BOD 19 2013/2014

MINUTES

BOARD OF DIRECTORS MEETING

INTERNATIONAL LUTHERAN LAYMEN'S LEAGUE

Renaissance St. Louis Airport

Saint Louis, Missouri_______________________ Friday-Saturday, April 11-12, 2014

In attendance: Chairman Philip Krauss II, Vice-Chairman Phillip Johnson, Treasurer Michael

Brown, Secretary Janice Wendorf, Londa Borer-Skov, Jack Ficken, Richard Gast, Kay Meyer,

Paul Pettit, Andreas Schwabe, Weldon Schwiebert, Richard Sindlinger, William Snow; LHM

Executive Director Kurt Buchholz, Advisory; LLL-Canada Managing Director Stephen Klinck,

Advisory.

Absent: Leonard Pranschke; Pastoral Advisor Rev. Timothy Klinkenberg; LCC Liaison Mathew

Block, Advisory; LCMS Liaison Rev. Timothy Scharr, Advisory.

Staff of Lutheran Hour Ministries attended portions of the meeting at the request of the

Executive Director.

The Compensation and Evaluation Committee and Fund Development Committee met on

Thursday evening, April 10. The Board Development Committee and the Audit Committee met

Friday morning, April 11, prior to the opening session.

01 Philip Krauss II, Chairman, called the meeting to order at 9:20 a.m.

02 Dionne Lovstad-Jones, Ministry Advancement Officer, led an opening devotion. Several

points that were included: fundraising is a piece of cake, God has a mission before LHM, and

what is impossible with us is possible with God.

03 Opening comments by Chairman Krauss pointed out that LHM’s fiscal year is nearly

finished and that this was a year of transitions in choosing a new Executive Director and the

Board changes that accompanied that change.

04 Londa Borer-Skov reported on her recent LHM-Thailand and LHM-Cambodia. Several

observations from the trip: the staff in both places are good stewards of the time and funds

entrusted to them, at least one fourth of the people in Cambodia are able to hear daily radio

broadcasts, new Christians are so on fire for the Lord and anxious to share the Good News,

and in Thailand ministry center staff members are able to go into the public schools with

LHM programming. She stated that it was a wonderful opportunity to be able to go on this

trip and encouraged all members of the Board to travel to an LHM international ministry

center.

05 Richard Gast presented one of the “stained glass” windows from the award-winning 2014

Lutheran Hour float in the Tournament of Roses Parade to Kurt Buchholz, Executive

Director.

BOD 20 2013/2014

06 Chairman Krauss shared several changes in the printed agenda, and they were accepted via

consensus of the Board.

Motion 2013/14-51 Motion was made to accept the printed agenda

Motion was seconded and carried by voice vote.

M2013/14 -52 Motion was made to accept the Minutes from the January 2014 Meeting as

presented.

Motion was seconded and carried by voice vote.

M2013/14 -53 Motion was made to approve the attached Resolution Housing Allowance

Designation for Rev. Mark Frith.

Motion was seconded and carried by voice vote.

07 Phillip Johnson, Chair of the Fund Development Committee, presented the attached

Resolution approved by The LHM Foundation, dated March 15, 2014, in regards to exploring

the possibility of a special funding initiative. The resolution is in response to Board motion

M2013/14-48. He further stated that the Board should have the results of the pre-initiative

study by October 2014.

08 Janice Wendorf, Chair of the Board Development Committee, reported the committee has

several items pending, none of which needed immediate action at this Board meeting.

09 William Snow, Chair of the Audit Committee, reported that everything is on schedule for this

year’s audit.

10 Michael Brown, Chair of the Budget and Finance Committee, reported that the committee

met via conference call with staff. He shared Fiscal Year 14 Budget Status and Projections.

The balance of this committee’s report was postponed until later in the day.

11 Executive Director Buchholz began the Executive Director’s Report by explaining that there

is a leveling out in terms of revenue stream in recent months. The directors for each ministry

division were invited to present to the Board.

12 Mark Larson, Director of United States Ministries, highlighted the program God Connects,

which is in the testing phase. The Outreach Initiative in the Florida-Georgia District is

progressing. Sentido Latino began airing April 5-6 with an estimated 1 to 1.5 million

listeners. The rough translation of the program’s title is “Hispanic Way of Life.”

13 Richard Sindlinger led the meal prayer.

14 The Board went into recess.

BOD 21 2013/2014

The Compensation and Evaluation Committee met for a working lunch.

15 The meeting reconvened at 1:03 p.m.

16 Douglas Rutt, Director of International Ministries, thanked the Board for their volunteer

service to the organization. This division has ten staff members in St. Louis and 185-190 in

ministry centers all over the world, plus countless volunteers. The three part focus for

international ministries includes the unreached, urban areas, and young people. They are

employing strategic partnerships with Lutheran Church—Missouri Synod missionaries,

partner churches, and mission organizations and societies.

He highlighted three new ministries: Indonesia, the largest Muslim nation in the world, still

able to work in this country which is the 4th

largest country in the world; Liberia; and

Mongolia, working with LCMS missionary David Baker relocated from Kazakhstan.

17 Andrew Fitzgerald, Director of Marketing and Communications, reported on key research

areas, online analytics, and customer centricity, which all help answer why we do what we

do.

18 The meeting went into recess for afternoon break.

19 The meeting reconvened at 2:48 p.m.

20 The Budget and Finance Committee report continued with discussion of the presented

financial plan.

M2013/14 -54 The Budget and Finance Committee moved to suspend for the 2014/15

Budget, Appendix I Financial Policies #7. Financial Reserves, amended to indicate that any

income that exceeds the ministry’s Operating Expense Budget up to 2% of total budgeted

expenses be ear-marked for financial reserves.

Motion carried by voice vote, with one dissenting vote.

M2013/14 -55 The Budget and Finance Committee moved that the Board approve the

Lutheran Hour Ministries Annual Budget Fiscal Year 2014-2015.

Motion carried by voice vote.

21 Executive Director Buchholz continued with his report. A consultant has been engaged to

guide staff in a strategic planning process. There will be an audit of the advancement

department and work on the possible funding initiative. A report on the findings of this audit

will be presented to the Board in October.

22 Fitzgerald reported on planning and developments for the LHM Outreach Conference in

Detroit. The goal is to have an expanded audience beyond those who would normally attend

BOD 22 2013/2014

an LLL convention. LHM is partnering with the Pastoral Leadership Institute in some areas

of programming.

23 Stephen Klinck, LLL-Canada Managing Director, brought greetings from the LLL-Canada

Board of Directors. Historically they have used materials from LHM but have now ventured

into translating several Project Connect booklets into French and Chinese. The booklets have

been well received; one unexpected development is the use of the Chinese materials in Korea

to teach Chinese as a second language. Lutheran Church-Canada will be meeting in

convention in Vancouver, BC, from June 6-9, 2014. LLL-Canada will have a presence and

exhibit.

24 Andreas Schwabe led the Board through a presentation on Core Values and Mission

Statement. One of the tools he used was a PEST Analysis: Political, Economic, Social, and

Technological factors. There will be a website where Board members will be able to discuss

and process various factors including core values, vision statements, mission statement,

critical targets, and indicators of success.

25 Vice-Chairman Johnson led the Board in a closing prayer for the afternoon session.

26 The Board went into recess at 5:10 p.m.

In the evening, members of the Board participated in a banquet and reception honoring

concluding seminarians from Concordia Seminary, St. Louis.

27 Chairman Krauss called the meeting to order on Saturday, April 12, at 8:30 a.m.

28 Rev. Gregory Seltz, Speaker of The Lutheran Hour, led Bible study, building on his talk at

the banquet the previous evening: Ready, Sent, Go! Our God is a god of the second wind;

there will be ups and downs in LHM’s work. Trust that there will be second winds.

Remember, it is His mission! In the middle of your run, give it your all; the God of the

second wind is with you. (Isaiah 40:28, following)

29 Jack Ficken, Chair of the Compensation and Evaluation Committee, reported for the

committee.

M2013/14-56 Motion was made to go into Executive Session.

Motion was seconded and carried by voice vote.

M2013/14-57 Motion was made to go out of Executive Session.

Motion was seconded and carried by voice vote.

M2013/14-58 The Compensation and Evaluation Committee moved approval of a 3% raise

at the employment anniversary for the Executive Director and that the Executive Director

have an Executive Health Assessment during the next fiscal year.

BOD 23 2013/2014

Motion carried by voice vote.

30 The Board requested that arrival and departure times for Board members should be shared

prior to each meeting.

31 Plans for some type of celebration marking the 100th

Anniversary of the International

Lutheran Laymen’s League are in the works; one possibility would be a launch in 2016 with

a conclusion in 2018. The actual year for the 100th

anniversary is 2017.

32 Board members were asked to recommend people to add to the database and to help connect

donors to LHM.

33 Board members were encouraged to complete the evaluation survey from the meeting in a

timely manner; responses are needed from all.

34 Board members were reminded to keep Executive Director Buchholz informed when

contacting staff.

35 Committee chairs were reminded of the option to have phone conference calls between

meetings for committee work; the Assistant to the Executive Director can assist with

arrangements.

36 Future Board meeting dates were determined:

July 24, 2014 (arrive July 23); Detroit, Michigan

October 17-18, 2014 (arrive October 16); St. Louis, Missouri

January 9, 2015; morning and afternoon session; online meeting

April 24-25, 2015 (arrive April 23); St. Louis, Missouri

Tentative: July 17-18, 2015 (arrive July 16); St. Louis, Missouri

Tentative: October 23-24, 2015 (arrive October 22); St. Louis Missouri

37 The Elections Committee will consist of William Snow, Londa Borer-Skov, and Secretary

Janice Wendorf as Chair, per policy. Executive Director Buchholz will appoint two staff to

serve on the committee.

Motion 2013/14-59 Motion was made to adjourn.

Motion was seconded and carried by voice vote.

38 Andreas Schwabe offered the closing prayer for the session.

39 Meeting was adjourned at 11:20 a.m. Respectfully submitted by,

Janice Wendorf, Secretary

BOD A-18 2013/2014

RESOLUTION

HOUSING ALLOWANCE DESIGNATION

The following resolution was duly adopted by the Board of Directors of the International

Lutheran Laymen’s League at a special meeting held on April 11, 2014, a quorum being present.

Whereas, section 107 of the Internal Revenue Code permits a minister of the Gospel to exclude

from gross income (in computing federal income taxes) a designated housing allowance paid to

him or her as part of their compensation to the extent used for actual expenses incurred in

owning or renting a home; and

Whereas, Reverend Mark T. Frith is compensated by the International Lutheran Laymen’s

League exclusively for services as Ordained Ministers of the Gospel; and

Whereas, the International Lutheran Laymen’s League does not provide a parsonage; therefore,

it is hereby

Resolved, that 40 percent of total compensation paid to the afore-mentioned ordained minister of

the Gospel is hereby designated to be a housing allowance pursuant to section 107 of the Internal

Revenue Code; and it is further

Resolved, that the above housing allowance designation as to the Ordained and Commissioned

Minister of the Gospel shall apply for the remaining calendar year of 2014.

BOD A-19 2013/2014

Resolution Approved by The LHM Foundation

Whereas, Lutheran Hour Ministries is desirous of exploring the possibility of having a

special funding initiative to raise its funding capacity to a higher level,

Whereas, one major benefit of this initiative would be to increase the funds managed by The

LHM Foundation,

Whereas, funding is needed to underwrite the cost of research and planning during the pre-

initiative planning phase,

Whereas, periodic reporting of the feasibility study findings and any subsequent results,

should the initiative go forward, will be made to both the Board of Directors and The

LHM Foundation Board of Trustees.

Therefore be it resolved that, The LHM Foundation Board of Trustees authorizes the

funding of the pre-initiative phase of the planned funding initiative which will include a

development audit, feasibility study, campaign consultant, related staff expenses and

Funding Initiative planning at a cost not to exceed $350,000.

And be it further resolved that pursuant on affirming results of the pre-initiative study and

the approval of the Int’l LLL Board of Directors, The LHM Foundation Board of

Trustees will provide continued funding for the first phase of the funding initiative that

will have a cost not to exceed a total commitment of $750,000. This total cost to the

Foundation includes all actual pre-initiative costs.

MOTION PASSED.

BOD 24 2013/2014

MINUTES

BOARD OF DIRECTORS MEETING

INTERNATIONAL LUTHERAN LAYMEN'S LEAGUE

Conference Call_______________________ Wednesday, June 11, 2014

In attendance: Chairman Philip Krauss II, Vice-Chairman Phillip Johnson, Treasurer Michael

Brown, Secretary Janice Wendorf, Londa Borer-Skov, Richard Gast, Kay Meyer, Leonard

Pranschke, Weldon Schwiebert, Richard Sindlinger, William Snow; LHM Executive Director

Kurt Buchholz, Ex Officio.

Absent: Jack Ficken; Paul Pettit; Andreas Schwabe; Pastoral Advisor Rev. Timothy

Klinkenberg, Ex Officio; Stephen Klinck, Managing Director, LLL-Canada, Advisory; LCMS

Liaison Rev. Timothy Scharr, Advisory; LCC Liaison Mathew Block, Advisory.

01 Meeting opened at 6:05 p.m. Central Time with Waiver of Notice and roll call of attendees.

The Board members that responded to the roll call will be asked to sign the Waiver of Notice

for this meeting when the Board meets on July 24, 2014.

02 Philip Krauss II, Chairman, offered an opening prayer.

03 Janice Wendorf, Chair of the Elections Committee, reported that the committee met via

phone conference on Monday evening, June 9. Members of the committee include: Londa

Borer-Skov, William Snow, Chad Fix (staff), and Curtiss Wittbracht (staff).

2013/14-60 The Elections Committee moved that the Board accept the report of the

Official Declaration of the Vote, International Lutheran Laymen’s League, 2014 official

results provided by Election-America, Inc. Results of the vote: Chairman, Philip Krauss II;

Director: Canada, Andreas Schwabe; Directors, Richard Gast; Leonard Pranschke; Janice

Wendorf.

Motion carried by voice vote.

04 Kurt Buchholz, Executive Director, explained that he directed staff to explore alternate ways

and organizations to conduct the yearly voting and will report back to the Board with their

findings.

M2013/14-61 Motion was made to accept the resolutions submitted on document labeled

“Certified Copy of Resolutions/Authorizations for Accounts and Loans.”

Motion was seconded and carried by voice vote.

05 Buchholz explained that this resolution is required by PNC Bank to set up an account for the

Detroit conference in July. It allows the conference committee to pay local bills and deposit

money collected throughout the conference. PNC insisted on Board approval of the account.

BOD 25 2013/2014

It was noted that on page 1 of the document the word “League” is omitted from the name of

the organization.

06 Other business included an update on the number of registrants for the National Outreach

Conference. As of several days ago there were 625 people registered. Expected registration is

between 800 and 1000, with up to 1200 possible.

07 Executive Director Buchholz announced the hiring of a new Director of Ministry

Advancement, Jeff Craig-Meyer of St. Louis, Missouri. His official start date is June 30,

2014.

08 Phillip Johnson, Vice Chairman, read from Psalm 33 before leading the closing prayer.

09 The meeting was adjourned at 6:31 p.m.

Respectfully submitted by,

Janice Wendorf, Secretary

BOD A-20 2013/2014

BOD A-21 2013/2014

BOD A-22 2013/2014