LCMS Foundation VP Response to Cascione About $40,000,000
by Rev. Jack Cascione

 

Response from the LCMS Foundation Vice President to the article titled "Leadership and the Joy of Spending Other People's Money" by Rev. Jack Cascione.

 

Dear Rev. Cascione

I have read your response to the Reporter article on the loss suffered by the Foundation. From its tone I am pushed toward the conclusion that you do not believe the data included in the report I gave at the Fall Conference as summarized in that article.

You seem to be under the impression that the funds lost were owned by the Foundation; that is not the case, these funds were owned by the various synodical entities for which the Foundation serves as custodian or trustee. Each owner was informed of the losses sustained. If there had been a profit, that too would have belonged to the owners and would have been reported to them.

While I may have said "more than two times" that would include five times. But please note that the real issue here is that the employee, in violation of explicit policy, invested in such a way that the true nature of the instruments was not visible or disclosed to anyone in the Foundation, to the auditors, or to the Board.

I would be pleased to provide you with any further detail on the loss that you might need to assure you of the integrity of the investigation performed by the Board, the report presented, the Board members and the staff members (with the obvious exception of the unnamed former employee). As mentioned in the article, we have failed to meet the expectations of those we serve and for that we ask forgiveness including yours. We have nothing to hide and are eager to improve our communication with everyone in the church.

It is also clear that you have reservations about the value/cost of the Fall Conference. I would be delighted to have you attend the next conference at my personal expense. After observing all that goes on you would certainly have a stronger basis from which to assess its value.

I find that rubbing shoulders with so many laypeople who are passionate about participating in the process of funding of the growth of the Lord's kingdom is a means by which the Lord communicates great encouragement to carry on -- an encouragement we all need from time to time.

You, of course, might come away with a completely different reaction and I would respect that. The next Fall Conference is scheduled for November 17 - 19, 2000 in Houston, Texas. I hope that you can make it.

Just one other observation. The money spent by the Foundation on its participation in the Conference was not "Other People's Money." Funds used for this purpose were donated directly to the Foundation for use at its discretion. The Lord has certainly blessed the Foundation's activities -- $1.1 billion in future gifts identified, distribution of $345 million in earnings and $109 million to various ministries all in the last 10 years.

Please also be aware that less that 2% of the money the Foundation manages is available for the purpose of funding the Foundation's activities or for the Foundation's distribution to fund the activities of others. All the rest is managed either as custodian or as trustee for others and is distributed by the Foundation as the donors (in the case of trusts) or owners have directed.

With best wishes for a blessed celebration of our Lord's birth both for you and for the Lord's congregation you serve,

Paul W. Wiedenmann
Vice Chairman
Board of Trustees
LCMS Foundation


Cascione Reply to LCMS Foundation VP About $40,000,000

Paul W. Wiedermann
Vice Chairman
Board of Trustees
LCMS Foundation

Dear Mr. Wiedermann:

Please forgive my less than prompt response to your letter of December 28, 1999. I must confess that I have some doubts as to the veracity of the Foundation in this entire matter.

The Foundation's funding of the Church Growth Movement in the LCMS, promoted by the Council of District Presidents and Dr. Norbert Oesch's Pastoral Leadership Institute, places you in an adversarial position to Walther and the royal priesthood of all believers. You are giving away the laymen's money in order to replace congregational Voters' Assemblies with corporate hierarchy. One could even come to the conclusion your support for PLI will help alleviate the Foundation from scrutiny by congregational Voters' Assemblies.

Any financial information you send will be appreciated, though I must confess, not properly understood by myself.

Your carefully written letter, request for forgiveness, and gracious invitation to attend the next Fall Conference are far more cordial and disarming than I expected.

Wouldn't you at least agree that the appearance of 900 people flying to San Diego for three days, shows a little more extragance than might be appropriate when you have lost $40,000,000.00. You also might tell us, who picked up the check for this gathering? Your reference to 2% of the Foundation's money to fund its activities sounds like about $1,500,000.00 or four times our congregational budget.

I have no choice but to forgive you as Christ has forgiven me. Christ leads us to repentance with the Law and then forgiveness with the Gospel (narrow sense for both here). I have a counter offer instead of the free trip to Houston.

Would you allow a qualified independent CPA or Auditor of our choice to examine your books and give a full report? As you know, we must all be eager and willing to give a full accounting. Any LCMS congregation should expect nothing less of its treasurer. This would clearly demonstrate true repentance on your part without any desire to hide information from members of the LCMS. In this case I would no longer be your critic but staunch defender. This would show true repentance in word and deed and as you write, "We have nothing to hide and are eager to improve our communication with everyone in the church."

Yours in Christ,
Pastor Jack Cascione


Rev. Jack Cascione is pastor of Redeemer Lutheran Church (LCMS - MI) in St. Clair Shores, Michigan. He has written numerous articles for Christian News and is the author of Reclaiming the Gospel in the LCMS: How to Keep Your Congregation Lutheran. He has also written a study on the Book of Revelation called In Search of the Biblical Order.
He can be reached by email at pastorcascione@juno.com.

January 12, 2000