinaron a inversiones como parte de nuestro enfoque estratégico en apoyo a nuestros objetivos e iniciativas diocesanas a largo plazo.

Liquidez al 30 de junio de 2024

Aunque las obligaciones por pensiones y beneficios post-jubilación tienen un impacto significativo en nuestros activos netos sin restricciones, son de naturaleza a largo plazo y no afectan nuestra liquidez a corto plazo. Como muestra el Estado de Situación Financiera, el efectivo y las inversiones sumaron $300,9 millones al 30 de junio de 2024, de los cuales $97,1 millones están invertidos en fondos de dotación restringidos por los donantes, dejando un saldo de $203,8 millones. Las cuentas por cobrar y otros activos que totalizan $12,0 millones deben cobrarse en el próximo año, lo que da como resultado activos líquidos de $215,8 millones. De esta cantidad, $124,7 millones están restringidos por estipulaciones de los donantes o designaciones de la administración o se requieren para distribuciones de FFHL y compromisos de subvenciones, reduciendo aún más los fondos disponibles a $91,1 millones. De esta cantidad, $64,8 millones representan depósitos parroquiales mantenidos por DL Catholic, dejando un saldo de $26,3 millones para operaciones generales, incluidos los pagos de pasivos reportados en el Estado de Situación Financiera al 30 de junio de 2024.

Los estados financieros auditados completos, incluyendo las notas, se encuentran en nuestro sitio web. El código QR proporcionado aquí lo llevará a dicho informe.

Matthew P. Ferrante Director Financiero

CATÓLICA ROMANA DE CHARLOTTE

INGRESOS Y OTRA ASISTENCIA: Matrícula y cuotas—Netas

Aportes—Apoyo Diocesano (DSA)

financieros

asistencia—Programas de DSA

donaciones y obsequios

Valuación de las parroquias:

de beneficios de empleados

parroquial para escuelas

de agencias federales y estatales

Otras subvenciones y asistencias

Honorarios por prestación de servicios

Ingresos por renta

Ingresos por intereses—Préstamos de parroquias

ingresos

GASTOS:

de ingresos y otra asistencia

Gastos de programas:

Pastorales:

Clero, vocaciones y apoyo a sacerdotes jubilados

PASIVO: Cuentas por pagar y gastos acumulados

y beneficios acumulados

de pensión y posteriores a la jubilación acumulados

Pasivos por arrendamientos

Obligaciones de custodia, anualidades y otras obligaciones

CONTINGENCIAS (Note 12)

ACTIVO NETO:

Activo neto sin restricciones de donantes: No designado 105,830,975 97,780,867

Carga a activo neto—Planes de jubilación para personal laico y sacerdotes, y plan médico para clérigos jubilados (372,949) (8,741,166)

Total del activo neto no designado sin restricciones de donantes 105,458,026 89,039,701 Designado 123,501,778 114,652,176

Total del activo neto sin restricciones de donantes 228,959,804 203,691,877

Activo neto con restricciones de donantes 87,025,695 77,430,069 Activo neto total

Programas de beneficios para empleados laicos

e inversiones parroquiales

Intereses—Obligaciones por arrendamientos

Depreciación y amortización

Recaudación de fondos 2,049,509 1,864,938 Total de gastos 122,433,966 106,652,679

VARIACIÓN DEL ACTIVO NETO ANTES DE LA CAMPAÑA DE CAPITAL Y ACTIVIDADES NO OPERATIVAS Y CARGA A ACTIVO NETO 427,092 6,138,514

ACTIVIDADES DE CAMPAÑA DE CAPITAL: Forward in Faith, Hope, and Love (FFHL): FFHL—Recuperación de pérdidas sobre aportes incobrables 35,914 23,532 FFHL—Distribuciones a las parroquias (22,996) (41,570) FFHL—Recaudación de fondos y otros gastos (1,065) (5,664)

Actividad de la campaña FFHL neta 11,853 (23,702)

Mecklenburg Area Catholic Schools (MACS): MACS—Aportes 203,284 172,452 MACS—Gastos de recaudación de fondos (12,860) (9,588)

Actividad de la campaña MACS neta 190,424 162,864

St. Joseph College Seminary (SJCS): SJCS—Aportes 4,120,653 7,637,436 SJCS—Gastos de recaudación de fondos (208,410) (211,122)

Actividad neta de la campaña del SJCS 3,912,243 7,426,314

VARIACIÓN DEL ACTIVO NETO PROCEDENTE DE ACTIVIDADES OPERATIVAS 4,541,612 13,703,990 NO OPERATIVAS—Retorno neto sobre la inversión

VARIACIÓN DEL ACTIVO NETO PROCEDENTE DE ACTIVIDADES NO OPERATIVAS 21,953,724

VARIACIÓN DEL ACTIVO NETO ANTES DEL CRÉDITO A ACTIVO NETO

CRÉDITO A ACTIVO NETO—Planes de jubilación para personal laico y sacerdotes, y plan médico para clérigos jubilados 8,368,217 7,974,593 VARIACIÓN DEL ACTIVO NETO 34,863,553 35,855,930 ACTIVO NETO:

La demanda de construcción aumenta en iglesias y escuelas

El crecimiento y cambio continuó siendo la palabra clave para la Diócesis de Charlotte en el Año Fiscal 2024, reflejando un proceso continuo de transformación a través de la fe.

La diócesis se despidió del Obispo Peter Jugis, quien se retiró en mayo después de dos décadas guiando sus parroquias, escuelas y ministerios a través de un crecimiento sin precedentes, y dio la bienvenida al Obispo Michael Martin, un franciscano conventual, quien comenzó inmediatamente su “ministerio de presencia”. Al visitar las parroquias de toda la diócesis, ha visto de primera mano los desafíos del crecimiento, incluidas las congregaciones que se desbordan hacia otros ambientes o que han superado la capacidad de sus iglesias y se han trasladado a celebrar la Misa en gimnasios y salones parroquiales.

En el año que finaliza el 30 de junio de 2024, la diócesis alcanzó nuevos máximos en la población católica, las vocaciones, la matrícula escolar y las recepciones en la Iglesia. Como parte de una migración histórica de católicos hacia el sureste de los Estados Unidos, el crecimiento poblacional está impulsado en gran medida por nuevas familias hispanas y personas que se trasladan desde el noreste y medio oeste. Para acomodar el flujo de personas, las parroquias, escuelas y ministerios de la diócesis comenzaron a planificar o ejecutar más de 30 proyectos de expansión, renovación y construcción de nuevos edificios durante el año fiscal,

lo que representa una inversión total prevista por esas entidades de más de $170 millones.

“En los últimos dos años, hemos visto una increíble demanda de construcción a medida que nuestras parroquias y escuelas en todos los rincones de la diócesis buscan responder al crecimiento”, dice Emmett Sapp, director de construcción y bienes raíces de la diócesis.

“Este es un maravilloso signo de la vitalidad de la Iglesia y un testimonio que nuestras iglesias y escuelas brindan a través de la gracia de Dios”.

$170 millones

Inversión estimada en proyectos de construcción por parte de las parroquias, escuelas y ministerios en la Diócesis de Charlotte

Desde una nueva iglesia en construcción en Highlands, hasta renovaciones y ampliaciones en Statesville y Lincolnton, y la expansión de la Escuela Secundaria Cristo Rey en Huntersville, las instalaciones mejoradas ofrecerán lugares de comunión, formación, educación y adoración para un estimado de 539,000 católicos bautizados que viven en la diócesis, que abarca la mitad occidental de Carolina del Norte. El Seminario Universitario San José en Mount Holly también avanzó en la construcción de una nueva capilla durante el año, la cual podrá acoger a muchos más visitantes, así como a los seminaristas que algún día servirán a la diócesis como sacerdotes.

Los líderes diocesanos también comenzaron a evaluar opciones para establecer una nueva catedral más grande, que probablemente tendrá capacidad para hasta 2,000 personas en las liturgias diocesanas más importantes, como las ordenaciones y la Misa Crismal anual. La actual Catedral de San Patricio tiene capacidad para solo 350 personas y está entre las catedrales más pequeñas de EE. UU. Fue construida inicialmente como una iglesia parroquial y elevada al estatus de catedral para servir como sede del obispo cuando se estableció la diócesis en 1972, con solo 34,000 católicos. Sus limitaciones han obligado a la diócesis a trasladar sus liturgias más significativas, incluida la ordenación de 2024 del obispo Martín, un récord de siete sacerdotes y seis diáconos, a

Bajo la dirección del Obispo Michael Martin, la Parroquia Espíritu Santo en Denver comenzó la construcción de su nueva iglesia en 2024.

la Iglesia de San Marcos en Huntersville.

El Obispo Martin ha abrazado las oportunidades que trae el crecimiento, tanto estructurales como espirituales, recordando a los fieles el llamado de Jesús a “ir y hacer discípulos”, animando a todos en la diócesis a profundizar su compromiso con la difusión del Evangelio.

“Me llevará algún tiempo llegar a todos los muchos lugares donde el Espíritu Santo está trabajando en nuestra creciente diócesis…”, escribió el obispo en una carta a los feligreses, unas semanas después de haber sido instalado en mayo. “Una de las formas en las que pueden ayudarme es preguntándose hasta qué punto han interactuado con su comunidad de fe local”.

UNA FUERZA UNIFICADORA

Con la asistencia a la Misa en aumento y las colectas de la ofrenda superando los niveles previos a la pandemia, las iglesias, escuelas y otras instituciones de la diócesis están respondiendo tanto mejorando sus instalaciones como ampliando los ministerios.

Entre las parroquias en el año fiscal 2024, más de una docena se involucraron en un nuevo proceso de planificación pastoral, ahora requerido cada seis años para crear un plan estratégico y obtener la aprobación del obispo para cualquier construcción significativa. Entre las escuelas, siete de las 20 escuelas de la diócesis comenzaron a planificar la adición de aulas y/o la renovación de espacios, y cinco están trabajando en mejoras de las instalaciones deportivas. Los líderes escolares ahora están explorando la construcción de nuevas escuelas y mejoras adicionales en las instalaciones existentes.

Las instituciones católicas ubicadas en la diócesis también tomaron medidas para responder al crecimiento: En febrero de 2024, Belmont Abbey College anunció que había alcanzado una meta de recaudación de fondos de $100 millones para mejoras en instalaciones y programas – y que aumentaría su meta a $150 millones.

“Hemos sido inundados de llamadas de parroquias y escuelas que buscan acoger a un número creciente de personas, pero que enfrentan desafíos debido al espacio limitado”, dice Sapp, cuya oficina ofrece gestión de proyectos y otros servicios para guiar la construcción. “Es asombroso ver cómo las comunidades se unen para enfrentar estos desafíos. Los grandes proyectos de construcción pueden ser difíciles, pero también pueden ser revitalizantes y fortalecer los lazos de una comunidad unida detrás de una visión común al servicio de la misión de la Iglesia.”

para actividades y una capilla de adoración, con el fin de ofrecer más oportunidades de fe para sus números crecientes.

En Highlands, la Misión Nuestra Señora de las Montañas rompió un récord de recaudación de fondos, incluso entre las parroquias de toda la diócesis, ya que los donantes contribuyeron con más de $8,5 millones para construir una nueva iglesia. Y en Denver, la inauguración de la construcción de una nueva iglesia en Espíritu Santo fue la culminación de una década de planificación y recaudación de fondos.

Al magnificar las demandas del crecimiento, Sapp mencionó que las restricciones a la recaudación de fondos y la recesión económica durante la pandemia de COVID-19 dejaron a las iglesias y escuelas particularmente ansiosas por comenzar las mejoras en el año fiscal 2024.

En algunas comunidades, como Mount Airy, las parroquias encontraron más económico comprar edificios de iglesias existentes para renovarlos que construir una iglesia nueva. En San Marcos en Huntersville y Santa Dorotea en Lincolnton, se identificaron como la mejor opción espacios adicionales

Estadísticas Vitales

Más allá del aumento en el número de feligreses, la diócesis sigue creciendo también en diversidad. Las congregaciones hispanas están viendo un crecimiento especial; los hispanos ahora constituyen más de la mitad de la población católica de la diócesis. La congregación vietnamita en San José en Charlotte también ha superado la capacidad de su iglesia y está planeando construir una nueva, mientras que la comunidad vietnamita en Greensboro adquirió un edificio de iglesia para acomodar sus crecientes necesidades.

“Cuando tienes mucho crecimiento, uno de los desafíos es mantener a la gente unificada, especialmente cuando hay más recién llegados y diversidad de orígenes”, dice Sapp. “Un nuevo edificio de iglesia o un proyecto de renovación puede ayudar a las personas a crear lazos trabajando juntas para levantar lugares que unan a su comunidad para la adoración, la educación y la fraternidad. Esto ayuda a las personas a crecer en su fe y profundizar su relación con Jesús, inspirándolos a convertirse en discípulos que salgan y compartan la Buena Nueva del Evangelio”.

Iglesia de los Santos Ángeles, Mount Airy

Compra y renovación de una iglesia más grande

Con una iglesia que tiene una capacidad para menos de 100 personas, esta creciente congregación ha estado celebrando sus cultos en el salón parroquial durante casi 30 años, pero recientemente adquirió una iglesia existente con capacidad para 300 personas, por un costo de $235,000. Actualmente se está llevando a cabo una campaña de capital de $1,5 millones para las renovaciones.

Iglesia del Espíritu Santo, Denver

Construcción de nueva iglesia

Con una congregación que ha duplicado su tamaño en una década, llegando a 1,000 familias, las múltiples campañas y el arduo trabajo de la Iglesia del Espíritu Santo para construir una iglesia más grande finalmente se ha hecho realidad; se inició la construcción de una iglesia de $12,5 millones con capacidad para 675 personas.

Señora de las Montañas, Highlands Construcción de nueva iglesia

La congregación rompió un récord de recaudación de fondos para parroquias en toda la diócesis, ya que los donantes contribuyeron con $8,5 millones para la construcción de una nueva iglesia de $12,5 millones. Es una misión de la Iglesia de San Judas en la cercana Sapphire, que también está recaudando fondos para construir una nueva iglesia.

Construyendo para el futuro

Durante el año fiscal 2024, más de 30 parroquias, escuelas y ministerios tomaron medidas para ampliar su capacidad y acomodar el crecimiento, planificando o ejecutando proyectos de renovación y nuevas construcciones con un costo generalmente superior a $1 millón. Algunos adquirieron iglesias o edificios existentes. Se estima que la inversión total en las diversas entidades de la diócesis es de aproximadamente $170 millones.

Ángeles

Secundaria Católica de Charlotte (Charlotte)

mejoras en las instalaciones deportivas, y otras renovaciones

Cristo Rey (Huntersville)

mejoras en las instalaciones deportivas y

renovaciones

La parroquia no puede acomodar todas sus actividades por lo cual está construyendo una instalación de usos múltiples de 12,000 pies cuadrados para grandes reuniones, encuentros, una cocina y deportes. Actualmente se está llevando a cabo una campaña para recaudar $2 millones, que se sumarán a los $2,5 millones en ahorros y financiamiento que cubrirán el costo del proyecto de $6 millones.

San José está planeando construir una iglesia para acomodar a 1,000 personas y renovar su iglesia actual para clases de formación en la fe, reuniones y eventos comunitarios. Se estima que el costo del proyecto superará los $15 millones. La iglesia es conocida por sus Estaciones de la Cruz y su celebración anual del "Tet".

Una escuela que comenzó con 35 estudiantes en 2011 ha crecido a 450 estudiantes y pronto iniciará una expansión y renovación de $12 millones, aumentando su capacidad a 650 estudiantes con más aulas y espacio para actividades. Actualmente se está llevando a cabo una campaña de capital para mejorar las instalaciones deportivas.

La diócesis está evaluando opciones para establecer una nueva catedral más grande, con capacidad para hasta 2,000 personas.

Diócesis de Charlotte

San Pedro, la Catedral de San Patricio y la Basílica de San Lorenzo han sido sometidos a renovaciones o ha recibido aprobación para llevar a cabo renovaciones con el fin de preservar estas propiedades históricas para las generaciones futuras.

Con el crecimiento de las vocaciones, las siguientes iglesias están construyendo, renovando o comprando casas existentes para usarlas como residencias para sus sacerdotes:

Nuestra Señora de la Asunción (Charlotte)

Sagrado Corazón (Salisbury)

San Juan Evangelista (Waynesville)

San José (Charlotte)

San Leo (Winston-Salem)

Santa Margarita de Escocia (Maggie Valley)

San Marcos (Huntersville)

Catedral de San Patricio (Charlotte)

Santo Tomás de Aquino (Charlotte)

La Inmaculada Concepción (Hendersonville)

una residencia en su propiedad para el uso de las hermanas misioneras laicas de la Asociación Madre de la Vida, quienes están trabajando en la escuela y la parroquia.

Lincolnton Denver

San Bernabé, Arden Edificio de usos múltiples 7

Escuela Secundaria Cristo Rey, Huntersville Aulas adicionales, renovaciones 21

San José, Charlotte Construcción de nueva iglesia 10

renovó

MINISTERIO PASTORAL

Formando discípulos, alcanzando más personas

En el corazón de la Iglesia están su pueblo, y su misión es proporcionarles orientación espiritual, enseñanza y consuelo para profundizar su relación con Jesús y compartir las Buenas Nuevas con los demás. La población católica de la diócesis alcanzó las 539,000 personas en 2024, con un récord de 1,104 personas que fueron bienvenidas en la fe. Para servir al Pueblo de Dios, la diócesis cuenta con el apoyo de 139 sacerdotes activos y jubilados, 101 diáconos permanentes activos, 82 religiosas, 2,576 empleados y un sinnúmero de voluntarios. Los signos de crecimiento se reflejan en la vida de la Iglesia local y en los numerosos ministerios que sirven a nuestra comunidad cada vez más diversa.

FOMENTANDO LAS

VOCACIONES

El programa de vocaciones de la diócesis está prosperando, casi triplicándose de 16 seminaristas en 2016 a 46 este año. Siete seminaristas fueron ordenados sacerdotes diocesanos en junio de 2024, y otros seis se convirtieron en diáconos, continuando su formación hacia la ordenación sacerdotal en 2025. Nueve jóvenes fueron aceptados en el Seminario Universitario San José en Mount Holly para el año 2024-2025, lo que eleva a 20 el número total de seminaristas universitarios que están discerniendo su llamado al sacerdocio cerca de casa mientras asisten al cercano Belmont Abbey College. Casi 300 jóvenes asistieron a los campamentos de vocaciones en junio, incluidos un nuevo retiro de un día para mujeres jóvenes llamado “Talitha Koum.”

Este crecimiento está impulsado por un énfasis continuo en la conciencia vocacional y la formación de seminaristas, con el Padre Brian Becker, promotor diocesano de vocaciones, también nombrado director de la nueva etapa Propedéutica, o Primer Año, de la Formación en el Seminario Universitario San José. En enero de 2024, la diócesis aceptó formalmente a 16 hombres en el Programa de Diáconos Permanentes, una de las clases de ingreso más grandes en los últimos años. Después de una formación adicional, serán considerados para la ordenación como diáconos en 2027.

7

Sacerdotes ordenados

ALCANZANDO A MÁS

La diócesis dedicó más recursos y esfuerzos pastorales para servir a diversos grupos de la Iglesia local.

La misión del Ministerio Hispano continuó creciendo significativamente en el año fiscal 2024, con la mitad de la población de la diócesis ahora de origen hispano. Sirviendo a esta comunidad de un cuarto de millón de personas están el clero y coordinadores a tiempo completo en los 10 vicariatos, proporcionando cuidado espiritual, formación de fe y alcance. Dedicarán su tiempo al ministerio pastoral, formación de fe, actividades caritativas y otro tipo de apoyo: guiando a grupos apostólicos de habla hispana como Cursillo

46

Seminaristas matriculados

En el ejercicio fiscal 2024

Mujeres de 17 comunidades religiosas continuaron ministrando a algunos de los más pobres y vulnerables entre nosotros, incluyendo a los enfermos y discapacitados, personas mayores, mujeres embarazadas sin hogar, aquellas que huyen de la violencia doméstica, personas con SIDA, y migrantes y refugiados.

y Emaús con conferencias, retiros y talleres que el año pasado atrajeron a 9,700 personas; ofreciendo los Ejercicios Espirituales (Retiro de Silencio de 3 días) a más de 400 personas; y organizando talleres educativos, clases y retiros que alcanzaron a más de 6,000 personas. El Ministerio Hispano también hizo hincapié en una mayor labor con jóvenes y jóvenes adultos, enviando a jóvenes para formación de liderazgo en el Instituto Pastoral del Sureste (SEPI), promoviendo el Congreso Eucarístico y organizando un retiro de Semana Santa para más de 200 jóvenes adultos en el Centro de Retiros

16

Hombres en Diaconado Permanente

Table Rock en Pickens, Carolina del Sur, dirigido por el vicario del Ministerio Hispano, Padre Julio Domínguez. El compromiso con los jóvenes también aumentó a través de la Oficina de Ministerios Juveniles de la diócesis, que patrocinó eventos diocesanos, incluida la 47ª Conferencia Anual Diocesana de Jóvenes en abril, que atrajo un récord de 200 adolescentes, y lanzó consejos asesores juveniles en los vicariatos de Asheville, Smoky Mountain, Greensboro y Winston-Salem. El obispo entrante, Michael Martin, puso a los jóvenes como una de sus prioridades desde el principio, visitando la Escuela Secundaria Católica de Charlotte como una de sus primeras paradas en la diócesis y diseñando un servicio especial de oración y adoración para jóvenes adultos como el primer evento de sus festividades de ordenación de tres días en mayo. Con una formación en educación católica a nivel de secundaria y universidad, el obispo ha hecho del acercamiento a los jóvenes uno de los pilares de su ministerio. El Ministerio de Asuntos Afroamericanos vio una participación creciente en programas para fomentar la identidad católica negra. Un Día de Reflexión diocesano abordó los problemas católicos negros antes del Congreso Nacional Católico Negro de 2024, donde la delegación de la diócesis se conectó con más de 2,500 católicos negros a nivel nacional. La experiencia está informando el desarrollo de un nuevo plan pastoral quinquenal para abordar las necesidades espirituales de los católicos negros en la diócesis.

Otro esfuerzo de alcance en la comunidad católica

Siete hombres fueron ordenados sacerdotes para la Diócesis de Charlotte en 2024. Se espera que otros seis sean ordenados en 2025.

negra en 2023 fue la inauguración de un capítulo en Charlotte de los Caballeros de San Pedro Claver, con sede en la Parroquia de Nuestra Señora de la Consolación. El Ministerio Vietnamita continúa floreciendo, con comunidades en expansión en Charlotte y Greensboro. En Charlotte, la Iglesia Católica Vietnamita St. Joseph planea construir una nueva iglesia, mientras que la comunidad vietnamita de Greensboro compró una iglesia para su nueva Misión Vietnamita de la Sagrada Familia. A dos años de su fundación, la Oficina de Vida Familiar de la diócesis amplió sus esfuerzos para fortalecer los matrimonios, apoyar a las familias y promover el respeto por la vida en todas sus etapas. En 2024, alcanzó a cientos de personas a través de su conferencia de enriquecimiento matrimonial, talleres de preparación matrimonial y marchas pro-vida. La oficina también agregó más talleres bilingües de Planificación Familiar Natural, promovió la educación para madres e hijas adolescentes y apoyó a los profesionales de la salud católicos, organizando su quinta conferencia anual de salud en Charlotte. También ofreció una Misa de Consolación para padres que están de luto por la pérdida de un hijo, el primero de un evento anual planeado. Con la orientación de la Oficina de Vida Familiar, otras ocho parroquias lanzaron el alcance “Caminando con las Mamás Necesitadas” para ayudar a madres embarazadas y en crianza, elevando el total a 17. La oficina también amplió la participación en marchas locales, estatales y nacionales por la vida. El programa Ministerio del Anciano de Caridades

Católicas reunió a casi 200 personas mayores de 15 parroquias para el 36º evento anual de Fiesta de Primavera del Ministerio del Adulto Mayor, con otros 700 participando en programas educativos y sociales en toda la diócesis o online.

La diócesis avanzó en un esfuerzo de tres años para asumir la supervisión de la comunidad de retiro Pennybyrn a solicitud de las Hermanas de los Pobres Servidoras de la Madre de Dios, que fundaron Pennybyrn en 1947. El Padre Steve Hoyt fue nombrado capellán en julio de 2023, y la transferencia gradual de patrocinio concluirá en 2025 cuando las hermanas se retiren.

La diócesis lanzó capítulos de Courage y EnCourage para servir a personas con atracción por el mismo sexo y sus familias.

La diócesis también dio la bienvenida a sacerdotes para servir a las pequeñas pero crecientes comunidades católicas de habla francesa y eritrea de Charlotte, y renovó su colaboración con la Diócesis de Buea, Camerún.

El número de casos de nulidad del Tribunal aumentó significativamente en el año fiscal 2024. Para gestionar los casos de manera eficiente y compasiva, el Tribunal lanzó un sistema de gestión de casos en línea y continuó expandiendo su red de defensores parroquiales. Ahora cada parroquia cuenta con un defensor de nulidad que acompaña y asiste a las personas durante el proceso, a veces complejo, de nulidad.

El alcance a los encarcelados también recibió un enfoque renovado, llevando esperanza, amor y la misericordia de Jesús. Los equipos parroquiales

brindaron orientación espiritual en 12 centros de detención alrededor de la diócesis y organizaron cadenas de oración y retiros, como el retiro de Residents Encounter Christ en el Centro Correccional Mountain View en agosto. El poderoso retiro de fin de semana para 36 reclusos incluyó charlas y oraciones católicas, así como los sacramentos de la confesión y la misa.

ESCUCHANDO Y

CONECTANDO

La Iglesia continuó involucrándose con las personas en un diálogo de varios años sobre la unidad, el compromiso y el alcance misionero, como parte del Sínodo sobre la Sinodalidad del Papa Francisco, titulado “Por una Iglesia Sinodal: Comunión, Participación y Misión.” En 2024, el Obispo Martín siguió el ejemplo de su predecesor al apoyar el trabajo del Sínodo, instando a todos a abrazar el esfuerzo mundial y orar por la guía del Espíritu Santo para construir una Iglesia que se extienda inclusivamente a todos.

La diócesis también trabajó para elevar su alcance en comunicaciones y contar las historias de la Iglesia local, llegando a nuevas audiencias digitales, interactuando con los medios de comunicación locales y entregando noticias e información a través de su sitio web galardonado y el Catholic News Herald a decenas de miles de personas, buscando inspirarlos a convertirse en discípulos y compartir el mensaje del Evangelio en todo el oeste de Carolina del Norte.

Colecta

Respondiendo a la necesidad CARIDAD

Aceptando el llamado de Dios para servir a los que viven en la periferia, personas de toda la diócesis respondieron, donando tiempo, talento y bienes para ayudar a Caridades Católicas de la Diócesis de Charlotte a servir a un número récord de 24,165 personas necesitadas durante el Año Fiscal 2024.

Se asignaron casi $8 millones para los programas de servicios sociales de Caridades Católicas, que llegaron a más de 1,000 personas en comparación con el año anterior, brindando una variedad de servicios a través de siete oficinas en la mitad occidental de Carolina del Norte. Estos esfuerzos no incluyen la amplia labor caritativa de las parroquias individuales, que van desde despensas de alimentos y colectas de pañales hasta grandes iniciativas como la campaña anual de San Mateo para alimentar a los hambrientos en Haití.

Caridades Católicas vio aumentos significativos en la asistencia y reasentamiento de refugiados durante el año fiscal 2024, trabajando con el gobierno de EE. UU. para ayudar a quienes huían de la guerra en Ucrania y otros conflictos, a comenzar nuevas vidas en Charlotte o Asheville. También sirvió a más veteranos que experimentaban falta de vivienda, así como a familias que necesitaban ayuda para enterrar a sus seres queridos fallecidos. En un año marcado por una inflación significativa, la agencia vio un aumento en la cantidad de personas que acudieron a sus despensas de alimentos y proporcionó más pañales, ropa y asistencia directa en efectivo para ayudar a los clientes a pagar el alquiler y los servicios públicos.

Caridades Católicas abrió su séptima ubicación en North Wilkesboro. Al comenzar el Año Fiscal 2025, la agencia también abrió una octava sede de alcance en Salisbury y en octubre, comenzó a aumentar el personal y los servicios para atender a quienes fueron afectados por la devastadora destrucción de la Tormenta Tropical Helene.

16,693 101

Proporcionó apoyo financiero a 199 familias para enterrar a sus seres queridos fallecidos 5%

24,165 Caridades Católicas personas atendidas

543 personas recibieron alimentos en 3 despensas veteranos sin hogar recibieron vivienda estable refugiados reasentados en la diócesis a través del gobierno de los EE. UU.

CARIDADES CATÓLICAS DE LA DIÓCESIS DE CHARLOTTE

EDUCACIÓN Y CATEQUESIS

Enseñando a los jóvenes, compartiendo la fe

Al abrazar la enseñanza de la fe católica como una responsabilidad colectiva, el trabajo del Vicariato de Educación y la Oficina de Escuelas Católicas es fundamental para nuestra misión de formar e inspirar discípulos que difundan las Buenas Nuevas del Evangelio.

Desde las escuelas y programas de formación en la fe, hasta los ministerios en los campus y los ministerios de jóvenes, pasando por los programas de verano y la formación de catequistas, estas iniciativas llegaron a más personas que nunca en el Año Fiscal 2024.

ESCUELAS: Las 20 escuelas de la diócesis registraron su tercer año consecutivo de matrícula récord con 8,300 estudiantes, lo que representa un aumento del 21 por ciento desde 2020, un incremento que los líderes escolares dicen refleja un reconocimiento creciente del valor de la educación católica. Para acomodar la afluencia de estudiantes, la diócesis está explorando la construcción de nuevas escuelas y mejoras en las instalaciones existentes. Las escuelas también adoptaron un programa de mejora curricular de varios años que incluye nuevos libros de texto, estándares de religión y formación en virtudes, todo basado en una educación académica rigurosa y una identidad católica.

CONGRESO EUCARÍSTICO: En agosto, el 20º Congreso Eucarístico anual ofreció más actividades que en años anteriores, incluyendo la primera aparición del obispo Michael Martin, quien celebró la Misa de clausura. Con adoración y Misa, oradores inspiradores, conciertos de alabanza y adoración, una obra de teatro y una película. El evento atrajo a más de 10,000 personas de todo el oeste de Carolina del Norte al Centro de Convenciones de Charlotte. Además, incluyó una de las procesiones eucarísticas más grandes del país, a través de las calles del centro de Charlotte.

FORMACIÓN EN LA FE: Más de 38,000 niños y adultos participaron en la educación religiosa en la diócesis en el Año Fiscal 2024, lo que es un testimonio del liderazgo parroquial y el alcance, con un récord de 1,104 personas uniéndose a la Iglesia.

Para “enseñar a los maestros,” la diócesis lanzó una nueva colaboración con el Instituto Catequético de la Universidad Franciscana para proporcionar formación continua en el ministerio a más de 700 catequistas encargados de transmitir la fe. La Conferencia Catequética Diocesana anual reunió a más de 500 catequistas para su desarrollo profesional, oración y compañerismo.

MINISTERIO JUVENIL: Cientos de familias se reunieron para vivir la fe y divertirse en una variedad de eventos, desde un curso de cuerdas en Greensboro, hasta un parque de trampolines en Asheville, pasando por el Día Familiar Católico en Carowinds, donde el obispo Michael Martin celebró la Misa y luego subió a la montaña rusa Thunder Striker con los niños.

La Peregrinación Juvenil del Obispo en marzo reunió a más de 800 estudiantes de secundaria y preparatoria para el evento anual organizado por el Belmont Abbey College. Además, la diócesis amplió su programa de verano “Totus Tuus” en 2024 a 18 parroquias, donde 1,800 estudiantes participaron en el campamento diurno de fe y diversión durante una semana.

En el Ministerio Universitario, 400 estudiantes universitarios asistieron regularmente a las Misas dominicales como parte de los programas de la diócesis en las universidades de Davidson, High Point, UNC-Greensboro, Wake Forest y Western Carolina. Al menos 22 estudiantes recibieron sacramentos para unirse a la Iglesia.

Practicando una buena corresponsabilidad

El pueblo de la diócesis continuó brindando un generoso apoyo financiero para asegurar que el trabajo de nuestras parroquias, escuelas y ministerios continúe.

Las colectas parroquiales durante el Año Fiscal 2024 aumentaron un 5,7 por ciento en comparación con el año anterior y un 20 por ciento por encima de los niveles prepandemia.

Además, los ministerios diocesanos recibieron 344 donaciones de $5,000 o más –casi una por día – y 89 donaciones de $25,000 o más. Y a partir de junio de 2024, 1,740 personas en la diócesis indicaron que han incluido o incluirán a la Iglesia en sus planes de sucesión.

La diócesis alcanzó otro hito a principios de 2024: recibió su 50º donación de $1 millón o más.

La diócesis sumó 25 fondos permanentes en el Año Fiscal 2024, lo que eleva el total a 367, con más de $97 millones en activos. Administrados a través de la Fundación de la Diócesis de Charlotte, estos fondos apoyan a las parroquias, escuelas, Caridades Católicas, la jubilación de sacerdotes, la educación de seminaristas y

programas de alcance. Las distribuciones realizadas por la fundación para financiar diversas obras de caridad totalizaron $2,6 millones en el Año Fiscal 2024 y $17,5 millones desde que se estableció la fundación en 1994.

Además, la Campaña Anual de Apoyo Diocesano (DSA, por sus siglas en inglés) permitió a la diócesis brindar consuelo a los necesitados en toda nuestra diócesis. Las donaciones a la campaña de 2023 totalizaron $6,8 millones de más de 13,360 donantes, apoyando más de 50 ministerios y programas, incluidos la educación de seminaristas, Caridades Católicas, programas educativos, el diaconado permanente, ministerios multiculturales y el Congreso Eucarístico.

El donativo promedio entre los hogares contribuyentes fue de $529, un aumento con respecto a los $476 en 2022. El 82 por ciento de las parroquias y misiones alcanzaron o superaron su meta para la campaña.

LA FUNDACIÓN DE LA DIÓCESIS CATÓLICA ROMANA DE

La DSA es uno de los cinco fondos anuales que apoyan a la Iglesia local. Otros ayudan a financiar la jubilación de sacerdotes (casi $1,3 millones), la educación continua de los sacerdotes y la educación de seminaristas (un total combinado de $1,7 millones), las escuelas católicas ($3,6 millones) y Caridades Católicas (casi $2,1 millones).

Lanzada hace una década, la campaña “Avanzar en la fe, la esperanza y el amor” de la diócesis también sigue teniendo un impacto. Siete fondos creados con la campaña han distribuido $1,8 millones para beneficiar al Ministerio Universitario, Caridades Católicas, formación en la fe, ministerios multiculturales, apoyo a parroquias/ misiones, asistencia para matrícula y vocaciones/seminaristas.

“En nuestro trabajo de mayordomía, nos enfocamos en la conexión, el compromiso y la gratitud”, señala Jim Kelley, director de desarrollo diocesano. “La mayordomía se trata de ayudar a las personas a conectarse más con Cristo y comprometerse más con su parroquia y con la diócesis. Cuando las personas están más comprometidas con su fe, desean responder con gratitud por todas las bendiciones que han recibido de Dios.”

Un número récord de 10,000 personas participaron en el Congreso Eucarístico de 2024, el vigésimo evento anual de la Diócesis de Charlotte.

CAPITAL HUMANO

Impulsando la misión

El discipulado – permitiendo que el amor de Cristo nos transforme para que podamos compartir Su amor con los demás – continuó caracterizando los esfuerzos de 2,576 empleados a tiempo completo y a medio tiempo en nuestras parroquias, escuelas, ministerios y oficinas, quienes brindan apoyo donde sea necesario en la diócesis. La diócesis mantuvo su enfoque en los esfuerzos para atraer y retener talento diverso que ayude a llevar a cabo nuestra misión evangelizadora, aumentando el beneficio del seguro de vida pagado por la diócesis, invirtiendo en una nueva política de licencia parental remunerada y ampliando el tiempo de licencia por embarazo. La Oficina de Recursos Humanos de la diócesis también lanzó una línea telefónica de enfermería, con el fin de reportar y responder a lesiones y enfermedades relacionadas con el trabajo que no amenacen la vida.

SAFE ENVIRONMENT | AMBIENTE SEGURO

Protecting God’s children Protegiendo a los niños de Dios

In 2002, the U.S. Conference of Catholic Bishops issued the Charter for the Protection of Children and Young People. The Charter addressed the issue of child sexual abuse by Church personnel and established steps that every diocese must take to ensure that children are protected from the dangers of abuse.

The Diocese of Charlotte takes the Charter’s mandate very seriously and continues its efforts to protect all children and vulnerable adults. The cornerstones of our Safe Environment program are our comprehensive policies, continuing education programs and mandatory background screening processes. Our policies include a Code of Ethics and a Policy Regarding Sexual Misconduct by Church Personnel, which conform to the standards of the Charter. All clergy, religious, lay employees and volunteers must adhere to the provisions of these policies.

During the past fiscal year, 6,290 diocesan personnel completed our updated safe environment educational awareness program and 6,991 criminal background checks were completed. The diocese also passed a Safe Environment audit in FY 2024, conducted by Stonebridge Business Partners in partnership with the USCCB.

The diocese maintains a list of clergy who have been credibly accused of sexual abuse of children since the diocese was established in 1972. That information is available to the public and updated as necessary online at www.accountability. charlottediocese.org.

The diocese also supports an independent hotline for the reporting of sexual abuse and misconduct. Reports can be made anonymously anytime by phone or online through a web portal, in many different languages.

These activities represent a significant financial commitment on the part of the diocese. The cost of the various programs and measures outlined herein totaled $219,009 during the fiscal year ended June 30, 2024. The diocese also provided $4,500 in medical and counseling services for historical abuse victims. The diocese incurred legal fees of $353,374 in connection with sexual misconduct claims. As in the past, none of these funds came from parishioner donations.

En2002, la Conferencia de Obispos Católicos de los Estados Unidos emitió la Carta para la Protección de los Niños y Jóvenes. La Carta abordó el tema del abuso sexual infantil por parte del personal de la Iglesia y estableció los pasos que cada diócesis debe seguir para garantizar que los niños estén protegidos de los peligros del abuso.

La Diócesis de Charlotte toma el mandato de la Carta muy en serio y continúa sus esfuerzos para proteger a todos los niños y adultos vulnerables. Los pilares de nuestro programa de Entorno Seguro son nuestras políticas integrales, programas de educación continua y procesos obligatorios de verificación de antecedentes. Nuestras políticas incluyen un Código de Ética y una Política sobre la Conducta Sexual Inapropiada por parte del Personal de la Iglesia, que se ajustan a los estándares de la Carta. Todo el clero, el personal religioso, los empleados laicos y los voluntarios deben adherirse a las disposiciones de estas políticas.

The diocese remains committed to the protection of those in our care and continues to deepen efforts to engage everyone in providing a safe environment.

6,290

People who completed Safe Environment training Personas que completaron la capacitación de Ambiente Seguro

Durante el último año fiscal, 6,290 miembros del personal diocesano completaron nuestro programa actualizado de concientización sobre un entorno seguro y se completaron 6,991 verificaciones de antecedentes penales. La diócesis también aprobó una auditoría de Entorno Seguro en el año fiscal 2024, realizada por Stonebridge Business Partners en colaboración con la USCCB.

La diócesis mantiene una lista de clérigos que han sido acusados de manera creíble de abuso sexual infantil desde que se estableció la diócesis en 1972. Esa información está disponible al público y se actualiza según sea necesario online en www. accountability.charlottediocese.org.

La diócesis también apoya una línea directa independiente para la denuncia de abuso sexual y conducta inapropiada. Los informes pueden realizarse de forma anónima en cualquier momento por teléfono o en línea a través de un portal web, en varios idiomas.

Estas actividades representan un compromiso financiero significativo por parte de la diócesis. El costo de los diversos programas y medidas aquí descritos ascendió a $219,009 durante el año fiscal que terminó el 30 de junio de 2024. La diócesis también proporcionó $4,500 en servicios médicos y de consejería para las víctimas de abusos históricos. La diócesis incurrió en honorarios legales por $353,374 en relación con reclamaciones de conducta sexual inapropiada. Como en el pasado, ninguno de estos fondos provino de donaciones de los feligreses.

La diócesis sigue comprometida con la protección de aquellos bajo su cuidado y continúa profundizando sus esfuerzos para involucrar a todos en la provisión de un entorno seguro.

$219,009

Amount invested in Safe Environment programs Monto invertido en programas de Ambiente Seguro

The Roman Catholic Diocese of Charlotte

Combined Financial Statements as of and for the Years Ended June 30, 2024 and 2023, and Independent Auditor’s Report

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

INDEPENDENT AUDITOR’S REPORT

To the Most Reverend Michael T. Martin, Bishop of Charlotte:

Opinion

Tel: +1 704 887 1500

Fax: +1 704 887 1631

www.deloitte.com

We have audited the accompanying combined financial statements of The Roman Catholic Diocese of Charlotte (the “Diocese”), which comprise the combined statements of financial position as of June 30, 2024 and 2023, and the related combined statements of activities, cash flows, and functional expenses for the years then ended, and the related notes to the combined financial statements (collectively referred to as the “financial statements”).

In our opinion, the accompanying combined financial statements present fairly, in all material respects, the combined financial position of the Diocese as of June 30, 2024 and 2023, and the combined results of its activities, its cash flows and its functional expenses for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Diocese and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the combined financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Diocese’s ability to continue as a going concern for one year after the date that the combined financial statements are available to be issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the combined financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the combined financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Diocese’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Diocese’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

October 29, 2024

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2024 AND 2023

CONTINGENCIES (Note 12)

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2024

AND

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2024

CAPITAL CAMPAIGN ACTIVITIES: Forward in Faith, Hope, and Love (FFHL):

Mecklenburg Area Catholic Schools (MACS):

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2023

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2023

CAPITAL CAMPAIGN ACTIVITIES: Forward in Faith, Hope, and Love (FFHL):

Joseph College Seminary:

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2024 AND 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

12,574,646 Net cash used in investing activities (6,672,554) (57,239,963) (Continued)

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2024 AND 2023

See notes to combined financial statements. (Concluded)

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2024

PROGRAMS:

Pastoral:

TOTAL EXPENSES BEFORE CAPITAL CAMPAIGN ACTIVITIES

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

COMBINED STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2023

PROGRAMS:

EXPENSES BEFORE CAPITAL CAMPAIGN ACTIVITIES

THE ROMAN CATHOLIC DIOCESE OF CHARLOTTE

NOTES TO COMBINED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED JUNE 30, 2024 AND 2023

1. ORGANIZATION

The Roman Catholic Diocese of Charlotte (the “Diocese”) serves the Roman Catholic Church in western North Carolina. The Diocese comprises a geographic area of 20,470 square miles covering 46 counties ranging from the North Carolina piedmont region to the North Carolina mountain region. The accompanying combined financial statements do not include the assets, liabilities, or activities of individual parishes and interparochial schools as the financial operations of such entities are not under the auspices of the Diocese. These excluded activities are operating entities distinct from the offices and organizations included herein, maintain separate accounts, and carry on their own programs.

The accompanying combined financial statements include the accounts of the following organizations, which operate under the auspices of the Diocese:

• The Central Administration, which provides administrative and other services to parishes, schools, and agencies of the Diocese. Services include coordination and support of educational programs and multicultural ministries; family enrichment services; the vocations program; continuing formation of priests and support of retired priests; employee benefit program; property/casualty insurance program; diocesan tribunal; operation of the Catholic Conference Center, Living Waters Reflection Center, and Cathedral Publishing, Inc., the publisher of the Catholic News Herald.

• Bishop McGuinness Catholic High School (“BMCHS”), which provides Catholic secondary education for the Winston-Salem, Greensboro, and High Point areas.

• Mecklenburg Area Catholic Schools (“MACS”), which operates nine schools throughout Mecklenburg County as of June 30, 2024 and 2023.

• Catholic Charities Diocese of Charlotte (“CCDOC”), a professional human services agency that provides counseling, adoption support, pregnancy support, foster care, crisis intervention, material assistance, burial assistance, immigration services, refugee resettlement, justice and peace advocacy, and education.

• The Foundation of the Roman Catholic Diocese of Charlotte, Inc. (the “Foundation”), which receives, administers, and disburses funds through the creation of endowments for educational, religious, and charitable purposes for the benefit of the Diocese and its various parishes, schools, and agencies.

• DL Catholic, Inc. (“DL Catholic”), which holds funds on deposit from the Central Administration, parishes, schools, and other Catholic institutions in the Diocese. These amounts generally represent funds in excess of current operating needs that have been set aside to fund future programs and/or facility needs. Interest on deposits is paid based on rates established for the terms of the deposits selected by the depositors. DL Catholic also provides loans to the Central Administration, parishes, schools, and other Catholic institutions in the Diocese, which are primarily for funding the purchase of property and acquisition or construction of facilities.

• The Catholic Diocese of Charlotte Advancement Corporation (the “Advancement Corporation”), which conducts diocesan-wide fundraising campaigns and the annual Diocesan Support Appeal (DSA) to support operating, capital, and endowment activities of the Central Administration and other entities of the Diocese of Charlotte.

• Saint Joseph College Seminary (“SJCS”) which is a house of formation whose primary mission is to form undergraduate men for the Catholic priesthood while attending Belmont Abbey College.

The activities of the above organizations have been combined by functional area in the accompanying combined statements of activities. Intra-diocesan transactions have been eliminated in combination.

2. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

Basis of Presentation The combined financial statements have been prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (“ASC”), including FASB ASC 958, Not-for-Profit Entities. FASB ASC 958 requires the reporting of total assets, liabilities, and net assets in a statement of financial position; reporting the change in net assets in a statement of activities; and reporting the sources and uses of cash in a statement of cash flows.

Recently Adopted In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB released ASU No. 2018-19 “Codification Improvements to Topic 326, Financial Instruments - Credit Losses.” This ASU clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 “Financial Instruments - Credit Losses.” Instead, impairment of receivables arising from operating leases should be accounted for under Subtopic 842-30 “Leases – Lessor.” ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. This new standard was adopted on July 1, 2023, and did not have a material impact on the Diocese’s financial statements.

Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions are used for, but not limited to, valuation of pledges receivable, other accounts receivable, notes receivable, advances to parishes, valuation of beneficial interests in perpetual trusts, investments, accrued pension benefits, and accrued health benefits for retired priests. Actual results could differ from those estimates.

Operating Activities Transactions that are part of the ongoing major or central activities of the combined entities are reported as operating in the accompanying combined statements of activities. All other transactions are reported as non-operating.

Functional Expenses

The costs of program and supporting services activities have been summarized on a functional basis in the combined statements of activities. The combined statement of functional expenses presents the natural classification detail of expenses by function. Certain costs are attributed to more than one program or supporting function and, therefore, require allocation among the programs and supporting services benefited. We believe our allocations are done on a reasonable and consistent basis. Occupancy costs are allocated on a square footage basis. Most personnel costs, office expenses, professional services, travel and professional development costs, and grants and other assistance are identified with a specific program or supporting function at the time they are incurred and are reported accordingly. However, some of these expenses require allocation, which is done on the basis of estimates of time and effort.

Cash and Cash Equivalents

The Diocese considers all highly liquid instruments with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. At various times throughout the year, the Diocese may maintain bank accounts in excess of the Federal Deposit Insurance Corporation-insured limit.

Allowance for Doubtful Accounts

The Diocese recognizes an allowance when information available prior to the issuance of the combined financial statements indicates that it is probable that a receivable has been impaired as of the date of the combined financial statements and the amount of loss can be reasonably estimated.

Beneficial Interests in Perpetual Trusts

Beneficial interests in perpetual trusts represent irrevocable interests in assets held by third parties under split-interest agreements and are measured at fair value, with the change in fair value reported within net investment return in the accompanying combined statements of activities.

Investments Investments consist primarily of marketable debt and equity securities and funds and are measured at fair value in the accompanying combined statements of financial position. Net investment return is reported within non-operating activities in the combined statements of activities and consists of interest and dividend income, realized and unrealized capital gains and losses, less external investment expenses. The Diocese utilizes financial institutions to provide custodial and recordkeeping services, in addition to investment managers with full discretionary authority, subject to the Diocese’s investment policies, to provide investment management services.

Property and Equipment Net Upon acquisition, property and equipment is recorded at cost when purchased and at estimated fair value when donated. Depreciation expense is determined by using the straight-line method over the estimated useful lives of the assets. Equipment held under finance leases and leasehold improvements is amortized over the shorter of the lease term or the estimated useful life of the related asset.

Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future net undiscounted cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment charges related to property and equipment were recognized during fiscal years 2024 and 2023.

The major classes of property and equipment represented as of June 30, 2024 and 2023, are as follows:

* The Diocese is the lessor in operating leases of various parcels of land, which are included in the land classification above. The cost basis for land leased totaled $875,132 as of June 30, 2024 and 2023.

** The Diocese is the lessor in an operating lease associated with the former All Saints School (see Note 11), which is included in the buildings major class above. The cost basis for the property lease totaled $3,415,520 as of June 30, 2024 and 2023, and the accumulated depreciation totaled $2,845,000 and $2,764,101 as of June 30, 2024 and 2023, respectively.

Accumulated depreciation related to right-of-use (ROU) assets (finance leases) totaled $1,128,734 and $955,353 at June 30, 2024 and 2023, respectively.

Construction and work in progress at June 30, 2024 consists primarily of architectural and professional services associated with the planned chapel addition at SJCS, MACS and BMCHS school projects and Central Administration projects. The decrease in construction in progress as of June 30, 2023 is attributable to prior years’ projects being placed in service.

In May 2024, MACS purchased land in Mint Hill for the purpose of building a new MACS school. The purchase price of $2,319,401 is recorded in “Land” as of June 30, 2024.

As of June 30, 2024 and 2023, contractual obligations for architectural services related to the planned construction of the chapel at SJCS total $1,293,429 and $1,076,594, respectively, of which $391,758 and $764,375 is unexpended at June 30, 2024 and 2023, respectively.

The interest in St. Matthew’s Education Center shown above represents the total amount paid by MACS for the acquisition and construction of property and equipment in accordance with a joint-usage agreement with St. Matthew Catholic Church. It is being depreciated over the useful lives of the assets in which MACS has an interest. The depreciation is included in accumulated depreciation shown above.

Gains and losses from the disposal of property are recognized in other income in the accompanying combined statements of activities.

Interest expense incurred that relates to the acquisition or construction of property and equipment is capitalized. No interest expense was capitalized in fiscal year 2024 or 2023 in the accompanying combined statements of financial position.

Custodial Obligations

Custodial funds are managed by the Diocese, as agent, on behalf of the originating organization. These funds are not recorded as contributions or net assets of the Diocese but rather are included as assets and corresponding custodial obligations in the accompanying combined statements of financial position.

Pension and Other Retirement Benefit Plans

The Diocese accounts for its defined benefit pension and other postretirement benefit plans by recording an asset (liability) for the excess (deficit) of plan assets over the actuarially determined projected benefit obligation, with the net periodic benefit cost allocated to program and administrative expenses based on related salaries and wages. Changes in the funded status of the plans, other than net periodic benefit costs, are reported as a net asset credit in the accompanying combined statements of activities. The net asset credit of $8,368,217 for the year ended June 30, 2024 is attributable to the change in the discount rate, large contributions exceeding those actuarially recommended, and better than expected net asset performance, thereby decreasing liabilities. The net asset credit of $7,974,593 for the year ended June 30, 2023 is attributable to better than expected net asset performance during the fiscal year offset by the increase in the discount rate.

Employee Retirement Plans

The Diocese sponsors a noncontributory defined benefit pension plan (the “Lay Plan”) for all eligible diocesan lay employees. The Lay Plan provides for benefits based on an employee’s years of service and compensation. In fiscal year 2017, the Lay Plan was frozen for all participants except for those who were age 62 with 12 years of service. Effective January 1, 2022, the plan was frozen for all. Although the plan has been frozen, employees who are participants in the plan will retain benefits accumulated up to freeze date based on credited service and eligible earnings, in accordance with the terms of the plan.

During fiscal years 2024 and 2023, each diocesan entity was assessed a percentage of lay employees’ salaries to fund the contribution to the Lay Plan and certain other employee benefits. The assessment rate was 5.6% during fiscal years 2024 and 2023. It is the intent of the Diocese for the minimum funding to be the actuarially recommended contribution amount.

In addition to contributing the actuarially recommended contribution amount to the Lay Plan for fiscal years 2024 and 2023 of $1,322,171 and $914,013, respectively, the Diocese contributed $7,064,498 and $1,765,897 in additional contributions to the Lay Plan during fiscal years 2024 and 2023, respectively.

Priest Retirement Plan

The Diocese sponsors the Diocese of Charlotte Priest Retirement Plan (the “Priest Plan”) to provide pension benefits for diocesan priests. The Priest Plan provides benefits for priests who are fully vested, in a uniform monthly amount that is increased annually based on the change in the Consumer Price Index. The Diocese contributed the actuarially recommended contribution amount to the Priest Plan for fiscal years 2024 and 2023 of $715,524 and $437,228, respectively. Additional contributions of $666,828 and $783,746 were made to the plan during fiscal years 2024 and 2023, respectively. The Priest Plan received contributions directly from the Advancement Corporation of $17,395 and $13,249 during the years ended June 30, 2024 and 2023, respectively, which are included in contributions from Advancement Corporation-FFHL in the accompanying combined statements of activities.

Retired Clergy Health Plan

In addition to providing the Priest Plan discussed above, the Diocese sponsors the Diocese of Charlotte Retired Clergy Health Plan, which provides retired diocesan priests

certain health and long-term care benefits. The Diocese contributed the actuarially recommended contribution amount to the Retired Clergy Health Plan of $169,918 and $38,649 for fiscal years 2024 and 2023, respectively, and also contributed $158,354 and $69,327 in additional contributions to the Plan during fiscal years 2024 and 2023, respectively.

An annual collection is held at each parish to raise funds for the Priest Retirement Plan, the Retired Clergy Health Plan, and other priest benefits. Each parish was assigned 3.0% of annual offertory as their goal for this collection for fiscal years 2024 and 2023. Any shortfall from goal in the amount collected is paid by the parish. Annual collections from the parishes for this purpose are reported as collections in the accompanying combined statements of activities.

The Diocese also sponsors a tax-deferred defined contribution plan under Section 403(b) of the Internal Revenue Code (IRC) for all eligible diocesan employees. Employer-matching contributions to the plan are based on a percentage of employee contributions. Each diocesan entity is responsible for funding the matching contribution remitted to the tax-deferred defined contribution plan. Matching contributions to this plan totaled $803,227 and $712,025 in fiscal years 2024 and 2023, respectively, and are reported within expenses in the accompanying combined statements of activities. In addition, all diocesan entities contribute 5% of eligible salaries (basic contribution) to the tax -deferred defined contribution plan on behalf of each eligible employee. The basic contribution expense totaled $2,055,671 and $1,886,552 in fiscal years 2024 and 2023, respectively and are reported within expenses in the accompanying statements of activities. The basic contribution for all diocesan entities is held by the Diocese until the end of the calendar year, at which time, participant eligibility for the basic contribution will be determined based on an employee’s hours worked in the calendar year. As of June 30, 2024 and 2023, funds held on behalf of parishes and combined entities totaled $1,936,064 and $1,773,233, respectively, which are included in accrued salaries, wages, and benefits in the accompanying combined statements of financial position.

Net Assets Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets consist of the following:

Without Donor Restrictions Net assets without donor restrictions consist of all resources that have no donor-imposed restrictions. The Diocese has designated unrestricted net assets/(deficit) as of June 30, 2024 and 2023, as follows:

for potential investment/loan losses by

With Donor Restrictions Net assets subject to donor-imposed restrictions stipulating how, when and/or if the net assets are available for expenditure. Some donor-imposed restrictions are perpetual in nature, whereby the donor stipulates that resources be maintained into perpetuity. Others are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Net assets are released from restriction and reclassified to net assets without donor restrictions when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. Gifts of long-lived assets and gifts of cash restricted for the acquisition of long-lived assets are released from restriction when the (long-lived) assets are placed in service. The composition of net assets with donor restrictions as of June 30, 2024 and 2023 is presented in Note 15.

School Tuition and Fees and Parish Support Tuition and related fees represent amounts paid by students’ families, net of applied tuition assistance, and are recognized over the school year to which they apply. Parish support of schools represents contributions made by the participating parishes of the Diocese. Tuition and fees received in the current year for the following school year’s tuition are recorded as unearned revenue in the accompanying combined statements of financial position.

North Carolina State Education Assistance Authority (NCSEAA) Grants NCSEAA Grants represent funds provided by the North Carolina State Education Assistance Authority (NCSEAA) to support students' tuition and fees. These grant funds aim to enhance educational opportunities and resources

for low-income families wishing to attend non-public schools. Parents apply directly to the NCSEAA for the scholarship program, and the state pays the tuition directly to the schools. Since these grants are parent-controlled funds, the Diocese records these payments similarly to other tuition payments. Therefore, they are not recorded as state grants but as tuition in the accompany statements of activities and are recognized over the school year to which they apply.

As of June 30, 2024, the total grant funds received from NCSEAA for tuition payments for the 20232024 school year totaled $2,285,007 for the MACS schools.

The following table summarizes the NCSEAA grants received by the Diocese, categorized by program type and school, as of June 30, 2024:

2023-24 School Year NCSEAA Grants

As of June 30, 2023, the total grant funds received from NCSEAA for tuition payments for the 2022-2023 school year totaled $1,415,187 for the MACS schools.

The following table summarizes the NCSEAA grants received by the Diocese, categorized by program type and school, as of June 30, 2023:

2022-23 School Year

Scholarship

Charlotte Catholic High School $ 127,497 $ 123,087 $ 250,584

Christ the King Catholic High School 59,708 12,726 72,434

Holy Trinity Catholic Middle School 87,553 218,903 306,456

Our Lady of the Assumption Catholic School 189,044 40,130 229,174

St. Ann Catholic School 63,165 112,454 175,619

St. Gabriel Catholic School 35,983 14,398 50,381

St. Mark Catholic School 165,874 9,449 175,323

St. Matthew Catholic School 76,948 - 76,948

St. Patrick Catholic School

Total by Grant Type $ 867,050 $ 548,137 $ 1,415,187

Parish Assessments and Fees for Services Rendered Parish Assessments represent annual assessments made to parishes. Fees for Services Rendered represent fees charged for programs, parish accounting services, investment management of parish endowments, advertising, and various services rendered by Catholic Charities.

Contribution Revenue, Pledges Receivable and Other Donations and Gifts Contribution revenue and other donations and gift revenue is recognized upon receipt of assets (financial or nonfinancial) or an unconditional promise to give from a donor, and is measured at fair value. The classification of revenue as without donor restrictions or with donor restrictions is determined by the donor’s stipulations, or absence thereof, that limit the use of the donated assets. Fair value for unconditional promises to give is measured at net realizable value for pledges due within one year and at net present value for pledges to be collected in future years. The discounts on those amounts are computed using risk-adjusted interest rates applicable to the periods in which the promises are received. Management evaluates the value of pledges receivable on an ongoing basis for changes in the estimated timing or amounts of cash flows. Decreases in the value of restricted pledges receivable after initial recognition are recognized as losses on uncollectible contributions. Recoveries of previously recognized decreases in value of restricted pledges receivable (up to the amount of decreases previously recognized) would be recognized as a reduction of losses on uncollectible contributions. The amortization of discounts on pledges receivable are included in contributions in the accompanying combined statements of activities.

Capital Campaign Contributions Capital campaign contributions are limited in their use to the specific purposes outlined in the fund-raising materials. Contributions are classified as with donor restrictions, except for contributions allocated and classified as without donor restrictions designated for fund-raising and administrative costs. Proceeds from capital campaigns are released as donor stipulations are satisfied or upon completion of the related donor-specified activities. Opportunity

Contributed Nonfinancial Assets

The Diocese records certain nonfinancial contributions, which primarily includes in-kind contributions of food, clothing, household and other goods. The contributed food, clothing, household and other goods are utilized for the Diocese’s standard business operations. In valuing the food, clothing, household and other goods, the Diocese estimated the fair value based on estimates of wholesale values that would be received for selling similar products in the United States. As of June 30, 2024 and June 30, 2023, Contributions Non-Financial revenue were $791,733 and $853,234, respectively.

Income Taxes

The Diocese and the entities comprising the combined financials are exempt from federal income tax under Section 501(c)(3) of the IRC and are generally exempt from federal and state income taxes.

Accounting principles generally accepted in the United States of America prescribe a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Although these principles are primarily applicable to taxable business enterprises, an uncertain tax position may also include the characterization of income, such as a characterization of income as passive, a decision to exclude reporting taxable income in a tax return, or a decision to classify a transaction, entity, or other position in a tax return as exempt. The tax benefit from uncertain tax positions is recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

The Diocese and the entities comprising the combined financial statements had no unrecognized tax positions as of and during the years ended June 30, 2024 and 2023. Fiscal year 2021 and thereafter are subject to examination by the federal and state taxing authorities. There are no income tax examinations currently in process.

Risks and Uncertainties

The Diocese’s investments consist of various equity securities, fixed income securities, money market funds, and other investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect the Diocese’s investment balances reported in the combined statements of financial position.

Subsequent Events The Diocese has evaluated subsequent events from the end of the most recent fiscal year through October 29, 2024, the date the combined financial statements were available to be issued.

3. LIQUIDITY AND AVAILABILITY

Financial assets available within one year of the statement of financial position date, without donor or other restrictions limiting their use, comprise the following:

The Diocese’s endowment funds consist of donor-restricted endowments and funds designated by management as endowments. Income from donor-restricted endowments is restricted for specific purposes, with the exception of amounts available for general use. Donor-restricted endowment funds are not available for general expenditures and, thus, are not included above.

All endowments, where funds have been held for a minimum of 12 months, are eligible for distributions of up to 5% annually of the most recent 12-quarter trend, as prescribed by the Foundation. Only the funds available for distribution in accordance with the Foundation spending rate policy are included above.

The Diocese manages its liquidity by developing and adopting annual operating and capital budgets that provide sufficient funds for general expenditures in meeting its liabilities and other obligations as they come due. Actual performance is reported and monitored monthly in comparison to the budgets. As part of the liquidity management plan, cash and savings program balances are invested in short-term investments. Adjustments are made to the plan as needed to ensure adequate liquidity.

4. PLEDGES RECEIVABLE—NET

The following unconditional promises to give are included in pledges receivable in the accompanying combined statement of financial position as of June 30, 2024 and 2023:

The change in the allowance for uncollectible pledges for the year ended June 30, 2024, related to the FFHL campaign reflects recoveries of prior year allowances of $30,533 on unconditional promises to give received in previous years and outstanding at June 30, 2024, plus actual write-offs of $169,609. The change in the allowance for uncollectible pledges for the year ended June 30, 2023, related to the FFHL campaign reflects recoveries of prior year allowances of $9,450 on unconditional promises to give received in previous years and outstanding at June 30, 2023, plus actual write-offs of $1,179,296. Pledges receivable due within one year as of June 30, 2024 and June 30, 2023, related to the FFHL campaign include past due accounts totaling approximately $56,000 and $264,000, respectively. Past

due accounts include the portion of pledge receivables not paid when due under the pledge agreements.

5. NOTES RECEIVABLE—NET

Notes receivable consists primarily of term loans and lines of credit from DL Catholic to parishes and schools. Loans structured as lines of credit typically finance construction and facility improvement projects and do not have specific maturity dates, rather are converted to term loans upon completion of the related project. Term loans are typically structured to have terms up to 15 years. Line of credit loans generally bear interest at prime rate less a percentage which varies based on market conditions. The interest rate for term loans is generally based on the market swap rate for the applicable term of the borrowing at loan initiation, plus an additional percentage, which varies depending on the term of the borrowing. These notes bear interest at rates ranging from 3.00% to 8.00% at June 30, 2024 and from 1.75% to 6.13% at June 30, 2023, respectively.

As of June 30, 2024, the future repayment requirements of the loans, assuming the loans mature over their scheduled repayment terms, are as follows:

in:

$ 11,283,881

6. ADVANCES TO PARISHES

The Diocese maintains a revolving loan fund that was established primarily from resources provided by bequests stipulated for advances to small or needy parishes at no interest. Advances outstanding at June 30, 2024 and 2023, totaled $4,588,206 and $4,825,721, respectively. These advances are long-term in nature and are reflected, net of allowances, at their estimated present value of $3,537,301 and $3,687,503 in the accompanying combined statements of financial position as of June 30, 2024 and 2023, respectively.

7. INVESTMENTS

The cost and fair value of investments as of June 30, 2024 and 2023, are summarized below:

The Diocese had no unfunded commitments to purchase investments as of June 30, 2024 or 2023.

8. SAVINGS PROGRAMS

DL Catholic administers savings and investment programs for the benefit of Central Administration, parishes, schools, and other Catholic institutions in the Diocese. These amounts generally represent funds in excess of current operating needs that have been set aside to fund future programs and/or facility needs. Interest rates are set by the DL Catholic Board of Directors with consideration to changes in the prime rate. Demand funds on deposit earned interest at 3.75% as of June 30, 2024 with ranges from 3.75% to 5.00% during fiscal year 2024 and at 4.75% as of June 30, 2023 with ranges from 1.25% to 4.75% during fiscal year 2023. Funds on deposit with an 18-month minimum investment period earned interest at the rate of 4.75% as of June 30, 2024 with ranges from 4.75% to 6.00% during fiscal year 2024 and at the rate of 5.75% as of June 30, 2023 with ranges from 2.25% to 5.75% during fiscal year 2023. The prime rate was 8.5% and 8.25% at June 30, 2024 and 2023, respectively. Funds on deposit from non-combined entities along with accrued interest totaled $64,838,833 and $58,510,356 at June 30, 2024 and 2023, respectively, and are reflected as investments and custodial obligations in the accompanying combined statements of financial position.

9. PENSION AND RETIREMENT PLANS

The funded status and other information of the Lay and Priest plans as of June 30, 2024 and 2023 is set forth in the following tables (in thousands):

Funded status and amounts recognized in the combined statements of financial position:

Amounts recognized in net assets without donor restrictions (net asset charge) not yet recognized as net periodic benefit cost consist of the following:

recognized in the combined statements of activities

changes in plan assets and benefit obligations recognized in net assets without donor restrictions:

of transition obligation

of

net asset (credit) charge and net periodic benefit cost recognized in net assets without donor restrictions

Amounts included in net assets without donor restrictions (net asset charge) that are expected to be recognized as net periodic benefit cost during the next year are as follows: Amortization of transition obligation

Assumptions used to determine net benefit cost for the years ended June 30:

The funded status and other information for the Retired Clergy Health Plan as of June 30, 2024 and 2023, is as follows:

Funded status and amounts recognized in the combined statements of financial position:

recognized in the combined statements of activities

and benefit

Total net asset credit and net periodic benefit cost recognized in

Amounts recognized in net assets without donor restrictions (net asset credit) not yet recognized as

Assumptions

The assumed health care cost trend rates used to measure the expected cost of benefits covered by the plan, the ultimate trend rate, and the fiscal year when that rate is expected to be achieved for the years ended June 30, 2024 and 2023, are as follows:

2024

2023

Health care cost trend rate

The ultimate trend rate to which the cost trend rate is assumed to decline Fiscal year that the rate reaches the ultimate trend rate 2034 2034 2033 2033

The assumed long-term rate of return for the Lay, Priest, and Retired Clergy Health plans are based on the respective target asset allocation and is determined using forward-looking assumptions in the context of historical returns for each asset class.

The Plans’ investments are maintained in trust accounts that have been managed by Principal Custody Solutions (the “Trustee”) since February 2022. Prior to February, the plans were managed by Wells Fargo Bank N.A. The Trustee has full discretionary authority, subject to the plans’ investment policies. The percentage of total investments by asset class for each plan as of June 30, 2024 and 2023, is as follows:

The Lay, Priest, and Retired Clergy Health plan investment policies stipulate allowable asset classes for inclusion in the portfolio and minimum and maximum allowable ranges. The following asset classes and corresponding ranges were allowable at June 30, 2024 and 2023:

Domestic small and mid cap equity funds

Alternative investments (including hedged equities)

and cash equivalents

The investment policies stipulate socially responsible investment guidelines, investment return objectives, both in the aggregate and relative to applicable investment benchmarks, minimum standards for investment holdings, and other guidelines for the investment of plan assets.

The estimated contribution to the Lay, Priest, and Retired Clergy Health plans for fiscal year 2025 is $913,843; $751,300; and $178,414, respectively.

Benefits expected to be paid over the next 10 fiscal years as of June 30, 2024, are as follows:

10. EMPLOYEE HEALTH BENEFITS

The Diocese administers medical insurance coverage for eligible employees of the Diocese. The Diocese charges each organization premiums for the coverage of its employees on a monthly basis. The individual organizations have no liability for claims in excess of the premiums to be paid. The Diocese has an arrangement with a third party to administer the medical plan. During fiscal years 2024 and 2023, approximately 12.8% and 12.8%, respectively, of the premiums submitted by diocesan entities were paid to the third-party administrator for administrative services and the premiums for specific and aggregate stop-loss coverages. The remaining portion of the premiums is designated by the Diocese to pay claims, which are processed by the third-party administrator. The Diocese has specific stop-loss coverage at $200,000 per claimant in fiscal years 2024 and 2023, and aggregate coverage beginning at 125% of the actuarially projected total individual claims under $200,000 for fiscal years 2024 and 2023.

Total expenditures incurred for employee medical benefits were approximately $14,403,000 and $13,192,000 during fiscal years 2024 and 2023, respectively.

11. LEASES AND FACILITIES USAGE AGREEMENTS

Operating Leases in Which the Diocese is the Lessee The Diocese is the lessee in various operating leases for office equipment and for office space. These leases have fixed lease payments and do not contain options to extend or terminate early. Operating lease costs for the Diocese totaled $170,207 and $157,896 for the years ended June 30, 2024 and 2023, respectively. Right-of-use assets related to these leases is $361,411 and $464,222 as of June 30, 2024 and 2023, respectively, and is recorded in deferred rent and right-of-use-assets operating leases in the accompanying statements of financial position.

Operating Leases in Which the Diocese is the Lessor The Diocese is the lessor in a ground lease agreement and the lessee in a space lease agreement with the same third party. In fiscal year 2003, the third party paid to the Diocese the net amount due for the entire terms of these lease agreements of $290,128. The Diocese is also responsible for monthly payments relating to the operating costs associated with the space lease agreement which are adjusted annually based on changes to the Consumer Price Index. Prepaid rent relating to the space lease of $428,671 and $463,427 as of June 30, 2024 and 2023, respectively, is reflected in deferred rent and right-of-use assets operating leases in the accompanying combined statements of financial position. Unearned revenue relating to the ground lease of $500,768 and $541,370 as of June 30, 2024 and 2023, respectively, is reflected in unearned revenue in the accompanying combined statements of financial position. The prepaid rent expense on the space lease and the unearned revenue related to the ground lease are both being amortized on a straight-line basis over the lives of the respective leases. Rental expense related to the space lease, net of income related to the ground lease, totaled $49,860 for each of the years ended June 30, 2024 and 2023.

The Diocese is a lessor in a ground lease with Guardian Angel Villa, LLC. During fiscal year 2020, a payment of $450,000 representing the entire lease term was received. Unearned revenue related to the ground lease of $420,663 and $426,630 as of June 30, 2024 and 2023, respectively, is reflected in unearned revenue in the accompanying combined statements of financial position. The unearned revenue related to the ground lease is being amortized on a straight-line basis over the life of the lease. Rental income related to the ground lease totaled $5,967 for the each of the years ended June 30, 2024 and 2023.

The Diocese is also the lessor in various property leases with various third parties, some of which have variable lease payments linked to the Consumer Price Index to which the lease payments are adjusted at specified intervals throughout the lease term. Rental revenue pertaining to these leases totaled $543,982 for each of the years ended June 30, 2024 and 2023. Undiscounted cash flows to be received on an annual basis for the remainder of these leases are $434,671 for each of the fiscal years 2025 through 2029, and $1,314,471 thereafter. Subsequent to year end, the Diocese entered into a new agreement on July 1, 2024 with one of the tenants for a five-year period.

The Diocese entered into an agreement to lease the former All Saints School to a third party for a 10-year period. The initial lease commenced on September 1, 2011 and expired on August 31, 2021. The lease term was automatically extended for a 5-year period, through August 31, 2026. Rental revenue is recognized on a straight-line basis over the term of the lease agreement which totaled $1,043,350 and $1,118,748 for fiscal years 2024 and 2023, respectively. As revenue recognized since inception has exceeded rental payments received since inception, a deferred rent asset of $199,776

and $240,768 is recorded in the accompanying combined statements of financial position as of June 30, 2024 and 2023, respectively. Undiscounted cash flows to be received on an annual basis for the remainder of this lease are $1,122,524 for fiscal year 2025, $1,146,200 for fiscal year 2026, and $191,640 for fiscal year 2027.

Finance Leases

The Diocese is the lessee in finance leases for computer equipment used in MACS and BMCHS. The corresponding right-of-use assets of $2,836,477 and $2,755,427 as of June 30, 2024 and 2023, respectively, is reported within property and equipment net in the accompanying combined statements of financial position. The lease obligation was $980,845 and $1,203,700 as of June 30, 2024 and 2023, respectively. Total lease costs related to these leases was $748,804 and $1,411,828 for the years ended June 30, 2024 and 2023, respectively, of which $724,473 and $1,388,664 is amortization of the right-of-use assets and $32,021 and $23,164 is interest expense on lease liabilities for the years ended June 30, 2024 and 2023, respectively.

Short-Term Leases

The Diocese is the lessee in a number of short-term leases (defined as 12 months or less) primarily for housing various Religious Order priests and Religious Order sisters involved in diocesan ministry. The Diocese has elected the permitted option to adopt the short-term lease exception for all asset classes and, therefore, does not record a right-of-use asset or lease liability for any of its short-term leases. The total short-term lease costs incurred were $116,964 and $104,074 for the years ended June 30, 2024 and 2023, respectively, and is reflected in other administrative expenses in the accompanying combined statement of activities.

The Diocese is also the lessor in a number of short-term leases primarily of residential facilities that are not currently needed to house clergy or Religious Order sisters. The short-term rental revenue totaled $89,544 and $85,324 for the years ended June 30, 2024 and 2023, respectively, and is reflected in rental income in the accompanying combined statements of activities.

Future Minimum Lease Payments

Future minimum rental commitments under non-cancelable operating and finance leases as of June 30, 2024, are as follows:

ROU assets related to operating leases are included in deferred rent and right-of-use assets-operating leases in the accompanying combined statements of financial position at June 30, 2024 and 2023. The ROU assets related to the finance leases are included in Property Plant & Equipment in the accompanying combined statements of financial position at June 30, 2024 and 2023 (see Note 2).

Joint Facility Usage Agreements MACS has agreements with participating parishes for their joint use, but not control, of various facilities with varying terms. These agreements provide for contingent rentals based on usage and may be amended or modified at any time. Expenses totaled $662,416 and $610,591 for fiscal years 2024 and 2023, respectively, and are reported within regional and diocesan schools administration expense in the accompanying combined statements of activities.

12. CONTINGENCIES

From time to time, the Diocese is subject to various disputes and legal proceedings including those noted below arising in the ordinary course of business. Management has recorded an estimated accrual for these potential losses totaling approximately $5.8 million as of June 30, 2024.

The Diocese is a defendant in a number of asserted claims alleging personal injury damages arising out of alleged sexual misconduct by former employees of the Diocese. The Plaintiffs are seeking compensatory remuneration from the Diocese in connection with these asserted claims.

The Diocese has guaranteed various contingent payment obligations of its equity method investee, Curlin Commons Housing of Mooresville, Inc. (CCHM), related to an affordable housing project located in Mooresville, North Carolina. The maximum amount of the Diocese’s guarantee obligation was approximately $4,000,000 as of June 30, 2024; however, management believes the likelihood that the Diocese will have to make any such payments is remote.

The Diocese has committed to providing funding of $8.2 million in connection with the construction of the chapel building to be located at the St. Joseph College Seminary. As of June 30, 2024, no funding has occurred.

13. FAIR VALUE MEASUREMENTS

In accordance with accounting principles generally accepted in the United States of America, certain assets and liabilities are required to be measured at fair value on a recurring basis. For the Diocese, the assets and liabilities that are adjusted to fair value on a recurring basis are investments in money market funds, debt and equity securities, investments in commodity and bond funds, and beneficial interests in perpetual trusts. Other than Custodial Obligations held by the Foundation, the Diocese has no liabilities measured at fair value on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 Valuations based on unadjusted quoted prices for identical instruments in active markets that are available as of the measurement date

Level 2 Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly

Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement

The assets measured at fair value on a recurring basis (excluding cash) as of June 30, 2024 and 2023, based on the three levels of inputs within the fair value hierarchy, are summarized as follows:

The Diocese is responsible for determining the fair value of its investments. Fair values are determined using pricing and inputs that are current as of the measurement date and obtained through a thirdparty custodian using independent pricing services.

The fair value of the investments classified within Level 1 of the fair value hierarchy are based on unadjusted quoted market prices for identical securities available as of the measurement date.

The fair value of the money market funds, certificates of deposit, and other investments classified within Level 2 of the fair value hierarchy are measured using standard valuation techniques, such as the income or market approach, based on inputs that are observable for the assets, including the stated interest rate, maturity, and credit risk.

Certain investments measured at net asset value per share (or its equivalent) (“NAV”) have not been classified in the fair value hierarchy. These investments are measured on the fair value of the underlying investments but may not be redeemable at that fair value. These investments are subject to customary monthly/quarterly/semi-annually redemption with notice periods of up to 90 days. When appropriate, the Diocese adjusts these net asset values for contributions and distributions, if any, made during the period beginning on the latest NAV valuation date and ending on the measurement date. There were no unfunded commitments related to unclassified investments as of June 30, 2024.

Accounting principles generally accepted in the United States of America also require that certain assets and liabilities be measured at fair value on a nonrecurring basis, generally as the result of impairment charges. The Diocese had no assets or liabilities adjusted to fair value on a nonrecurring basis as of June 30, 2024 and 2023.

A summary of the levels within the fair value hierarchy used to determine the fair value of the pension and postretirement plan assets, excluding cash deposits measured at cost, as of June 30, 2024 and 2023, respectively, is summarized as follows:

14. ENDOWMENT FUNDS

The Diocese’s endowment funds are managed by the Foundation and consist of donor-restricted funds and management designated funds established for the purposes as shown in Note 15, as well as custodial endowments established by organizations affiliated with the Diocese. Custodial endowments are not recorded as contributions and, therefore, are not reflected as net assets of the Foundation.

Management has interpreted the state of North Carolina’s enacted version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as allowing the Foundation to appropriate for expenditure or accumulate so much of an endowment fund as the Foundation determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established, subject to the intent of the donor as expressed in the gift instrument. As a result, the Foundation classifies as net assets with donor restrictions (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent contributions to the permanent endowment, and (c) other accumulations to the permanent endowment as required by donor gift instruments. Gains (losses) on the investments of donor-restricted endowment funds are recorded as additions to (reductions of) net assets with donor restrictions, until those amounts are appropriated for expenditure by the Foundation consistent with the donor’s wishes, at which time they are reclassified to net assets without donor restrictions.

There were 0 and 35 endowments with donor restrictions in which cumulative investment losses exceed cumulative investment gains (“underwater” endowments) as of June 30, 2024 and 2023, respectively.

The aggregate original gift amount of the “underwater” endowment funds totals $2,325,389 as of June 30, 2023. The aggregate fair value of the “underwater” endowment funds totals $2,229,743 as of June 30, 2023 resulting in aggregate losses of “underwater” funds totaling $95,646 as of June 30, 2023. Although UPMIFA allows appropriations for expenditure from “underwater” endowments in an amount determined to be prudent given the specific circumstances, the Foundation’s policy precludes spending from “underwater” endowments, unless specifically approved by the donor, the donor’s representative or the Foundation’s Board of Directors. During the years ended June 30, 2024 and 2023, distributions of $14,000 and $5,000 were made from endowments with a fair value that was less than the cumulative original gift amount at the time the distributions were specifically approved.

The Foundation has developed an investment policy for all its investable assets whose general purpose is to preserve the capital and purchasing power of the endowments and to produce sufficient investment earnings for current and future spending needs. The Foundation has adopted a total return strategy whose asset allocation is designed to give balance to the overall structure of the Foundation’s investment program over a long-term period. The Foundation has adopted a spending policy that limits the amount of funds available for distribution each year to 5% of the endowment funds’ average fair value over the prior 12 quarters, determined on a quarterly basis. In establishing this policy, the Foundation considered the long-term expected return on its investments and the objective to preserve purchasing power.

The endowment net asset composition by fund type as of June 30, 2024 and 2023, is as follows:

15. NET ASSETS WITH DONOR RESTRICTIONS

Net assets with donor restrictions consist of contributions received from donors whose use by the Diocese is limited by donor-imposed stipulations. The restricted amounts as of June 30, 2024 and 2023, and the corresponding purposes for which the income is expendable are as follows:

Amounts in excess of endowment corpus and annuities subject to expenditure for donor specified purposes:

To be held in perpetuity to generate income for donor specified purposes: Endowments (including endowment cash, pledges and other receivables for future investment):

16. SUBSEQUENT EVENT

In September 2024, the state of North Carolina experienced a significant flood event that impacted some of the Diocese’s parishes and schools, causing damages to buildings and equipment. At this time, management is of the opinion, based upon information presently available, that it is not probable that any liability to the extent not provided for through insurance or otherwise, would be material in relation to the Central Administration’s combined financial position, results of operations, and cash flows. This event does not affect the amounts reported in the financial statements as of and for the year ended June 30, 2024, but it will be considered in future reporting periods once the financial impact is clarified.