Luther College is a private institution, incorporated under the laws of the State of Iowa. It is affiliated with the Evangelical Lutheran Church in America (ELCA). Funds for the operation of the college are also provided by endowments, gifts, tuition and fees, and auxiliary services.

The management and control of the college is vested in a Board of Regents, consisting of no more than 31 members serving four-year terms including a bishop designated by the bishops of the ELCA, Region Five, and the president of the college, who serves as an ex officio member. The officers of administration, the president of the Alumni Council, a representative from the ELCA's churchwide offices, and representatives of the faculty and the student body also meet with the Regents.