To Amend Bylaws 3.6.4 and 3.6.4.4.1 to Clarify Use of Lutheran Church Extension Fund Financial Resources and Related Services

Preamble The Lutheran Church Extension Fund—Missouri Synod (LCEF) was “formed to provide financial resources and related services for ministry, witness, and outreach of The Lutheran Church—Missouri Synod” (Bylaw

3.6.4). This is accomplished by providing financial resources and related services to support rostered church workers, congregations, schools, recognized service organizations, auxiliaries, districts, colleges, universities, and synodwide corporate entities (“traditional support”). Two recent opinions of the Synod’s Commission on Constitutional Matters (CCM Op. 23-3003, “Scope of Board of Directors Authority to Approve Usage of Lutheran Church Extension Fund Assets under Bylaw 3.6.4.4.1”; CCM Op. 23- 3005, “Lutheran Church Extension Fund Canada Corporation”), issued in response to questions raised by LCEF, clarify that LCEF under current Synod Bylaws may not provide support to church bodies with which the Synod is in altar and pulpit fellowship (partner churches) or other church bodies working cooperatively with the Synod (“outreach support”). Specifically, one opinion constrains the authority of LCEF to provide financial resources and related services to be only “within the Synod” (Bylaw 3.6.4), thus prohibiting LCEF from providing financial resources and related services to support activities outside of the Synod itself, even if such activities were determined by the Synod Board of Directors (BOD) to be within the strategic and operational scope of the Synod’s ministry, witness, and outreach. The second opinion goes further, stating that although Lutheran church bodies in Brazil, Argentina, and Canada were once a part of Synod, they are now established, independent partner churches, no longer “within the Synod” (Bylaw 3.6.4), and are, therefore, not eligible for the support of the financial resources and related services that might be provided by LCEF. The effect of the opinion is that LCEF may not make its financial resources and related services available to partner churches, even were the Synod BOD to determine that making such LCEF financial resources and related services available would advantageously support the Synod’s ministry, witness, and outreach.

Rationale LCEF believes that the full exercise of its capacity and expertise in the provision of financial resources and related services—not only for “traditional support” but also to support partner churches—is essential to accomplish the ministry, witness, and outreach of the Synod. In certain exceptional cases, when directed by the Synod President, this same strategic rationale likewise pertains to outreach support. As a result, LCEF is proposing the following amendments to Bylaws 3.6.4 and 3.6.4.4.1 to clarify that the LCEF Board of Directors may make financial resources and related services available to partner churches and for outreach support, provided that in each such instance the provision of such financial resources and related services is approved by the Synod BOD. Therefore be it

Resolved, That Bylaws 3.6.4 and 3.6.4.4.1 be amended as follows:

PRESENT/PROPOSED WORDING The Lutheran Church Extension Fund—Missouri Synod

3.6.4 The Lutheran Church Extension Fund—Missouri Synod, as established on June 15, 1978, as a corporate entity under the laws of the State of Missouri, is operated by its members and Board of Directors, in accordance with its Articles of Incorporation and corporate Bylaws, to further the objectives and duties of the church extension fund by providing financial resources and related services for ministry, witness, and outreach within the Synod and, as approved by the Synod Board of Directors, beyond the Synod: (1) to and within partner churches with which the Synod is in altar and pulpit fellowship; or (2) upon the recommendation of the President of Synod, to Lutheran entities formed and operating outside of the United States that assist in fulfilling the Synod’s ministry and mission objectives in foreign countries. It is formed to provide financial resources and related services for ministry, witness, and outreach of The Lutheran Church—Missouri Synod.

(a) Any amendment to the Articles of Incorporation and the corporate Bylaws of the Lutheran Church Extension Fund—Missouri Synod as heretofore adopted shall be made by a two-thirds vote of the members of the Lutheran Church Extension Fund—Missouri Synod as set forth in its Articles of Incorporation and Bylaws.

(b) Amendments shall be reported to the next convention of the Synod. …

3.6.4.4 The Lutheran Church Extension Fund—Missouri Synod shall raise funds primarily through the issuance of corporate notes and other debt instruments.

3.6.4.4.1 The assets of the Lutheran Church Extension Fund—Missouri Synod 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 and the Synod Board of Directors, which purposes shall be consistent with the ministry and mission of the Synod under policies approved by the Board of Directors of the Synod.

3.6.4.4.2 The assets of the Lutheran Church Extension Fund—Missouri Synod shall also be used exclusively to provide financing for its own operations and for distribution of operating results to its member districts, congregations, and corporate Synod, as determined by its governing board