A small parish in northern Italy is confronting a financial crisis stemming from a decades-old loan and dwindling attendance, forcing its priest to consider drastic measures including the sale of church properties and soliciting interest-free loans from parishioners. The situation at the parish of Saints Zenone and Martino in Lazise, near Lake Garda, highlights the growing financial pressures facing religious institutions in Italy and echoes similar appeals for financial support seen at the Vatican.
The current debt, totaling approximately €2.7 million, originated with a mortgage taken out twenty years ago to finance a new parish hall. However, the post-pandemic period has significantly exacerbated the situation, with declining church attendance leading to a sharp decrease in donations. Father Stefano Dolci, the parish priest, is now exploring a range of options to address the shortfall, including selling church-owned real estate, reorganizing mass schedules to reduce heating costs, and directly requesting loans from the congregation.
Frank Assessment of the Situation
Father Dolci has been remarkably transparent about the parish’s financial difficulties, openly discussing the issues both from the pulpit and on the parish’s Facebook page – a directness that has, at times, created challenges. Following discussions with parish councils, he decided to inform parishioners of the severity of the situation and request concrete assistance through a letter distributed with a donation form. “The situation is serious because, between unpaid invoices, bills, and passive interest, we will have no funds available in our current account by the end of February,” he explained. “I don’t know if a parish can ‘fail,’ but that is effectively what is happening.”
The proposed solutions include the sale of a former residence for coadjutors and a plot of land previously used for greenhouses. Parishioners are being asked to provide interest-free loans with repayment terms of two to four years to address the immediate emergency. Donations, even small ones from many individuals, are seen as crucial. Those willing to offer loans will be contacted to formalize the arrangement with a private written agreement and the transfer of funds.
Father Dolci is also actively seeking cost-saving measures. Beginning in February, all festive masses were moved from the main parish church to a smaller church in the Lezza district, a move intended to reduce heating expenses during the winter months. This decision is linked not only to the economic crisis but also to the declining number of parishioners. The parish currently has around 150 active members, representing just 4.5% of the local population.
The financial difficulties have been building for approximately two decades, stemming from the construction of the new parish hall during the tenure of Father Sergio Perego. However, the COVID-19 pandemic significantly worsened the situation. The decline in donations, which are the parish’s primary source of income, coupled with the exhaustion of a €200,000 line of credit guaranteed by the diocese, has created a critical situation.
Few Parishioners, Diminishing Revenue
The dwindling participation in parish life has had a direct impact on revenue. Father Dolci believes this necessitates a reassessment of how parish spaces are used and the amounts offered for Sunday collections, Christmas offerings, and the celebration of masses, sacraments, and funerals. The situation in Lazise reflects a broader trend of financial strain on Italian parishes, as highlighted by a recent report detailing the €2.7 million debt faced by the parish. This mirrors challenges faced by larger religious institutions.
The Vatican, under Pope Leo XIV, is currently grappling with a significant budget deficit of approximately KSh 12 billion (roughly €85 million as of February 11, 2026 exchange rates), and has launched a fundraising campaign appealing for donations from Catholics worldwide through the Peter’s Pence foundation. In 2023, Peter’s Pence collected €48.4 million (approximately KSh 7.19 billion). This unprecedented appeal underscores the financial pressures facing even the most prominent religious organizations.
Italy itself has demonstrated resilience in the face of sequential crises over the past two decades, including the global financial crisis and sovereign debt crisis of 2008-2012, as well as the more recent pandemic and energy price shock. However, the financial struggles of individual municipalities, as noted in recent research, suggest that economic vulnerabilities persist at the local level.
The case of the Lazise parish, while localized, serves as a microcosm of the broader financial challenges confronting religious institutions in Italy. The combination of long-term debt, declining attendance, and economic headwinds is forcing parishes to adopt increasingly innovative – and sometimes difficult – strategies to ensure their survival. The reliance on community support, through loans and donations, highlights the vital role that local engagement plays in sustaining these institutions.
The parish’s efforts to address its debt also include consideration of selling the parish youth center, built 30 years ago through extensive volunteer work. Exploring options like securing a bank loan, particularly with current historically low interest rates, is also under consideration as a temporary solution to satisfy creditors. However, the long-term sustainability of such a solution remains uncertain given the underlying decline in parish revenue.
