total enrollment: 696 students
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1 2014 annual report
2 President s message some would be apostles, some prophets, some evangelists, some pastors and teachers, to equip the saints for the work of ministry, for building up the body of Christ. Ephesians 4:11-12 Equipping the saints for the work of ministry has been the focus of the rebuilding work led by the board, developed by the faculty and staff, tested by the students and supported by faithful friends. A cornerstone of this innovative work is the new curriculum designed during this last academic year. You ll read more about the curriculum in the following pages. Thanks to the leadership of Interim President Rick Foss and Interim Vice President of Finance and Administration Bill Frame, we further reduced spending in FY2014 by more than $3 million. We finished the year better than planned primarily due to effective expense management and generous donor gifts. We recently welcomed 120 new students, as well as a new vice president for finance and administration, Michael Morrow. It is an exciting time to be part of Luther Seminary as we work on significant collaboration within our organization, with other institutions and congregations, with the ELCA and with other ecclesial bodies. There is significant work ahead as we explore multiple possibilities for long-term sustainability of the mission. Thank you for joining with us as we cultivate the gifts we have been given to serve God s work in the world total enrollment: 696 students Enrollment by degree program 56% Master of Divinity 17% Master of Arts (including Master of Sacred Music) 13% Ph.D. and Master of Theology 10% Doctor of Ministry 4% Certificate, non-degree or special programs Male/female enrollment 53% Male 47% Female Robin Steinke Distributed learning (DL) Master of Divinity: 108 students are enrolled in the M.Div. DL program Master of Arts: 15 students are enrolled in the M.A. CYF DL program Find us 2
3 Preparing students now and for the future ELCA students * by region 69% of students have identified themselves as belonging to the ELCA Ecumenical students 31% (214 students) represent 40 denominations and faiths other than the ELCA. 44 Lutheran (Non-ELCA) 29 Methodist 19 Presbyterian 16 Evangelical 15 Nondenominational 14 Baptist 10 Episcopal 8 Pentecostal 6 Catholic 6 UCC 4 Anglican 4 Reformed 1 Latter-day Saints 38 Other *Only reflects students who have identified as candidates for rostered ministry International students 58 enrolled from 23 countries Scholarships make a difference Luther Seminary awarded 465 scholarships during $2.8 million in scholarships and financial aid was awarded during Financial aid covers approximately 54 percent of the cost of tuition. On average, a student receives $6,200 in scholarships and grants from Luther Seminary. Tuition $15,000 Other $21,473 Total $36,473* *Reflects the cost for students living off campus Remaining need 30% Graduate without seminary debt. 70% Graduate with seminary debt. Median indebtedness for these students is $47,858. Financial aid information is current as of October 2014 and is based on the fiscal year. 3
4 Finances % 7% Unrestricted Operating Income (Millions) 15% 43% Private Gifts, Grants and Releases $9.83 Tuition and Fees $6.05 Endowment $3.51 Auxiliary Enterprises $2.02 Churchwide & Synod Support $ % Total Unrestricted Operating Income $ % 8% 6% 7% 26% Unrestricted Operating Expenses (Millions) Student Instruction $5.98 Institutional Support $6.45 Scholarships $2.76 Auxiliary Enterprises $1.75 Physical Plant & Maintenance $2.99 Student Services $1.42 Academic Support $ % 28% Total Expenses $22.81 Endowment Total Market Value (as of 6/30/14)* $86.96 million Investment Returns 1-year 15.74% 3-year 7.53% 5-year 11.08% * Includes $7 million invested by the endowment into Luther Seminary Donor support makes up 58 percent of Luther Seminary s operating revenue when combining outright gifts and endowment income. 4
5 Luther Seminary and Foundation consolidated balance sheets, June 30, 2014 and 2013 Assets Current Assets Cash and Cash Equivalents $5,758,632 $5,111,973 Restricted Cash 833, ,150 Student Accounts, Less Allowance of $100,000 and $122,900 for 2014 and 2013, respectively 178, ,318 Accrued Interest Receivable 3,306 8,667 Other Receivables 485, ,635 Inventory 6, ,918 Total Current Assets $7,265,730 $6,398,661 Other Assets Contributions Receivable, Net 1,126,905 1,305,629 Investments 82,712,434 74,613,299 Beneficial Interest in Remainder Trusts 1,957,816 1,433,231 Life Interest in Land 212, ,900 Other Assets 1,561,648 1,620,732 Student Notes Receivable, Net 2,861,930 2,762,358 Assets Held for Sale 4,613,944 0 Land, Buildings and Equipment, Net 8,368,705 13,128,263 Total Other Assets $103,416,282 $95,076,412 Total Assets $110,682,012 $101,475,073 Liabilities and Net Assets Current Liabilities Accounts Payable 515, ,914 Accrued Expenses 1,412,114 1,235,234 Deposits and Deferred Revenue 589, ,847 Line of Credit 1,150,000 1,355,000 Current Portion of Split Interest Agreements 561, ,334 Notes Payable, Current Portion $240,317 $230,216 Total Current Liabilities $4,468,889 $4,071,545 Long-Term Liabilities Split Interest Agreements, Net of Current Portion 3,408,865 3,659,041 Notes Payable, Net of Current Portion 5,514,140 5,754,457 Asset Retirement Obligation 2,491,611 2,292,135 Advances from Government for Federal Loans 2,008,032 2,048,933 Total Long-Term Liabilities $13,422,648 $13,754,566 Total Liabilities $17,891,537 $17,826,111 Net Assets Unrestricted: Board Designated Endowment 551, ,148 Board Designated Land, Buildings and Equipment 7,515,390 7,482,054 Board Designated Other 752, ,367 Undesignated (8,056,353) (14,006,068) Total Unrestricted $762,623 ($5,804,499) Temporarily Restricted 15,022,833 15,183,232 Permanently Restricted 77,005,019 74,270,229 Total Net Assets $92,790,475 $83,648,962 Total Liabilities and Net Assets $110,682,012 $101,475,073 5
6 New curriculum ensures leadership for the future church During the 2013 academic year, while faculty taught and mentored students, they were also busy building something: a revised Master of Divinity and Master of Arts curriculum meant to respond to the needs of the church in an ever-changing world. That curriculum, which represents many years of hard work and faculty collaboration, was implemented in the fall of Our hope and goal is that students will not only learn how to lead in today s church, they ll learn how to adapt to the changing nature of their ministries moving forward as well, said Craig Koester, academic dean. Though still in its early stages, the hope is that the flexibility of the new curriculum will make getting a first theological degree more attractive to and attainable for prospective students. The new curriculum is thoughtfully designed and marks an exciting transformation in the field of seminary education one that is more responsive to the communities our leaders are called to serve, Koester said. Thank you for your support, which enables Luther Seminary to respond to the needs of the church and world in innovative ways like this. To learn more about Luther Seminary s new curriculum, visit where you can download a flyer and watch a video featuring faculty and students. 6
7 Alum-led congregation provides scholarship support Pastors John and Rachel Simonson have found a welcoming congregation at St. John s Lutheran Church in the small town of Killdeer, N.D. The couple began their ministry after being called to St. John s and two nearby churches upon their graduation from Luther Seminary in Rachel Simonson says she s been humbled by the generosity and kindness they ve felt in their new home. That generosity has now extended to the seminary itself, with St. John s recently making a significant $100,000 donation to Luther Seminary to provide scholarship support and fund financial training for students. Rachel explains that Killdeer, which sits on the edge of the booming oil fields in North Dakota, has benefitted from the monies that come from leasing oil and gas rights in the area. In fact, the donation to Luther Seminary came from an endowment at St. John s called the Ruth Grande Ministry Fund, established by a longtime congregation member who donated her mineral rights to the church upon her death with a request that the funds be used specifically to support Christian education and ministry through the ELCA. It was a pretty quick decision, Rachel says about the donation, noting that the proposal was raised in council and passed with little discussion. She adds that the congregation as a whole sees the critical importance of supporting Christian education, and is extremely pleased to have done so by contributing to Luther Seminary. Consider giving to support future church leaders. Learn about all the ways you can give at 7 Luther Seminary has alumni in all 50 states and 46 countries. 86 percent of new students received merit-based scholarships. More than 80 percent of M.Div. graduates go on to pursue their calls within six months of graduation. Luther Seminary reached an all-time high of 116 Leadership Circle members in Luther Seminary has 3,451 alumni currently serving in ministry. 30 percent of WorkingPreacher.org s 2.5 million visits in came from outside the United States. Other ways you can help Your monetary support goes a long way in helping us educate future leaders. Here are some additional ways you can help: Pray for our students, that they will continue to discern the best ways to use their unique gifts for ministry. Pray for faculty and staff, as they educate and support future leaders. Consider including Luther Seminary in your will, so your support will continue to help educate students far into the future. Continue supporting scholarships and the sustaining fund, which allows Luther Seminary to continually develop innovative ways of teaching, like the new curriculum.
8 Thanks to the financial gifts of faithful donors, I am able to serve as an artist-inresidence at Luther, creating artwork and getting a theological education in return. Sam Bardwell, M.A. Senior and Artist in Residence SR Como Ave., St. Paul, Minn Our mission: Luther Seminary educates leaders for Christian communities called and sent by the Holy Spirit to witness to salvation through Jesus Christ and to serve in God s world.
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