LWF finances: Resilience in uncertain times

LWF finance report outlines challenges in volatile economic environment

(LWI)—At its meeting in Addis Ababa, the LWF Council received the annual finance report, which highlighted the global communion's resilience amid global economic challenges and the urgent need for sustained support from member churches and other partners. The report addressed reduced humanitarian funding, impact on budget cuts, and efforts to revise membership fee structures in line with shared responsibility.

Reporting to the LWF Council during its meeting in Addis Ababa, Ethiopia, Finance Committee Chairperson Mr. Michael Ram commended the LWF for demonstrating resilience in the face of global economic pressures, including a challenging fundraising environment, high inflation, and volatile exchange rates.

In his report, Mr. Ram, a member of the Evangelical Lutheran Church in Guyana, expressed sincere gratitude to member churches, related agencies, ecumenical partners, and institutional donors for their steadfast commitment. "Your partnership is deeply appreciated and vital to our work together," he noted.

Income and expenditure

In 2024, the Communion Office raised EUR 162.1 million, 84 percent of the approved budget. This was primarily due to reduced funding for key humanitarian response programs in Ukraine, Colombia/Venezuela, and the Augusta Victoria Hospital (AVH) program. In addition to member churches and related organizations, LWF's funding sources included the United Nations, the European Union, the United States and other governments, and international agencies.

Departmental expenditure remained within approved budgets. He ephasised that this is a good outcome considering relocation of the Communion Office, in spring 2024, which involved one-time expenses such logistics, furnishings, IT infrastructure, and administrative costs. Mr. Ram praised the Communion Office for managing these expenses responsibly and staying within budget.

The report includes a detailed breakdown of income and expenditure across key departments: Theology, Mission and Justice, World Service (including AVH), the Office of the General Secretary, the LWF Assembly, and Planning and Coordination. It also outlines global coordination costs, reserves, the staff pension fund, and the LWF Endowment Fund.

Membership fees vital for the communion's work

Membership fees remain essential to the Communion Office's financial sustainability. In 2024, the LWF received EUR 2.63 million in membership contributions—86% of the amount invoiced—leaving EUR 413,000 unpaid at year-end. This is a decline from 2023, when the LWF received EUR 2.78 million.

Ram thanked those churches that consistently met their commitments and urged all member churches to prioritize timely and full fee payment to help sustain the LWF's mission. The Finance Committee, in collaboration with Communion Office staff, is revising the membership fee guidelines and calculation methodology to fully reflect fairness and shared responsibility.

Impact of U.S. funding cuts

Ram's report also commented on the significant impact of U.S. government cuts to humanitarian funding, announced in January 2025. He said these cuts have led to more than 15% reduction in the LWF World Service global budget for 2025. LWF World Service has implemented cost-reduction measures across staffing, consultancy, travel, and affiliation expenses to manage the funding gap.

While engagement with funding partners continues, the loss of U.S. and related UN funding poses a serious challenge to the LWF's funding, particularly the humanitarian work moving forward. The LWF acknowledges that member churches and partners are also facing financial constraints. However, the report emphasizes that hope inspires confidence in the communion's collective ability" to overcome adversity and continue supporting the work of the LWF together.