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Published by
The National Herald,
September 16, 2005
Behrakis: Church
Must Get Finances In Order
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By
Theodore Kalmoukos
Special to The National Herald
BOSTON – Now that the
annual Fall meeting of the Archdiocesan Council
is approaching this October 27, the National
Herald took the opportunity to speak with
philanthropist and entrepreneurial magnate
George Behrakis, a member of the Council’s
Executive Committee from Lowell, Massachusetts.
 In
the interview, Mr. Behrakis expressed serious
concerns about the Greek Orthodox Archdiocese of
America’s debt, which is about $12 million.
Mr. Behrakis identified a lack of fiscal
responsibility on the part of the Archdiocese
administration as the main reason why the
Archdiocese is in financial straits, citing that
expenditures have exceeded revenues.
"If you want to create new programs, they must
pay for themselves… We need a lot of programs…
but I think the Archdiocese should have at least
$20 million in revenues to sustain those, and we
only have $14 million," he said.
In order to remedy its current fiscal mess, Mr.
Behrakis explained, the Archdiocese needs to
develop a "master strategic plan," and the
Executive Committee needs to play a more active
role in supervising the Archdiocese’s affairs.
Mr. Behrakis disclosed that the Archbishop
Iakovos Leadership 100 Endowment Fund is
relocating from its current offices at
Archdiocese headquarters in Manhattan as a
protective measure, and that the Archdiocese’s
new Faith Endowment Fund now has $5 million in
deposits and $30 million in pledges.
Mr. Behrakis also said he is opposed to selling
the late Archbishop Iakovos’ home (worth an
estimated $3-4 million) as a way to help pay
down the current debt, and when asked about
whether His Eminence Archbishop Demetrios of
America should consider retiring in the near
future, Mr. Behrakis said, "It should be an
ongoing conversation. Sometimes people stay in
office too long." The full text of the interview
follows.
TNH: What are your thoughts in light of the new
ecclesiastical and academic year?
BEHRAKIS: I think we have to look at the new
year as one in which many things can be
accomplished in the Archdiocese. I think we need
to make greater strides for Orthodoxy; spend
money for our youth; create new programs
nationwide; bring the family together; and with
the help of the Archbishop, the Metropolitans
and our priests, promote Hellenism and
Orthodoxy. We need to make certain that we
expand each year by a certain percentage. We
need to have some vision, and we need to put a
master strategic plan together and let us
develop a genuine plan for the Church in
America.
TNH: Do you think that Archbishop Demetrios
would accept such a strategic plan?
BEHRAKIS: Archbishop Demetrios is a very
intelligent individual, and I think his
intelligence will tell him to do the right
thing. If he doesn’t, then shame on him.
TNH: How and why was the Archdiocesan debt of
close to $12 million created?
BEHRAKIS: I think it caught up on everyone. If
you want to create new programs, they must pay
for themselves.
TNH: It seems that just all the programs went
over budget.
BEHRAKIS: That’s correct, and I think it was
decided that the Finance Department should
really cut these budgets so that every one stays
consistent with the Clergy Laity Congress, where
the budgets are ultimately approved. The budgets
must be monitored on a monthly basis, so that
the various Departments of the Archdiocese do
not go over budget.
TNH: How do you reply to those who say that, if
some businessmen who sit on the Archdiocesan
Council were to run their companies the way the
Archdiocese operates, their companies would be
bankrupt?
BEHRAKIS: You must understand that successful
businessmen are only volunteers, and we only
meet four times a year.
TNH: Why don’t you meet as an executive
committee once a month?
BEHRAKIS: Well that’s the way they set the
meetings up. I disagree with that, but I think
the Archdiocesan Executive Committee should meet
as often as possible. I think finances are
straightened out slowly but surely. Once you
have a deficiency, it is difficult to control
it. In business, you have to go to various
financial institutions to get the money you need
to solve the problem. At the Archdiocese,
unfortunately we can’t do that. I think that
this year, 2005 to 2006, they will show a
positive cash flow, but the problem is that we
have the debt, which was created in 2003, 2004
and 2005.
TNH: Why was this debt not prevented in the
first place?
BEHRAKIS: That’s a good question. I think we all
share the blame in this. I think we have to
become more proactive and not simply sit back
and just listen, but start expressing ourselves
in a business-like manner. Sometimes we get
caught up in basic listening, and don’t
contribute fully to the discussion, but I think
those days are over as far as I’m concerned.
TNH: As a member of the Executive Committee, to
what extent were you aware of the debt?
BEHRAKIS: I think we were well aware of the
deficit, but not of its current magnitude.
TNH: You mean to tell us that the Archdiocese
did not fully inform you?
BEHRAKIS: I don’t think we have good
communication. Communication must be improved;
we need to have monthly statements; I need to
know cash flow; I need to know how much revenue
is coming in. We do get the annual report –
sometimes quarterly reports. The contributions
have maintained themselves, but the expenses
have exceeded revenues, which can not be allowed
to happen. We need a lot of programs, as I
mentioned before, but I think the Archdiocese
should have at least $20 million in revenues to
sustain those, and we only have $14 million. We
need a strategic plan. We need to be
professionals and stop the Greek-style
bickering, and come together as a team to work
for the success of the Church, and stop shooting
arrows at people. I think that’s what’s
unfortunate. It doesn’t help, and it doesn’t
work. If we’re going to be negative, shame on
us; shame on our children; and also on our
grandchildren. The Church is not going to
succeed in advancing its mission that way.
TNH: This is the second time in six years that
such a huge debt has been created. You
personally helped to retire the previous debt.
Are we going to go from debt to debt? Do you
feel that, as members of the Executive
Committee, you have fiduciary responsibilities?
BEHRAKIS: I think we all have fiduciary
responsibility, but you must remember that
hidden costs also come into play.
TNH: Such as?
BEHRAKIS: Legal fess to settle cases against the
Church.
TNH: How much money is involved with that?
BEHRAKIS: We may be talking three to four
million dollars.
TNH: Can you comment on the fact that there are
millionaires and billionaires who are sitting in
the Archdiocesan Council and its Executive
Committee, and the Church is still $12 million
in debt?
BEHRAKIS: As intelligent human beings, they
should look in the mirror, look at themselves,
and make a decision.
TNH: You are the vice chairman of the Leadership
100. How is that organization doing?
BEHRAKIS: Extremely well. I think the leadership
of John Payiavlas and the staff, and now with
the addition of Paulette Poulos, who will
support Father Antokas, I think you will see
Leadership 100 make tremendous leaps and bounds
in bringing in new members, and in seeking out
current members who can fulfill their pledges.
TNH: How much money does Leadership 100 have in
its coffers?
BEHRAKIS: We have about $52 million. A
percentage of the interest earned goes toward
the Church for its various ministries. For
example, Hellenic College/Holy Cross receives $1
million a year to attract new candidates to be
ordained to the priesthood.
TNH: Do you know how many Greek Orthodox priests
the School of Theology produces every year?
BEHRAKIS: I have no idea. We have to restructure
how the money is given only to those who are
going to become priests in the Greek Orthodox
Archdiocese of America. We need more priests.
TNH: Are you thinking Leadership 100 will give
$12 million dollars to the Archdiocese to help
retire the debt?
BEHRAKIS: No. Leadership 100’s charter clearly
states that we can not take care of debt. A lot
of people would like to see that happen, but I
think you would destroy the basic philosophy of
the founders of Leadership 100 if you take money
to pay off the debt. That money is to be given
to programs to advance Orthodoxy and Hellenism,
but no way to pay debt.
TNH: Since you are talking about Hellenism, up
to this moment in time, Leadership 100 has not
given a single dollar to enhance Hellenic
Paideia.
BEHRAKIS: Well, we give to Hellenic College.
TNH: What about the Parochial Schools. We have
one in Lowell.
BEHRAKIS: Those issues have come up in meetings.
The goal of Leadership 100 is to have $100
million in the endowment, so that we can give $5
million out annually.
TNH: Who has the final say? Who distributes
Leadership 100 grants?
BEHRAKIS: The Board of Trustees.
TNH: What is the process?
BEHRAKIS: Motions are made. There is discussion
on the motions; some vote in favor, some don’t.
It’s a democratic process.
TNH: In the end, it’s at the discretion of
(Archdiocesan Administrator) Jerry Demetriou to
make the distribution, right?
BEHRAKIS: Jerry Demetriou does not have the
final word. He balances the books for Leadership
100, but he does not have the final word on
distribution.
TNH: Can you confirm or deny our information
that the offices of Leadership 100 will relocate
from the Archdiocese to a new location in New
York City?
BEHRAKIS: That is underway. We need to separate
Leadership 100 (from the Archdiocese) because it
can come back to haunt us. We have to separate
from any ties it may have, like staying in the
same building.
TNH: Leadership 100’s director is a priest. That
means he is connected directly with the
Archdiocese.
BEHRAKIS: It doesn’t matter. He still reports to
the chairman, and to the executive committee.
TNH: How much money does the new Faith Endowment
have?
BEHRAKIS: Five million (dollars) and $30 million
in pledges.
TNH: Who is going to be the director of the
Faith Endowment?
BEHRAKIS: At this time, we haven’t voted on
anybody yet.
TNH: What is going to be the role of Father
Karloutsos, who was appointed as executive
advisor?
BEHRAKIS: Because of the leadership qualities
and abilities he demonstrated at Leadership 100,
they felt he should come early on as an advisor,
and not as a director.
TNH: Is it a salaried position?
BEHRAKIS: No, no.
TNH: Since we mentioned Father Karloutsos, what
is his position at the Archdiocese?
BEHRAKIS: I think he wears a lot of hats. He is
with the (Ecumenical) Patriarchate; with the
Archbishop; with the Archons.
TNH: For which hat is he getting paid?
BEHRAKIS: I would say for the Archons and the
Archdiocese.
TNH: What does he do at the Archdiocese? Do you
know?
BEHRAKIS: You have to ask them.
TNH: What is your opinion on selling or not
selling the late Archbishop Iakovos’ home?
BEHRAKIS: I think it’s a great place for the
Archbishop to have a residence there. We should
keep it.
TNH: Why do you think Archbishop Demetrios is
not using the house, but instead the Archdiocese
pays $8 thousand a month to rent an apartment
for him in Manhattan, at a time when the
Archdiocese is $12 million in debt?
BEHRAKIS: That’s a good question, and it should
be brought up at the next Executive Committee
meeting.
TNH: Given the advanced age of Archbishop
Demetrios, and the administrative and financial
disarray in which the Archdiocese presently
finds itself, should the Archbishop begin to
think of exiting the active ministry at some
point with dignity and respect, and should we
begin thinking of a future archiepiscopal
position?
BEHRAKIS: It should be an ongoing conversation.
Sometimes people stay in office too long. It is
up to an individual, such as a college professor
who spends ten years, and then he is given a
very good retirement package.
TNH: Thank you, Mr. Behrakis.
BEHRAKIS: Thank you.
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