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Home > Building Finance Assistance > Obtain Proxies First
Obtain Your "Proxies" Before You Start a Building Project
Imagine this scenario: you are the parish business administrator or chair of the church finance committee. You spearhead a new $1.7 million building project, which is well underway. Unfortunately, your fundraising committee was too optimistic and now comes up $700,000 short. The contractor demands to get paid. He sues you and your family, in addition to the church, for payment of the unpaid construction bill.
Could this really happen? Yes, but personal liability can be prevented. You
will not be personally liable for a parish building project
as long as your parish obtains the appropriate Archdiocese proxies
before undertaking the project and signing contracts. Without
proxy approval, you will be bypassing the process for legal
authorization and may be personally liable through civil litigation
for unforeseen problems. CFC can assist you in preparing
your proxy request and the timing for making a request.
All parish bylaws contain rules governing new construction, major renovation, the acquisition of capital assets, and the acquisition of real estate. Article XVI of every parish's bylaws (and subsequent amendments) states that there shall be no expenditures for equipment, repair, remodeling or new construction costing in excess of $30,000, without the unanimous consent of the Board.
The Archbishop and Vicar General are members of your Board,
as they are for every parish, even though they do not attend
Board meetings. In order for your Board to have unanimous consent
on transactions detailed in Article XIII (real estate transactions)
and Article XVI (construction and capital asset purchases),
you need their approval by proxy. All proxy requests should
be made through the Administration and Financial Services area
of the Archdiocese. For larger Church construction projects,
the proxy isn't obtained until you've presented your project
to the Archdiocesan Building Commission ("ABC") at the Chancery
and have been recommended for approval by the Archbishop and
Vicar General.
If you gain full approval from your Board, including the signed proxy, your parish, as a corporate body, is financially responsible for the project and your personal liability is removed.
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