II. The name of the true Church belongs also to all those visible companies of men among whom God’s Word is purely taught and the holy Sacraments are administered according to the institution of Christ. True, in this Church there are godless men, hypocrites, and heretics, but they are not true members of it, nor do they constitute the Church.
III. The name Church, and, in a certain sense, the name true Church, belongs also to those visible companies of men who have united under the confession of a falsified faith and therefore have incurred the guilt of a partial departure from the truth; provided they possess so much of God’s Word and the holy Sacraments in purity that children of God may thereby be born. When such companies are called true churches, it is not the intention to state that they are faithful, but only that they are real churches as opposed to all worldly organizations (Gemeinschaften).
IV. The name Church is not improperly applied to heterodox companies, but according to the manner of speech of the Word of God itself. It is also not immaterial that this high name is allowed to such communions for out of this follow:
1. That members also of such companies may be saved; for without the Church there is no salvation.
V. The outward separation of a heterodox company from an orthodox Church is not necessarily a separation from the universal Christian Church nor a relapse into heathenism and does not yet
deprive that company of the name Church.
VI. Even heterodox companies have church power; even among them the goods of the Church may be validly administered, the. Ministry established, the Sacraments validly administered, and the keys of the kingdom of heaven exercised.
VII. Even heterodox companies are not to be dissolved, but reformed.
VIII. The orthodox Church is chiefly to be judged by the common, orthodox, public confession to which its members acknowledge and confess themselves to be pledged.