(SNR) – The Lincoln Diocesan Investment Trust and Loan (DIAL) is a cooperative trust that gives Catholic entities within the Diocese of Lincoln an opportunity to work together to grow the kingdom of God.
In 2021, the DIAL looks forward to providing funding for many projects across the diocese as St. Michael Church in Lincoln breaks ground on a new church and St. Wenceslaus Church in Wahoo renovates their school.
The trust operates similar to a bank and provides a cost-effective way to finance capital projects throughout the diocese. It is the official depository of parish and institution funds or reserves and is the lender for all projects within the diocese. Deposits in excess of loans are invested to the benefit of the depositors at rates higher than local deposit rates, and funds are loaned to the benefit of the institution at less than commercial borrowing costs.
The DIAL began in 1962, shortly after Bishop James Casey realized the diocese was poised for expansion. The population was growing and the diocese, along with the rest of the country, was experiencing a post-World War II growth spurt. At that point, the diocese was 75 years old and many of its buildings, including churches and schools built in the late 1800s or early 1900s, needed to be repaired or replaced.
Among the thoughts and plans of post-war growth, Bishop Casey was also well aware of lean times when church properties had experienced foreclosure, and he wanted to avoid any pitfalls from borrowing from public institutions – while also maximizing lending opportunities for parishes. To that end, he began the Diocesan Investment and Loan that has loaned and invested for the benefit of parishes through today.
In 2019, the DIAL was formed into a trust with a more formal structure including updated operational standards. A separate committee of advisors was appointed that includes lay experts and clergy who advise on the operations of the trust.
“DIAL is committed to the financial benefit of every parish and institution within the diocese,” said Tracy Lockwood, diocesan chief financial officer.
Deposits have immediate withdrawal privileges and earn interest from the day of deposit until the day of withdrawal. Most parishes, schools and institutions in the diocese have a deposit account with the DIAL, so that there are nearly 150 different depositors participating and every year several parishes and institutions take out loans.
In 2017, new lending policies were adopted to help parishes ensure their financial security when taking out a loan. The committee overseeing the DIAL includes members of the lay faithful skilled in finance and banking, chancery employees and priest representatives. This committee works with each parish or institution needing a loan in an individual manner.
This year many notable projects paid off loans borrowed from the DIAL including St. Elizabeth Ann Seton Church in North Platte. Their parish of about 100 families broke ground on a new church in 2010. They took out a loan of $1.8M for construction and made their final payment on the loan this year.
“Amazing work by that community to have their church fully funded,” Lockwood said.
In late 2003, St. Paulinus Church of Syracuse opened a DIAL savings account and began saving for the construction of a parish hall. By late 2014, they had saved nearly $675,000 (with interest earnings). In the fall of 2014, construction began and they borrowed $865,000 for its completion. Through much sacrifice and perseverance, the parish made its final loan payment in February 2021. The parish hall provides the parish a gathering place for social events, and classrooms for catechetical programs.
In 2018, North American Martyrs Church in Lincoln borrowed $506,000 toward a $3.4 million school addition that provided seven new classrooms, as well as a library, art room, multipurpose room, restrooms, work rooms, and office space. Through the generosity of their parishioners, they made their final payment on the loan this spring.
Current DIAL committee member and pastor at North American Martyrs Parish, Father Brian Connor said: “It was a very wise man on our stewardship committee, the late Franklin Choutka, who made the point of not having a debt-burning party because just as good – and bad – debt is a part of family life, so too it is a part of a growing parish’s life.”
“The Diocese of Lincoln is blessed to have the DIAL to assist with growing the Kingdom,” Lockwood said. “It’s a blessing to know each parish participates in the growth of other parishes, reaching beyond their own boundaries and allowing parishes to build more for less.”
