To Promote Transparency and Accountability for Recognized Service Organizations and To Allow Certain Educational Institutions to Be Recognized

Ov. 4-33

To Promote Transparency and Accountability for Recognized Service Organizations and To Allow Certain Educational Institutions to Be Recognized

WHEREAS, The Synod grants recognized service organizations (RSOs) numerous privileges, including the ability to call rostered workers; and

WHEREAS, Not all categories of RSOs are required to have 100 percent Synod boards, even though such boards can issue divine calls to rostered workers, which is an incoherent situation; and

WHEREAS, Although RSOs are required to operate in harmony with Synod doctrine and practice and maintain nonprofit status, there is no standardized public reporting for finances, governance changes, or program outcomes required beyond voluntary submission or Synod request ; therefore, RSOs not required to file tax returns with the Internal Revenue Service can operate without routinely publishing even unaudited financials, conflict -of-interest disclosures, or compensation information (“ Why LCMS RSOs Need Greater Transparency and Accountability —and How Ad Crucem RSO Explorer Might Help, ” Ad Crucem News , Jan. 9, 2026, adcrucem.news); and

WHEREAS, The Synod recognizes RSOs for a five- year term, after which they may reapply. Yet there is no consistent periodic review process that includes doctrinal conformity checks, governance review, or financial accountability benchmarks.

Without a transparent evaluation cycle, the system relies heavily on occasional voluntary compliance rather than routine and systematic verification.

Moreover, the criteria by which an RSO’s doctrinal alignment and programmatic harmony are assessed aren’t publicly codified, leaving evaluat ors and stakeholders guessing about expectations and enforcement; and

WHEREAS, When a charity carries the Synod imprimatur, despite the Synod’s disclaimers about endorsement and responsibility, individuals and congregations often assume that the organization represents the Synod’s values, theology, and internal controls. Yet in practice, RSOs are independent, but their internal decisions, partnerships, and public engagements can reflect back on the Synod without clear accountability; therefore be it

Resolved, That the Board of Directors revise the current RSO agreement and policies to include:

(a) a requirement that the RSO annually file a s tandardized annual financial report including audited or unaudited financials and governance disclosures, including executive compensation and conflict of interest policies, with the Synod and each district in which the RSO is operating;

(b) stated criteria for the determination of alignment with the Synod by the RSO;

(c) a requirement that a document demonstrating the RSO’s alignment with Synod doctrine and practice be made publicly available and updated at least every five years upon reaccreditation;

(d) a requirement that all Board members be members in good standing of Synod or partner church congregations;

(e) clarification that an educational institution (other than a seminary) whose board members are all members in good standing of Synod or partner church congregations is eligible for recognition as an educational service organization; and (f) a requirement that an RSO application be approved or denied within 90 days of completed submission, and if denied, that the applicant be given a specific written statement of the reasons for denial.

St. Paul Brookfield, IL