The polity of the Lutheran churches differs between Scandinavia and Germany, with North American Lutheranism and Lutheran churches on other continents reflecting both traditions. The Church of Sweden, which ended its status as a state church in 2000, has maintained the episcopal office (and with it episcopal succession), and its local congregations have considerable freedom to appoint their own pastors. The Danish Church first rejected then reintroduced the episcopal office. In Norway the ties between church and state had traditionally been closer than in the other Scandinavian countries, with the parliament exercising a major voice in church affairs, but in 2006 the General Synod of the Church of Norway agreed that church and state should separate in Norway. Since 1869 the Finnish Church has been independent of state control but is supported by public funds.

Until the end of World War I, the administrative affairs of the Lutheran churches in Germany were handled by government offices, with the ruler exercising important power as summepiskopus, or presiding bishop, a system of church governance that emerged from the Reformation. With the establishment of the Weimar Republic, the regional Lutheran churches (Landeskirchen) adopted new constitutions that in some provinces placed the congregations under a superintendent and a general synod while in others they were placed under a bishop. These Landeskirchen consisted of 15 Lutheran and 12 Prussian Union synods along with one Reformed synod. These churches were united in 1922 in the German Evangelical Church Federation (Deutscher Evangelischer Kirchenbund). For Lutherans the concurrent existence of both Lutheran churches and churches of the Prussian Union in the federation was highly problematic, since it posed the question of the federation’s theological viability. Confessional Lutherans insisted on the creation of an Association of Evangelical Lutheran Churches (ELKD; Evangelisch-Lutherische Kirche Deutschlands).

After the end of World War II, the Lutheran, Prussian Union, and Reformed Landeskirchen organized the Evangelical Church in Germany (Evangelische Kirche in Deutschland, EKD), under the leadership of bishops Theophil Wurm and Hans Meiser and Pastor Martin Niemöller. The member churches of the EKD adopted the Declaration of Barmen, with its expression of the communalities of the Lutheran and Reformed traditions, as a foundational statement. To safeguard Lutheran confessional concerns, the United Evangelical Lutheran Church of Germany (Vereinigte Evangelisch-Lutherische Kirche Deutschlands, VELKD) was established in 1948 as the federation of Lutheran regional churches. By the late 20th and early 21st century, efforts had begun to integrate the VELKD more fully into the EKD.

Despite the division of Germany into four Allied zones of occupation at the end of World War II, the EKD encompassed both East and West Germany. The creation of the East German and West German states in 1949 initially did not mean the end of the EKD. In 1968 pressure from the East German government forced the East German churches to leave the EKD and establish their own East German Evangelical federation (United Evangelical Lutheran Church in the German Democratic Republic).

East German Lutherans, living in a society that was hostile to Christianity and intermittently persecuted Christians, sought to avoid confrontations with the state, even when it decreed an all but mandatory “youth consecration,” which was to replace confirmation. In contrast to communist Poland, where the Roman Catholic Church did not shy from outright confrontation with the regime, East German Lutherans were determined to cooperate with the state whenever possible while at the same time affirming the need for the church to be the church. This strategy was expressed in the slogan “church within socialism.” By the late 1970s a rapprochement with the communist regime had begun to take place. Nonetheless, membership in the Lutheran churches declined significantly in the roughly half-century of communist rule in East Germany. When the German Democratic Republic began to experience a series of human rights demonstrations in 1988 and 1989, Lutheran pastors and churches were in the forefront of the demand for greater civil liberties, thus playing an important role in the eventual disintegration of the East German state. The unification of Germany in 1990, however, had little impact on church membership, as the downward trend begun during communist rule continued. In the early 21st century less than 20 percent of the population of the former German Democratic Republic belonged to a Christian church.

In the United States the polity of the Lutheran churches is congregational, but in a complex form in which congregations yield some authority to synods on regional and national levels. Elected heads are called presidents in some Lutheran bodies, such as the Lutheran Church– Missouri Synod and the Wisconsin Evangelical Lutheran Synod, while the ELCA uses the term bishop for its 65 synodical leaders. It also has a “presiding bishop,” elected to a six-year term, who guides churchwide activities and initiatives. An assembly of all member churches meets every two years and is the legislative body of the ELCA. Besides these larger Lutheran church bodies, there are a number of smaller Lutheran churches both in Europe (e.g., the Evangelical Lutheran [Old Lutheran] Church in Germany) and in the United States (e.g., the Church of the Lutheran Confession or the Apostolic Lutheran Church), which have greater congregational autonomy.

A global association of Lutheran churches was first established in the Lutheran World Conventions, which met at Eisenach in 1923 and in Copenhagen in 1929. In 1947 it assumed permanent form as the Lutheran World Federation (LWF), an umbrella organization of the various national Lutheran churches. The LWF has no authority to speak for worldwide Lutheranism and mainly serves as a forum for intra-Lutheran discussion and ecumenical consultation with other churches. The LWF took the lead in ecumenical conversations with the Roman Catholic Church, which led to a “Joint Declaration” on justification, signed by representatives of the Roman Catholic Church and the LWF in 1999. The document declared that no substantive theological differences exist between the positions of the two churches on the topic. However, among Lutheran theologians, especially in Germany, the “Joint Declaration” evoked intense criticism for being unfaithful to the Lutheran tradition, even as the Roman curia also recorded reservations about the document, which nonetheless is understood as a milestone in Lutheran-Catholic relations.

The most exciting development of the 20th century was the dramatic expansion of Lutheranism beyond its European (and North American) homelands. Of the 77 million Lutherans who belonged to the LWF around the first quarter of the 21st century, there were roughly 33 million in Europe, 3.6 million in North America, 40 million in Asia and Africa, and around 800,000 in Latin America and the Caribbean. This new geographical diversity has created the same challenge for Lutheranism as it has for other global but originally European churches: that of maintaining traditional European and North American leadership in thought and practice as more and more adherents are found in other parts of the world. In the early 21st century there were about 30 Lutheran church bodies, with some 28 million members altogether, in Africa and more than 55 churches, with some 12 million members, in Asia.