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The German Archdiocese of Munich and Freising has reported a significant 6.2% drop in church tax revenue for 2023, due primarily to many parishioners leaving the church.
Finance Director Markus Reif announced at the Federal Budget Press Conference in Munich that the archdiocese’s income fell by €41 million to €617 million.
The German church tax system requires registered church members to pay a tax, usually 8-9% of their income tax, to their respective church. The state collects this tax and then distributes it to the churches.
The tax funds church activities, salaries and social services. Members can opt-out by formally leaving the church, which stops the tax obligation.
The decline in registered parishioners in Munich reflects a nationwide trend. According to the German Bishops’ Conference, 522,821 people in Germany left the church last year.
The archdiocese’s total revenue for 2023 stood at €856 million, a reduction of €56 million from the previous year. Reif expressed a cautious outlook for future revenues stating the forecast is “rather pessimistic”.
Invest in people
Vicar General Christoph Klingan addressed the need for prioritisation in light of reduced resources.
“What we do, we want to do effectively” Klingan said, referencing projects that benefit society.
The archdiocese Office Manager, Stephanie Herrmann, hinted at cuts in the existing building stock. The aim is to invest resources “primarily in people rather than in stones”.
The first pilot projects are already underway. The archdiocese is also investing in future fields such as climate protection.
The diocese’s assets, valued at around €3 billion, saw no significant losses. Increased real estate values balanced a decrease in certain investments. The renewed interest rates on investments are expected to help cover financial gaps.
The bulk of the €885 million expenditure in 2023 was on staff costs totalling €327 million. Additionally, €133.6 million in grants was allocated to church foundations to cover personnel expenses.
The archdiocese expects a continued decline in yields for the current year, with revenues projected at €835 million and planned expenses at €909 million.
Reif noted that earmarked reserves formed in previous years would be utilised to manage this shortfall.
Sources
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