# LCMS Convention Workbook_St. Louis Missouri_1983_S146 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 146 ADMINISTRATION AND PROGRAM IMPLEMENTATION ing Fund represents the portion of funds that are available for the support of the Foundation’s operations. F. Agency Funds. Agency funds represent funds received by the Foundation for which the Foundation acts as a conduit between the donor and the charitable beneficiary. The transfer of the Board of Trustees for Trust Funds management responsibility meant that as of June 30, 1981, the Foundation trustees had responsibility for the management of assets in excess of $46 million. Of this amount, just over $30 million was for lifeincome agreements, $3.5 million for annuity agreements and $10.1 million for other trust funds (endow- ments of synodical entities). See Exhibits A and C for the June 30, 1982. Balance Sheet and Statement of Changes in Funds Held in Custody for Others. Implementation Efforts In an effort to make an orderly transition and to provide for the increased management responsibilities and the elimina- tion of the development responsibilities other than the estab- lishment of policies, a great deal of energy has been expended to develop policy manuals for development officers and for investment needs. These policies clearly identify the phi- losophy of the Board of Trustees and provide an orderly way to assign accountability to the various individuals who are working in behalf of people through the instruments and services offered by the Synod and its Foundation. While more needs to be done to solicit appropriate input and to communi- cate the services offered by the Foundation, the process of adopting policy manuals has resulted in a complete review of practices and procedures to make certain that they are ap- propriate in today’s situation. Of significance in this process has been a reexamination of the Foundation’s relationship to listed service organizations and other associations and sepa- rate entities which are perceived to be Lutheran Church— Missouri Synod, but have been organized in ways that do not clearly identify accountability and relationship to The Lu- theran Church—Missouri Synod. BALANCE SHEETS THE LUTHERAN CHURCH-MISSOURI SYNOD June 30, 1982 Unrestricted As identified in the report of the Department of Stewardship and Financial Support, staffing patterns in the planned giving area have been revised, and partnership agreements have been entered into with Districts and colleges as appropriate. In addition, a small national staff has been reassembled follow- ing the resignation of the three responsible staff persons who were on board as of the 1981 convention. It is always sad when well-qualified and dedicated people leave an organization, but as God calls His own to utilize their special gifts, it is expected that from time to time changes will take place. We pray that those who have left have found joy in new endeavors and that those who have been engaged to assist God’s people with their stewardship through the work of The Lutheran Church— Missouri Synod will be a blessing to all with whom they are in contact. New Developments Significant changes in the 1981 federal tax act suggested that the use of the charitable remainder unitrust agreements would be less important as a deferred giving device in the future. Consequently, several new instruments have been developed which are less restrictive in their investment re- quirements and should be more appealing to a significant segment of our people. Also, new pooled income funds have been proposed. In an effort to respond to changes in the economic en- vironment, the Board of Trustees requested several private letter rulings concerning the management of Unitrust assets. Such requests have been upheld and efforts are under way to secure agreement to invest individual trusts on a joint basis in an effort to minimize the market fluctuations of bond and equity investments that have resulted from the rapid swings in interest rates in the recent past. While the process has been time consuming, trustees believe that the effort will be blessed in the months and years ahead. A large uncertainty on the horizon is the requirement for the Foundation to withhold taxes on dividends and interest under Exhibit A Endowment and June 30, 1981 Operating Life Income Annuity Other Trust Agency Total All Total All Fund Fund Fund Funds. Funds Funds Funds ASSETS Cash $ 11,381 $ 170 $ $ 12,940 $s $ 24,491 $ 183,346 Due from other funds 162,922 340,413 86,934 213,728 803,997 589,925 Accrued interest and dividends receivable 14,975 725,143 62,238 78,134 14,119 894,609 642,390 Accounts receivable 7,552 2,630 298,348 308,530 124,423 Investments--Note 1,468,695 20,447,744 4,423,442 13,628,302 339,954 40,308,137 31,929,044 Notes and loans receivable 123,484 6,540,650 115,635 208, 308 6,988,077 4,416,510 Real estate 11,015 6,315,142 50,600 195,728 6,572,485 9,235,840 Deferred charges 12,963 Giiooo.0§ hie Lede Gite Camm sma LIABILITIES AND FUND BALANCES Accounts payable $ 116,249 $ 2,596 $ $ $ 118,845 $ 523,680 Due to other funds 803,997 803,997 585,925 Undistributed income 508,822 321,082 829,904 540,273 Funds held in custody for others 33,857,844 3,684, 313 13,640,692 971,837 52,154,686 43,875,463 116,249 34,369,262 4,488,310 13,961,774 971,837 53,907,432 45,529,341 Fund balances: Unrestricted 1,683,775 1,683,775 1,298,833 Restricted 309,119 309,119 306, 268 1,683,775 309,119 1,992,894 1,605,101 $1,900,024 $24,369,262 £4:498,910 §14.270893 E97837 8.200326 Bar 1Id 4d?