Introduction

In the Lutheran Church-Missouri Synod vacancies now total around 800, and at any given time, up to one- half of these churches are extending calls. New entrants to the roster, including by colloquy, dropped from 2,620 in the 1980’s to 1,838 in the 1990’s. This portends a rise in pastoral retirement eligibilities soon and the need for more young pastors to avoid a rise in vacancies.

The Synod attempted to stem the tide in 1995 by enacting a resolution that, in effect, directed seminaries to cover full tuition for all students in the Master of Divinity Program. This was implemented later that decade when Synod was also reducing coverage for seminaries' operating costs. At St Louis, enrollment of first-year students increased 50% the first 5 years. Fort Wayne also experienced substantial gains. But in the next two years the combined registration of first-year students declined by one-third. Total graduates in May 2006, was 172, much below current retirement levels. Greater enrollments are needed to lessen present vacancies, as well as cope with further departures and expanding opportunities.

Both seminaries fell short of fund raising objectives for seminarians’ tuition during the two years ended June 30, 2005. Our prayers are needed for increases in matriculation of young men to the seminaries and broader involvement by membership in contributing to seminaries through their churches and/or directly to help cover tuition for seminarians. There are advantages to the seminaries and individual givers from direct gifts to the institutions. This is the primary focus of the project described herein.

At its Triennial Convention, in 2004, the LCMS suggested a number of measures to consider in attempting to solve what it termed the “financial crisis” of the seminaries. These appear in the Appendix.

Why are we being asked now to make direct contributions to the seminaries to help on tuition when our churches still contribute to the Synod via Districts? Variations of this question, during early planning and some pre-testing for this project, indicated the need for an information base to help program implementers. This document is the result, though in larger dimensions than first envisaged.

BACKGROUND AND FACTORS IN OUTLOOK

Vacancy Levels And Needs For Developing More Pastors ‑

Of the approximately 6,000 LCMS congregations in the United States, nearly 800 lacked a pastor in early September, 2005.

Compounding prospects for alleviating the vacancy situation is that relatively more pastors will become eligible for retirement during the next 15 years. Departures from the pulpit pastoral roster for reasons other than death or retirement may have somewhat lessened recently.

Over one‑half of new ordination program entrants to seminaries are 2nd career men, many married with children. Their ages range from the mid‑20’s to early 50’s. Work‑life spans in many cases will be much shorter with implications for future seminarian enrollment needs.

Opportunities for mission work are expanding, here and abroad. In response, the Synod has indicated plans to add mission stations outside this country, as well as in the U. S.

Changes In Levels And Sources Of Funding For Seminarians ‑

Financial records suggest that relatively ample resources were available in the 1940s through the 1960s to cover seminary costs and avoid levying tuition (Slide 4). Spot checks with individuals who graduated in those decades indicated they were not subject to tuition charges. Through the 1950s and into the early 1970s, growth in number of confirmed members was impressive. The record high in membership was recorded in 1976 at 2,026,000 (Slide 2)

In the 1970s, some theological issues became contentious and a major number of pastors resigned from pastoral roster. The resignation rate soon dropped substantially. Between 1973 and 2000 resignations exceeded retirements in most years and there was a net exodus of pastors in all but one year( Slide 2). Hence the large accumulation of vacancies in the U. S.

In mid-1990s, Synod Advocated Seminaries Cover Major Parts of Tuition

Starting in the 1970s it became necessary to begin charging seminarians tuition. By the late 1980s, tuition became burdensome and enrollments declined, resulting in no let-up in accumulation of vacancies. LCMS members generally are unaware of extent of vacancies and financial plight of seminaries (Slide 6). With intent to increase enrollments, the 1995 Synodical convention, in effect, directed the seminaries to cover full tuition for all students on the M/Div path. Implementation began in 1998 premised on contributions of $2,000 from each student’s home District and congregation. Unfortunately, many of these have not met contribution suggestions.

For 2004-05, each of these was increased from $2,000 to $3,000, since tuition rose from $14,400 to 17,400. Effective with the 2004-05 term, St. Louis students were advised they were responsible for deficiencies by Districts and congregations; Ft. Wayne reduced the target coverage to 65% of tuition and started assessment of “need” (means testing). At St. Louis, the promised assistance at $11,400 per year is 60% of tuition ($18,900) for 2005-06, implying that students with shortfall in help of Districts and home congregations, could be responsible for $7,500 plus living expenses. Promised assistance levels for both seminaries are in the range of one-fourth to one-third of total costs of attending seminaries (Slide 7).

Financial Support Led to Significant Enrollment Increases

Annual increases in first year enrollments were accelerated at both seminaries in the first several years of the promised tuition support. At the end of the fifth year, total enrollment for the two institutions was up about 40% over levels at the start. But as adjustments were made in tuition coverage, or conditions affecting their impacts, there were in some years pull- back in new enrollment levels. Then, from 2003 to 2005, combined new student enrollment dropped 33%, back to approximate levels before the enhanced tuition support program began. The number of graduates from the two institutions combined, in 2006, was 172, significantly below the number of pastors currently retiring annually. The substantial increases in enrollments for the first several years and the enrollment declines in recent years with increases in net tuition costs indicate significant student sensitivity to changes in net tuition levels.

With increases in enrollments and tuition, financial challenges now exceed the seminaries' capacity to meet promised levels of tuition offsets as well as cover the institutions’ operating costs. By the end of 2003-04 year, both institutions had exhausted reserve resources. In the two years ended June 30 2005, current income at both institutions was insufficient to cover operating costs.

At present, both seminaries are dependent for financial support on a relatively small membership base. For example, in the case of Concordia St. Louis, financial support is received from just 6% of LCMS households.

Concordia St Louis is expanding its Development staff in an effort to cope with the funding challenges. This entails church visits and personal solicitations throughout the United States. A separate problem is that both seminaries are handicapped by the limited communication contacts with LCMS membership. Members' access to seminary and Synodical publications and readership of them also are relatively low. Thus, there is a serious awareness deficit among the presently non-contributing (LCMS) members.

Some Trend Changes Negatively Impacted Seminaries/Seminarians

The following discussion of changes is descriptive of “what” transpired. No attempt is made to ascertain the “whys” that could be of interest.

1. Trends in members’ average contribution levels relative to personal incomes.

Although most receipts by Districts and the Synod come from churches, these of course are dependent upon individual contributions. To ascertain changes in giving relative to incomes, state averages of giving levels were related to state averages of personal disposable (after-tax) incomes. The latter have been published by the U. S. Department of Commerce going back to 1929. The LCMS has published average contribution levels by states back to, at least, 1930. For many states the data are presented for multiple Districts and some states contain as many as three districts. A total of 14 states contained one to three districts wholly within their borders. In some years, data for California included parts of adjoining states and Hawaii. But these were relatively minor compared with California totals of membership and contributions. Also a part of Upper Peninsula of Michigan is reported with Northern Wisconsin District. The 14 states accounted for 60% to 70% of the U. S. totals.

The numbers of confirmed members for states were used to weight averages of income and the contribution levels from which weighted averages of percentage giving rates were calculated for the 14 states. The fact that the reported number of members includes a significant number of non-earning young individuals tends to give a downward bias to the percentage giving rates (Slide8). The trend indications, however, merit serious consideration since they manifest general consistencies and gradual changes over time. The combination of lower giving rates and rising real personal incomes resulted in relatively stable aggregate real values of church contributions (Slide 4).

2. Changes in Deployment of Funds Received by Churches

• Costs of church operations increased.
• Churches have increased direct distributions to missions of their choice.
• The share of church receipts allocated to Districts and Synod decreased. (Slide 9).
• A rising share of funds contributed by churches to Districts (including for Synod) is designated for use by the Districts, and the Districts, as a whole, are allocating an increasing share of receipts to ministries within their boundaries, thereby lessening availabilities for Synod’s budget.
• The effects of inflation further reduced the purchasing power of Synod’s budget since 1990. (Slide 5)
• In recent decades, Synod has undertaken support for additional ministries.

CONCLUSION

It is apparent that each development has had implications for Synod’s ability to help support seminaries/seminarians. As a practical matter, given the gravity and urgency of the matter, the feasible action is to ask more members and churches to prayerfully consider sharing with direct contributions for the vital cause.

There is not unanimous agreement among LCMS members that students should be assisted with a major part of tuition. In pondering this issue, several considerations should be recognized:

1. Many students enter the seminary with debt from their earlier education.
2. There are uncertainties of compensation levels following installation.
3. The experience with promised assistance on tuition the last 7 years (changes both up and down) indicates new students are quite sensitive to changes in net tuition costs.
4. Students from resource-limited backgrounds particularly merit substantial tuition assistance.
5. Living costs are significant for all students – particularly the ones married with children (Slide 7)

PROJECT DESCRIPTION

The project described here is designed to be a lay‑member led and conducted activity with minimum distractions and extra work for pastors. A helpful outcome will be dependent upon lay members' realization as to the gravity of the problem seminaries and we face and our combined determination to make investments to develop pastors.

Gabriel Messengers (project leaders and implementers within congregations) will be available to guide members by‑‑‑‑

Disseminating information regarding pastoral vacancies, seminaries' sources and levels of funding, roles in covering tuition, recruitment and related issues. In sum, to instill in members a sense of oneness with a seminary and seminarians.

Contacting lay members in small groups and/or individually to discuss issues in more depth and consider different procedures that may be employed to make regular, direct contributions to seminaries for the requisite investments in young men.

In the interest of simplicity and efficiency, it is suggested donors be encouraged to utilize Thrivent Financial for Lutherans’ "Simply Giving" program. This entails electronically transferring funds from individuals' bank accounts to pre-designated seminary accounts. The service is without charge to donors or the seminaries. Many churches have used this service for several years, starting under the auspices of Lutheran Brotherhood. It has proven safe and efficient. Both seminaries are now prepared to accept the use of some credit cards but they incur a small service fee. Some donors will find personal checks the more acceptable method. In all three cases, sums of $10 per month and up are suggested. This manner of contributing enables donors to enhance benefits to seminaries through matching by Thrivent and/or his or her employer. Nonmembers of Thrivent may become associate members. This makes them eligible for matching over two years for the same benefit as for members of Thrivent. Thrivent is prepared to accumulate monthly or other periodic payments for each individual until late in the calendar year and then execute applications for matching funds.

In all cases it is important to indicate the name of your church. Seminaries will be encouraged to record number of participants, by congregation. This would permit Gabriel Messengers to compare the number participating with the number of potential contributors. The information could be helpful in identifying situations in which visiting assistance might be offered.

Some congregations, may decide to handle the transactions through the church accounts. With this procedure donors would not have the satisfaction of utilizing matching for which they may be eligible. Also, in the case of St. Louis, they would miss opportunities for contact with seminarians through the Adopt‑A‑Student approach. Donors choosing the latter often gain much satisfaction from personal contacts with students, often carrying through to ordination, installation and beyond. Some congregations, as a matter of policy, may choose to establish or increase a budget for direct giving to seminaries. This, also, would be God‑pleasing. However there would be merit in encouraging individual direct giving over a sufficient period each year to permit eligible members to qualify for full matching opportunities.

IMMEDIATE ACTION IS IMPORTANT

Clearly, the need is urgent. Every LCMS member has a stake in the outcome. The consequences of inaction by members are too ominous to contemplate. Otherwise, the next generation will face even more empty pulpits. The LCMS seminaries have demonstrated over several years that assistance in covering tuition has significant positive effects on enrollments. Such increases are needed to lessen vacancies, cope with future departures and seize new opportunities.

The Rev. Billy Graham has been credited with stating that LCMS was a “sleeping giant” among U.S. church bodies. Now, LCMS members have the opportunity to demonstrate that we have the dedication and resolve to serve the Lord in a giant‑like manner and shed the “sleeping” image. What could be more pleasing to the Lord than our diligently trying?

Jesus said, "‑‑‑store up for yourselves treasurers in Heaven‑‑‑" (Matthew 6:20). God calls us to share our “treasure” for the ministry of building up his people in Christ and for calling others to the same faith and life in Him.

GUIDING PRINCIPLE: The greater the participation the lighter the load feels to an individual but the greater the total impact on development of new pastors!!

Appendix

At its August 2004 Convention, the LCMS took a number of steps to alleviate the financial crisis of the seminaries. In the “Whereas” preamble to the main resolution, two significant points were reiterated:

1. The support of seminaries for the recruitment and training of pastors is a key objective of the LCMS according to Article III of the Constitution and
2. The Synod has understood the wisdom of providing support for the seminaries, so that their energies may be properly focused on the preparation of pastors with integrity and a strong sense of service to the church. Also it was stated that the Corporate Synod is supporting the seminaries with $500,000 from “undesignated” funds in the 2004‑05 budget (This is equivalent to about 2% of the two budgets).

The main Resolution (4‑02A) is a multi‑part action designed to address both the near-term and long‑run financial situations of the seminaries:

1. The Board of Pastoral Education established earlier in the convention, (by separation from the University System in the former Board of Higher Education) is directed to undertake as its immediate first task a systemic study of funding models for theological education;
2. The Board shall seek to engage the entire church for counsel and support in resolving the crisis;
3. A plan shall be put in place within the next triennium;
4. Interim funding be secured to guarantee the financial solvency of the seminaries until such a systemic plan is implemented and proven successful.

National Synod Allocations of Receipts from Districts, 1986 & 2006

Source: Data in cols 1 and 2 provided by Synod Accounting Department

DISTRIBUTION OF WORK-AT-LARGE FUNDS 2005

Basic data compiled from Lutheran Annual, LCMS

Some Historical Notes

Prior to formation of the Lutheran Church—Missouri Synod in 1847, individuals living in scattered settlements in the U. S. dedicated much time and significant resources to establishment of educational facilities.

These ranged from lower elementary levels which were given high priority through to high schools (such as the one on grounds now occupied by the Ft. Wayne seminary) to development of pastors. Dogged perseverance with some financial help from churches in Germany enabled significant advances in some locations. Formation of the Synod included a network with churches and facilitated unified development of educational and other institutions and services as well as planting missions in the U. S. and abroad.

The network of Church Extension Funds (CEF), one of the institutions founded by Synod, has served an exemplary role in financing the erection of physical structures. A comparable tradition has not been developed to help higher education institutions cover operating costs, including tuition. Seminaries and Concordia University system have made some progress in encouraging major gifts. These usually take the form of endowments or other financial instruments, which often have restrictions as to purpose and longer time‑span for payout. Hence, in general, they fit better in long‑run financial planning strategies. These instruments can benefit donors as well as beneficiaries. Individuals who sense that step is suitable should consult the Development Office of a seminary or a financial planner.