Response from the LCMS Foundation Vice
President to the article titled "Leadership and the Joy of
Spending Other People's Money" by Rev. Jack Cascione.
Dear Rev. Cascione
I have read your response to the Reporter article on the loss suffered by the
Foundation. From its tone I am pushed toward the conclusion that you do not believe the
data included in the report I gave at the Fall Conference as summarized in that article.
You seem to be under the impression that the funds lost were owned by the Foundation;
that is not the case, these funds were owned by the various synodical entities for which
the Foundation serves as custodian or trustee. Each owner was informed of the losses
sustained. If there had been a profit, that too would have belonged to the owners and
would have been reported to them.
While I may have said "more than two times" that would include five times.
But please note that the real issue here is that the employee, in violation of explicit
policy, invested in such a way that the true nature of the instruments was not visible or
disclosed to anyone in the Foundation, to the auditors, or to the Board.
I would be pleased to provide you with any further detail on the loss that you might
need to assure you of the integrity of the investigation performed by the Board, the
report presented, the Board members and the staff members (with the obvious exception of
the unnamed former employee). As mentioned in the article, we have failed to meet the
expectations of those we serve and for that we ask forgiveness including yours. We have
nothing to hide and are eager to improve our communication with everyone in the church.
It is also clear that you have reservations about the value/cost of the Fall
Conference. I would be delighted to have you attend the next conference at my personal
expense. After observing all that goes on you would certainly have a stronger basis from
which to assess its value.
I find that rubbing shoulders with so many laypeople who are passionate about
participating in the process of funding of the growth of the Lord's kingdom is a means by
which the Lord communicates great encouragement to carry on -- an encouragement we all
need from time to time.
You, of course, might come away with a completely different reaction and I would
respect that. The next Fall Conference is scheduled for November 17 - 19, 2000 in Houston,
Texas. I hope that you can make it.
Just one other observation. The money spent by the Foundation on its participation in
the Conference was not "Other People's Money." Funds used for this purpose were
donated directly to the Foundation for use at its discretion. The Lord has certainly
blessed the Foundation's activities -- $1.1 billion in future gifts identified,
distribution of $345 million in earnings and $109 million to various ministries all in the
last 10 years.
Please also be aware that less that 2% of the money the Foundation manages is available
for the purpose of funding the Foundation's activities or for the Foundation's
distribution to fund the activities of others. All the rest is managed either as custodian
or as trustee for others and is distributed by the Foundation as the donors (in the case
of trusts) or owners have directed.
With best wishes for a blessed celebration of our Lord's birth both for you and for the
Lord's congregation you serve,
Paul W. Wiedenmann
Vice Chairman
Board of Trustees
LCMS Foundation
Cascione Reply to LCMS
Foundation VP About $40,000,000
Paul W. Wiedermann
Vice Chairman
Board of Trustees
LCMS Foundation
Dear Mr. Wiedermann:
Please forgive my less than prompt response to your letter of December 28, 1999. I must
confess that I have some doubts as to the veracity of the Foundation in this entire
matter.
The Foundation's funding of the Church Growth Movement in the LCMS, promoted by the
Council of District Presidents and Dr. Norbert Oesch's Pastoral Leadership Institute,
places you in an adversarial position to Walther and the royal priesthood of all
believers. You are giving away the laymen's money in order to replace congregational
Voters' Assemblies with corporate hierarchy. One could even come to the conclusion your
support for PLI will help alleviate the Foundation from scrutiny by congregational Voters'
Assemblies.
Any financial information you send will be appreciated, though I must confess, not
properly understood by myself.
Your carefully written letter, request for forgiveness, and gracious invitation to
attend the next Fall Conference are far more cordial and disarming than I expected.
Wouldn't you at least agree that the appearance of 900 people flying to San Diego for
three days, shows a little more extragance than might be appropriate when you have lost
$40,000,000.00. You also might tell us, who picked up the check for this gathering? Your
reference to 2% of the Foundation's money to fund its activities sounds like about
$1,500,000.00 or four times our congregational budget.
I have no choice but to forgive you as Christ has forgiven me. Christ leads us to
repentance with the Law and then forgiveness with the Gospel (narrow sense for both here).
I have a counter offer instead of the free trip to Houston.
Would you allow a qualified independent CPA or Auditor of our choice to examine your
books and give a full report? As you know, we must all be eager and willing to give a full
accounting. Any LCMS congregation should expect nothing less of its treasurer. This would
clearly demonstrate true repentance on your part without any desire to hide information
from members of the LCMS. In this case I would no longer be your critic but staunch
defender. This would show true repentance in word and deed and as you write, "We have
nothing to hide and are eager to improve our communication with everyone in the
church."
Yours in Christ,
Pastor Jack Cascione