WEBVTT 1 00:00:06.023 --> 00:00:08.223 Welcome to Mission Works 2 00:00:08.223 --> 00:00:09.623 Thanks to Donors. 3 00:00:09.623 --> 00:00:11.223 I'm Dale Meyer. 4 00:00:11.223 --> 00:00:15.923 Concordia Seminary is on solid financial footing. 5 00:00:15.923 --> 00:00:21.723 That means for example, that tuition is guaranteed for our students. 6 00:00:22.923 --> 00:00:24.723 But I got some questions about that. 7 00:00:24.723 --> 00:00:27.923 Today we have with us again, Mr. 8 00:00:27.923 --> 00:00:30.423 Chad Cattoor, Chief Financial Officer for Concordia 9 00:00:30.423 --> 00:00:32.223 Seminary. Welcome back, 10 00:00:32.223 --> 00:00:32.723 Chad. 11 00:00:32.723 --> 00:00:37.023 You are now the star of a Mission Works miniseries. Thanks, Dale. 12 00:00:37.023 --> 00:00:40.423 What can I say? 13 00:00:40.423 --> 00:00:42.523 You're a hit. 14 00:00:42.523 --> 00:00:44.223 I'm on my way out. 15 00:00:44.223 --> 00:00:45.423 Okay. So Concordia Seminary 16 00:00:45.423 --> 00:00:48.423 is in good financial status. 17 00:00:48.423 --> 00:00:50.123 Which hasn't always been the case, but we're in 18 00:00:50.123 --> 00:00:50.323 good shape, 19 00:00:50.323 --> 00:00:50.823 now. 20 00:00:52.923 --> 00:00:56.523 Why give? You guys got lots of money? 21 00:00:57.823 --> 00:01:01.723 I think it's important to recognize that funding 22 00:01:01.723 --> 00:01:06.923 the mission is is really a collaboration among a variety of donors 23 00:01:06.923 --> 00:01:08.323 within the church. 24 00:01:08.323 --> 00:01:12.223 And I and I use the word donors loosely because it really 25 00:01:12.223 --> 00:01:18.523 doesn't encompass individuals, the districts and congregations, service 26 00:01:18.523 --> 00:01:19.823 organizations within the church. 27 00:01:19.823 --> 00:01:28.823 For example, the LCMS Foundation, faculty, staff, students, students even give to the institutiion, and the Board 28 00:01:28.823 --> 00:01:29.023 of Regents. 29 00:01:29.023 --> 00:01:34.223 But if you upset, you know, just one of those pieces if it has the 30 00:01:34.223 --> 00:01:37.623 potential to impact your entire funding model. 31 00:01:37.623 --> 00:01:42.023 If you look at the history of funding for Concordia, Seminary, the pie 32 00:01:42.023 --> 00:01:42.923 has changed. 33 00:01:42.923 --> 00:01:46.223 I mean, it's always a hundred percent pie but the pieces have changed. 34 00:01:46.223 --> 00:01:47.523 Could you talk about that a little bit? 35 00:01:47.523 --> 00:01:52.523 Go back decades. Decades, the gift income number 36 00:01:52.523 --> 00:01:56.823 yeah it's it's a significant number now and it's over 50%. That 37 00:01:56.823 --> 00:01:57.123 was probably 38 00:01:57.723 --> 00:02:02.823 well, it's maybe 75% but what you're seeing now is that the gift 39 00:02:02.823 --> 00:02:05.423 incomer is going down as a result of an aging donor base. 40 00:02:05.423 --> 00:02:11.223 And we have worked very hard at building the Seminary's endowment 41 00:02:11.223 --> 00:02:14.023 and you can see on the pie chart in the investment trust return 42 00:02:14.023 --> 00:02:18.523 number is roughly 26% and our goal is to continue to increase that. 43 00:02:18.523 --> 00:02:22.523 When I start, when I started as president, I think the endowment 44 00:02:22.523 --> 00:02:36.723 was around, forty million dollars and is it up or down since then? It's a little bit up Dale to your credit. We are close to $200 million in our endowment. 45 00:02:36.723 --> 00:02:41.123 And that was the big push for the Generations Campaign and the Generations 2020 46 00:02:41.123 --> 00:02:41.623 campaign. 47 00:02:41.623 --> 00:02:46.423 And our goal is to have that number at 30% by the year 2025. And this 48 00:02:46.423 --> 00:02:52.623 is significant because if the donor base of the LCMS continues to be 49 00:02:52.623 --> 00:02:53.623 called heaven, 50 00:02:54.223 --> 00:02:58.223 the gift income amount of the pie is going to shrink, and yet the 51 00:02:58.223 --> 00:02:59.423 mission has to go forward. 52 00:02:59.423 --> 00:03:04.223 So endowments are critical to filling what looks like it's going to be 53 00:03:04.223 --> 00:03:04.823 a funding gap. 54 00:03:04.823 --> 00:03:06.623 Exactly. 55 00:03:06.623 --> 00:03:07.123 Exactly. 56 00:03:07.123 --> 00:03:08.223 And that's what we're planning for. 57 00:03:08.223 --> 00:03:12.623 We're anticipating that you know the the estates and bequest that 58 00:03:12.623 --> 00:03:15.423 come into the institution that those are eventually going to 59 00:03:15.423 --> 00:03:19.423 taper off and it has to be supplemented somehow someway. One of the 60 00:03:19.423 --> 00:03:20.423 joys of my job 61 00:03:20.423 --> 00:03:24.623 and I know, President Egger has this experience now too, is writing 62 00:03:24.623 --> 00:03:28.323 letters to people who have established endowments and I would hand 63 00:03:28.323 --> 00:03:31.023 write a letter and say you and I will long be in heaven 64 00:03:31.023 --> 00:03:36.423 but the gospel will continue to go out because of your gift in this 65 00:03:36.423 --> 00:03:37.023 endowment. 66 00:03:37.023 --> 00:03:40.723 Let's let's look at the pie going backwards. 67 00:03:40.723 --> 00:03:42.123 Now, you just taking us into the future. 68 00:03:42.123 --> 00:03:47.623 If the LCMS doesn't start growing, you know, endowments are going to 69 00:03:47.623 --> 00:03:50.823 be critical, they're going to be critical anyway but let's go back 70 00:03:50.823 --> 00:03:54.023 30, 40 years. A big piece of that pie 71 00:03:54.123 --> 00:03:58.823 came from the Lutheran Church-Missouri Synod budget, didn't it? 72 00:03:58.823 --> 00:04:01.223 It did, it did. And 73 00:04:01.223 --> 00:04:03.023 now, you know, you go back 74 00:04:03.023 --> 00:04:09.323 30 40, 50 years, a large percentage of our of our income came from the 75 00:04:09.323 --> 00:04:12.023 Lutheran Church-Missouri Synod to the tune of over 40%. 76 00:04:12.023 --> 00:04:18.323 And now you're probably around 1% that is coming from Corporate Synod. Yeah, and 77 00:04:18.323 --> 00:04:24.823 we need to be very clear about this. When I entered Seminary it was 44% 78 00:04:24.823 --> 00:04:25.423 subsidy, 79 00:04:25.423 --> 00:04:29.823 okay. So when my parents, Art and Norma, went to church they put in 80 00:04:29.823 --> 00:04:31.323 their white envelope into the plate 81 00:04:31.323 --> 00:04:34.123 some of that went on to District some of it went on to St. 82 00:04:34.123 --> 00:04:35.323 Louis to Corporate Synod. 83 00:04:35.323 --> 00:04:37.523 And that was a subsidy that came, okay 84 00:04:37.523 --> 00:04:39.723 that was, you know, many, many years ago. 85 00:04:39.723 --> 00:04:41.723 It's just changed. 86 00:04:41.723 --> 00:04:43.823 And that there's no blame connected with this. 87 00:04:43.823 --> 00:04:48.723 It's happened in seminaries all across the ATS denominations, the 88 00:04:48.723 --> 00:04:51.023 Association of Theological Schools, excuse me. 89 00:04:51.823 --> 00:04:55.823 Denominations just don't support seminaries, the way they used too\ 90 00:04:55.823 --> 00:04:59.323 they can't, they don't have it. That is absolutely right. 91 00:04:59.323 --> 00:05:04.223 I mean, the economics and and the flow of money has changed. 92 00:05:04.223 --> 00:05:09.823 So here's my point and and you can elaborate on this, the donors of 93 00:05:09.823 --> 00:05:15.323 the LCMS, the people of the LCMS have stepped into the gap, and that's 94 00:05:15.323 --> 00:05:17.223 why the pie has changed. 95 00:05:18.023 --> 00:05:26.823 Yes, I will segue into our financial aid policy for example that we put in place years ago. 96 00:05:26.823 --> 00:05:31.023 That's heavily dependent on a variety of donors 97 00:05:31.023 --> 00:05:36.323 within the church. Districts and congregations, are part of that individuals through 98 00:05:36.323 --> 00:05:41.023 the adopt, a student program, that that's huge. Earnings off of our 99 00:05:41.023 --> 00:05:42.023 endowment our priority endowments, 100 00:05:42.023 --> 00:05:43.623 student aid. 101 00:05:43.623 --> 00:05:47.023 You know that number continues to grow, but that's is 102 00:05:47.023 --> 00:05:50.923 also a big part of our Student Financial Aid model. 103 00:05:50.923 --> 00:05:58.823 So you take Adopt a Student for example and that's been, that's been a blessing for a 104 00:05:58.823 --> 00:06:03.923 number of students on average a student receives roughly $7.000 105 00:06:03.923 --> 00:06:06.923 annually, to cover their, their tuition. 106 00:06:06.923 --> 00:06:10.723 And, you know, that's mainly coming. From Adopt a Student. From Adopt a 107 00:06:10.723 --> 00:06:12.423 Student. And then there's more funds 108 00:06:12.423 --> 00:06:13.723 that support tuition? Yes. 109 00:06:13.723 --> 00:06:17.423 So, you have funds from the districts and congregations. 110 00:06:18.023 --> 00:06:21.723 As I mentioned the investment and trust return and earnings off of an 111 00:06:21.723 --> 00:06:25.523 endowment to cover the tuition, like the Capstone, grant that we give 112 00:06:25.523 --> 00:06:26.123 to students 113 00:06:26.123 --> 00:06:26.823 that funds that. 114 00:06:28.723 --> 00:06:33.723 So yeah, you upset, you know, just one flow of of those dollars coming 115 00:06:33.723 --> 00:06:37.723 in the institution and that could impact the 116 00:06:37.723 --> 00:06:38.623 financial aid policy. 117 00:06:38.623 --> 00:06:42.923 So yeah, we need donors to continue to support the institution the way they 118 00:06:42.923 --> 00:06:46.623 have been. So with, with about 90% of the pie coming from donations. 119 00:06:46.623 --> 00:06:52.523 We need the continued support of our faithful and generous donors. 120 00:06:52.523 --> 00:06:55.223 I want to make sure that I don't get in dutch with Lutheran 121 00:06:55.223 --> 00:06:58.523 Church-Missouri Synod. You know the corporate Synod 122 00:06:58.523 --> 00:07:00.623 cannot give us a subsidy that used too, 123 00:07:00.623 --> 00:07:05.023 we get that no ill-will intended there. But the people of the 124 00:07:05.023 --> 00:07:05.223 Lutheran. 125 00:07:05.223 --> 00:07:09.223 Church-Missouri Synod have not let their seminaries down. Seminaries 126 00:07:09.223 --> 00:07:11.423 in the plural this applies to Fort Wayne as well. 127 00:07:11.423 --> 00:07:14.823 They have supported us because they've got a heart for the mission of 128 00:07:14.823 --> 00:07:15.223 our Lord 129 00:07:15.223 --> 00:07:15.223 Jesus. 130 00:07:15.223 --> 00:07:17.023 Is there anything else 131 00:07:17.023 --> 00:07:22.223 as we wrap up this mini series star Cattoor that you'd you'd like to 132 00:07:22.223 --> 00:07:23.023 say to our donors. 133 00:07:23.023 --> 00:07:24.223 Thank you. 134 00:07:24.223 --> 00:07:25.223 Thank you. 135 00:07:25.223 --> 00:07:25.623 Thank you. 136 00:07:25.623 --> 00:07:25.923 Thank you. 137 00:07:27.123 --> 00:07:31.123 I feel absolutely blessed to be able to work at this institution. 138 00:07:31.123 --> 00:07:34.223 It's, it's been a true blessing to work with you Dale. 139 00:07:34.223 --> 00:07:39.823 You know, I stepped foot on this campus, in October of 1998, as an 140 00:07:39.823 --> 00:07:44.023 auditor working for the International Center at that time and it's one 141 00:07:44.023 --> 00:07:47.923 of those things were once you come on this campus, it's you feel this 142 00:07:47.923 --> 00:07:51.723 connection and you don't, when I first stepped on the themes, I just 143 00:07:51.723 --> 00:07:57.623 knew I wanted to work here. And I am so I am so appreciative of the 144 00:07:57.623 --> 00:08:02.223 donors that continue to support this Mission and this is just an 145 00:08:02.223 --> 00:08:03.523 unbelievable place to work. 146 00:08:03.523 --> 00:08:04.623 Thank you, Chad. 147 00:08:04.623 --> 00:08:05.823 I couldn't say it any better. 148 00:08:05.823 --> 00:08:08.823 Mission Works Thanks to Donors. 149 00:08:08.823 --> 00:08:09.923 Thanks to you.