Better Business Bureau Report for
Lutheran Church - Missouri Synod

Better Business Bureau Report issued May 2008
Better Business Bureau Report expires May 2010


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Lutheran Church - Missouri Synod
Address: 1333 S. Kirkwood Road
  St. Louis, MO 63122-7295
Phone: 314-965-9000
314-965-9917
Web Address: www.lcms.org
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Better Business Bureau Comments

Year, State Incorporated: 1894, Missouri
Affiliates: Concordia University System, Concordia Asia Educational Foundation, The Lutheran Church--Missouri Synod Foundation, Lutheran Church Extension Fund--Missouri Synod, LCMS National Housing Support Corporation, Concordia Publishing House, Concordia Historical Institute, Concordia Seminary (the legal name of which is Concordia College), St Louis, Concodia Theological Seminary, Fort Wayne, IN, Concordia College, Bronxville, NY, Concordia College, Selma, AL, Concordia University, Ann Arbor, MI, Concordia University Texas, Austin, TX, Concordia University, Irvine, CA, Concordia University, Portland, OR, Concordia University, Chicago, Il, Concordia University, St. Paul, MN, Concordia University, Seward, NE, Concordia University Wisconsin, Mequon, WI, Concordia Plan Services, LCMS Holdings Limited, and 35 chapters
Stated Purpose: In grateful response to God's grace and empowered by the Holy Spirit through Word and Sacraments, the mission of the Lutheran Church--Missouri Synod is to vigorously make known the love of Christ by word and deed within our churches, communities and the world.

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Evaluation Conclusions

              

Lutheran Church - Missouri Synod (LCMS) does not meet the following 2 Standards for Charity Accountability.

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

The organization does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.  The organization has informed the BBB that it is working to comply with this Standard.   

Standard 7: Board Approval of Written Report on Effectiveness - Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

The organization does not complete a performance assessment.  The organization has informed the BBB that it is working to comply with this Standard.    

Lutheran Church - Missouri Synod (LCMS) meets the remaining 18 Standards for Charity Accountability.
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Programs

              

Today, The Lutheran Church--Missouri Synod has 6,150 congregations served by more than 9,000 professional church workers. The word "Synod" in The Lutheran Church--Missouri Synod comes from the Greek words that mean "walking together." It has rich meaning in the church body because the congregations voluntarily choose to belong to the Synod. Diverse in their service, these congregations hold to a shared confession of Jesus Christ as taught in Holy Scripture and the Lutheran Confessions. Some are located in rural areas, others in inner cities. Some are large; others are very small. Most use English, but some offer worship services in Vietnamese, Spanish, Laotian and other languages. LCMS World Mission trains, sends, and supports called career missionaries and appointed volunteer missionaries throughout the United States and in various countries throughout the world where there are mission stations, partner churches or mission relationships. Ministry to African-Americans has been a solid part of the Synod for more than 100 years. In addition, its Library for the Blind produces sermons and devotional literature, and of the approximately 90 deaf congregations maintained by all religious denominations, more than 50 are members of the LCMS. Well known for its emphasis on Biblical doctrine and faithfulness to the historic Lutheran Confessions, the Synod also seeks new ways of proclaiming the Gospel. Concordia Publishing House, whose Arch Book Series for children has sold more than 55 million copies, is the nation's fourth-largest Protestant publisher. A pioneer in radio and television work, the Synod operates the world's oldest religious radio station, KFUO, headquartered in St. Louis, Mo. Its program, "The Lutheran Hour," produced by the Synod's International Lutheran Laymen's League (LLL), has been aired in North America since 1930. The Lutheran Women's Missionary League (LWML), which came into being in 1942, serves as the Synod's auxiliary for women and has been a leader in supporting missionary outreach in many areas. Unlike many other churches, the LCMS has never been involved in a major merger. Internationally, the Synod conducts missions or maintains relations with churches in more than 50 different countries. It is a member of the International Lutheran Council, but it does not belong to the Lutheran World Federation, to the National Council of Churches or to the World Council of Churches. The LCMS is in Altar and Pulpit Fellowship with more than twenty five Partner Churches. The Synod has always had a great emphasis on education. In fact, its earliest congregations built schools before they built churches! It has 10 colleges, two seminaries, 91 high schools and the nation's largest Protestant elementary school system. The LCMS has congregations in all sections of the United States, but the heaviest concentration of its membership continues to lie in the Midwest. The Synod also shares God's love with others through LCMS World Relief and Human Care by meeting human needs (physical, emotional, and spiritual) of those who are suffering. It has built and helped to maintain a large network of Lutheran hospitals, nursing homes, human care and adoption agencies to serve the sick, the elderly, the victims of abuse, those struggling with addictions, and many others coping with difficult situations and transitions in life. LCMS District and Congregational Services serves with districts in assisting its congregations to develop and foster vibrant ministries to bring the saving, life-giving Gospel of Jesus Christ to the world through its five ministries: Children, Family, Outreach, School, Stewardship and Youth.

For the fiscal year ended June 30, 2008, LCMS's program expenses were:

  
Missions 29,219,000
Human Care 10,608,000
Youth Gathering 6,926,000
University Education 5,177,000
Synodical consitutational officers and administration 4,618,000
KFUO 3,454,000
Pastoral Education 3,320,000
Ecclesiastical Services and Commissions 2,069,000
District and Congregational Services 1,904,000
Communications 1,515,000
Black Ministry 732,000
Supplemental Retirement to veterans of the cross 494,000
Total Program Expenses: $70,036,000
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Governance

              

Chief Executive : Rev. Gerald B. Kieschnick, President
Compensation*:
$247,765

Highest Paid Executive: Ron Schultz,Chief Administrative Officer
Compensation*: $168,477

Chair of the Board: Rev. Donald K. Muchow
Chair's Profession / Business Affiliation: Ordained Minister

Co-Chair of the Board : Betty Duda

Chair's Profession / Business Affiliation: Retired

Board Size: 15

Paid Staff Size: 622

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

direct mail, telephone, invitations to fund raising events, print advertisements, radio, internet, planned giving arrangements, cause-related marketing
Fund raising costs were 13% of related contributions. (Related contributions, which totaled $69,933,000, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on LCMS's audited financial statements - consolidated for the fiscal year ended June 30, 2008.

Source of Funds  
Gifts and grants 39,931,000
District pledge 19,701,000
Sales and services: Conventions and Youth Gathering 7,762,000
Sales and services: Other programs and services 7,753,000
Bequests 5,645,000
Volunteer services 4,656,000
Sales and services: KFUO-FM 1,765,000
Investment and trust income 1,346,000
Split interest agreement valuation change -738,000
Net realized loss on investments -1,142,000
Total Income $86,679,000


chart



Uses of Funds as a % of Total Expenses

Programs: 80%  Fund Raising: 10%  Administrative: 10% 

Total income   $86,679,000
  Program expenses $70,036,000
  Fund raising expenses 9,113,000
  Administrative expenses 8,446,000
 
Total expenses   $87,595,000
Expenses in Excess of Income   (916,000)
Beginning net assets   52,636,000
Ending net assets   51,720,000
Total liabilities   33,692,000
Total assets   $85,412,000


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