In a general sense, I've heard that the money in the collection plate at Sunday mass goes toward paying heating and electricity bills on the church building (plus other upkeep), providing a modest salary for the parish priest or priests, and for helping the poor, among other things.
I was wondering if anyone knew if there were any more specific guidelines, though. For example, do all parishes give a set percentage, like 10%, to the poor? Is there a certain percentage that goes directly to the diocese and the bishop? Or is it all completely at the pastor's discretion?
I just got curious about the subject. I know it's all a little "inside baseball", but I thought maybe someone might know due to sitting on a parish council or being friends with a priest or whathaveyou.
In most cases, at least in the United States, the money goes towards the parish. Priests are paid from the collection according to a standard set by the diocese. There aren't any guidelines for how the money is spent unless it is part of the parish setup or by diocesian guidelines. Usually there aren't any, because each parish is different. What a rich urban parish does with its money is much different than a poor rural parish. One might have tons of staff to pay, giving much to charity, while the other barely has enough to pay staff to clean.
The diocese gets money by collecting a fund from each parish. The members of the parish are totalled and that is used to determine how much they should give. Parishoners will contribute to that separately. Usually it is the poor that pay for the fund, because the rich use money like votes... which usually just ends up hurting people, and does not change the bishop's mind about a policy. For example, seminarian expenses are covered by diocesian funds. How on Earth does one complain about the lack of priests or quality priests while giving nothing to support them?
A parish will also frequently collect money for different causes in a 'second collection'. Despite what ignorant media commentors say, and outsiders think, the Catholic Church does not just take a single collection of money and spend it however they like. Some people honestly think all the money goes to the Vatican and it goes back to the parish.
One collection goes to cover parish expenses.
Usually once a year it will be time for parishes to collect for the diocese.
Once a year, parishes will often collect for the Vatican. Donations are totally voluntary.
Other times of the year, parishes will collect for Catholic Charities, the retirement of sisters and priests, other charitable projects, missions, et cetera.
That is how it works in the US at least, it should be similiar in other locations.