Financial Crisis Looms Over Eastern American Diocese as Concerns Grow

By Special Correspondent

Serious concerns have emerged regarding the financial stability of the Eastern American Diocese of the Serbian Orthodox Church, with reports suggesting the Diocese may be just months away from financial collapse. According to documentation and financial reports reviewed by this publication, the once-stable Diocese has experienced a dramatic downturn in recent years.

From Surplus to Deficit

Financial statements show that in 2016-2017, the Eastern American Diocese had reserves of approximately four million dollars. In a surprising reversal, those substantial reserves have reportedly not only been depleted but replaced by a deficit exceeding $40,000, raising urgent questions about financial management and oversight.

“The financial deterioration has reached a critical point where the Diocese struggles to meet basic monthly obligations,” said a delegate to the Annual Assembly familiar with the Diocese’s finances, who requested anonymity due to the sensitivity of the situation.

Concerns About Management and Oversight

Multiple sources from the Diocesan Assembly have expressed alarm over what they describe as a breakdown in proper financial management. According to church members familiar with the Diocese’s operations, standard administrative procedures are increasingly being bypassed:

• Financial decisions are allegedly made without formal meetings of oversight bodies.

• Expenses are reportedly approved without official resolutions or minutes.

• Questions from administrative body members about financial matters go unanswered.

• Limited funds are allegedly redirected without proper authorization.

These procedural irregularities have reportedly hindered administrative bodies from fulfilling their fiduciary duties to the Diocese.

Questions About Asset Management

Among the most serious concerns are questions about the handling of revenue from significant asset use. When a question was raised at a recent Diocesan Assembly about the expenditure of millions of dollars from timber operations on the Shadeland monastery estate, diocesan leadership reportedly provided explanations that many found unsatisfactory.

“There is a troubling lack of transparency regarding how these significant timber sale revenues were used,” said another church member familiar with the situation. “When it comes to assets acquired through generations of faithful contributions, proper stewardship is not optional—it is sacred.”

Broader Pattern of Financial Concerns

The financial situation at the diocesan level mirrors concerns raised in individual parishes. As previously reported, St. Sava Cathedral in Cleveland raised questions about the financial management of Marcha Monastery, which faces tax liabilities of nearly $235,000 despite claims of significant timber revenue. According to statements made during a March 2025 meeting, approximately $200,000 in revenue from timber operations at Marcha Monastery cannot be accounted for in official financial reports.

This emerging pattern of missing or inadequately documented funds from multiple properties has prompted some faithful to appeal to the highest authorities of the Serbian Orthodox Church, including the Holy Synod, seeking intervention and oversight.

What’s Next?

Church members concerned about the financial situation emphasize that their goal is not division but the preservation of the Diocese’s spiritual and material well-being. Many express fear that without swift intervention, the Diocese may face a situation where properties, bequeathed by generations of faithful, would need to be sold to settle financial obligations.

These financial concerns come at a particularly challenging time for the Eastern American Diocese, which is also grappling with disputes over governance in several parishes, including St. Sava Cathedral in Cleveland.

As of the publication of this article, diocesan officials have not responded to requests for comment on the financial situation.

Editor’s Note: This article is based on financial reports, documentation, and testimonies from multiple sources within the Eastern American Diocese. This publication has reviewed supporting documentation for key claims but continues to seek additional verification and welcomes a response from diocesan leadership.