Kieschnick Authorized $5 Million Line of Credit for Ablaze ** Updated **

NOTE: This is NOT an April Fool's Joke

Yesterday President Kieschnick claimed that Issues Etc. was losing $250,000 per year. In the course of putting that figure into its proper context that we also explained that the Ablaze Fan Into Flame initiative lost $2.2 million during the same timeframe that Issues Etc. lost $250,000.

This lead us to ask, "where was Kieschnick getting the money to feed the Fan Into Flame initiative?"

Answer: Kieschnick was borrowing funds from other ministry budgets authorized a $5 million internal line of credit for Fan Into Flame.

Here is what the November 2006 Board of Directors meeting minutes state:

Vice-President–Finance—Treasurer Tom Kuchta referred to his printed report (IC-1ff, attached to protocol copy of these minutes) and reported on the Synod’s finances as of September 30, 2006, noting a negative budget variance of $4,321,224, with the Board for Mission Services accounting for $3,280,561 of that amount (despite cooperative efforts to adjust expenditures by $1.2 million to operate within budget). He further noted that after Fan Into Flame unmet expenses ($1,070,000), yet-to-be-received Schwan grants ($691,000), and a shortfall in anticipated bequest income ($201,000) are taken into consideration, a variance of $1,363,000 remains due to a shortfall in development revenues.

After responding to questions regarding income shortfalls and Fan Into Flame income statistics and expenses, he reported that he has begun discussions with the Lutheran Church Extension Fund regarding the Synod’s current $10 million line of credit, noting that in previous years other funds (such as human care unspent funds) had been available for the Synod’s use (at present the Synod has borrowed $3 million). He reported that he has considered setting up a separate $5 million line of credit for Fan Into Flame expenses to isolate its expenses from other Synod funds and advised the Board to consider doing so, given the expressed willingness by LCEF to provide. He was asked to bring forward a resolution for the Board’s consideration. Later in the meeting, the Vice-President–Finance—Treasurer brought forward the requested resolution for the Board’s consideration. The resolution was supported and then adopted without discussion, as follows:

To Establish a Line of Credit for “Fan Into Flame” Campaign Expenses

WHEREAS, Cumulative “Fan Into Flame” net campaign expenses approximate $2.4
million; and

WHEREAS, These expenses have been funded with borrowings from the Synod’s
operating line of credit; and

WHEREAS, There is a desire to separately account for “Fan Into Flame” campaign
borrowings; therefore be it

Resolved, That the Board of Directors authorize the Vice-President–Finance—
Treasurer to establish a $5 million line of credit with the Lutheran Church Extension Fund
for the purpose of providing funds for “Fan Into Flame” campaign expenses; and be it
further

Resolved, That all existing borrowings for “Fan Into Flame” be transferred from the
Synod’s operating line of credit to the “Fan Into Flame” line of credit; and be it finally
Resolved, That the “Fan Into Flame” line of credit be for a term of no more than three
years.

In other words, Kieschnick has borrowed authorized the borrowing of $5 million from other sources of cash in the synod to keep the Fan Into Flame initiative alive BUT he couldn't find $250,000 to support the worldwide Christ-Centered Cross-Focused ministry of the Issues Etc. radio program.

These meeting minutes also show that Kieschnick had already been engaging in borrowing funds from other ministry budgets prior to November 2006. The meeting minutes state that a $10 million line of credit had been established to borrow from "unspent human care funds" and that Kieschnick had already gone $3 million into that line of credit BEFORE the decision was made to establish an additional $5 million internal line of credit for Fan Into Flame.

This story is still developing.

Comments

[FreeSpeechLutheran]

Once again, very disappointed that a 0.25% deficit loss could not be vouched for by President Kieschnick. I didn't want to have to do this...but notice in the 2007 budget that there was a 4% increase in the salaries of some people.

That's exactly how Lutherans handle money issues, right? Spending money on credit when we should be frugal with what God gives us? Doesn't sound like the church I grew up with. Or my Grandmother.

Thanks for the research.

[FreeSpeechLutheran]

http://www.lcms.org/graphics/assets/media/Board_Of_Directors/070516%20BOD%20Min.pdf

This is once again the May 2007 budget breakdown. Look at page 10.

[Michael Paul]

Thank you for doing the work to track and post information like this. You're doing a valuable service for many.

[Tommy Pain]

I would love to see someone look into this.

Word is out that $9,000,000 was collected for Tsunami relief in Thailand and that money is still being held and raided to loan to other causes.

Any news on this?

Tommy

[Tommy Pain]

I would love to see someone look into this.

Word is out that $9,000,000 was collected for Tsunami relief in Thailand and that money is still being held and raided to loan to other causes.

Any news on this?

Tommy

[here we go again]

Benke - ecumenical leader - again in an ecumenical service - this time with the Pope at the lead in NYC. See story

Pope to Lead Ecumenical Prayer Service at Manhattan Parish

WASHINGTON, March 31 /PRNewswire-USNewswire/ -- Pope Benedict XVI will
lead an ecumenical prayer service April 18, at St. Joseph's Church in the
Yorkville area of Manhattan.

Participants at the service will include 250 national and local
Protestant and Orthodox Church leaders.

St. Joseph's Church was built in the 19th century by the immigrant
German community that settled in the area and today serves a diverse
population. A Sunday Mass is still celebrated in German.

The pope will address the group after a reading from Paul's letter to
the Ephesians (4:1-6) and before the congregation prays the Lord's Prayer.

At the end of the ceremony, the pope will greet ten national and five
local ecumenical leaders.

The national leaders include:

Archbishop Demetrios of America, Primate of the Greek Orthodox Church
in America and Exarch of the Ecumenical Patriarchate. In June 2003, the
Archbishop led the delegation from the Ecumenical Patriarchate to the
Vatican for the feast of Sts. Peter and Paul. He serves as Chairman of the
Standing Conference of Canonical Orthodox Bishops in the Americas.

Archbishop Khajag Barsamian, Primate of the Diocese of the Armenian
Church of America. Archbishop Barsamian is a member of the international
dialogue between the Catholic Church and the Oriental Orthodox Churches,
and is Chairman of the Standing Conference of Oriental Orthodox Churches in
the United States.

Archbishop Vicken Aykazian, legate of the Diocese of the Armenian
Church of America (Eastern) in Washington and ecumenical officer. He became
President of the National Council of Churches USA January 1, 2008.

Rev. Dr. Donald McCoid, representing Presiding Bishop Mark Hanson of
the Evangelical Lutheran Church in America, is Director of the Ecumenical
and Inter-Religious Relations Office of the Evangelical Lutheran Church in
America.

Bishop Jeremiah J. Park, Bishop of the New York Annual Conference of
the United Methodist Church.

Rev. Dr. Wesley Granberg-Michaelson, General Secretary of the Reformed
Church in America since 1994, and one of the five Presidents of Christian
Churches Together in the USA, representing the historic Protestant family.

Rev. Dr. Clifton Kirkpatrick, Stated Clerk of the Presbyterian Church
(USA) since 1996.

Rev. Dr. William J. Shaw, President of the National Baptist Convention,
USA, Inc., since 1999. Dr. Shaw serves as one of the five Presidents of
Christian Churches Together in the USA, representing the Racial/Ethnic
family of churches.

Bishop James Leggett, General Superintendent of the International
Pentecostal Holiness Church, a position he had held since 1997. Bishop
Leggett is the Evangelical/Pentecostal President of Christian Churches
Together in the USA.

Dr. Leith Anderson, President of the National Association of
Evangelicals (NAE) and senior pastor of Wooddale Church in Eden Prairie,
Minnesota since 1977.

Leaders from the New York area who will personally greet the pope
include:

Bishop David H. Benke, president of the Atlantic District of the
Lutheran Church Missouri Synod. Rev. Benke was elected president of the
Atlantic District in 1991, and has been re-elected five times, most
recently in 2006. He is also the primary ecumenical leader for the Nehemiah
Project which provides housing for the poor in New York City.

Rev. Dr. A. R. Bernard Sr., President of the Council of Churches of the
City of New York and founder and Senior Pastor of The Christian Cultural
Center in Brooklyn, New York. He is also host of two weekly television
programs, Faith in Practice with A. R. Bernard and The A. R. Bernard Show.

Elder Bernice A. King, the second daughter and youngest child of civil
rights leaders Martin Luther King Jr. and Coretta Scott King. With her
brother Martin Luther King III, she has been active in the Southern
Christian Leadership Conference once led by their father. She is currently
an elder at New Birth Missionary Baptist Church in Lithonia, Georgia.

Rev. Jimmy Seong G. Lim, Executive Director of the Council of Churches
of the City of New York. Rev. Lim has served the Council of Churches of the
City of New York since 1999. Rev. Lim is an ordained minister in The
Reformed Church in America.

The Right Rev. Mark S. Sisk, the 15th Bishop of the Episcopal Diocese
of New York. Bishop Sisk was consecrated Bishop Coadjutor of the Diocese of
New York in 1998. Prior to his election as coadjutor, Bishop Sisk served as
President and Dean of Seabury-Western Theological Seminary in Evanston,
Illinois.

The United States Conference of Catholic Bishops has been in ecumenical
dialogue with a broad spectrum of Christian churches and communities for
decades and has embarked with them on many ventures. One of the most recent
is establishment of the Christian Churches Together in the USA. Members
include Catholics, Orthodox, mainline Protestants, Evangelicals and
Pentecostals. For the first time in U.S. history there is a structure to
enable the great majority of Christians in the United States to speak
together with a common voice on the issues that face both church and
society.
SOURCE U.S. Conference of Catholic Bishops

[paula]

FreeSpeechLutheran said:"That's exactly how Lutherans handle money issues, right? Spending money on credit when we should be frugal with what God gives us? Doesn't sound like the church I grew up with. Or my Grandmother."

Yeah isn't that exactly what Kieschnick said, after all... this ain't your grandpa's church!

Sigh...

I think it's time for Kieschnick and his cronies to find another church.

[FreeSpeechLutheran]

Paula, I can't even begin to articulate how heart breaking this is.

[Anonymous]

President Kieschnick told the Synod a year ago that he could not live on $160,000 a year..one wonders if he remembers that he who serves must be servant of all. Obviously he plans for others to live a life of Sacrifice while he lives a life of luxury.. How embarrasing to tell our fixed income retires who are barely making it of his needs. One area we could cut is not meeting with the representatives of the ELCA twice a year when we do not have enough money to keep missionaries in the field. He tells us," It is not our grandfathers church", No this is sounding like," It is the Church of CFW Walther first President of our Synod who had to control everything!"

[Titus]

SBLending also offers unsecured lines of credit. If you are looking for personal or business unsecured lines of credit, you can also visit SBLending.biz. They also issue their own $10,000 unsecured lines of credit in 5 minutes.

SBLending has fast turnaround time. 24-48 hours is all it normally takes for SBLending.biz to have an amount ready for you to close your unsecured line of credit.

[Barney]

Mentioned a couple posts ago was that Kieschnik couldn't live on $160,000. Now, I've heard an unsubstantiated rumor that last year he got a raise up to at least $200,000 base salary (not including benefits), and read somewhere that he had proposed some sort of adjusted salary bonuses based on certain gains in numbers. Then just last week I heard that with the new Kieschnik-majority BOD, he's gotten a raise to a base salary of at least $300,000. Now, I'm not trying to rumor-monger here, but simply ask, if this is not true, if he is still making "just" above the poverty level of $160,000 base salary, then why is it that such salary figures cannot be transparent for any member of synod to know?? After all, we parishioners know exactly how much we give our pastor every year. Are there some laws in place that forbid the actual salaries of district and synodical officials from being revealed to the public?? If there are, but they could be changed, fat chance they will be an overture to Synod convention, which you know would immediately by consigned to the Omnibus by the Kieschnik-appointed Resolution committee. But anyways, what's the answer here?

[Rick Frueh]

The more organized layers away from the collection plate and the local church we get, the more opportunity for corruption and misuse of God's money exists. All funds should be under the watchful eye of each individual church even when used collectively.

[Christopher Esget]

See my post clarifying one piece of the financial picture here: http://esgetology.blogspot.com/2008/04/issues-with-stewardship.html