ALEXANDRIA, Va., Oct. 6, 2026 Anglican Watch, the unofficial watchdog of the Episcopal Church, today raised serious concerns about the finances and spending priorities of the Cathedral Church of St. John the Divine in New York, citing financial information showing a multimillion-dollar structural deficit alongside substantial expenditures for an Episcopal credit union, plans for a $70,000 kitchen renovation at the dean’s residence, and the proposed outsourcing of two full-time maintenance positions.
Financial information reviewed by Anglican Watch projects approximately $10.2 million in FY26 revenue against $17.7 million in expenditures, producing an operating deficit of approximately $7.6 million before an endowment draw.
Even after an approximately $5 million endowment draw, the projected FY26 deficit remains approximately $2.6 million.
Current FY27 planning is even more concerning, with approximately $7.8 million in anticipated revenue against $17.1 million in expenditures. That would produce a roughly $9.3 million deficit before an anticipated $4.8 million endowment draw, leaving an approximately $4.6 million shortfall.
“This isn’t primarily a question about whether the Cathedral should spend money advancing economic justice. It’s a question about priorities and results,” said Anglican Watch official Eric Bonetti. “If you can find $372,000 to subsidize a credit union that generates comparatively little revenue from banking, and $70,000 for the dean’s kitchen, while simultaneously eliminating two working people’s jobs, you need to explain how those choices reflect the social justice values you preach.”
CATHEDRAL PLANS HUNDREDS OF THOUSANDS FOR STRUGGLING CREDIT UNION
Among the expenditures drawing scrutiny is the Cathedral’s support for Community Good Episcopal Federal Credit Union, formerly New York Episcopal Federal Credit Union.
The Cathedral budgeted approximately $387,400 for “Credit Union Donations” in FY26, with the current projection at approximately $263,400. The proposed FY27 budget calls for another $372,000.
That translates into approximately $22,000 per month under the current FY26 projection and $31,000 per month in FY27.
The relationship between the Cathedral and credit union is particularly close. The credit union operates from Cathedral property, and its leadership includes Cathedral and diocesan officials. Dean Winnie Varghese serves as board chair, Bishop of New York Matthew Heyd as vice chair, and Cathedral Vicar Canon Steven Lee as chief executive officer.
The credit union describes its mission as providing fair and affordable financial services, particularly to marginalized and unbanked communities, and addressing financial inequality.
But its financial performance raises questions about the sustainability and effectiveness of the Cathedral’s investment.
According to regulatory financial data reviewed by Anglican Watch, the credit union lost approximately $491,000 in 2024, its first full year of active operations.
Through Sept. 30, 2025, the institution reported approximately $274,177 in non-operating income while generating only about $21,000 from loans, investments and other ordinary income. Even with the non-operating support, it reported a $23,186 year-to-date loss.
The imbalance was particularly stark during the first quarter of 2026.
The credit union generated only $4,246 in loan interest, $5,208 in investment income and $433 in fee income — a total of just $9,887 in internally generated revenue.
It nevertheless reported a $157,935 quarterly profit because it recorded $248,400 in non-operating income.
Without that non-operating income, the institution would have posted an underlying first-quarter loss of approximately $90,000.
The proposed $372,000 Cathedral allocation for FY27 is also more than twice the credit union’s approximately $155,000 loan portfolio as of March 2026.
ANGLICAN WATCH PROPOSES DIRECT COMMUNITY GRANTS AS AN ALTERNATIVE
Anglican Watch supports efforts to expand financial opportunity for marginalized and underserved communities. The organization questions, however, whether spending hundreds of thousands of dollars annually subsidizing a financial intermediary is the most effective means of achieving that goal.
As one alternative, the Cathedral could devote some or all of the proposed $372,000 directly to individuals, families and community organizations.
The same amount could fund 372 grants of $1,000, 186 grants of $2,000, or more than 74 grants of $5,000.
Those grants could potentially assist with rent arrears, food insecurity, utilities, childcare, emergency transportation, job training and other immediate needs, or support established neighborhood organizations providing housing, food, youth and social services.
“If the goal is economic justice, then Cathedral leaders should be willing to measure outcomes,” Bonetti said. “They should be able to tell the public what hundreds of thousands of dollars flowing into the credit union actually accomplishes and why that produces more benefit than giving the money directly to people and organizations in the community. Economic justice should be measured by results, not by the existence of another institution.”
Community Good says it exists to serve marginalized and unbanked communities and currently offers checking, savings, certificates and personal loans. It also has partnered with Rural & Migrant Ministry on efforts to expand financial access for rural and farm working families.
TWO MAINTENANCE JOBS TARGETED FOR OUTSOURCING
At the same time, Cathedral financial planning calls for the elimination of two full-time maintenance positions and their replacement with contract cleaners.
The plan provides for six months of severance and also budgets approximately $60,000 for an operations consultant.
Anglican Watch said the outsourcing raises social-justice questions because qualifying lay employees of Episcopal institutions generally receive church-mandated retirement benefits.
Replacing Cathedral employees with workers employed by an outside contractor could eliminate the Cathedral’s pension and other employee-benefit obligations associated with those positions.
Anglican Watch has found no evidence establishing that avoiding pension contributions is the Cathedral’s stated motivation for outsourcing the positions and does not assert that this is the Cathedral’s motive.
But the financial consequence of outsourcing remains relevant, the watchdog said, particularly given the Episcopal Church’s stated commitments to economic and social justice.
“Economic justice begins at home,” Bonetti said. “There is something deeply troubling about eliminating stable jobs that carry retirement benefits while pouring hundreds of thousands of dollars into an institution ostensibly dedicated to economic justice. If outsourcing these jobs saves money partly because the Cathedral no longer has to provide the benefits Episcopal employees are supposed to receive, Cathedral leadership needs to address that issue directly.”
$70,000 PLANNED FOR DEAN’S KITCHEN
Financial planning reviewed by Anglican Watch also includes $70,000 for renovation of the kitchen at the dean’s residence.
The proposed expenditure comes after Winnie Varghese became dean in 2025 and while the Cathedral faces substantial deferred maintenance and capital needs elsewhere on its historic campus.
Current capital priorities total approximately $959,000, including $220,000 for clerestory roof repairs, $145,000 for East End masonry work, $110,000 for safety cabling, $90,000 for Cathedral House mechanical controls, $80,000 for copper repairs, $60,000 for electrical work and $55,000 for stained-glass repairs.
Infrastructure expenses alone are projected at approximately $5.9 million in FY26, including roughly $2.4 million for maintenance, $1.1 million for security and $2.4 million for insurance.
ANGLICAN WATCH CALLS FOR TRANSPARENCY AND MEASURABLE OUTCOMES
Anglican Watch said the individual expenditures need to be viewed in the context of the Cathedral’s larger structural financial problem.
The Cathedral generates substantial revenue from admissions, events, its columbarium, conservation activities and other sources. Nevertheless, its ordinary revenue does not appear sufficient to support its existing expense structure, leaving the institution reliant on multimillion-dollar endowment draws.
The watchdog is calling on Cathedral leadership to explain its plans for addressing the structural deficit and to provide measurable outcomes demonstrating the value produced by its substantial support for Community Good Episcopal Federal Credit Union.
It also is urging Cathedral leaders to explain the rationale for outsourcing the two maintenance positions, including the effect on employee pension and other benefits, and to reconsider whether some of the money earmarked for the credit union could instead be distributed directly to people and community organizations in need.
“No one disputes that maintaining St. John the Divine is extraordinarily expensive or that difficult financial decisions have to be made,” Bonetti said. “But difficult choices reveal institutional priorities. Before cutting employees, Cathedral leaders should be able to explain why subsidizing the credit union and renovating the dean’s kitchen rank higher.”
ABOUT ANGLICAN WATCH
Founded in 2015, Anglican Watch is the unofficial watchdog of the Episcopal Church. The organization addresses both sexual and non-sexual abuse in the Episcopal Church and other faith communities.