The Diocese of Duluth net income from operations reflects a significant improvement from the prior year’s operating shortfall. In fiscal 2025, net income from operations was a positive $330,293, compared to a deficit of $1,170,567 in the prior year. After adjusting for non-operating expenses, total net income was a deficit of $324,492 in 2025, compared to a deficit of $902,705 in the prior year. 

REVENUES 

Total operating revenues increased by $954,959 or 22 percent, from the prior year, largely related to the Ministries Appeal. This jump in revenues was aided by accounting rules that required approximately $300,000 of the 2024 Appeal to be recognized in fiscal 2025. The appeal contributed 54 percent of the total funding to the diocesan operations, compared to 50 percent in the prior year. Parish assessments increased by $268,586, which reflected the graduated implementation of supporting bishop’s administrative offices directly from parishes.   

EXPENSES 

Total operating expenses decreased by $545,901, or 10 percent, from the prior year. Evangelization and Outreach expenses decreased overall by $180,000 mostly related to the re-organization of some of the ministries. Support Services declined overall by $361,225, driven by changes in priest staffing, a reduction of Priest Pension costs of $226,000 and lower self-insured property/casualty claims of $130,000. 

NON-OPERATING  

A one-time expense of $921,840 was due to four remaining misconduct claims under the diocesan bankruptcy settlement from six years ago. We don’t anticipate future obligations arising from the bankruptcy.  

In closing, on behalf of Bishop Felton and the staff at the Pastoral Center, we are deeply grateful to those who have supported the mission of our diocese to bring the healing, hope, and joy of Jesus to all people. Your generous contributions of treasure, service and prayers are greatly appreciated!