In 1893, reacting to what it deemed overly hierarchical elements in the Norwegian church, Augsburg leaders organized the "Friends of Augsburg", which by 1897 had coalesced to form a new Lutheran denomination, the Lutheran Free Church, a body that flourished for 70 years.

To further expand its mission, a high school level Augsburg Academy was provided on the campus.

In 1874, they proposed a three-part plan: first, train ministerial candidates; second, prepare future theological students; third, educate the farmer, worker, and businessman.

This commitment to church and community has led to Augsburg's theme of over 130 years: Education for Service.

He worked to develop college departments with an appeal to a broader range of students than just those intending to be ministers.

His involvement in ecumenical and civic circles made Augsburg a more visible part of church and city life.

After World War II, Augsburg leaders made vigorous efforts to expand and improve academic offerings.

By mid-century, the undergraduate college had become a larger part of the institution than the seminary and received the most attention.

Augsburg aims to reflect the commitment and dedication of its founders, who believed "an Augsburg education should be preparation for service in community and church" [by] "Providing an education grounded in vocational calling, that provides students both the theoretical learning and the practical experience to succeed in a global, diverse world.

[5] Anderson Hall is a four-story building with four different styles of housing: single-person suites, four-person apartments, eight-person townhomes (two floors), and 15-person floorhouses.

The Foss Center for Worship, Drama and Communication contains the chapel, a theater, and several classrooms.

The Norman and Evangeline Hagfors Center for Science, Business, and Religion is the newest building on campus and also the largest.

Augsburg University was one of six higher education institutions in the nation to receive the 2010 Presidential Award for Community Service, the highest honor in the annual President's Higher Education Community Service Honor Roll.

[4][11] In 2013, U.S. News & World Report magazine named Augsburg one of the best colleges for service-learning, which includes 31 schools across the country where volunteering in the community is both an instructional strategy and a requirement of a student's coursework.

[17][18] After the hostile campus environment towards LGBTQIA individuals culminated in several anti-LGBTQIA incidents in 2003, students occupied administrative offices to protest the university's lack of action.

[19] QPA is advised by the director of the LGBTQIA Student Services office, which jointly provides the campus community with workshops, performances, weekly group meetings, and speakers, as well as exposing students to the wider Midwestern LGBTQIA rights movement by sponsoring retreats and trips to conferences.

[21] ... we affirm the following: that people of all sexual orientations and gender identities share the worth that comes from being unique individuals created by God; that people of all sexual orientations and gender identities are welcome with the Augsburg community; and that as members of this community, people of all sexual orientations and gender identities are expected and encouraged to share in the common life of this university.Augsburg houses four Centers of Commitment that provide student services, academic opportunities, and co-curricular programming: A fifth center, Interfaith at Augsburg, was established in 2019 to promote interreligious leadership on campus and nationally.

StepUP at Augsburg University is one of the nation's oldest and most comprehensive residential programs students in recovery from drug and alcohol abuse.

[23] Services to address issues including blood pressure, nutrition, medication, social isolation, minor injuries, and diabetes are provided free of charge to individuals from diverse cultural and socioeconomic backgrounds, many of whom are marginally housed.