# LCMS Convention Workbook_St. Louis Missouri_2004_S83
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

SYNODICAL REPORTS 83

The period from the 2001 convention to the present was ex-
tremely busy in the work of the Lord. Most noticeable was the sus-
tained increase in the capital needs of the LCMS. Loan demand lit-
erally doubled from FY 1998 to 2002, remaining at $200 million
per year in FY 2003 and FY 2004. Loan demand is projected to
remain at that level for the foreseeable future.

Investor loyalty remains a strong attribute of the LCMS and
LCEF. Renewal rates vary by investment but consistently average
88 percent or higher. This high renewal rate has allowed LCEF to
consistently meet loan demand so that no congregation or school
has had to be placed on a waiting list for the availability of funds.

The Board of Directors of the LCEF acts as the Board for
Church Extension for separate CEF operations (LCMS Bylaw
3.501), elected to strengthen its capability to oversee the operations
of LCEF and the CEFs by adding an Audit Committee. This com-
mittee will review in greater depth the financial reports and opera-
tions of LCEF and oversee the CEFs. As an example, the Board for
Church Extension conducted a review leading to a revision of the
guidelines applicable to LCEF and CEF operations. The audit com-
mittee reports regularly to the board, recommends the selection of
and meets at least annually with the auditors, reports to the annual
member meeting, monitors the internal controls program of LCEF,
and reviews the independent operations of the separate CEFs from
their written reports.

Other highlights during the triennium included the addition of
two new LCEF services for the benefit of the entire LCMS. The
first, Strategic Ministry Planning, assists congregations and schools
in developing their ministry vision, goals, objectives, and the ap-
propriate financial plans that are required to ensure that ministry
objectives are met and the vision is achieved.

A second service was added to the LCEF in July 2003, when
the Laborers For Christ (LFC) organization was transferred from
the Board for Mission Services. This transfer adds strength to
LCEF as congregations can access a full range of services from
LCEF—a concept referred to as “seamless service,” or “one-stop”
service to assist in ministry and facility development. These two
organizations (LCEF & LFC) are a superb complement to each
other as they each continue their 22+ years of service providing the
resources necessary to provide space and place for ministry—their
reason for existence.

The addition of Laborers For Christ and Strategic Ministry
Planning are reflected on the “Arch of Services” shown below. The
“Arch” depicts the services available to every customer of LCEF. It
also shows the relationship of the various services and how each
service assists the organization in moving from concept to comple-
tion, dedication, and operation.

Investors and Investments in LCEF

Investments in LCEF have grown $91.3 million since the 2001
convention, allowing LCEF to meet the growing loan demand.
Key new investment products and services include:

StewardAccount®: This “money market-type” account was de-
veloped based on feedback from investors who sought a more con-
venient investment product with easier access. This account pro-
vides a market rate of interest, check writing, a check card for
purchases or ATM withdrawals, and the extensive electronic ser-
vices now available in other savings institutions. Over $230 mil-
lion has been invested in 4,392 individual and 2,407 organization
accounts. To complement this product, LCEF added MyAccount
(the e-commerce service), which provides a full array of capabili-
ties comparable to those available from banks, savings and loans,
and credit unions. The MyAccount service was initiated at the 2001
convention and now includes over 1,000 customer identification
numbers assigned.

Joyful Response®: This is a software program that is operated
for the LCEF customer by a vendor. This service is ideal for tithes
and offerings, as well as payment of tuition to the many schools
operated in the LCMS. The vendor initiates the customer desired
transfer of funds from their account to a congregation or school ac-
count on a preset schedule for specific preset fund transfers. Forty-
four organizations now utilize this service to reduce workload and
improve cash flow in operations.

K.LD.S.: The children’s investment program, Kids Into Disci-
pleship and Stewardship, has been well received and continues to
grow across the LCMS. It encourages children to support the
church by buying stamps that are converted from stamp books to an
investment account. The student’s invested dollars are used to build
or renovate facilities for congregations and schools that are part of
God’s church. The K.I.D.S. program is established in 32 districts,
324 schools with 1,069 individual accounts.

Loans and Real Estate

As indicated above, loan demand continues to be very strong
across the LCMS. In addition, congregations have enjoyed very
low interest rates (5.5 percent or lower) for the last 12+ months.
This is a product of the actions by the Federal Reserve Board to re-
duce rates coupled with the decision by LCEF to reduce the margin
that is applied to congregational loans. LCEF also provides subsi-
dized loans to LCMS priority categories—new missions, urban and
ethnic, rostered church worker housing loans, etc.

The number of sites in the Advance Site Program has been re-
duced to the minimum number identified for future mission plant-
ing. This action has freed up additional resources to be invested in
other programs or made available for the general loan fund. LCEF
also began assisting high schools in gaining access to lower cost
financing by providing guarantees that enable schools to receive
tax-exempt funding. The savings resulting from this initiative will
be significant, enabling schools to improve their financial opera-
tion and strength.

The Board for Church Extension granted RSO status to Church
Development Partners (CDP), a real estate development organi-
zation, in December 2002. This organization is a not-for-profit
company that provides real estate advice and counsel to LCMS en-
tities that do not have this “specialized” expertise available within
their organization.

Professional Church Worker Housing Loan Program - This
program was initiated as a result of the 1998 Financial Aid Task
Force, commissioned by Dr. Barry, then President of the LCMS.
The program resulted in the approval of over 330 loans with a
value of $47 million. It provides rostered church workers a loan
with competitive interest rates, low down payments (5-10 percent),
and no private mortgage insurance (a substantial savings to the
worker and his/her family).

Consolidation Loan Program — This loan program, a com-
panion program to the housing program, was also initiated as a re-
sult of the 1998 convention action. It has helped rostered members
through 260 consolidation loan approvals totaling over $5 million.

2004 Convention Workbook