News reports in recent days that the Newcastle Anglican Diocese is facing a $1 million shortfall in this financial year is a timely reminder of the risks facing lenders into the church and not-for-profit sector.
This news follows on from the warning given by then Anglican Primate Dr Phillip Aspinall that an internal review of the Anglican Church identified six dioceses "as not being financially sustainable and that another three were in serious financial circumstances."
In addition to the financial risks, Dr Aspinall identified the unique legal risks "caused by the current structure of the Church, including that most church assets are held in trusts which legally are very difficult to unwind."
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