Loan Deposit Program

The Loan Deposit Program (LDP) is an important part of the financial stewardship of the Catholic Church in southeast Michigan. It is a cooperative savings, investment, and lending program consisting of deposit and loan accounts managed by the Archdiocese for the benefit of parishes, schools, and other Catholic organizations, each of whom earns interest on their deposits. These funds make it possible for the Archdiocese to provide loans to these depositors. This deposit program is not a federally or state-regulated bank and there are no federal bank-insured (FDIC) deposits.

Many U.S. dioceses have financial mechanisms like the LDP through which the monetary resources of the diocese, parishes, schools and other Catholic entities are internally deposited, enabling these institutions to obtain loans at lower interest rates and with better terms than available from commercial sources.

According to the audited fiscal year June 30, 2018 report, the archdiocese’s LDP has about $236 million in deposits, the majority of which are from parishes and schools. The LDP has approximately $49 million in loans to parishes, independent Catholic schools and other Catholic organizations. The LDP also has loans to internal archdiocesan funds in the amount of $25 million which are not reported on the financial statements since generally acceptable accounting practices (GAAP) require the loans to be eliminated in consolidated financial statements.

For nearly 80 years, the LDP has been a source of financial strength and stability for the archdiocese, our parishes, schools and other Catholic organizations. Similar to other areas of archdiocesan finances, the LDP has strict guidelines and is independently audited annually. Reforms to lending practices and interest rate adjustments are among several new policies, procedures and oversight measures that have helped stabilize the LDP over the last several years.

Because the financial resources of our archdiocese come as gifts from generous and faithful parishioners, it is important that we are accountable as faithful stewards of the community’s resources.

Frequently Asked Questions

What is the Loan Deposit Program’s primary income source? How does it work?

Who started the Loan Deposit Program? Why and when?

Is the LDP unique to the Archdiocese of Detroit?

How much is in the LDP?

What are the sources of LDP deposits?

What other Catholic organizations have LDP accounts?

Who has loans from the LDP? What is the status of those loans?

How have LDP funds been used?

Is the LDP making loans?

What has the Archdiocese done over the last several years to stabilize the LDP?

Have any parishes or schools been restricted from accessing their LDP deposits? Can they make withdrawals for things like roof and parking lot repairs or school year startup expenses?

Do parishes and schools have deposits and debts outside the LDP?

Who manages LDP assets and investments?

Where are LDP deposits invested?

Who is the Loan Deposit Program auditor?

 

Posted: January 2019