ELCA NEWS SERVICE February 23, 2004 A Banner Year for the ELCA Mission Investment Fund 04-024-FI CHICAGO (ELCA) -- 2003 was a banner year for the Mission Investment Fund of the Evangelical Lutheran Church in America (ELCA). To the Mission Investment Fund, a banner year is good for investors in the Fund, for borrowers from the Fund and for the mission of the church, according to Andy Waters, vice president and director for operations, ELCA Mission Investment Fund. "Investors are receiving a blessing, and borrowers are receiving a blessing. So, it's a win-win situation," he said. The Mission Investment Fund offers investment opportunities to ELCA congregations, their members and ELCA-affiliated institutions such as colleges, universities and social-service agencies. With the invested monies, the Fund makes loans to ELCA mission congregations for purchases of land and construction of initial church units, and to established ELCA congregations for renovating or expanding existing facilities, relocations and purchases of land. Nearly 500 loans are in effect throughout the United States, Puerto Rico and the U.S. Virgin Islands. More than one-third of the ELCA's 10,721 congregations, thousands of individual Lutherans and numerous ELCA-affiliated institutions are investors in the Fund. "The Fund has approximately $440 million in total assets, which is an increase of more than $30 million from a year ago," Waters said. "With $22 million in new investments, 2003 was the second highest year for increases in deposits with the Mission Investment Fund," Waters said. As of Jan. 21, 2004, the amount of investments in the Fund was $280,450,033. "The Fund has loaned more than $220 million directly to congregations. We also have a partnership with another lender that the Fund has [loaned] $50 million. So, the reality is that we've made approximately $275 million out there in loans to ministries of the ELCA," Waters said. "The Fund has $10 million invested in real estate." From a position of strength, the ELCA Mission Investment Fund was able to offer a new investment in 2003. MissionFirst -- a savings investment plan -- was offered to members of ELCA congregations beginning in July 2003. With a minimum initial investment of $25 and the ability to make additions of $25 or more to the principal at any time, investors can receive an adjustable interest rate on their investment and make one withdrawal per month. During 2003 and the first few weeks of 2004, MissionFirst "received $2.4 million in new deposits," Waters said. "Investors may also select a MissionPlus account that allows them to write checks and earn interest," he said. Investors showed their satisfaction with the Fund by renewing their maturing investments. "Seventy percent of those whose investments were maturing this year -- individuals and congregations -- actually decided to renew their investments," Waters said. "Investors have made a conscious decision about where they are going to invest their money in the Mission Investment Fund," Waters said. "They are receiving a gift of wise stewardship of their resources, and they're receiving interest on their investments." MIF provides $100 million dollars in new loan commitments Waters said loans approved in 2003 included projects in two of the ELCA's 65 synods, four outdoor ministry sites, two seminaries and many other ministries. "We provided almost $100 million dollars in new loan commitments during the year," he said. The ELCA Southeast Michigan Synod received a loan to purchase and renovate its new office building in Detroit, Waters said. "The synod bought a Victorian home, worked with an architect and renovated it into a beautiful building," he said. A grassroots effort in the ELCA South Dakota Synod, with the support of the ELCA Division for Outreach and a loan to the synod from the Mission Investment Fund, will provide a ministry for the indigenous people of South Dakota. "Native Americans will have a ministry center that will provide worship services and mentor training," Waters said. "We're providing the loan, and a matching grant to help purchase the building." The Fund's strength made it possible to reduce the interest rates for loans made to more than 50 ELCA mission congregations for initial church-building programs or purchases of vacant sites for future churches. The rate reduction was effective Jan. 1, 2004. The interest rate for the congregations' loans was lowered to 3 percent for the remaining terms of the respective loans. Interest rates on these loans varied from 4 to 7 percent. The interest-rate reduction by the Fund represents a savings to the congregations of more than $1.4 million. The loans receiving the interest-rate reduction were made prior to January 2003, when the Fund announced an interest rate of 3 percent for seven years to young mission congregations for the construction or purchase of initial church buildings. The Fund also offered mission congregations a zero-percent interest rate for two years, followed by a two-percent interest rate for five years, for purchases of vacant land for future church buildings. The congregations holding loans did their part to make 2003 a banner year for the ELCA Mission Investment Fund by making payments on their loans. "We know that congregations, from time to time, can have unforeseen problems," Waters said. "In the management of the Mission Investment Fund, we take into account an expected delinquency rate. The expected delinquency rate did not exceed where we thought we would be," Waters said. While other financial institutions are seeing an increase in delinquencies, the Fund's delinquency rate is stable, he said. "That speaks well of Christian-based organizations and where their faith resides," Waters said. "When Christians make a promise to do something, they tend to do whatever it takes to fulfill that commitment," he said. MIF offers free advice on how best to use buildings When a congregation is ready to build or renovate, the ELCA Mission Investment Fund is also ready with free advice. "We have eight church building consultants who help congregations look at their buildings" and help the congregations determine how best to use their facilities for ministry, Waters said. "Many congregations wonder what they can do to make their churches better tools for ministry, and our consultants are available to help them do that," he said. The church building consultants are not only looking for barriers that may prevent people with physical limitations from going into worship centers or into fellowship halls in basements, Waters said. They are looking for "invisible barriers" that "make it difficult for people who don't know Christ to come into a building," he said. "It might mean putting signs in the parking lot to designate visitor parking spaces. It might mean adding a greeting space or narthex, because maybe the existing narthex may be very small and it's not welcoming to the people who are visiting," Waters said. The congregations know that's not ideal but may not know how to fix it. "Building consultants are available to help them figure out what they can and should do, and then we're there with the financial resources to provide a loan, if that's what they want to do," Waters said. The Fund has "a staff architect to work with young congregations that are designing their first buildings, helping them make sure the building is affordable, fits within a budget, is going to be expandable and is going to serve their ministry well," Waters added. -- -- -- Information about the Mission Investment Fund -- including current interest rates and the full offering of investment opportunities -- is available at http://www.elca.org/mif/ on the ELCA Web site. Mission Investments are securities that are sold only by means of an offering circular, which is available from the Mission Investment Fund. Mission Investments are subject to certain risks. See "Risk Factors" following the introduction in the Offering Circular. As securities issued by a non-profit institution, the investments offered by the Mission Investment Fund are not insured by FDIC, SIPC or any federal or state regulatory agency. EDITORS: Additional information about the investments and loans the MIF offers can be obtained by calling toll-free (877) 886-3522 or by sending e-mail to [log in to unmask] For information contact: John Brooks, Director (773) 380-2958 or [log in to unmask] http://www.elca.org/news