# LCMS Convention Proceedings_St. Louis Missouri_1995_S151 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) STRUCTURE, PLANNING, AND ADMINISTRATION 131 6. Operate under the governance and policies of their own boards with freedom and self-determination as min- istry organizations independent of the Synod or Districts or congregations of the Synod in the establishment and evaluation of their own objectives, activities, and programs, in organization and administration, and in financial mat- ters. 7. Provide for appropriate LCMS representation on their governing boards, especially with respect to inter-Lutheran and/or interfaith organizations. 8. Provide that, in the event of a dissolution of the cor- poration, the residual assets shall be distributed to another not-for-profit organization with 501 (c) (3) status. (Previous covenants and agreements made with other organizations or communities will be honored as part of the commitment of the organization.) 9. Provide an annual, independent audit, preferably by a certified public accountant. 10. Include in the organization’s governing documents provisions that recognition by the Synod (i) is not an en- dorsement of the fiscal solvency of the organization, nor of services or programs offered by the organization and (ii) -does not express or imply endorsement of the fiscal sol- vency of the organization, or synodical responsibility for the debts or other financial obligations of the organization. Each board granting Recognized Service Organization sta- tus shall, by policy, establish the wording and content of such provisions subject to approval by Synod’s legal coun- sel. 11. Sign a mutual letter of agreement by which the or- ganization agrees to comply with the requirement stated in Bylaw 14.03, this policy, and of applicable policies of the board granting Recognized Service Organization status. The agreement shall permit termination of Recognized Ser- vice Organization status upon 90 days notice by the board and shall require the organization to include a disclaimer of financial responsibility for the obligations of the organiza- tion in all agreements or other documents creating finan- cial obligations in excess of $100,000. Each board granting Recognized Service Organization status shall, by policy, es- tablish the wording and content of the disclaimer and in- demnification provisions, subject to approval by Synod’s legal counsel. 12. Include in a letter of agreement a provision by which the organization agrees to indemnify and defend the Synod against losses of and claims against the Synod resulting solely from the Synod’s recognition of the organization. B. Decisions to grant, deny, or terminate recognition shall be reported for information purposes in the regular . activity report to the Board of Directors of LCMS, Inc. Re- ports on Recognized Service Organizations to the conven- tions of Synod will be made through the appropriate board. C. Boards shall adopt policies to inform service organi- zations that the Synod grants to Recognized Service Orga- nizations the following privileges: so -1, Eligibility of ordained and commissioned ministers of the Synod serving Recognized Service Organizations to re- main on the membership rosters of the Synod as “active members,” if otherwise eligible under Bylaw 2.15 j. 2. Eligibility for obtaining church extension loans from the Lutheran Church Extension Fund—Missouri Synod, unless the policies of LCEF preclude the organization as an eligible borrower. 3. Eligibility to be an “employer” under the various Worker Benefit Plans of the Synod unless the policies of such a plan preclude the organization as an eligible em- ployer. ; D. Boards shall list Recognized Service Organizations in The Lutheran Annual. The listing shall be prefaced by a statement that recognition is not a guarantee on the part of the Synod for the fiscal solvency of the Recognized Ser- vice Organization and the Synod has no financial responsi- bility for a recognized organization or for services expressed or implied. E. Boards shall report to the Board of Directors their policies and criteria which shall be in compliance with the above common policies and also any policies and criteria adopted by the boards to assure that their unique needs are met. . Action: Adopted (4). To Finalize Bylaws re Auxiliaries RESOLUTION 7-06 Overture 7-71 (CW, p. 246) Background: The 1986 synodical convention in Res. 5-21 revised Bylaw 14.01 to expand auxiliary membership eligibility to allow for all of The Lutheran Church—Missouri Synod (LCMS) auxiliaries to also be auxiliaries of the Lutheran Church—Canada (LCC). At the request of the LCC, the 1989 LCMS convention in Res. 5-10 further amended Bylaw 14.01 a 6 to incorporate on an interim basis the words It’s [auxiliary] membership is made up of persons who are baptized members of congregations that are mem- bers of The Lutheran Church—Missouri Synod or Lutheran Church—Canada. This interim Bylaw was extended by the 1992 convention in Res. 8-02 to accommodate the LCC and the International Lutheran Laymen’s League (LLL). In 1993 the Canadian Lutheran Women’s Missionary League became a separate organization from the International Lutheran Women’s Missionary League (LWML). The LLL in Canada is moving to be somewhat autonomous, but at this time wants to retain membership in the International LLL. A separate Canadian corporation has been estab- lished with a board controlled by Canadians. The long-term plan is for the Canadians to determine how they will relate to the LLL. Since January 1992, the synodical administration has held discussions with representatives of the LCC, the LLL, and the LWML as to future relationships and concluded that the interim Bylaw should continue as long as the LCC recognizes the LLL as an auxiliary. In the course of the dis- cussions, the group concluded that some minor refinements in the Bylaws should be made to reflect how the leagues are coordinating their work with that of the Synod. It also concluded that auxiliary status should be limited to the LLL and LWML and that smaller, single-purpose organi-