FROM 'FUTURE' TO 'NO FUTURE'
- Special Correspodent
- Jan 16
- 5 min read
How a $1.5M Loan and Real Estate Losses
Destroyed the Diocese's 'Endowment for the Future'
Financial Collapse Saga • Article 1 of 6
In 2016, the Eastern American Diocese of the Serbian Orthodox Church had something precious: an "Endowment for the Future" worth $2,070,656 – meant to secure the diocese's future for generations.
By the end of 2024, only $165,620 remained.
That's a 92% destruction of the endowment – $2,066,806 gone in eight years.
They should rename it the "Endowment for NO Future" – because that's exactly what we got.
This is not market volatility. This is not inflation. This is not economic downturn.
This is what happens when you lose $244,000 on a property in two years, then borrow $1.5 million to buy an even more expensive one.
The Real Estate Disaster (2015-2017)
Before we show you the year-by-year destruction of the endowment, you need to understand the real estate decisions that made it inevitable.
For 14 years (2001-2015), the diocese operated from stable headquarters in Mars, Pennsylvania, near the Serbian heartland, close to Shadeland Monastery, with modest costs.
Then came the moves:
June 2015: Warren, New Jersey
The diocese purchased 9 Friar Tuck Court in Warren, New Jersey for $1,125,000. This was still under Bishop Mitrofan's tenure, months before Bishop Irinej's election in May 2016.
2017: The $244,000 Loss
Just two years later, in 2017, the diocese sold the Warren property for $880,738 – a loss of $244,261 in just 24 months.
2017: The $1.5 Million Loan
That same year, instead of using sale proceeds to minimize borrowing, the diocese purchased an even more expensive property in New Rochelle, New York for $1,950,114.
How was it financed?
• Took a $1,500,000 loan from Raymond James
• Transferred $450,114 from Shadeland Monastery (remember this one)
• Total: $1,950,114
Notice what's missing? The Warren sale proceeds.
And who was the real estate agent for the $1.95 million New Rochelle purchase? Bishop Irinej's kuma (spiritual godmother). The typical commission on such a sale would be approximately $100,000 – paid by the diocese to the bishop's spiritual relative.
The pattern repeats: kumovi (spiritual relatives) benefit financially from diocesan transactions.
Where Did the Sale Proceeds Go?
The diocese sold the Warren property for $880,738. That money is not listed as a source for the New Rochelle purchase. So where did it go?
The 2017 financial records show:
• Diocese operating deficit: -$228,213
• Shadeland Monastery operating deficit: -$146,537
• Combined deficits: -$374,750
The diocese's 2017 financial records document operating deficits totaling $375,000. Whether the remaining proceeds from the Warren sale were used for other expenses, held in reserves, or applied elsewhere is not documented in the available records.
What IS clear: In just two years, the diocese lost $244,261 on the Warren property (bought $1,125,000, sold $880,738). Despite this sale, the New Rochelle purchase was financed entirely with a $1.5 million loan and a $450,114 transfer from Shadeland Monastery.
The Permanent Debt Burden
A $1.5 million loan at typical rates (approximately 5% for 30 years) means roughly $96,000 per year in loan payments.
Where would that money come from?
Look at what happened to the "Endowment for the Future" after 2017.
The Systematic Destruction: Year by Year
Here's exactly what happened to the "Endowment for the Future" – year by year, withdrawal by withdrawal, dollar by dollar.
The Pattern Is Clear
Look at what happened after the 2017 loan:
• 2017: $1.5M loan taken → Endowment at PEAK ($2.23M)
• 2018: First major decline ($313K withdrawn) → Loan payments begin
• 2019: Acceleration ($354K withdrawn) → Loan payments continue
• 2022: Crisis mode ($527K = 41% withdrawn!) → Desperate to service debt
• 2023-2024: Death spiral ($678K combined) → Endowment nearly destroyed
The "Endowment for the Future" wasn't just mismanaged. It was systematically consumed to pay for a $1.5 million loan that never should have been taken.
The Complete Financial Disaster
Let's add it all up:
• Lost $244,261 on Warren property sale (sale proceeds: unaccounted for)
• Took $1,500,000 loan from Raymond James
• Paid ~$100,000 commission to bishop's kuma (real estate agent)
• Transferred $450,114 from Shadeland Monastery (remember this one)
• Created ~$96,000/year permanent debt burden
• Drained $2,066,806 from endowment (92% destroyed)
This is not a series of unfortunate events. This is a pattern of catastrophic financial decisions.
From 'Future' to 'No Future'
The cruel irony: They called it the "Endowment for the Future."
It was meant to:
• Secure the diocese for future generations
• Provide a safety net for hard times
• Fund mission and growth
• Be a legacy for our children
Instead, it became:
• The Bishop's Mortgage Payment Fund
• A resource consumed to finance bad real estate deals
• A source of commissions for the bishop's spiritual relatives
• A future traded for a house
• Evidence of financial betrayal
They should rename it the "Endowment for NO Future" – because that's exactly what we got.
What Happens Now?
The diocese is in crisis:
• Endowment: $165,620 (down 92.6%)
• Outstanding loan: $1.5 million
• Annual loan payments: ~$96,000
• No safety net left to raid
Where will the money come from now?
When you've destroyed your own endowment and still have a mortgage to pay, there's only one option left: target the parishes that still have money.
The Cleveland Target: $1.6 Million
St. Sava Cathedral in Parma (Cleveland), Ohio has approximately $1.6 million in assets held with Merrill Lynch (for now). For context: that's nearly ten times what remains in the diocesan endowment.
The safeguards that would protect those assets?
• The parish priest who would ask questions? Removed
• The elected Parish Board President and the board that would demand accountability? Election rejected
• The 120+ families who support their priest? Ignored and banned from the property
• A compliant trustee board? Installed by the bishop
Both locks have been removed. The vault is open. And $1.6 million sits vulnerable while the diocese has a $1.5 million loan to service.
—
We're 120+ families standing outside our cathedral demanding accountability. We have the financial records that prove what happened:
The bishop lost $244,000 on a property in two years, borrowed $1.5 million to buy an even more expensive one, paid ~$100,000 in commission to his spiritual relative, and systematically drained the "Endowment for the Future" to pay for it.
Now the endowment is gone, the loan remains, and parishes with money have become targets.
This is how you kill a future.
Next in the Financial Collapse Saga:
Article 2: 'The Timber That Disappeared'
How 69% of Shadeland's $651,000 timber windfall went to the bishop's house
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