LCMS Convention Workbook St. Louis, Missouri — 1998, Page 70

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70 SYNODICAL REPORTS

THE LUTHERAN CHURCH-MISSOURI SYNOD FOUNDATION
i LIABILITIES & NET ASSETS
| ; June 30, 1997
i LCEF
; i i 36% LCMS
i Unrestricted Net Temp & Perm Cusioaial |?
| Assets \ Reetr Net Assets j i f
1% NN 2% i py
Agency i i College &
: f i / Seminaries
' Endowment if 12%
5% cy
i ff
: ares ees: «6=6=6lS wBP
Beneficiaries
19% 7 oo 6%
Donors “\. Districts, RSO’s |
: 2% AP & others
i 1% 9%
- Total Assets = $899 mittion, approximaiety $687 crilion oF 68% of the Foundation Assets ace heid in Trust or ara other Kabaties |
iNote Percents are rounded to the nearest percentage

1
J

R4-03

Lutheran Church Extension Fund—Missouri
Synod Board for Church Extension (CEF)

This report is written in memory of and dedicated to the work of
Arthur C. Haake, whom the Lord called home Dec. 16, 1997. This
report reflects not only the results of his leadership during the past
triennium, but also his heritage as president of the organization for
almost 20 vears. To call Art a churchman does not begin to do him
justice. He could not do enough for his church and his Lord.

Mission Statement

The Mission of the Church Extension Fund is to provide opportu-
nity to make funds and services available in support of the Great Com-
mission through The Lutheran Church—Missouri Synod.

Under the umbrella of our mission statement, the LCEF has
identified five foundational statements that are key to our work:

¢ LCEF is open to, and responsive to, the funding of creative
and new ministry opportunities.

¢ LCEF’s structure enables the gathering and collection of re-
sources (personnel. systems, dollars, and volunteers) to be
used in support of the mission and ministry of the Synod.

¢ LCEF has a team of qualified, well-trained, and nurtured staff
to support the mission.

* LCEF provides a variety of investment opportunities that
meet the emotional. financial, spiritual, and philosophical
needs of our partners to support the ministry.

¢ LCEF offers a range of services which meet the needs of the
church.

Further. the LCEF has identified six principles to guide us as

we pursue these goals:

¢ LCEF is a ministry.
¢ LCEF serves congregations and a host of other Synod-related
organizations.

* LCEF’s investors are fellow Christians who support our min-
istry.
The work of volunteers has made LCEF what it is today.
LCEF is a partnership between investors. congregations, and
the church at large.

« LCEF’s actions are based on the question, “Will this decision

make a difference and further the Great Commission?”

The following data provides the opportunity to review the status
of LCEF as of June 30. 1997. and in most instances, provides a
five-year comparison.

Status of LCEF—June 30, 1997

* Assets: $954.4 million. An increase of 37.9 % in the last five-
year period. The average annual rate of growth was 6.6%.

¢ Fund Balance: $130.8 million. This represents a 17.6% in-
crease in the fund balance in the last five-year period. The av-
erage annual growth rate was 3.3%.

* Total payables: $816.1 million. This represents a 42.0% in-
crease in the last five-year period. Average annual rate of
growth was 7.3%.

* Total receivables: $649.7 million. This was a 46.5% increase

in the last five-year period. Average annual rate of growth

was 7.9%.

Cash and short term investments: $265.1 million.

The LCEF ministry is supported by 113.254 investor accounts

as of June 30, 1997. Five-years ago investor accounts num-

bered 102,619.

¢ LCEF services 2.529 loans. Five-years ago LCEF serviced
2,078 loans.

¢ LCEF has 99 advance sites in inventory. This represents
$25.0 million in assets. The number of sites in inventory five
years ago totalled 158. This represented $32.1 million in as-
sets. (Because of changes in real-estate trends, LCEF is in the
process of reducing the number of sites.)

¢ Total loan commitments: $117.8 million (includes lines of

credit). Loan commitments five years ago $63.6 million.

Employees (full-time equivalents)

* National office: 65.8—five years ago: 62.5

* Districts: 43.1—five years ago: 38

The make-up of the loan portfolio as of June 30:

Congregations $450,063,266 69.1%
Synod and Synod Related 135,109,770 20.7%
Recognized Service Organizations 60,435,856 9.3%
and High Schools

Other 5,907,022 9%
Total $651.515.914 100.0%

It is the practice of the LCEF to update the capital needs of the
Synod every three years. Data has once again been gathered from
congregations, the Concordia University System, the Board for
Mission Services, high school associations, and Recognized Ser-
vice Organizations.

Based on the data gathered, the capital needs within the church
body projected for each of the next three years will average
$130,000,000 per year. With God's continued blessing, LCEF be-
lieves it will be in a position to provide the necessary funding.

In the last triennium, LCEF introduced a number of new ser-
vices and programs to better serve the investor and the borrowing
entity:

¢ Continued to work with the LCMS Foundation to enhance an

alliance in such areas as research and marketing to better
serve both the church-at-large and individual investors/
donors.

¢ Completed a restructuring of LCEF’s organization that
streamlined work flows, strengthened upper management, and
placed greater emphasis on research and technology—two
areas that will bring a great impact to the organization in the
years ahead.

Increased the emphasis on market research in three areas: on-

going key issues assessments; development of new products

and services; and special issues. The aim of this effort is to

become more deliberate in long-range strategic planning.

¢ Aided the start-up of the Church Planters Institute. which has
as its goal the training of 150 new church developers by the
year 1998.

¢ Updated the Architectural Handbook, which provided guid-
ance to congregation building committees.

¢ Developed a new demographic package “Linking: Congrega-

tions and Communities” designed to aid congregations in bet-

ter understanding and reaching out in their communities.

Developed an LCEF Home Page—www .Icef.org

Developed the Special “Interest” Fund designed to encourage

investors to contribute a portion of their interest to aid any

synodical ministries of their choice.

Provided $8,145,000 in rebates to congregations and operat-

ing results to member Districts.

Helped the LCMS Information Center during its initial start-

up phase.

Continued into the seventh year of the HELP Fund, a 10-year