To Focus on Things of God

Preamble “The Synod’s Constitution says our objective is to ‘strengthen congregations and their members in giving bold witness by word and deed to the love and work of God, the Father, Son, and Holy Spirit, and extend that Gospel witness into all the world.’ This is as biblical and clear as the Word and work of Jesus, and the word and works of His apostles in Acts 4 and 5.” (President’s Report, Part 3 [2023 TB, 352]). Constitution Article III contains the full list of objectives of the Synod. To support these objectives, “the Synod in convention is empowered to and has formed corporate entities which shall have legal powers … to purchase, hold, administer, and sell property of every description in the interest of the Synod” (Const. Art. IV). Such entities, and our temporal property, exist in service to the objectives of the Synod, in the interest of the Synod; they are not an end unto themselves. The Synod is blessed with entities such as the Lutheran Church Extension Fund (LCEF) and Concordia Plan Services (CPS), that help us use temporal goods in service to the Church. These entities are limited in number, have a specifically defined purpose—loans to churches and church workers and benefits for church workers— and are carefully managed and overseen to ensure security and legal compliance. But, when the Church strays too far into the left-hand kingdom through unrelated business ventures, it goes outside its vocation and may be assuming undue risk. The Alberta-British Columbia District of Lutheran Church— Canada, unrelated to LCEF, was forced into bankruptcy due to its local church extension fund’s failed investment in an ambitious real estate development project, with serious repercussions across the entire church body. Concordia University, Portland (CUP) entered into a significant outsourcing contract with Hot Chalk, a marketing and enrollment company, with negative financial impact on CUP, and ultimately, a lengthy lawsuit after its closure. Some within the Synod believe that the Synod and its agencies(e.g., colleges and seminaries) can benefit by creating new types of legal entities, such as holding companies, and are considering adding complex new bylaws, policies, and procedures to allow Synod agencies to create multiple new types of entities (e.g., to engage in real estate development activities). Yet, experience teaches that the more numerous and complex the entities, the greater the difficulty to oversee them, and thus, the greater the risk. Some have even proposed allowing property of our colleges and seminaries—which is currently property of the Synod—to be transferred to new entities, with varying levels of control and accountability, with the result that such property would no longer be property of the Synod. Proposals also include placing the Synod Board of Directors (BOD) as the authorizer and primary overseer of new entities, with the responsibility to perform detailed legal and policy reviews. This would impose significant new powers and duties on the BOD, requiring additional time, effort, and potential expense for outside attorneys’ bills and other professional fees.

WHEREAS, The foregoing matters suggest that major changes to the Synod’s Bylaws to allow creation of potentially numerous new legal entities may be ill-advised; therefore be it

Resolved,Thatthe Synod re commit itself and its agencies to their existing defined roles, focusing on the things of God without distraction for secular business ventures; and be it further

Resolved, That where the Synod or its agencies no longer need property or assets, those assets be appropriately sold or disposed of, with the proceeds used for the furtherance of their original intended purpose and the work of the church at large, rather than as the object of speculation, usury, real estate development, or other projects that distract time and attention from the core objectives of the Synodand its agencies; and be it further

Resolved, That if there is a legitimate need for any new entity to be formed, that any such entity be carefully, deliberately, and separately established, in a manner that does not risk or alienate the property of the Synod that was funded by God’s grace through the gifts of individuals and congregations over generations; and be it finally

Resolved, That the Synod give thanks for the many temporal blessings God has bestowed upon us, aswell as for those individuals and entities such as LCEF and CPS that have faithfully managed the same and pray for wisdom in the continued administration there of.