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LCMS Convention Workbook St. Louis, Missouri — 2023, Page 48

Scan: The Lutheran Church—Missouri Synod

Transcription machine transcription, uncorrected

OFFICER, BOARD, AND COMMISSION REPORTS

(measured as dollars for both local congregation “Work at Home”
and “Work at Large,” that is, work beyond the congregation, including districts and the Synod) surpassed $1,000—wow!
Giving to Congregations (including Work at Large),
per Confirmed Member
$1,200
$1,000
$800
$600
$400
Nominal $s
2021 $s

$200
$0

1976 1981 1986 1991 1996 2001 2006 2011 2016 2021

edented collection of windfalls. Reliance on one-time windfalls,
many from undesired outcomes, is a poor way to fund our Synod,
but these have pulled the Synod out of a decades-long hole. Such
“unrestricted, undesignated” net assets, a mark of stability for a
nonprofit institution, are positive for the first time in recent memory. Relative to where we’ve been, the footing is strong. In absolute
terms, this surplus is a small share of the annual budget. We are not
at risk of insolvency, nor have we bloated a balance sheet for the
mirage of financial “security.”
The following shows revenues from all sources 2020–22, excluding the “windfall” items indicated above. The share of Synod’s
revenues from the historical district source is 21 percent. The $6
million surplus of Revenues over Expenses was mainly a result
of permanent endowment gifts, from which only earnings may be
spent.
Revenue Source

$ (millions)

% of total

Districts

$39

21%

Unrestricted Gift/Bequest

$13

What a reflection of our role as stewards of the gifts our Lord
graciously bestows upon us!

Unrestr. Interest/Investment, Fees

$10

Restricted Gift/Bequest

$123

65%

Contrast this with the following, showing the funds for Work at
Large of the Synod, and the corporate Synod budget.

Restricted Interest/Investment

Giving to Work at Large Causes and to Synod,
per Confirmed Member
$140

Work at Large

$120

Synod Budget

$100

Expense Type

$60
$40
$20
1976 1981 1986 1991 1996 2001 2006 2011 2016 2021

Even with the 2021 jump in giving, the share of funds available
to corporate Synod remains at all-time lows, representing 0.89 percent of the 2021 total given. Historically, these dollars have represented the bulk of the funding for the synodwide ecclesiastical programs, convention-mandated activities, the support operations of
corporate Synod, and significant Mission and Ministry programs.
That these dollars flow voluntarily, not as an assessment on congregation or with restriction on their use, helps us “walk together”
as the Synod. We are not funded via coercion but instead because
of the value we collectively see in this walking together. The continued slide is reflective of the pressures and opportunities at every
level of the Synod (allowing for less available to “pass on” to corporate Synod). I pray it is primarily this, and not a questioning of
the value of walking together.
How then is “the Synod in its best financial position in decades”? Significant restructuring in 2018 and 2020, benefits from
government stimulus programs, cash dividends from international
schools, and other one-time proceeds have generated an unprec2023 Convention Workbook

$189 M

100%

$ (millions)

% of total

Mission and Ministry

$123

67%

Ecclesiastical/Convention

$20

11%

Management/General

$22

12%

Mission Advancement

$18

10%

$183 M

100%

Total Expenses

$80

Total Ongoing Revenues

We strive to remain good and faithful stewards of the gifts
entrusted to us by the Lord through you, His Church. Corporate
Synod consistently exceeds “best-practice” guidelines for spending
in Program areas, and we are mindful of how every dollar spent
supports the objectives of our Synod. Even so, the unrestricted dollars available to Mission and Ministry, and our ability to support the
infrastructure for these programs, continues to diminish.
2019 Res. 8-03 commended the CFO and Synod Accounting
for its current and continued transparency—a commendation for
which I can take no credit. As I interviewed for the position of
CFO, I was impressed by the transparency of financial information
at the LCMS versus other church bodies.
Res. 8-03 also instructed that we “continue to develop reports
that are clear, timely, and understandable.” There is little progress
to report on this goal. The CFO role was vacant for 24 months, and
Synod Accounting declined in both number and experience with
250+ years of collective experience lost. Still, we strive to make
progress. There are fantastic tools available to us in this modern
world; I plan for us to fund, learn, and implement some of these to
meet the desires of this convention.
As CFO, I oversee the accounting, audit, and treasury functions of corporate Synod on a day-to-day basis. These provide the
services you would expect: bookkeeping, controls on fulfilling donor restrictions, annual budget oversight, preparation of monthly
financial statements, controllership, cash management, internal reporting, payroll, and assistance with the LCMS audit. With what