Collection › LCMS Convention Workbook (St. Louis, Missouri) › 1983 · 55th Convention › Page 146
LCMS Convention Workbook St. Louis, Missouri — 1983, Page 146

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

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?