In a significant reversal of a late policy by his predecessor, Pope Leo has formally dissolved a high-level commission established to encourage donations to the Holy See. The move rolls back one of the final administrative acts of the late Pope Francis.
A Commission Created in Final Days
The "Commission on Donations for the Holy See" was instituted by Pope Francis in February of this year, during his final illness. It was tasked with a critical mission: to help stem a widening financial gap within the Vatican's accounts by encouraging contributions from lay Catholics and other benefactors.
The five-member group, composed entirely of Italian Church officials, began its work amid some internal scepticism regarding its members' specific fundraising expertise. Its creation underscored the pressing budgetary concerns that had dogged Francis's papacy.
Decree of Dissolution and Redirected Funds
The dissolution was enacted via a papal decree dated 29 September, which was publicly released on Thursday, 4 December 2025. The decree did not provide specific reasons for disbanding the body.
Pope Leo directed that all funds collected by the commission be transferred to the Vatican's general accounting office. The decree stated that a new working group would be formed to consider the potential for a future fundraising body, leaving the long-term strategy open.
Persistent Financial Headwinds for the Holy See
This decision comes against a complex financial backdrop. The Vatican reported its first monthly budget surplus last month, a rare bright spot after years of deficits that had frustrated Church leadership.
However, underlying challenges remain severe. Pope Francis had long struggled to control the Vatican's budget, facing firm resistance from cardinals in his final months. In a bid to cut costs, he slashed cardinals' salaries three times between 2021 and 2024.
A major concern is the growing liability within the Vatican's pension fund. In a 2022 media interview, the Vatican's finance chief estimated this shortfall at approximately €631 million. While there has been no official update, several insiders have indicated to Reuters they believe the figure has since ballooned.
The Vatican's income was also hit hard by a substantial loss of tourist revenue during the Covid-19 pandemic. Furthermore, in October 2024, the pope signalled that cuts would be necessary to the €40 million-plus budget for the Vatican's extensive multi-language media operations.
Expert Warnings of a Reduced Papal Footprint
Commentators warn that the financial pressures may force difficult choices. Reverend Tom Reese, a Jesuit priest and analyst of Vatican finances, previously stated, "The budget problems are going to force the Vatican to do a lot of things it doesn't want to do."
He suggested the Holy See might have to limit its charitable works or downsize its global diplomatic presence. "The footprint of the pope could be severely reduced," Reese said. "If you can't pay your bills, you can't do much."
The dissolution of the donations commission marks a clear shift in approach under Pope Leo, as he begins to shape the Vatican's strategy for tackling its enduring fiscal constraints.
