“Christ Is Risen Indeed” Organization Mission Statement To start, sustain and strengthen LCMS ministries through financial and strategic partnerships. Our vision of growing ministry opportunities lives through our core values: be faithful, pursue excellence and innovation, inspire belief through partnerships, endure balancing resources and risk, and learn continually.
CPH is thankful for the roster ed church workers throughout the LCMS and prays for them weekly in our chapel services. For many years, we have provided roster ed church workers with a 20 percent discount on most products purchased for individual use. During this past triennium, we have begun providing free shipping for these purchases as well.
The Lutheran Church Extension Fund (LCEF) remains in a strong financial position and has joyfully fulfilled its commitment to provide the financial resources necessary to support the church in her work. Below is an overview, and more details can be found in the Offering Circular and Ministry and Business Plan, published annually.
In response to 2023 Res. 11-03A, CPH has been working in collaboration with the Office of National Mission to prepare a resource on the Synod’s ministry and outreach to communities of color. As a result of 223 Res. 12-01A, CPH staff worked closely with LCMS School Ministry to produce and publish Lutheran Academic Standards. Likewise, CPH was represented in the last triennium on the Created Male and Female Task Force, as mandated in 2023 Res. 1-04A, and continues to provide new resources that faithfully address human sexuality.
Investments
We also continue to increase our partnership efforts with corporate Synod and her agencies and partners not only in response to convention resolutions but also in the course of our normal service to the Synod. While space constraints prevent a complete listing, here is a representative sampling: We have worked closely with the Office of the President, Office of International Mission, and the International Lutheran Council to get our confessional Lutheran resources into the hands of pastors in our partner churches around the world. CPH created a mini curriculum in support of the Set Apart to Serve initiative. And our partnership with Concordia Historical Institute to produce books vital to preserve and communicate the history of our work as a Synod continues with several new volumes completed and planned. We invite all church workers and lay members of LCMS congregations to visit us at cph.org to view the 8,000-plus books, cur The laddered fixed income portfolio as of June 30, 2025, totaled $253.1 million with an interest yield of 2.89 percent compared to a yield of 2.71 percent a year ago. The long-term reserve portfolio (consisting of fixed income, equities and other non-correlated investments) totaled $91.7 million. Net market value gains for the period ending June 30, 2025, totaled $20.6 million with laddered fixed income gains of $11.3 million and long-term portfolio gains of $9.3 million. Inclusive of the investment income as of June 30, 2025, the total return for the laddered portfolio was 6.75 percent. Within the long-term portfolio, the equity, semi liquid and il liquid portfolios earned a total return gain of 15.7 percent, 8.33 percent, and 6.85 percent, respectively. The total return on the long-term portfolio was a gain of 13.76 percent.
Loyal investors continued to provide funds to enable LCMS ministries’ financial resources that support their efforts to expand God’s kingdom.
loans at the end of fiscal year 2025. RCW housing lending has also grown substantially, from 8 percent of the portfolio a decade ago to nearly 18 percent of the portfolio and over $301 million in total loans today.
LCEF was pleased to share earnings distribution with member districts and the Synod totaling $9.3 million for the period June 30, 2022, through 2025.
In fiscal year 2025, LCEF closed $329.7 million in new loan commitments. Congregation lending led with $197.4 million in closings, followed by national lending at $83.4 million and RCW housing lending at $48.9 million.
Financial Trends
Action on Convention Overtures
Total assets as of June 30, 2025, amounted to $2,084.6 billion, an increase of $58.8 million from June 30, 2024. The increase was due primarily to an increase in notes and support dollars payable.
LCEF addressed the 2023 convention overtures that called the organization to specific areas of work during the triennium.
LCEF continues its commitment to a strong capital and liquidity position. Liquidity at June 30, 2025, amounted to 22.7 percent of notes and support dollars payable. Notes and support dollars totaled $1.824 billion and have increased $43.2 million since June 30, 2024.
LCEF experienced an operating loss of $7.3 million for the fiscal year ending June 30, 2025, compared to operating income of $888,000 in the prior year. The decline is the result of a contraction in net interest income due to an increase in offering rates during the year and loans lagging the re pricing to the increase in cost of funds. Net interest income will improve going forward as annually adjustable loans re-price to the increase in cost of funds and offering rates decline. Net income for the fiscal year ending June 30, 2025, totaled $16.2 million compared to net income of $16.8 million the prior year. The capital to asset ratio was 12.02 percent as of June 30, 2025, compared to 11.63 percent a year ago.
The 2023 Res. 11-03A encouraged LCEF to support the proclamation of the Gospel across ethnic and linguistic lines. In response, LCEF participated in multiple ethnic ministry gatherings, including the Black Clergy Caucus, the Evangelical Mekane Yesus Lutheran Fellowship in North America, the Multi-Asian Gathering, and the Multi ethnic Symposium. These engagements provided opportunities to share information about LCEF services and how they can be used to support the unique ministry needs of these communities. The 2023 Res. 2-02A and 2-05 directed LCEF to collaborate with and provide resources to the Office of International Mission (OIM). That relationship remained strong throughout the triennium, with expanded opportunities for joint promotion and partnership. Lending to international partners continued and was further strengthened by bylaw changes approved in 2023. LCEF is currently working with the Latin America and Caribbean Region to develop a replica ble church planting financial model for use across the region. In addition, a partnership between LCEF and OIM will support the expansion of a seminary facility in Argentina, with additional opportunities in Africa and Asia under exploration. The 2023 Res. 6-01 directed LCEF and other entities to endorse, advocate for, and engage with Set Apart to Serve to recruit, train, and support pastors, teachers, and other professional church workers. In response, LCEF provided funding for the development and deployment of Set Apart to Serve school curriculum resources. LCEF teams received training on these resources and intentionally integrated and promoted them across LCEF solutions to support church worker recruitment and ongoing development.
Strategic Plan Loans LCEF supported ministry expansion by closing over $1.28 billion of loans over the past four years. LCEF continues to track loans in three main categories: congregation lending, national lending (institutions, high schools, colleges and recognized service organizations [RSOs]), and roster ed church worker (RCW) housing lending. It should be noted congregation lending, while still robust, continues to decline as an overall percentage of the portfolio. For fiscal year 2025, congregation lending totaled $852.7 million or 50 percent of the total loan portfolio. Ten years ago, congregation lending accounted for 75 percent of the total loan portfolio. During the same period, national lending grew from 17 percent of the portfolio to nearly 32 percent, with over $540 million of total
Beginning in October 2023, the LCEF Board of Directors engaged in conversations around strengthening and expanding the “financial resources and related services for ministry, witness, and outreach within the Synod” (Bylaw 3.6.4). Those conversations led the board to reconsider the mission, core values, global ends policies, and key performance indicators (KPIs) that anchor this plan in our purpose, while focusing on people, partnerships, platforms, products, and profitability that will frame and focus our work over the coming years. The board believes they, and the organization, have a role and responsibility in growing the Church. That is accomplished through the objectives and duties of the church extension fund within the Synod. Yet those “financial resources and related services” must never become static and stagnant. LCEF must be responsive to the needs and opportunities before the Church as she engages the world with the Gospel.
The new plan is aspirational while tracking quantitative KPIs. The KPIs are aligned to five strategic focus areas, or the “Five P’s” (People, Partnerships, Platforms, Products, and Profitability). We measure what matters. That begins with new global ends policies adopted by the board. LCEF exists so that financial resources and related services are available within and beyond the Synod. This occurs when investors receive a reasonable rate of return and borrowers pay a reasonable rate of interest; when related services foster ministry, innovation and growth; and when customer satisfaction is a priority. LCEF exists so that ministries grow through existing and new partnerships. This occurs when collaborative relationships align with our strategic goals. From these, the rest of the plan aligns, ultimately cascading down through corporate, division, and individual goals that come alive in the annual Ministry and Business Plan. This plan will direct our work over the next three years. We will align resources to achieve the success the Synod expects from its extension fund. While having a plan is crucial, our promise is even more important. The promise is LCEF will be here today and in the future. We will be here providing faith-driven financial solutions to strengthen ministries and advance mission-driven projects. We will support the growing needs of the Church. As those needs change, so will we—financial and strategic partnerships, together in faith.
Supporting the Work of the Synod Over the triennium, LCEF continued to find ways to support the mission priorities of the Synod, including the introduction of Real Estate Solutions (RES) as well as the Church Worker Loan Pool (CWLP). LCEF’s RES assists LCMS congregations, schools, districts and RSOs with their real estate strategy to foster ministry by meeting human need and enhancing communities while creating alternative sources of revenue to support ministry. With the exceptional work of the RES team, LCMS land and assets are staying within the LCMS, allowing for further growth and spread of the Gospel. RES assists congregations, schools, districts and RSOs by creating campus planning strategies, growing ministry through excess real estate while creating alternative sources of revenue, creating school and church expansion feasibility studies, providing owner’s representation and consulting services for construction projects, consulting with highest and best use studies on surplus properties, assisting in developing deferred maintenance plans, and providing site selection and other real estate brokerage services.
opinion of LCEF management, the portion paid by LCEF will not materially adversely affect the continued operations of LCEF or its ability, in the ordinary course of its business, to timely meet any of its debts and obligations, including the notes. Bart Day, President and CEO