Lutheran Church Missouri Synod
Accredited Charity
Meets Standards
Accredited Charity
Meets Standards
Standards Legend
- Meets Standards
- Standards Not Met
- Did Not Disclose
- Review In Progress
- Unable to Verify
Standards For Charity Accountability
Governance
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Board Oversight
Oversight of Operations and Staff: Standard 1
Description
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fundraising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.The organization meets this standard.
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Board Size
Number of Board Members: Standard 2
Description
Soliciting organizations shall have a board of directors with a minimum of five voting members.The organization meets this standard.
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Board Meetings
Frequency and Attendance of Board Meetings: Standard 3
Description
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.The organization meets this standard.
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Board Compensation
Compensated Board Members: Standard 4
Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.The organization meets this standard.
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Conflict of Interest
Conflict of Interest: Standard 5
Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.The organization meets this standard.
Measuring Effectiveness
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Effectiveness Policy
Board Policy on Effectiveness: Standard 6
Description
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 meets this standard.
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Effectiveness Report
Board Approval of Written Report on Effectiveness: Standard 7
Description
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 meets this standard.
Finances
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Program Expenses
Program Service Expense Ratio: Standard 8
Description
Spend at least 65% of its total expenses on program activities.The organization meets this standard.
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Fundraising Expenses
Fundraising Expense Ratio: Standard 9
Description
Spending should be no more than 35% of related contributions on fundraising. Related contributions include donations, legacies, and other gifts received as a result of fundraising efforts.The organization meets this standard.
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Accumulating Funds
Ending Net Assets: Standard 10
Description
Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.The organization meets this standard.
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Audit Report
Financial Statements: Standard 11
Description
Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $1 million, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $1 million, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.The organization meets this standard.
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Detailed Expense Breakdown
Detailed Functional Breakdown of Expenses: Standard 12
Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fundraising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.The organization meets this standard.
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Accurate Expense Reporting
Accuracy of Expenses in Financial Statements: Standard 13
Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fundraising expenses or otherwise understate the amount a charity spends on fundraising, and/or overstate the amount it spends on programs will not meet this standard.The organization meets this standard.
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Budget Plan
Budget: Standard 14
Description
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fundraising, and administration.The organization meets this standard.
Fundraising & Info
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Truthful Materials
Misleading Appeals: Standard 15
Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.The organization meets this standard.
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Annual Report
Annual Report: Standard 16
Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fundraising and administrative categories as in the financial statements, and (iii) ending net assets.The organization meets this standard.
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Website Disclosures
Web Site Disclosures: Standard 17
Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.The organization meets this standard.
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Donor Privacy
Privacy for Written Appeals & Internet Privacy: Standard 18
Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.The organization meets this standard.
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Cause Marketing Disclosures
Cause Related Marketing: Standard 19
Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).The organization meets this standard.
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Complaints
Complaints: Standard 20
Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fundraising practices, privacy policy violations and/or other issues.The organization meets this standard.
Conclusion
Lutheran Church Missouri Synod meets the 20 Standards for Charity Accountability.
Purpose
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Year, State Incorporated
1847, MO
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Stated Purpose
The mission of corporate Synod (Synod, Inc.), located in Kirkwood, Missouri, is to synchronize the strategic internal ministry capabilities embodied in its congregations and their member households, and coordinate with the agencies, auxiliaries, districts, and Recognized Service Organizations of the LCMS in order to enhance efforts and activities that make known the love of Christ throughout the world (Adopted, 2012). As a nonprofit entity, corporate synod serves the entire LCMS, including its congregations and members, as they work collaboratively to accomplish the denomination's over-arching mission, which reads: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 vigorously to make known the love of Christ by word and deed within our churches, communities and the world.
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Also Known As:
The Lutheran Church--Missouri Synod, Inc.
Programs
The work of The Lutheran Church—Missouri Synod and its headquarters operation functions under a new emphasis theme of “Making Disciples for Life”, approved by the Synod’s members at their 2019 Convention. This emphasis remains centered on the Holy Scriptures and the doctrines they teach as articulated in the Lutheran Confessions (Book of Concord). The LCMS in Convention reaffirmed seven specific mission priorities: 1.) plant, sustain and revitalize Lutheran churches; 2.) support and expand theological education; 3.) perform human care in close proximity to Word and Sacrament ministries; 4.) collaborate with the Synod's members and partners to enhance mission effectiveness; 5.) promote and nurture the spiritual, emotional, and physical well-being of pastors and professional church workers; 6.) enhance early childhood, elementary and secondary education, and youth ministry, and; 7.) strengthen and support the Lutheran family in living out God's design. Plans and budgets are built around these mission priorities, or strategies, as a vision for the LCMS when it functions at its best.The program areas (ministries) of corporate Synod (Synod, Inc.) are grouped under International Mission, National Mission, Pastoral Education, Communications and Mission Advancement. International Mission encompasses four regions of the world: Africa, Asia, Eurasia and Latin America. Within those regions, 136 LCMS missionaries carry out witness, mercy and life together efforts in concert with the 35 Lutheran partner churches of the world in ways that lead to the planting of orthodox Lutheran congregations and their progression into self-sustaining Lutheran partner church bodies. International Mission also overseas international LCMS disaster relief and response work, and LCMS Ministry to the Armed Forces (certified military chaplains/chaplain certification, and veterans services and support).National Mission encompasses 17 specific program areas designed to serve and support the efforts of 6,100 LCMS congregations, schools, organizations and the Synod's 35 districts. Program areas include black ministry, hispanic ministry, urban and inner city mission, rural and small town mission, witness and community outreach ministry, stewardship, worship, youth ministry, campus ministry, schools ministry, deaconess ministry, RSO (recognized service organizations) certification, disaster response (national), health ministry, life ministry, congregation revitalization, and specialized pastoral ministry (full-time institution and hospital chaplaincy). National Mission also coordinates crisis support for LCMS clergy, both active and retired, and coordinates humanitarian work with a select group of partner organizations. Pastoral Education synchronizes work to identify, recruit, educate, send and support the Synod's ordained clergy, and coordinates/synchronizes theological education programs and resources offered by two world-class LCMS seminaries. Communications serves the news and information needs of LCMS members, and produces specialized print, electronic and media resources for use at the local, regional and international levels. Mission Advancement serves and relates to the community of contributors who partner with the LCMS to share the Gospel through personal charitable donations, family or corporate foundation grants and volunteerism.The priorities for corporate Synod program work are determined, under its Constitution and Bylaws, every three years through a national convention. Delegates act on recommendations for ministry through formal resolutions, adopting priorities in a democratic process of voting by locally selected delegates. Thus the voice of the LCMS and its members in terms of priorities is made clear through Convention action rather than executive decision. A Convention-elected Board of Directors oversees the officers, commissions, budgeting and ministry work, and sets policies for the conduct and management of the organization.
For the year ended June 30, 2020, Lutheran Church Missouri Synod program expenses were:
| International Missions | $21,609,000 |
| National Missions | $5,396,000 |
| National Housing Support Corporation | $612,000 |
| Pastoral Education | $4,438,000 |
| University Education | $755,000 |
| KFUO | $961,000 |
| Communications | $2,421,000 |
| Corporate Synod | $7,917,000 |
| Concordia Plan Services | $29,705,000 |
| LCMS Holdings Limited | $57,184,000 |
| Lutheran Center for Religious Liberty | $418,000 |
| Youth Gathering | $9,478,000 |
| Program Expenses | $140,894,000 |
Governance & Staff
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CEO
Mr. Frank Simek, Chief Administrative Officer
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Compensation*
¤186,485.00
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Board Chair
Reverend Michael L Kumm, Pastor
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Chair's Profession / Business Affiliation
Holy Cross Lutheran Church (Dakota Dunes, SD)
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Board Size
14
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Paid Staff Size
370
Governance
* Compensation includes annual salary and, if applicable, benefit plans, expense accounts and other allowances.
Fundraising
Method(s) Used:
Direct mail appeals, Telephone appeals, Print advertisements (newspapers, magazines, etc.), Radio, Grant proposals, Internet, Planned giving arrangements, Membership appeals, Appeals via Social Media (Facebook, etc.), Household (personal) and group solicitation. The LCMS does not engage in cold-call door-to-door appeals..
% of Related Contributions on Fundraising: 11.82%
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.
Financial
The following information is based on Lutheran Church Missouri Synod's Audited financial statements - consolidated for the fiscal year ending June 30, 2020
| Source of Funds | |
|---|---|
| LCMS Holdings Limited | $63,630,000 |
| Gifts and Grants | $33,911,000 |
| Concordia Plan Services | $30,638,000 |
| District Pledge | $12,971,000 |
| Convention and Youth Gathering | $11,354,000 |
| Bequests | $5,336,000 |
| Gain on Sale of Assets | $4,874,000 |
| Sales and Services | $2,862,000 |
| Investment and Trust Income | $2,740,000 |
| Contributed Services | $180,000 |
| Net Realized and Unrealized Gain on Investments | $-393,000 |
| Change in Value of Split Interest Agreements | $-796,000 |
| Total Income | $167,307,000 |
Breakdown of Expenses
| Total Income | $167,307,000 |
| Total Expenses: | $155,577,000 |
| Program Expenses | $140,894,000 |
| Fundraising Expenses | $6,192,000 |
| Administrative Expenses | $8,491,000 |
| Other Expenses | $0 |
| Income in Excess of Expenses | $11,730,000 |
| Beginning Net Assets | $196,988,000 |
| Other Changes In Net Assets | $-3,031,000 |
| Ending Net Assets | $205,687,000 |
| Total Liabilities | $93,632,000 |
| Total Assets | $299,319,000 |
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