LCC facing deficit budget; East District makes special gift

KITCHENER, Ontario – On May 6, the final day of the East District’s convention, President Paul Zabel announced that the district was making a special gift of $100,000 to Lutheran Church–Canada (LCC), to assist Synod as it faces an operating deficit this year.

President Bugbee thanks President Zabel, after the East District presents LCC with a cheque. (Photo: Chris Bruer)

“This gift from the East District is truly astounding,” LCC President Robert Bugbee said. “We cannot express just how grateful we are to the people of the East District for their generosity in partnering with us in this unexpected and deeply appreciated way.”

The decision came following Lutheran Church–Canada’s (LCC) report at the district convention a day earlier, at which time Synod Treasurer Dwayne Cleave had discussed the financial difficulties facing Synod in light of the crisis in the Alberta-British Columbia (ABC) District. LCC’s Board of Directors tentatively approved a deficit budget earlier this year in order to maintain core programming like international mission support and seminary support. The budget would see a deficit of $140,000 which would completely deplete any reserve capital LCC has in its internally restricted reserve funds.

Much of that deficit is attributable to the crisis currently facing the Alberta-British Columbia (ABC) District. Since the ABC District entered CCAA protection, it has been legally unable to remit congregational remittances to LCC. LCC estimates that approximately $100,000 of congregational remittances that would normally have been transferred by the ABC District to LCC earlier this year was instead frozen as a result of the district’s CCAA filing.

To address this concern, LCC approached congregations in Alberta and British Columbia to encourage them to directly remit to Synod the portion (35% monthly/40% annually) of their mission offerings that the ABC District would normally forward to LCC. A number of congregations have begun doing just that, prompting LCC’s President Bugbee to recently send a letter of thanks to congregations in Alberta and British Columbia. Still, the funds lost earlier in the year (due to the freeze placed on ABC District remittances, as well as the elapsed time between the freeze and when LCC began receiving direct remittances from congregations) left LCC facing a significant deficit.

The East District’s gift of $100,000 came following a meeting of their Board of Directors late on May 5, and will help alleviate the financial stress Synod is currently facing. “It’s true this gift does not end our financial problems,” President Bugbee noted. “We are still expecting a budget shortfall of at least $40,000 this year. But the East District’s gift goes a long way to ensuring the core work of Lutheran Church–Canada in international missions and church worker education will continue uninterrupted for the time being.”

President Bugbee encouraged LCC members across the country to include Synod in prayer. “We all know that our church body is facing significant stress at this time as a result of what’s happening in the Alberta-British Columbia District. Please pray for all those involved, especially in the lead-up to their District Convention. And please also pray for LCC, that God would continue to provide the resources necessary to fulfill the work we in Canada do together as we share the Gospel at home and around the world.”

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