LCMS Convention Workbook St. Louis, Missouri — 1983, Page 145

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ADMINISTRATION AND PROGRAM IMPLEMENTATION

1983/84 BUDGET SUMMARY
Feb. 21, Draft

Page 6 of 6
Net Current Fund
Actual Add Olrect Total Estimated Total Estimated
Audited Buaget Request CofA Adjusted Funded Tentative District Work Together
81/82 82/83 83/84 Reductions Request Programs Budget Expenditures Col. 8&9
a) (2) (3) (4) (3) (6) (7) (8) (9) C10)
INTEREST AND DEBT REDUCTION
Operating Fund
(net of Interest income) 723,194 1,000,000est Propose funding from FIR Interest Free Loans
International Center
(Net of allocation to
non-budget department) 800,000est Propose delaying decision until completion of
Appeal Feasibliity Study
TOTAL INTEREST AND
DEBT REDUCTION 723,194 1,800,000 257,000
TOTAL BUDGET 32,081,257 31,732,586 36,777,955 37,591,000
Notes:
* Primarily congregation designated ** Primarily Schotarsnips Provided *** Included in total District Agministration

funds for missions transmitted
through the Districts

direct to students,

The amounts
are not Included in the college

and seminary budgets.

4-06 +.

Report of The Lutheran Church—
Missouri Synod Foundation

ned

The Lutheran Church—Missouri Synod Foundation is
maintained and controlled by the Synod as a corporate entity
and operated by a separate Board of Trustees. Any amend-
ments to the articles of incorporation or the corporate bylaws
are subject to the approval of the voting members of the
Synod's Board of Directors who serve as members of the
Foundation. The members appoint the Board of Trustees,
which shall include the President, Secretary. and Treasurer of
the Synod and at least 10 other trustees as provided in the
Foundation’s bylaws. In addition, the principal staff person of
the Department of Stewardship and Financial Support serves
as an advisory trustee.

Convention Action

The 1981 synodical convention determined to update the
Synod's financial investment structure and adopted Res. 12-12
to clarify the role of various boards and agencies in the
investment of four basic types of money managed under the
synodical structure. It was determined that these changes were
desirable to avoid duplication of research and planning and
provided that the Treasurer of the Synod, as the trust officer of
the Synod, would be the prime liaison person between all
financial boards, functioning under their appropriate policies
and accountable to each such board in that particular capacity.
To accomplish the objective, the Board of Trustees for Trust
Funds was combined under The Lutheran Church—Missouri
Synod Foundation so that, in effect, the Foundation became
the trust department of the Synod, thus eliminating dupli-
cation between the Foundation and the Board of Trustees of
the Synod. In addition, as identified elsewhere in the Work-
book, the convention in Res. 12-08A established a Department
of Stewardship and Financial Support and included under its
responsibilities the area of deferred and special gifts activities
which formerly had been conducted by development personnel
working for the Foundation. In effect, the Foundation bylaws
provide that it shall serve as the trust department of the Synod
and in doing that shall manage. conserve, and be responsible
for all legacies, bequests, devises. endowments. foundations.
annuity gifts, and all other trust funds of the Svnod and its
Districts, colleges, seminaries, and agencies. It also shall
provide services to congregations, auxiliaries, listed service
organizations, and others under policies approved by the
Board of Trustees.

detail not provided by District in this
format

The transfer of the Board of Trustees for Trust Funds
responsibilities, exclusive of the investment of the Pension
Plan for Pastors and Teachers responsibility, which was
assigned to the Board of Managers—Worker Benefit Plans,
resulted in the transfer of $8 million of assets to the manage.
ment responsibility of the Foundation trustees. This included
the management of the Lutheran Laymen’s League Endow-
ment Fund and other trust funds held for various entities of the
Synod. In order to accommodate the change in role and to
conform with generally accepted accounting standards, certain
reclassifications of funds under the board's control have taken
place. The Foundation’s trustee responsibilities are now identi-
fied in the following fund groups:

A. Endowment Fund (Permanent or Term). Endowment
funds represent funds given to the Foundation that are re-
stricted by the donor, requiring that the principal be invested
in perpetuity or for a specified term and the income be used only
to support the operations of the Foundation.

B. Other Trust Funds (Permanent. Term, or Quasi). Other
trust funds represent funds placed in the Foundation by the
Synod or an institution or agency to be invested in perpetuity
or for a specified term with the income to be distributed to
designated beneficiaries or funds of the Synod, institution, or
agency which invested the funds.

NOTE: These funds are shown in the records of the Synod,
institution, oragency as Endowment Funds, Restricted Funds.
or Designated Funds.

C. Annuity Fund. The Annuity Fund receives annuity gifts
and makes the required payments to donors. The annuitants’
balances are credited with earnings at a fixed rate of return on
the account balances. The difference between the actual earn-
ings of the annuity fund and the amounts added to the
annuitants balances and the reserve for actuarial losses is
transferred to the operating fund. At the death of the annuitant
50". of the original gift or the actual account balance, which-
ever is greater, is distributed in accordance with the agreement;
any deficiency of the remaining principal under 50%: of the
original gift is charged against the reserve for actuarial losses.

D. Life Income Funds. Life income funds receive gifts of
cash, securities, and real estate where the income earned is to
be paid to the donor or his designee. At the death of the donor or
his successors, the principal is disbursed to institutions and
agencies associated with the Synod in accordance with the
agreement. Included herein are unitrusts, pool funds), and
revocable agreements.

E. Unrestricted Operating Fund. The Unrestricted Operat-