# LCMS Convention Workbook_St. Louis Missouri_2010_S77
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

SYNOD REPORTS
congregations, and organizations with gift-planning and investment
services in all 35 LCMS districts.
In 2001, the Synod’s Board of Directors assigned to the Foundation
the responsibility for development efforts that benefit the ministries
represented by the program boards of the Synod. Depending on the
needs of each program board, the scope of these efforts has ranged
from full development services on the one hand to a more limited
scope of services on the other. The term “full development services”
is broadly described as including three levels—Level 1: face-to-face
contact with donors; Level 2: non face-to-face contact with donors;
and Level 3: non-donor contact activities such as gift processing,
data management and reporting. Since 2001, some Synod program
boards have continued in a full development services partnership.
Others have migrated to taking responsibility for their own Level 1
activities, while continuing to work with the Foundation for Level
2 and 3 services.
Overall, the Foundation has brought a high degree of consistency
and professionalism to every aspect of the development process and
continues to adapt to the development needs of the Synod’s program
boards as they evolve. Foundation leaders have also participated in
discussions about what the gift-raising paradigm will be pending convention decisions regarding the recommendations of the Blue Ribbon
Task Force on Synod Structure and Governance.
Goals During the past triennium, the Foundation focused its strategic plan more toward its core competency of gift-planning and
introduced consulting and training services to help equip leaders of
districts, congregations, and other ministries to conduct their own
gift-planning efforts. The goal of this reorganization is to increase
the number of face-to-face encounters with decision-makers, who
will create their own lifetime plan for giving. The Foundation follows
five avenues in pursuit of this goal: congregations, existing accounts,
referrals, organizations, and training and consulting. Each avenue
provides its own set of opportunities for identifying individuals who
have a passion for Christ-centered stewardship and helping them create lifetime gift plans.
The Foundation’s annual Ministry Report with supplemental
information, updated financials, and distributions appears on the
Foundation’s Web site at www.lcmsfoundation.org. The Foundation’s
audited financial statements are available upon request.
As it enters the next triennium, the Foundation rejoices in the enormous blessings of the past and looks forward confidently by God’s
grace to the future.
Thomas K. Ries, President
R4-06

Lutheran Church Extension Fund
(LCEF) 2007–2010
“ONE People—Forgiven”
LCEF Mission Statement:
To support the Church in fulfilling its mission of sharing the Gospel
of Jesus Christ by being a Christ-centered servant partner of the LCMS,
ensuring that funds and services are available now and in the future.

The Lord continued to bless LCEF during the 2007–10 triennium.
The key financial and ministry highlights listed below illustrate this
point. (Please note all financial data noted in these six points are as
of Dec. 31, 2009, unless otherwise identified.)
1. Total assets for LCEF grew to $1.8 billion, up from $1.6 billion
in June 2007.

77

2. The loan portfolio under management exceeds $1.5 billion; this
includes $12 million in loans sold to LCMS entities. In addition,
LCEF provides loan guarantees to educational institutions in order
to secure low-cost, tax-exempt funding. The resulting total amount
of funds at work for the church, providing space and place for ministry, is at a record level of $1.6 billion.
3. Reflecting a continuing commitment to providing outstanding
value in loan costs while recognizing the critical importance of
our fiduciary responsibility to all investment and loan partners,
the interest rate for congregational loans was 5.375% in February
2010, down from the 6.00% level at the time of the 2007 LCMS
convention. This is the lowest rate since April, reflecting the partnership between investors and borrowers and ensuring that fewer
mission and ministry dollars are spent on bricks and mortar and
more on sharing the Gospel in response to the Great Commission.
4. LCEF is blessed to partner with loyal investors who provide the
funds needed to meet the growing demand for ministry-expansion
loans. The investor payable portfolio of $1.511 billion represents
an increase of nearly $250 million in the past three years. The
total number of investors declined during this period but remains
strong at approximately 60,000. Investors in the easy-access
StewardAccount®, introduced in 2000, have in excess of $305
million invested.
5. Net assets decreased $13 million to $161 million due to investment
and real estate loan losses resulting from the deteriorating financial and real estate markets associated with the 2008–9 recession.
LCEF’s capital position remains strong and management actions
to increase annual net income have been successful. LCEF’s capital-to-asset ratio (inclusive of the loan loss reserve), a measure of
financial strength, was 9.76% as of Dec. 31, 2009.
6. LCEF Ministry Services, including Capital Funding Services,
Laborers For Christ, and the Architectural Advisory Committee,
continue to offer ministry-enhancement resources to a growing
number of LCMS congregations, schools, and agencies. Services
have been expanded to include additional high-quality, high-value,
customer-focused programs to meet the changing needs of LCMS
ministries.
Operational Summary
2006–7

The ministry of LCEF would not be possible without the continued efforts of so many supporters who help further its mission.
Working together in His name, the ministry of providing “space and
place” blossomed during this time period. LCEF approved a record
amount of loan dollars—a total of 757 loans were approved, with a
dollar amount reaching more than $360 million. Loans to rostered
church workers accounted for 345 of the loans, totaling more than
$37 million.
LCEF was blessed with record earnings in fiscal 2007. Based on
these blessings, LCEF was able to distribute $2.9 million to LCMS
partners. The International Center received $300,000, while the 28
member districts each received an average of $89,000 to support
mission and ministry. In support of the Ablaze! initiative, LCEF also
placed $300,000 in a new Mission Planting Fund. This fund provides
special, low-cost loans to new mission starts.
Capital Funding Services (CFS), one of LCEF’s Ministry Services
offerings, increased its contracts to 115 in 2007. LCEF Services seeks
to be a resource to ministries from “start to finish.” CFS consultants
were cross-trained on all LCEF planning and building services dur2010 Convention Workbook

2010 Convention.indb 77

4/15/10 2:38 PM