The Vatican Has a Budget Crisis—and No Easy Way Out
The Vatican is broke. The Holy See projected a budget of €770 million ($878 million) in 2022. But it couldn’t cover its costs. The Catholic Church’s central government doesn’t tax residents or issue bonds. So where does the money come from? Donations, museum tickets, investments, and real estate. And almost all of those are falling short.
Donations Are Down—and Distrust Is Up
There are two main donation streams:
- Annual contributions from bishops
- Peter’s Pence, a special collection taken globally in June
From 2021–2023, U.S. Catholics gave $27 million annually to Peter’s Pence. That’s more than half the total global contribution. But overall donations have tanked from $101 million in 2006 to just $47 million during COVID’s first year—and they haven’t bounced back.
Why the crash? One word: trust. After a scandal involving the Vatican’s investment in a failed luxury apartment project in London, many found out Peter’s Pence wasn’t going to charity—it was covering the Vatican’s budget gaps. That’s not exactly what parishioners signed up for.
A Real Estate Empire, Mostly Sitting Idle
The Vatican owns more than 5,000 properties worldwide. Most don’t make money.
- 70% are used as offices
- 10% are rented at low prices to employees
- Only 20% are rented at market value
In 2023, this real estate brought in just €35 million. For context, that’s less than what one luxury apartment tower in Manhattan might make.
Some say the Vatican should sell off expensive or useless buildings—like they did with their Tokyo embassy. But others in the Church resist. It’s like your uncle who refuses to sell his rusty vintage car because “one day it’ll be worth something.”
Can Pope Leo XIV Turn It Around?
The new pope faces tough choices. Rev. Robert Gahl says the Vatican needs to move from a “begging bowl” mindset to treating donations as long-term investments in the Church’s mission. But outside the U.S., that’s tough—Europe doesn’t have the same philanthropic culture.
Even the Vatican’s own institutions are tightening their wallets. The Vatican Bank made €30 million in profit last year—and gave none of it to the pope.
The irony? 200,000 people came to Pope Leo’s inauguration in St. Peter’s Square. If each of them gave $10, the budget would already look better.
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