The LCMS' Commission on Constitutional Matters (CCM) ruled that the Lutheran Church Extension Fund (LCEF) had no authority to grant/gift the Pastoral Leadership Institute (PLI) with $340,000.

However, after the CCM ruling (August 17, 2000), Brad Hewitt, Chief Administrative Officer (CAO) of the LCMS Board of Directors instructed the LCEF to continue funding PLI. A check for $40,000 was sent immediately from LCEF to PLI. We assume Hewitt was acting under the direction of Board Chairman, Dr. Donald Muchow.

The CCM ruling was ignored.

The lawsuit filed by Robert Doggett will show a continued lack of accountability by LCMS financial institutions that led to the loss of more than $40,000,000 by the LCMS Foundation. The Foundation violated its own rules and invested $98,600,000 in exotic-unhedged derivatives, also known as home loan futures or interest strips. The Foundation and the Council of District Presidents have also given grants to PLI.

Victor W. Bryant, Senior Vice President - Marketing, of LCEF reports that the LCEF portion of the $40,000,000 dollars loss is only $l5, 000,000 or a minimum of 37% of the total reported by the Foundation as its loss.

PLI continues to receive LCEF support while Doggett is suing the Foundation to recover losses suffered by retired pastors and teachers and investors.

The following is an excerpt from a lengthy ruling by the CCM objecting to the LCEF granting funds to an organization not recognized by the LCMS. The CCM is responding to questions from the Montana District President.

CCM Ruling (00-2189) - Question #3: "Can the Lutheran Church Extension Fund (LCEF) give grants and funds (not loans) to an independent organization which is not a RSO or an entity of the Synod, according to Bylaw 3.503 of the Synodical handbook?"

CCM Opinion: ".Does this mean the LCEF can evaluate, choose, and provide financial resources (including grants) to any provider of professional church workers education, which it decided, in its sole discretion, qualifies as ministry, witness, as an outreach of the LCMS?"

"If LCEF has sole discretion, without limitation, to determine appropriate providers of professional church worker education, it would thereby assume to itself the authority to judge the doctrinal content of the educational materials used by the provider. Nothing in the Constitution or Bylaws of the Synod gives any indication that LCEF is vested with such decision-making. Bylaw ll.0l, c. states that the primary responsibility for doctrinal supervision and review lies with the President of Synod."

"However, if there is no limitation on those to whom LCEF can make funding available, the LCEF becomes a policy-making body by its ability to determine which ministries and activities should be given financial support and which should be denied, whether they be within or without The Lutheran Church-Missouri Synod."

The CCM's conclusion illustrates that the Synod's financial institutions are in fact making policy and directing the ministry of the LCMS without the Convention. Too often, the assets of the Synod are simply doled out to the individuals or groups with the most influence/leverage.

On its PLI fact sheet, LCEF listed the following grant schedule for PLI:

Fiscal Year (FY) 1998 - $135.803.78
Fiscal Year (FY) 1999 - $125.004.00
Fiscal Year (FY) 2000 - $40,000.00
Fiscal Year (FY) 2001 - $30,000.00
Fiscal Year (FY) 2002 - $20,000.00

A total of $340,807.78

The fact sheet also reports PLI is supported by a number of organizations other than the LCEF:

LCMS Foundation,
Council of Presidents,
AAL,
Lutheran Brotherhood,
Wheatridge Ministries,
to name a few.

Concordia Lutheran Church in San Antonio, Texas was given the largest LCMS Church Extension Fund loan to any congregation in the history of the LCMS, totaling $14,000,000.00. Of the five buildings constructed (1995-1996) a permanent sanctuary has yet to be built. One of the buildings is a 50' x 200', two story administration building. There is also a large, state-of-the-art performing arts center where PLI has regularly held training sessions.

PLI has the blessing of Dr. Don Muchow, Chairman of the LCMS Board of Directors, Dr. John Johnson, President of the St. Louis Seminary, Dr. William Meyer, Executive Director of the Board for Higher Education (and a close personal friend of Dr. Norbert Oesch Executive Leader of PLI) and the Texas District President, Dr. Gerald Kieschnick. At least two St. Louis Seminary Faculty have received funds for serving as regular speakers for PLI, including President, John Johnson and Academic Vice President, Andy Bartelt.

Regardless of what the CCM says, it pays to know the right people in the LCMS, as the financial institutions within LCMS will give you money, even if you don't have Recognized Service Organization (RSO) status. There are different sets of rules for different groups and different individuals.

If the LCMS was a business, some might call the gift to PLI a misappropriation of funds and a criminal offense.

October 9, 2000