The churchwide organization of the Evangelical Lutheran Church in America had expenses in excess of

revenue of $2.1 million in current operating funds for the three-month period ended April 30, 2010, an

unfavorable variance of $0.5 million from April 30, 2009 and unfavorable to the period budget by $0.1

million. A timing variance in fraternal grant support of $1.0 million was the primary factor in the larger

deficit for the first quarter.

Receipts totaled $15.7 million for the three-month period compared with $18.5 million the previous year, a

decrease of $2.9 million or 15.6 percent. Expenses related to the current operating fund amounted to $17.8

million, a decrease of $2.4 million or 11.9 percent from April 30, 2009. Revenue in the period was

unfavorable to the budget by $1.6 million or 9.3 percent. Expenses were below the authorized unit spending

plans by $1.4 million or 7.5 percent.

Income from congregations through synods in the form of Mission Support income for the first quarter 2010

was $13.0 million, a decrease of $1.9 million or 12.5 percent. Mission Support income was unfavorable to

the revised budget by $0.5 million or 3.5 percent.

Other temporarily restricted and unrestricted funds available for the budgeted operations of the church

amounted to $2.6 million compared with $3.7 million in the first three months of 2009. Income from Vision

for Mission, $0.3 million, and missionary sponsorship, $0.6 million, resulted in favorable variances to both

the year-to-date budget and to April 2009. Income from investments of $30 thousand and bequests/trusts,

$0.3 million, were behind budget and the same period in 2009. Other sources of income included support

from the Mission Investment Fund, $0.4; endowment income, $0.5 million; and other income of $0.5

million.

Total contributions to ELCA World Hunger for the three months were $2.6 million - unfavorable to the same

three-month period in fiscal 2009 by $0.2 million. A decrease in receipts through synods and bequests/trusts

were the primary factors for the decrease. Outright gifts for World Hunger were slightly favorable to the

previous year. ELCA members contributed $7.4 million for the ELCA Disaster Response in the first three

months of 2009, primarily in support of the Haiti earthquake response which received gifts of $6.7 million

(and total over $11.2 million since January 2010). This compares to $0.3 million in revenue for the same

period in 2009.

The first quarter 2010 decline in Mission Support income in 56 of the 65 synods compared to first quarter

2009 remittances merits careful attention. The annual Mission Support budget for 2010 was reduced by $4.6

million or 7.7% from the amount received in 2009. The decline of 12.5% in the first quarter 2010 compared

to the same period in 2009 exceeds the rate anticipated in the budget proposal and is unfavorable to budget

by 3.5%. In 35 synods, mission support at the end of April is unfavorable to the same period in 2009 by

greater than ten percent.

An under-spending plan of 5% has been implemented as a short-term means to address the financial

situation. Additional contingency planning is ongoing and continues to be critical for the churchwide

organization.