Official Workbook report source text
Official Workbook source-navigation report record. No analysis has been added.
- Report number/id
- R5.2
- Report title
- R5.2 Chief Financial Officer
- Workbook start page
- 51
- Workbook end page
- 53
- Source pages
- 51, 52, 53
- Source status
- source_checked
- Committee
- Not available
R5.2 Chief Financial Officer We are blessed to be part of a Synod that is built on the foun- dation of our risen Lord and Savior Jesus Christ and is governed and supported by a strong and educated laity and willing member congregations who have voluntarily chosen this walking together. As Chief Financial Officer, my primary focus is faithfully steward- ing the financial gifts that are passed up through that structure to support our work together. In this effort, I strive to maintain trans- parency regarding the Synod’s finances, while also looking to un- derstand the broader context of those finances. The financials may vary from year to year, but the love of Christ remains. Synodical Context Giving by individuals in the Synod remains strong. In my 2023 convention report, I indicated that giving to congregations by in- dividuals (as reported by congregations as dollars used for both “Work at Home” and “Work at Large”) had surpassed $1,000 per confirmed member for the first time in 2021. 2024 was again a record high, with the average confirmed member giving $1,124 during 2024 to the congregation. 2026 Convention Workbook 52 OFFICER, BOARD, AND COMMISSION REPORTS Table 3: Corporate Synod Funding Sources 7/1/22 to 6/30/25 ($ millions) If there is a silver lining to the downtrend of support to cor - porate Synod from congregations via the districts, it is that a di- verse revenue stream has been developed to support the work of the Synod. At the same time, the support from the districts is what is primarily available to fund our collective work, as many gifts from individuals and other entities carry restrictions as to their use. More than that, the gifts from districts represent, at least as a proxy, our collective willingness to contribute financial resources to our life together as Synod. The excess of revenues for operations over total expenses was a surplus of almost $34 million over the last three years. Some of this surplus was the result of unanticipated items, such as unusu- ally large bequests and dividends received from our international operations. Some was intentionally targeted while the prospect of significant litigation in the HotChalk matter loomed. Fortunate - ly, this matter is behind us. The total impact of this settlement on the LCMS financial statements is included in the expenses shown above and was included in the fiscal year 2025 audited financial statements of the Synod. The portion funded by Synod funds was immaterial to the fiscal year 2025 financials and did not require specific disclosure. Even with these surpluses, we work to remain faithful stewards using the gifts and treasures entrusted to us. The $223.5 million of expenses represents a 22 percent increase over the prior three-year period. The significant portion (80 percent) of spending on pro- grams exceeds best practice guidelines for nonprofit organizations. Additionally, since the end of fiscal year 2025, the LCMS has put more of this surplus to use, paying down substantially all of CUS’ debt owed to the Lutheran Church Extension Fund (LCEF). With that, corporate Synod is free of debt and the guarantee of the indebt- edness of others. Beyond the investments made in the programs and mission of the church described by others in this Workbook, we are also beginning necessary investments in technology and systems needed to support our programs and mission and the people of the Synod today and into the future. Additional transparency and information can be found in regu- larly available sources. I give regular financial reports to the Board of Directors that are reflected in the minutes of their meetings. Monthly and annual financial statements are posted to the LCMS website. We annually prepare a budget report showing the work not only of corporate Synod but also of all synodical entities and agencies. There is an annual report highlighting broadly the work of the Synod, the financials, and other statistical information. We are committed to transparency, and endeavor to remain so. In my Table 1: Giving to Work at Large and Corporate Synod in Nominal and 2024 Inflation Adjusted $ (millions of dollars) Corporate Synod Despite facing the headwinds above, the financial position of the Synod continued to improve over the last three fiscal years (7/1/2022 to 6/30/2025). The following tables summarize the ex- penditures of corporate Synod, and how our work was funded. Table 2: Corporate Synod Expenses 7/1/22 to 6/30/25 ($ millions) *Includes the Office of National Mission, the Office of Pastoral Education (except for grants to seminaries), and Youth Gathering **Includes grants to seminaries and subsidies to Concordia University Sys- tem (CUS) ***Includes LCMS Communications and KFUO ****Includes portion of the HotChalk settlement paid with Synod funds 2026 Convention Workbook 53 OFFICER, BOARD, AND COMMISSION REPORTS Gospel, the power of God unto salvation for all people to know the Risen Christ. We have offered ways to confront the increased idol- atry in our country through Lutheran resources in Christian apolo- getics; to increase church planting at the parish level; to faithfully respond to the resurgence of young men and women in the Church; to encourage and support campus ministry; and to increase and support establishing new and strengthening current LCMS schools. These are but a sampling of the BNM making strides to address and supply the real needs of our Synod in respect to national missions. Establishing Clear “Policy Areas” to Serve the Most Important National Mission Needs While we are supporting the sunsetting of “mission priorities” for the Synod and rejoice to focus on our newly proposed mission and ministry emphasis, Tell the Next Generation (see Report R8, the report of the Joint Mission Assessment Committee of the BNM and BIM), we have put before ourselves in the BNM seven “policy areas” that are lucid priorities for LCMS national mission today. Here are the seven policy areas which guide the BNM’s policymak- ing for the ONM: 1. Congregations; 2. Catechesis, Apologetics, and Theological Education; 3. Mercy Work; 4. Fraternal Cooperation Across the Synod; 5. Church Worker Wellness; 6. Lutheran Schools and Youth Ministry; and 7. Marriage and Family. Related to these areas is what we all witnessed during this past triennium in the establishment of All Nations Ministry led by its manager, the Rev. Stephen Heimer. No one is excluded and every- one is included in our determination to faithfully live out the Great Commission of our Lord Jesus Christ. In addition, we celebrate the ministry of the Rev. Andrew Becker, manager, Family Ministry. The Lord is truly blessing our Synod with these increased resources for national mission. New Board for National Mission Manual During this past triennium, led by board member Rev. Peter Bender, we saw the fruition of a thorough BNM manual that will bring greater clarity, consistency, and efficiency to our board going forward. 2023 Resolutions to Board for / Office of National Mission Accomplished Every assignment given to the BNM and ONM from the 2023 Synod convention has been fulfilled. This is especially reflective of the outstanding service of our unit executive, but also the man- aging directors working with him, including Deaconess Dr. Tif- fany Manor (Mercy Ministry area) and the Rev. Michael Meyer (Witness area). Please see Reports R1.2.1 and R60, submitted by ONM unit executive Rev. Dan Galchutt, which cover all the assign- ments. The only other assignments going beyond Rev. Galchutt’s reports are 2023 Resolution 4-03, “To Affirm and Continue Mission Priorities for 2023–26 Triennium,” and 2023 Res. 9-04, “To Es- tablish Mission Board Responsibilities Regarding Mission Office Strategic Plan and Annual Budget Proposal.” As for Res. 4-03, this resolution is being effectively addressed by our Joint Mission As- sessment Committee overture entitled, “To Commend and Sunset the Mission Priorities of Synod.” Regarding Res. 9-04, the BNM has worked closely with the Chief Mission Officer as well as the ONM unit executive to finalize a thoroughly systematic approach to strategic planning and annual budget proposal for the ONM. This project has clarified our own responsibilities as the BNM, which in turn benefits the ONM. opinion, you would be hard pressed to find a church body more transparent about its financials with its parishioners. In addition to the work of corporate Synod, I represent the Board of Directors on the boards of several entities: LCEF, Con- cordia Plan Services, LCMS Foundation, Concordia Publishing House, and CUS. I support the work of other LCMS entities that are part of the consolidated financial statements, including the Lu- theran Center for Religious Liberty and LCMS Holdings, Inc. This would not be possible without the dedicated and hard-working staff across the teams who support me in accounting and finance at the LCMS International Center in St. Louis. The Lord has blessed the LCMS in many ways. Over the last several years, He has seen fit to provide a financial position pre- viously unseen in the Synod’s history. I pray that He will grant us wisdom in stewarding these gifts to support our bold proclamation of the Gospel—that Christ Is Risen Indeed! Nathan M. Haak, Chief Financial Officer