Finances Etc.

It's time for some financial perspective.

In his letter to the editor of the Wall Street Journal, President Kieschnick claimed that Issues Etc. loses $250,000 per year. Let's assume that he is telling the truth and then ask ourselves, "What does that figure actually mean?"

Interpreting financial figures is a lot like interpreting the Bible. In order to properly understand a figure it needs to be put into its proper context. The proper context for this figure is the overall budget for the entire LCMS. Those figures are available to the public. Click here to view the minutes for the May 2007 Board of Directors Meeting. On page 10 of this pdf you will see the departmental breakdown for the entire budget.

What you will discover is that the KFUO budget for both the AM and FM stations comprises ONLY 3% of the entire synodical budget. Then with just a little math you will also be able to calculate that the Issues Etc. budgetary shortfall of $250,000 comprises less than 1% of the entire synodical budget. (one quarter of 1% to be exact) Below is a graph that puts this into perspective.

Here is some more perspective: At the February 2007 Board of Directors meeting, LCMS Treasurer Tom Kutcha highlighted the fact that the 'Fan into Flame' initiative experienced a $2.258 million dollar shortfall in 2006 alone. Here is what the meeting minutes state:

The Treasurer then called attention to Fan into Flame pledges, with discussion following regarding related fundraising costs. The Treasurer reported that the LCEF line of credit authorized by the Board at its November 2006 meeting is now in place but may not need to be used, given other dollars available to the Synod from other sources. In response to a request for more information and after additional research, the Treasurer reported later in the meeting that expenses for Fan into Flame to date total $4.133 million and that revenues to date have totaled $1.875 million, leaving a net shortfall at the present time of $2.258 million.

Below is a graphical comparison of the 2006 Issues Etc. losses and Fan Into Flame's 2006 shortfall.

This all leads us to ask some very important questions.

Why is Issues Etc. being treated like its losses are intolerably high? When compared to other initiatives that are losing millions of dollars per year, Issues Etc's losses seem very low in comparison.

Isn't KFUO AM considered to be a MINISTRY instead of a business?

When was the last time that KFUO AM operated 'profitably'?

And while we're asking questions, we may as well ask whether or not President Kieschnick intends to sack the people responsible for losing $2.2 million on the 'Fan Into Flame' initiative? Are they going to be held to the same standard as Todd and Jeff were?

Kieschnick said that KFUO AM accumulated a $3.5 million deficit in a the past 7 years. But, 'Fan Into Flame' accumulated a $2.2 million deficit in ONLY ONE YEAR. Therefore, wouldn't it make more business sense to discontinue Fan Into Flame rather than cut Issues Etc?

This story is still developing.

Comments

[justme]

Ok, either Kieschnick simply won't acknowledge the truth of the theological differences that exist or isn't aware of them. Either way, serious shortcoming for someone who thinks of himself as a leader.

[FreeSpeechLutheran]

The case for Christ continues to get stronger.

[FreeSpeechLutheran]

This research is so thorough. The facts are compelling indeed.

Thank you for your patience and hard work on this tedious research!

“Work hard and become a leader; be lazy and never succeed. (Proverbs 12:24)”!

[the wretch]

I keep trying to put the best construction on everything, but the very best construction I can put on this is that synod leadership is extremely misguided and inept.

[FreeSpeechLutheran]

second that.