Note I said “misued” not “misappropriated” (i.e. stolen). You can use funds for a mission and still misuse them.
The yearly cash flow of a charitable organization looks like that:
Donations = Direct costs + Indirect costs + Reserves
For example, if the charity is running a soup kitchen, then direct costs would be purchasing vegetables, salary of the cook, and depreciation of the cooking equipment.
Indirect costs are thing like salary of the accountant, office rental, heating, electricity, etc.
Reserves normally should be near zero, unless there is a legitimate reason to stockpile money anticipating a future outlay.
Hitchens et.al. have correctly observed, that traceable direct costs of MT’s order are nearly zero, as the labor is done by unpaid sisters, the buildings are donated, the food is donated, the medical supplies are donated. Same goes for indirect costs, because accounting etc. is done by the order itself.
This can mean one of two things. Either
all money goes into reserves and sits there unused or it is funneled somewhere else. The former means that the money is wasted, the latter means that there is a fraud. Either way, the donor’s money are used in a different way than (s)he wished.
Under normal accounting rules, giving money to the Holy See could be only considered a direct eligible cost if the order was purchasing mission-related services from the Holy See, e.g. leasing a hospital owned by the Holy See. However such arrangement, even if legal, would still raise some red flags.
Finally, let us assume that the money was, as Hitchens asserted, used for jet-setting MT around the world in business class. (I believe it wasn’t, but let’s use this as an example). At $10K per trip and one trip per day, that would amount to “mere” $300K per month. It’s still not enough to explain the mismatch between income and expenses.
So MT’s order will have to live with accusations of financial impropriety unless it agrees to open the accounts – which I don’t think will ever happen.
Again, I don’t think that there is an outright fraud involved – instead, the order simply has a very strict rules on spending (this is corrobated from several sources, including these very pro-MT), so it is unable to use the money.