2020 ANNUAL REPORT

SHREDDING THE DEBT TRAP SINCE 2015

 OUR MISSION

Exodus Lending is dedicated solely to providing trapped Minnesotan

borrowers a just pathway out of payday loan debt and toward
financial stability.

On behalf of enrolled Minnesotans, Exodus Lending pays off up to

$1,500 of payday, title, or online installment loan debt carrying more
than 36% interest. Participants then repay over at least 12 months, with
no interest on their loan with us.

OUR VALUES

Transformation Relationship
We seek lasting change for the We desire a strong relationship
individual, for financial institutions, with our participants and partners
and for society at large. who further our shared goals.

Transparency Faith-Rooted Action

We aim for clarity with our clients We believe liberation is central to
and donors every step of the way. the traditions we embody.
Board of Directors A MESSAGE FROM OUR
Eric Howard
President
EXECUTIVE DIRECTOR
Anne Leland Clark
Vice President 2020 was a year no one wanted, but we all had to face. Just
days after a crew from MassMutual filmed us for a project
Sarah Schoolcraft called Live Mutual and we held our first in-person board
Secretary meeting with new board members, everything shut down due
Nick Scheibel to the COVID-19 pandemic. Suddenly we, like you, had to
Treasurer figure out how to live our lives and do our work in a new way.
Working from our homes, we revised our approach to
Tonia Brinston enrolling and staying in touch with our program participants.

Kit Fordham
Only a few months later, our hearts shattered upon hearing
Michelle Grosz the news that a Minneapolis police officer murdered George
Floyd. The resulting days of unrest left many buildings in the
Gary Hess blocks surrounding our place of origin destroyed and
reminded us that racism in our state continues to hurt all of
Gene Hummel
us. Until we live in communities, a state, and a nation that
Missy Juliette are fully anti-racist, we cannot thrive. We, therefore, renewed
our efforts to ensure that we continue to provide a loan
Sonia Palmer product to address the financial inequalities in Minnesota.
Cindra Vang
In addition to freeing participants from the debt trap in 2020,
Vienna Wilson we provided timely financial relief to those negatively
impacted by COVID-19. Thanks to the generosity of our
donors, we provided up to three months’ worth of assistance
to our program participants in repaying their loans with us
and offered grants to help with unexpected expenses.
Investments in our loan pool increased from $100,000 to
$170,000 in 2020, giving us more funding to lend to those who
come to us.
Staff
None of what we accomplished in 2020 would have been
Sara Nelson-Pallmeyer possible without the support of so many individuals and
Executive Director institutions. I continue to be deeply grateful for our capable
and adaptable staff; our committed board members; our
Belle Huberty
referral and advocacy partners throughout the state; our loan
Communications & Fundraising
pool investors; and our generous donors, including individuals,
Specialist VISTA
faith communities, and foundations. In such a deeply
troubling year, no contribution to our work was too small or
Anna Li
Program Coordinator went unnoticed.

Thank you all for your ongoing partnership in our efforts

Anika Riewe
to stop the payday loan debt trap.
Program & Communications
Assistant

Kaitlyn Szabo
Administrative & Development Sara Nelson-Pallmeyer
Associate Executive Director
 OUR
ACCOMPLISHMENTS

COVID-19 FINANCIAL RELIEF

Thanks to a generous donation designated exclusively to provide direct relief to
participants, Exodus Lending helped 241 Minnesotans impacted negatively by COVID-19. We
covered $27,476 of loan payments for 190 participants and distributed $71,400 worth of
grants of up to $500 each to 156 individuals.

INTEREST-FREE REFINANCING
Exodus Lending paid off more than $70,000 worth of predatory loans for 84 Minnesotans,
and 103 participants graduated by completing repayment with us. We estimate saving
participants about $220,000 in 2020 in exploitative interest and fees. Plus, we surpassed
$1,000,000 in savings all-time for our participants.

CTRL+ALT+DEL DEBT FUNDRAISER

Our team hosted a week-long virtual fundraiser with short yet powerful videos and
articles about the problem of payday lending and what we do to fight it. Together, we
shared our vision to take back financial CONTROL, create an ALTERNATE economic
reality, and DELETE predatory debt once and for all.

We were truly grateful for everyone's

support, as our Exodus Lending
community raised more than $42,000
in gifts and pledges, including four
new committed sustaining donors.

Visit our website for a recap:

https://exoduslending.org/2020fundraiser/
ADVOCACY EFFORTS
Our leadership team held several meetings with Minnesota elected officials to discuss the
importance of the federal Veterans and Consumers Fair Credit Act, which would pass a
nationwide 36% interest rate cap. Excitedly, our partners in Moorhead passed a strong
payday lending ordinance, including a 33% rate cap, to be effective starting in 2021.

PERSONAL LOAN PILOT

Building off our program success and driven by the expressed concerns of our participants,
we launched a pilot personal loan program and distributed ten $500 interest-free loans
with 12-month repayment terms. Since we report to the three major credit bureaus, this
product offered borrowers the opportunity to improve their credit scores.

EVENT WITH THE THEATER OF PUBLIC POLICY

Exodus Lending and The Theater of Public Policy hosted a virtual event featuring lots
of laughs and insightful discussion of payday lending in Minnesota.

After a brief conversation

between our executive director,
Sara Nelson-Pallmeyer, and The
Theater of Public Policy's host,
Tane Danger, the cast members
performed entertaining and
informational improv.

Visit our website for a recap:

https://exoduslending.org/t2p2/
 REUBEN'S STORY

Following retirement from a forty-year teaching career and his wife’s death, Reuben* found himself
turning to payday loans for their convenience. “It’s an easy, quick access to cash. Then, of course,
that builds up. If you get several of these [loans], then you become burdened down. When
you’re retired, your income, mine went down 48%.”

Because of the strain these loans placed on his finances, he struggled to make his payments and
unfortunately found himself trapped in a cycle of reborrowing. After a demeaning conversation
with his lender, Reuben started looking for legal advice on how to get rid of payday loan debt. He
came across Exodus Lending’s website and was initially attracted to our commitment to charge 0%
interest on our loans. He described Exodus Lending as “a godsend. [It] helped me out so much.”

“It was just so wonderful what you did. And not only for me, but my best friend…[He] also
had one or two, and I told him about, I found Exodus [Lending], and maybe two days
after I’d went there, and he signed up, and he’s been through your program and all these
wonderful things you’ve done.”

Then COVID-19 hit. Like many people, the pandemic worsened Reuben’s precarious financial
situation. “Being on a fixed income as a senior citizen had left me with limited income as the virus
continued.” Thanks to a generous donation, Exodus Lending covered up to three months of
participants’ payments and provided hardship grants for qualifying participants, including Reuben.

From refinancing to direct financial relief, Exodus Lending and our donors continued to provide
Minnesotans like Reuben much-appreciated support when they need it most. “I look at myself,
how much you helped me...I just think it’s amazing what you people are doing.”

“I think it’s just a wonderful thing…what you’ve done to really make my day better, make
things look better, and financially as well as socially, mentally, physically... [You] just don’t
have people out there doing what Exodus Lending does.”

*We have changed the participant’s name because of confidentiality.

 OUR FINANCIALS

STATEMENT OF FINANCIAL POSITION

Assets
Cash & Cash Equivalents $503,786
Accounts Receivable $58,891
Other Current Assets $11,742

TOTAL $574,419

Liabilities
Long-term Liabilities $170,000

TOTAL $170,000

Equity
Net Assets - Unrestricted $404,319
Net Assets - Restricted $100

TOTAL $574,419

STATEMENT OF ACTIVITY
Revenue
Individuals $296,702
Fundraiser $31,748
Corporate $41,554
Grants & Community Groups $132,222
Government Grants $33,961
Other $122

TOTAL $536,309

Expenditures
Staffing $217,382
Program Service $149,338
Management & General $3,784
Fundraising $5,550

TOTAL $376,054
NET INCOME $160,255
 OUR LENDING MODEL

Loans due
Breakdown of Liabilities
in 2021
Exodus Lending uses a revolving loan pool. Funds from by Year Due
15%

repayment are used to pay off new loans. Most of the

money in our loan pool comes from these ongoing
repayments and three-year loans. All of our long-term
liabilities (totaling $170,000) are interest-free loans from Loans due
in 2022
26%
community members or organizations for our loan pool.
Loans due in 2023
59%

HOW IT WORKS
Receive Investment
Community members or
organizations provide Lending
Exodus Lending a three- For enrolled Minnesotans,
year interest-free loan to Exodus Lending pays off
use for our refinancing up to $1,500 of payday,
program. title, or online installment
loan debt carrying more
In 2020, our than 36% interest.
loan pool was:

$170,000 We pay off the loan

directly to the lender. All
refinanced loans with
Exodus Lending are 0%
interest.

Repayment
Participants repay monthly over
at least 12 months, with no
interest on their loan with us.

Funds received from repayment

Return Investment
are used to pay off predatory
After three years, Exodus Lending
loans for new participants.
returns the initial investment
amount back to the investor.

Investors can also choose to

reinvest their loan or donate to
the loan pool at this time.
 INDIVIDUAL DONORS

Anonymous (36) Sara Gjerdrum Michael & Vicki Mann

Renee Anderson Emily Greger & Laney Ohmans Phil Manz
Zanona Anderson Amanda Hakemian & Aaron Miller Lyndsey Marcelino Schalkyk
Amber Aulen Ruth Halvorson Connie & John Marty
John Barnicle & Lois Pallmeyer Janet Hamilton Triplett Carol & Kenneth Masters
Judy & Rev. Mark Becker Jiyoung Han Kat McCaffery
Earl & Lynnette Beitzel Shawn Hartfeldt Steve McCauley & Suzanne Susens
Jaimie Bennett & Bret Hesla James Hartsoe Arla & William McNeff
David Berke Bill & Pat Harwell Zack Mensinger & Hannah Pallmeyer
Justin & Naomi Betker Joanne & Richard Haugen Christopher Michaelson
Kelly & Shennon Black Kevin Heist & Allison Johnson Heist Adam & Jen Miller
Dean & Pam Blomgren Arlene Helvig Barbara & William Miller
Andrea Bond Lincoln Raymond Henderson Bridget Moore
Doris Braley Gary & Terri Hess Mary Mullen
Michele Braley & Nils Dybvig Paige Hietpas Timothy Nichols
Anna Brejle Sarah Hietpas Joy & Randy Nelson
Erin Brothen & Nick Salkowski C. John Hildebrand Amy & Nathan Norquist
Sheila Broughton Paul Hogrefe & James Sauder Maggie Noun
John Cairns Kathy Hollander & Rodney Johnson Bill Oldfather
Karen Cardinal Patty Holmstrom Kathleen Olsen
Susan Carr Emily Hopkins-Schumacher Stacy Opitz
Elspeth Cavert Eric Howard Johanna Osman
Mary Cavert Ritchie & SueLyne Hok Alyssa & Kwame Owusu Acheampong-Erickson
Winston Cavert & Carol Witte Patricia & Robert Hoyt Audrey Pallmeyer
Andrea Cecconi Eric & Megan Hughes Paul Pallmeyer
Christine & Steven Clemens Betsey Hulstrand S. & Pompeyo Sanchez V. Rebecca Pallmeyer
Christopher & Erin Coffey Alan & Karen Hummel Sonia Palmer
Judith Connor Gene Hummel Lois & Stephen Parker
Liz Conway & Matt Kane Mary Hunt Patricia Parker
Sandra Cook Stuart Iseminger & Lisa Todd Aneesa Parks
Carol & Joseph Crowe Barbara Jeanetta Daniel & Joan Pauly Schneider
Pat & Win Curtiss Berni Johnson Clark Jane Pearlmutter
Douglas Danielson Brent & Heidi Johnson Cheryl & Kim Pennington
Rep. James Davnie & Ms. Cara Letofsky Johnson-Lundblad Gift Fund Deborah Peterson
John & Joy DeHarpporte Melissa Juliette Miriam Peterson
Ben Demaree & Andrea McNett Judy Jungwirth & Helen Nikiel Christy Pettis
Diane & Mike Diemer Karen & Ryan Karis Carol Pfleiderer
Kathy Dixon Dan & Margaret Karlin Pilling/Carlson Family Fund
Ann Dohrmann & Matthew Maruggi Sally Keeler Mays June Prange^
Sally Dunn Lynn Keillor Juliana Pronovici
Cecelia Duplessis Erickson & Peter Erickson Anne Kersten Therese Provo^
Laurie Eaton & James Jasper David & Sarah Kise Donna Provo Steinberg
Lois Eid David & Gretchen King Hilary Ray
Alva Emerson Mary Kocak John & Linda Rebane
Peter Engebretson Ben Koch Sara Reed
Carla Erickson John Koenig Rev. Dr. Gary & Pam Reierson
Marilyn Erickson Anne Krisnik Kate Ries
Erika Sitz Charitable Fund Barry Kryshka Aaron & Anika Riewe
Fay Yeomans Gift Fund Andrea Kuenning & Dan Leisen Mark Roberts
Connie Ford & Robert Power Karen Kunze Zoe Robinson
James Fournier & Karen Zeleznak Dodd & Myrna Lamberton Nancy Rogness & Peter Siewert
Craig & Linda Franz Kathleen & Richard Lane Christopher & Kerry Romano
Patrick & Tara Frimat Anne & Matt Leland Clark John Romano
Richard & Shirley Fulmer Lentz/Nixon Blue Sky Charitable Giving Fund Rodney Rowe
Laurel Gamm & Charles Stephens Spencer Leuning Anne Rutledge
David Gagne & Lauri Krouse Anna Li & Tony Witt Bridget Ryan
Susan Gangsei Elaine & Marvin Lofquist Dianne Sandberg
Misty Garrick Gretchen Lund & Jeffrey Weiss Janice Schmidt
Mary Gates Mary K. Lund Sarah Schoolcraft & Thomas Wegner
Kathleen & Richard Githens Gary & Paulette Malecek Jo Schroeder
^Deceased
Belle & Robert Scott
Emily Seddon
Diane & Gary Titusdahl
James & LaRue Unglaube
In Honor Of
Rajiv & Rajni Shah Joe & Katie Wahlberg Bill & Charlotte Davnie
Tammy Shockley Wahlstedt Family Fund Alaina & Rob Duncan
Jeff & Kelley Siemon Tamela Walhof Michelle Grosz
Matt Smalley Janet Warwick Eric Howard
Bud Smith David Waters Anne Leland Clark
Connie & Douglas Smith Wensman Giving Account Anna Li
Deb Sodt Sara Wernick Schonwald Jack & Sara Nelson-Pallmeyer
Judy Solmonson Bonnie West Tim Nichols
Michael Steele Wayne Westwood James Unglaube
Debra & Paul Stoll Kimberly Wick S Walter Richey
Brielle & Philip Stoyke Renate Willer David Ross & Stephanie Susens
Sulzbach Family Fund Vienna Wilson Liz & Nick Scheibel
Suzann Swaggert Laurie & Mark Windisch Those forgotten
Donna & Robert Swanson Tom Witt
Sheila Sweeney Sally Witt
Lee & Leslie Swenson Wolf & Bunny Fund
Pam & Wes Syverson
Kaitlyn Szabo
Deborah Woodburn
Barbara & Robert Woodruff In Memory Of
Michele Szabo Barbara Woolsey Kevin
The A&K Englert Charitable Fund Nancy Vanderburg George Floyd
The J. Randal & Sharon Cochrane Charitable Fund Annette Villamil Loren E. Halvorson
The John & Marla Simmet Family Fund Mark Viste Ruth Marie Pallmeyer
The Nelson-Pallmeyer Justice & Peace Fund Ardith Marie Vos Therese Provo
The Ron & Pam Kaufman Family Charitable Fund Carolyn Young
The Voelbel Family Fund Steve & Susan Young
Joseph Thom Faye Ziegeweid
Thomas Fournier Trust Anne & Rev. Jonathan Zielske
Pat Thompson Rev. Daniel & Joan Zielske
Sandra Thornby

FUNDERS

AmazonSmile Foundation PayPal Giving Fund

American Legal Claim Services LLC RBC
Cargill Securian Financial Foundation
Christ Church Lutheran Spirit of St. Stephens Catholic Community
Christ Lutheran Church Stuepfert Foundation
Christ the King Lutheran Church Foundation Target Foundation
First Universalist Church of Minneapolis The FS Foundation
Galilee Evangelical Lutheran Church The JAMF Nation Global Foundation
Google The Judson Memorial Baptist Church
Gustavus Adolphus Lutheran Church The Patch Foundation
Holy Trinity Lutheran Church The Otto Bremer Trust
Lake Nokomis Presbyterian Church The Ron and Kathy Colby Family Foundation
MassMutual Foundation Thrivent Choice Dollars
Medtronic Foundation Volunteer Grant Program Thrivent Financial Foundation
Minnesota Council on Economic Education Transfiguration Lutheran Church
Minnesota Valley Federal Credit Union Travelers Foundation
Minnesota Valley Unitarian Universalist Fellowship UHG
Minnetonka United Methodist Women Unity Church-Unitarian of St Paul
Nandale Foundation U.S. Bank Employee Matching Gift Program
New Life Presbyterian Church Valley of Peace Lutheran Church
Normandale Hylands United Methodist Women Zion Lutheran Church Foundation
OneMpls Fund of The Minneapolis Foundation
2380 Wycliff Street, Suite B-100, Saint Paul, MN 55114
www.ExodusLending.org
612-615-0067
[email protected]
@ExodusLending
Exodus Lending (EIN: 47-1706853) is a registered 501(c)(3).