Greetings to you in the name of Jesus. I am humbled and privileged to have been selected to serve as the Chief Financial Officer of the LCMS. I pray that God would use me for the furtherance of His Church here on earth and ask for your prayers of support and encouragement in this endeavor. “The Synod is in its best financial position in decades, maybe ever.” This was President Harrison’s bold statement during the 2022 district conventions, and it is true across much of the Synod, including at corporate Synod. The last few years evidenced God’s ability to work through means that are not always clear to us. I will not minimize the impact of COVID-19 on the social, physical, mental, and spiritual health of many. The full toll will never be known. Contrast this with the financial impact: global asset values soared, “stimulus” rained down from governments, and reported unemployment rates reached record lows. The members of the LCMS unselfishly used these benefits outside of themselves, supporting our Synod in a record way. In 2021, for the first time in the history of our Synod, funds given per confirmed member
(measured as dollars for both local congregation “Work at Home” and “Work at Large,” that is, work beyond the congregation, including districts and the Synod) surpassed $1,000—wow! Giving to Congregations (including Work at Large), per Confirmed Member $1,200 $1,000 $800 $600 $400 Nominal $s 2021 $s
$200 $0
1976 1981 1986 1991 1996 2001 2006 2011 2016 2021
edented collection of windfalls. Reliance on one-time windfalls, many from undesired outcomes, is a poor way to fund our Synod, but these have pulled the Synod out of a decades-long hole. Such “unrestricted, un designated” net assets, a mark of stability for a nonprofit institution, are positive for the first time in recent memory. Relative to where we’ve been, the footing is strong. In absolute terms, this surplus is a small share of the annual budget. We are not at risk of insolvency, nor have we bloated a balance sheet for the mirage of financial “security.” The following shows revenues from all sources 2020–22, excluding the “windfall” items indicated above. The share of Synod’s revenues from the historical district source is 21 percent. The $6 million surplus of Revenues over Expenses was mainly a result of permanent endowment gifts, from which only earnings may be spent. Revenue Source
$ (millions)
% of total
Districts
$39
21%
Unrestricted Gift/Bequest
$13
7%
What a reflection of our role as stewards of the gifts our Lord graciously bestows upon us!
Unrestr. Interest/Investment, Fees
$10
5%
Restricted Gift/Bequest
$123
65%
Contrast this with the following, showing the funds for Work at Large of the Synod, and the corporate Synod budget.
Restricted Interest/Investment
Giving to Work at Large Causes and to Synod, per Confirmed Member $140
Work at Large
$120
Synod Budget
$100
Expense Type
$60 $40 $20 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021
Even with the 2021 jump in giving, the share of funds available to corporate Synod remains at all-time lows, representing 0.89 percent of the 2021 total given. Historically, these dollars have represented the bulk of the funding for the synodwide ecclesiastical programs, convention-mandated activities, the support operations of corporate Synod, and significant Mission and Ministry programs. That these dollars flow voluntarily, not as an assessment on congregation or with restriction on their use, helps us “walk together” as the Synod. We are not funded via coercion but instead because of the value we collectively see in this walking together. The continued slide is reflective of the pressures and opportunities at every level of the Synod (allowing for less available to “pass on” to corporate Synod). I pray it is primarily this, and not a questioning of the value of walking together. How then is “the Synod in its best financial position in decades”? Significant restructuring in 2018 and 2020, benefits from government stimulus programs, cash dividends from international schools, and other one-time proceeds have generated an unprec$4
2%
$189 M
100%
$ (millions)
% of total
Mission and Ministry
$123
67%
Ecclesiastical/Convention
$20
11%
Management/General
$22
12%
Mission Advancement
$18
10%
$183 M
100%
Total Expenses
$80
$0
Total Ongoing Revenues
We strive to remain good and faithful stewards of the gifts entrusted to us by the Lord through you, His Church. Corporate Synod consistently exceeds “best-practice” guidelines for spending in Program areas, and we are mindful of how every dollar spent supports the objectives of our Synod. Even so, the unrestricted dollars available to Mission and Ministry, and our ability to support the infrastructure for these programs, continues to diminish. 2019 Res. 8-03 commended the CFO and Synod Accounting for its current and continued transparency—a commendation for which I can take no credit. As I interviewed for the position of CFO, I was impressed by the transparency of financial information at the LCMS versus other church bodies. Res. 8-03 also instructed that we “continue to develop reports that are clear, timely, and understandable.” There is little progress to report on this goal. The CFO role was vacant for 24 months, and Synod Accounting declined in both number and experience with 250+ years of collective experience lost. Still, we strive to make progress. There are fantastic tools available to us in this modern world; I plan for us to fund, learn, and implement some of these to meet the desires of this convention. As CFO, I oversee the accounting, audit, and treasury functions of corporate Synod on a day-to-day basis. These provide the services you would expect: bookkeeping, controls on fulfilling donor restrictions, annual budget oversight, preparation of monthly financial statements, controller ship, cash management, internal reporting, payroll, and assistance with the LCMS audit. With what time remains, we provide additional services beyond the walls of International Center. The work is ever-increasing. I am daily humbled by and grateful for the servant-minded men and women of the LCMS finance departments. They make it all a reality, and it is a joy to lead them in this work.
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God has truly blessed our Synod and His people within with an abundance of financial resources and infinitely more through the gift of His Son, our Lord and Savior, Jesus Christ. We strive to daily spread the Good News as We Preach Christ Crucified. My fervent prayer is that He continues to use us as wise, faithful stewards of the gifts He provides through you, His people, so the Gospel message may flourish, and those in darkness would be called to the Light of the Son, our Savior, Jesus Christ.
3. Church Planting, Renewal, and Support
Nathan M. Haak, Chief Financial Officer
Recognized Service Organizations School Ministry Youth Ministry All Nations Ministry, including Black and African Immigrant Ministries Hispanic Ministry Other Ethnic-Immigrant Ministries Church Planting Research and Analytics Revitalization