Chairperson of Finance Committee reports to new LWF Council
(LWI) – Critical support from the member churches and institutional donors, significant contributions to humanitarian response, successful fundraising, budget alignment, and the adequate funding to the Thirteenth Assembly. These were factors that ensured strong financial results for The Lutheran World Federation (LWF) in a year marked by high inflation and other economic uncertainties.
Reporting to the LWF Council at its first full meeting, the Finance Committee Chairperson Mr Michael Ram noted that the LWF had “demonstrated resilience against global economic challenges, including a tight fundraising environment, high inflation and volatile exchange rates in many countries where we operate.”
In the report, Mr Ram, a member of the Evangelical Lutheran Church in Guyana, expressed “heartfelt gratitude to LWF member churches, related organizations, ecumenical partners, and our institutional partners for their unwavering commitment and support.” LWF continues to rely on this accompaniment and financial backing in its long-term vision of “working together for a just, peaceful, and reconciled world."
The report was presented by Mr Leonard Kwelu, LWF Head of Finance.
Income and expenditure
In 2023, the Communion Office raised EUR 169.8 million, which was 89 percent of the budgeted income. “This is commendable progress, considering the challenging fundraising environment in 2023,” Ram noted. In addition to the member churches, the related organizations and ecumenical partners, LWF’s income sources include the United Nations, European Union partners, the United States and other governments, and international organizations.
EUR 169.8 million consolidated income: “This is commendable progress, considering the challenging fundraising environment in 2023,”
Mr Michael Ram, Chairperson, Finance Committee
Expenditure by department was within the approved budget. This included the Assembly, which had a positive financial outcome.
The Report of the Chairperson of the Finance Committee gives a detailed breakdown of the distribution of LWF’s income and expenditure by departments namely: Theology, Mission and Justice, World Service including the Augusta Victoria Hospital, Office of the General Secretary, LWF Assembly, and Planning and Coordination. It also highlights the global coordination and organizational costs, reserves, staff pension fund, and the LWF Endowment Fund.
Membership fees vital for the communion’s work
The annual membership fees provided by LWF member churches have a significant role in ensuring the financial sustainability of the Communion Office, Ram noted in his report. Contributions in 2023 were below the expected fair membership fees calculations. The 87 churches that fulfilled their commitments in full contributed a total of EUR 2.78 million compared to 91 churches in 2022 that gave a total of EUR 2.74 million.
The Finance Committee Chairperson expressed deep appreciation to churches that have regularly met their membership fee targets. He urged all the member churches “to continue paying their membership fees promptly so that, together, we may continue to support the valuable work that is being done by the LWF communion.”
