Key Takeaways
- • The LWF Endowment Fund Board met in Geneva on 2-4 November to review the Fund's strategic direction, with a focus on growing the endowment through fundraising.
- • The Endowment Fund was created in 1999 to provide an unrestricted annual income source for the Lutheran World Federation communion; to date it has contributed around CHF 7 million to LWF core functions.
- • The original goal was a USD 50 million capital base generating about USD 3 million a year; member church contributions have reached roughly CHF 13 million, and their pace has slowed considerably since the first decade.
- • Chairperson Jeff Pym, a former founding Executive Director of the Evangelical Lutheran Foundation of Eastern Canada (2007-2020), describes the Fund as a source of funding for administrative costs that donor-restricted gifts often do not cover.
Summary
The Lutheran World Federation (LWF) Endowment Fund Board met in Geneva from 2 to 4 November to reflect on the Fund's strategic direction, according to the LWF's report on the meeting. Board members held discussions with LWF leadership, the Fund's investment managers, the Olive Branch Foundation and other partners, with a particular focus on growing the endowment through fundraising. The Board also visited Romainmôtier Abbey in the Canton of Vaud, Switzerland, a church whose origins date to the 10th century.
Jeff Pym, Chairperson of the Endowment Fund Board, explained in an interview with the LWF Communications team that an endowment consists of contributions, or capital, which are never spent, and income generated by investing that capital, part of which is spent each year. The Fund was established in 1999 under a separate organization with its own board of directors, currently eight members drawn from all LWF regions. Each spring the board reviews the prior year's investment results and determines the annual distribution to the LWF. That distribution carries no restrictions and can be directed to the areas of greatest need, which is significant because much of the LWF's budget comes from donors who earmark funds for specific purposes, often excluding vital programs and administrative costs such as office rent for the Communion Office.
The Fund's capital comes mainly from contributions by LWF member churches, supplemented by individual donations, including bequests. The original target was USD 50 million, generating about USD 3 million annually. Member churches were given a "fair share" goal in 1999. Large contributions came in the first decade, but the pace has slowed considerably. Total member church contributions have reached about CHF 13 million to date. Since its inception the Fund has contributed around CHF 7 million to core functions. Although it does not directly fund humanitarian response, the support indirectly benefits humanitarian aid, community development, theological education, advocacy and leadership training across the communion's 153 member churches.
Jeff Pym, Chairperson of the Endowment Fund Board, explained in an interview with the LWF Communications team that an endowment consists of contributions, or capital, which are never spent, and income generated by investing that capital, part of which is spent each year. The Fund was established in 1999 under a separate organization with its own board of directors, currently eight members drawn from all LWF regions. Each spring the board reviews the prior year's investment results and determines the annual distribution to the LWF. That distribution carries no restrictions and can be directed to the areas of greatest need, which is significant because much of the LWF's budget comes from donors who earmark funds for specific purposes, often excluding vital programs and administrative costs such as office rent for the Communion Office.
The Fund's capital comes mainly from contributions by LWF member churches, supplemented by individual donations, including bequests. The original target was USD 50 million, generating about USD 3 million annually. Member churches were given a "fair share" goal in 1999. Large contributions came in the first decade, but the pace has slowed considerably. Total member church contributions have reached about CHF 13 million to date. Since its inception the Fund has contributed around CHF 7 million to core functions. Although it does not directly fund humanitarian response, the support indirectly benefits humanitarian aid, community development, theological education, advocacy and leadership training across the communion's 153 member churches.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.