Results for the first quarter of the synod's fiscal year 2010 ending Sept. 30 show support and revenue of $19.1 million exceeded expenses of $17.4 million by $1.7 million. The resulting increase in net assets is partially due to revenues being received before corresponding expenses are incurred—a timing difference that is expected to reverse by the end of the fiscal year. But also contributing to the increase is improvement in investment performance as financial markets continue to recover from their March and April lows.

"The results for the quarter are about what we expected," says Mr. Todd Poppe, chief financial officer. Congregation Mission Offerings (CMO), the offerings submitted by congregations for the collective ministry of the synod, for calendar year 2009 are about 2.1 percent or $300,000 less than the prior year and are in line with the budget and congregation commitments. The Conference of Presidents remains confident those commitments will be realized by the end of the year. "The CMO performance is encouraging given the challenging economic times," Poppe says.

Of continuing concern is the decrease in support from one of the major foundation donors to WELS. It has announced reductions in support of about $6 million in its annual grant over the last two years. There are hopes that gifts from congregations in response to November's VEBA premium holiday and the establishment of a new foundation in support of WELS may offset some of the loss.

In any event, the full impact of any loss in foundation support won't be felt in the current fiscal year due in large part to the creation of the Financial Stabilization Fund adopted by the 2009 synod convention. Under this change, funds from foundations, individuals, and bequests are held in this fund and distributed the year after they are received. Thus, the impact of the foundation reduction will not be felt until the next fiscal year. If support from CMO and other sources does not make up for the foundation reduction, the budget for the next fiscal year may need to be cut by a million dollars or more.

The first quarter's report is the first under a new approach to budgeting proposed by the Synodical Council and adopted by the 2009 synod convention. Beginning in fiscal year 2010, the financial reports include not just the synod's operating budget, but also its special funds and its schools. For example, revenue now includes all revenue and support and all the costs of the four ministerial education schools.

Historically, only the operating subsidy was reported. In numerical terms, the reports will now focus on the nearly $60 million in ministry conducted by the synod rather than just the $30 million budget if only synod's operations were reported.