LCMS Convention Workbook St. Louis, Missouri — 1973, Page 23

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MISSIONS 23

The remaining incumbents were:
Rev. Herman Zehnder
Prof. Vance Hinrichs
Mr. Martin Kahle
Mr. Adolph Krieger

The board’s reorganization following the Milwaukee con-
vention showed the following results:
Chairman — Prof. Vance Hinrichs, Ed. D.
Vice-Chairman — Rev. Herman Zehnder, D. D.
Secretary — Teacher Winfried Graebner, M.A.

Milwaukee resolution 4-29, providing for a review of staff
positions on a 4-year basis, resulted in the following action
during the past biennium. Executive Secretary Fred E. Lietz
was starting his 16th year of service and Assistant Executive
Secretary Arthur C. Haake was starting his fourth year of
service. After reviewing both staff positions, the board re-
appointed both men for another 4-year period. Effective
dates were Aug. 1, 1972, to July 31, 1976.

I. Biennial Report

A convention report has a twofold responsibility: a) re-
port on activities within the biennium; b) sharing of plans
for future direction and needs.

Each section will emphasize the service dimension rather
than a fiscal analysis of activity. The financial reports ap-
pear in another section of this WorKBOOK.

A. Church Extension Loans

This is the oldest of our loan service programs. Activity
in the loan service program to Districts has been decreasing.
Several factors have contributed to this situation. They are:

1. A substantial reduction in the number of new minis-
tries established annually.

2. Intensification of District promotional efforts, thereby
increasing their own financial potentials.

_ 3. More time and study is being devoted to the establish-
ing of new ministries providing for more time in meeting
loan needs for capital investment.

There are other areas of loan service necessary that call
for the expansion of this category of loan service.

1. Loans for facilities and sites in foreign fields.

2. Loans to Districts for acquisition of future church sites
nearing development and use time. Districts usually provide
loan funds when congregations are established to provide for
loan amortization.

3. Districts require Church Extension loan funds to meet
remaining amounts of unmet Service-Charge loan requests.

4. South American Districts could add another possible
potential for additional loan needs.

B. Service-Charge Loans

This is an important synodical service loan category to
Districts. Its intent is to provide sites and facilities for spe-
cialized ministries. There is no relationship between numer-
ical strength and financial potential in this category. Spe-
cialized ministries provide for either a ‘low’ or ‘no’ income
potential. Eligibility is for the following areas: Inner City.
Minority Groups, Student Centers, Strategic Missions.

Loan terms provide for a longer repayment schedule and
no interest charge. The 1% service charge takes care of the
collecting, accounting, and servicing costs.

Source of funds in this category have been provided
through special offerings, such as Conquest for Christ, Faith
Forward, and Ebenezer. An item in the 125th Anniversary
Thankoffering again provides for this loan category. There
is no interest obligation on these amounts. They are a part
of our capital account, Net Worth, Loan Fund balance.

C. Department of Investment Loans

This is not only the newest of our loan service programs,
but has been our fastest growing loan program quantita-
tively. These are loans made to self-supporting congrega-

tions on a secured loan basis. Terms of loans provide for
a time span up to 15 vears with a 20-year amortization
schedule. This provides for a balloon note balance at the
end of the 15th year. Eligibility of loan is based upon the
following factors:

1. Need for additional facilities.

2. Desirability of refinancing of existing indebtedness.
3. Good growth potential of membership.

4, Ability to repay.

It was during this biennium that the Church Extension
board added the dimension of eligibility for refinancing con-
sideration. It should be noted that refinancing considerations
do not always imply unresolved problems at the time financ-
ing was negotiated. Conditions may have altered, making
adjustments and changes necessary. Refinancing provides
for a more satisfactory budget distribution making a more
wholesome support of District and Synod possible.

Expansion of this service and growth in loan fund totals
is, therefore, imminent.

D. Notes Payable — Promotion

This section deals with the amounts received in invest-
ments from individuals and organizations. Related to the
investment totals are the promotional endeavors of the de-
partment. References will be made to both aspects.

Results of this biennium reflected direct opposites as to
totals in investments and withdrawals. Fiscal 1971 resulted
in withdrawals exceeding investments. Fiscal 1972 showed
the opposite, namely, investments exceeding withdrawals.

Several observations are being shared concerning these
results. Concerning withdrawals the following is noted:

1. Acceleration of mission expansion in the late 50s and
early 60s resulted in increased participation and Church
Extension Fund growth. Some of the previous investors
have now reached retirement age, making withdrawals nec-
essary, While others have passed on, making withdrawals for
estate settlement necessary.

2. Organization investments usually consist of larger
amounts, but they have a designated use and a specific time
for withdrawal, such as building funds, organ funds, etc.

3. In a growing fund, while percentage of investor with-
drawals may not vary, obviously the amount totals do.

Concerning increased investments, the following should
be noted:

1. Century & 25 bonds provided for anniversary observa~
tion and participation with investments. This endeavor aided
the synodical Church Extension Fund.

2. The Incentive Plan of our Department of Investment
loan program, providing for a reduction of interest cost in
relationship to the amount of supporting investments re-
ceived, aided fund growth.

Promotion concerns should provide for the following
items:

1. Districts inaugurate a more systematic approach in
providing investment amounts to the synodical Church Ex-
tension Fund.

2. Recognizing the necessity and importance of invest-
ments in Kingdom work, Kingdom need, and Kingdom ser-
vice to maintain and expand the multiple loan services
desirable.

E, Advance Site Program

Initial premises and anticipated contributions of our Ad-
vance Site program are now being substantiated and vali-
dated. The Advance Site program of the synodical Church
Extension board does not supplant but supplements the
Advance Site program of our Districts. The synodical Ad-
vance Site program is not in competition with that of our
Districts but complements it.

The Advance Site program of this department pursues
acquisitions in major metropolitan areas having an excellent
population growth potential and a substantial record of