LCMS Commission on Constitutional Matters — Minutes St. Louis, Missouri — March 30, 2023, Page 2

Transcription machine transcription, uncorrected

⤓ Download .txt · copy text

work in support of and on behalf of [such] congregations to assist them in carrying out their ministries…”
Bylaw 1.1.1(a): “The Synod functions in support of its member congregations…” Bylaw 1.1.1(b): “The
Synod on behalf of its member congregations administers those ministries that can be accomplished more
effectively in association with other member congregations through the Synod. In this way member
congregations utilize the Synod to assist them in carrying out their functions of worship, witness, teaching
and nurture, service, and support.” Bylaw 1.1.1 makes clear that Synod exists for and on behalf of member
congregations.
That concept is naturally and properly reiterated in Bylaw 3.6.4, “The Lutheran Church Extension Fund—
Missouri Synod…was established to further the objectives and duties of the church extension fund within
the Synod…It is formed to provide financial resources and related services for ministry, witness, and
outreach of The Lutheran Church—Missouri Synod. [emphasis added]” It is within that framework (i.e.,
“church extension within the Synod,” providing “financial and related services for ministry, witness, and
outreach of [the Synod]” [emphasis added]) that the LCEF assets “shall be used exclusively to provide
financing and services for the acquisition of sites, for the construction of facilities, for the purchase of
buildings and equipment, for operating expenses, for professional church worker education, for the
residential housing needs of professional church workers, for promoting strategic ministry planning and
assisting in capital campaigns; and for other purposes approved by its governing board consistent with the
ministry and mission of the Synod under policies approved by the Board of Directors of the Synod.” Finally,
Bylaw 3.6.4.4.2 makes clear that the assets of LCEF (as to distribution of operating results) are for the
exclusive use of LCMS “…member districts, congregations, and corporate Synod, as determined by its
governing board.” Thus, the third necessary part of this analysis—the relation, under the Bylaws, between
the mission and ministry of the Synod and the scope of possible legitimately authorized operations of LCEF,
especially as it regards the instant question—is concluded.
Because the church body in question is not “within the Synod” (Bylaw 3.6.4; CCM Op. 00-2189) or serving
the “ministry, witness, and outreach of [the Synod]” (Bylaw 3.6.4.4.2; CCM Op. 13-2696), the commission,
consistent with the cited opinions, finds that Synod’s Bylaws prohibit LCEF funds being loaned to the
church body or its congregations or other ministries. Only within said bounds, namely, within the Synod
and serving the ministry, witness, and outreach of the Synod, is the Board of Directors able by policy to
permit the “other uses” of LCEF assets described in Bylaw 3.6.4.4.1.
170. Lutheran Church Extension Fund Canada Corporation (23-3005)
By email dated February 14, counsel for the Lutheran Church Extension Fund—Missouri Synod (LCEF)
submitted for the commission’s review proposed Articles of Incorporation and Bylaws for The Lutheran
Church Extension Fund—Missouri Synod Canada Corporation (“CanCorp”), which would be a Canadian
not-for-profit corporation. The commission thanks the LCEF and its counsel for this submission, along with
the detailed and thoughtful accompanying memorandum that was provided to the commission.
Prior to addressing the proposed articles and bylaws, there are several threshold matters that need to be
addressed. These matters were not raised specifically by LCEF in the request; however, the commission
has itself raised them as necessary matters to be determined before it is appropriate to review the proposed
articles and bylaws.
Background: LCEF has been approached by both the English District and the Lutheran Church—Canada
(LCC) to inquire if it would consider offering loans to congregations, other affiliated entities, and church
workers of the English District in Canada and of LCC. (While the SELC District was not part of the request
to LCEF, LCEF has indicated that if it were to make the requested loans, it would also make similar loans
to congregations, affiliates, and church workers of the SELC District in Canada.) After consultation with
U.S. and Canadian counsel, LCEF has determined that, if it were to provide such lending services, it would
be simplest to utilize CanCorp rather than having LCEF itself register and qualify as a lender in various
Canadian provinces and satisfy the requirements of Canadian tax law and nonprofit corporate law. (The

CCM Minutes – March 30, 2023 – Page 128