Permeating the academic, social, and personal environments at Luther are the school's religious origins and philosophy. Luther Memorial School is operated by the Bethlehem Lutheran Foundation, an outreach ministry of area Lutheran churches. 

Religion and values are taught, prayers are said, and character is emphasized. Luther provides a consistent environment of faith-in-practice. A Luther student learns how to integrate faith, knowledge, and conduct into a God-pleasing whole.

Luther's spiritual underpinning provides a secure place for young children to go forth from home for the first time, for elementary students to explore and learn with guidance, and for middle school students to begin their adolescence.