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Charitable loan to help families gain control of finances
Foundations provide $2.25 million loan to Lutheran Social Service of Minnesota
| MINNEAPOLIS (Sept. 17, 2009) – Due to the downturn in the economy, demand is skyrocketing for financial counseling to help people struggling with reduced income, debt and home foreclosure.
To help more people gain control of their finances, three Lutheran organizations—including the Thrivent Financial for Lutherans Foundation, the Lutheran Community Foundation and Lutheran Social Service of Minnesota—are partnering to expand financial counseling services through an innovative charitable giving tool called a Program-Related Investment, or PRI. The PRI includes a $2 million charitable (below-market interest rate) loan from the Thrivent Financial for Lutherans Foundation and a $250,000 charitable loan from the Lutheran Community Foundation to Lutheran Social Service of Minnesota. “We have simply not been able to keep up with growing demand for financial counseling,” explained Jodi Harpstead, executive vice president and chief operating officer for Lutheran Social Service of Minnesota. “This charitable loan is going to give us significant capacity to help more people, and we are grateful to our Lutheran partners for making it happen.” PRIs are investments made for charitable purposes. For philanthropic organizations like the Thrivent Financial for Lutherans Foundation and the Lutheran Community Foundation, PRIs are a means of recycling assets for charitable purposes. This charitable loan PRI will help Lutheran Social Service build capacity—adding 30 financial counselors over the next two years, nearly doubling its staff. “This loan enhances our already strong partnership with Lutheran Social Service of Minnesota,” said Tim Schwan, vice president of the Thrivent Financial for Lutherans Foundation board. “It is well aligned with the foundation’s interest in helping others become financially secure. In addition, it builds the capacity and financial sustainability of this important ministry of Lutheran Social Service.” An increasing demand for financial counseling has strained Lutheran Social Service’s ability to meet a sharp increase in calls. Nearly 1,000 people are turned away each month because of a long wait for help at the organization. “It is the great joy of the Lutheran community of donors to support the expansion of this critical service of Lutheran Social Service of Minnesota,” said Chris Andersen, president of the Lutheran Community Foundation. “Both of our organizations are committed to change the lives of the people we serve and create effective, positive and lasting change within our shared community.” Building capacity will not only help Lutheran Social Service to serve more people in difficult financial situations but also provide important protection for consumers who might otherwise turn to dangerous options such as debt settlement scams, predatory loans and unnecessary bankruptcies. The 30 new financial counselors, who will be phased in over the next two years, will be based in Duluth at a phone counseling center to provide immediate assistance to individuals and families. That arrangement will free up financial counselors in 10 Lutheran Social Service financial counseling offices in Minnesota to serve people who wish to be helped in person. Lutheran Social Service of Minnesota has offered credit counseling services since 1987 and is one of the largest providers of full-service, community-based financial counseling in Minnesota. Working face to face, over the phone and online, LSS financial counselors help a wide range of people at all income levels in Minnesota and across the nation. Since 2005, Lutheran Social Service has seen twice as many households who need help with financial problems. This year, the organization is expecting to serve a record 18,000 households in financial counseling. About the Thrivent Financial for Lutherans Foundation Founded in 1982, the Thrivent Financial for Lutherans Foundation is a private foundation that operates exclusively for charitable, educational and religious purposes. It supports the health and vitality of the Lutheran community, the Fox Cities of Wisconsin and the Twin Cities of Minnesota. Grants are provided for projects and missions that reflect Thrivent Financial for Lutherans’ charitable interests. The primary charitable interest of the foundation is assisting nonprofit organizations and those they serve in achieving economic security and sustainability. To learn more about the foundation and its programs, visit: www.thrivent.com/foundations. About Thrivent Financial for Lutherans Thrivent Financial for Lutherans is a not-for-profit, Fortune 500 financial services membership organization helping approximately 2.6 million members achieve financial security and give back to their communities. Thrivent Financial and its affiliates offer a broad range of financial products and services. As a not-for-profit organization, Thrivent Financial creates and supports national outreach programs and activities that help congregations, schools, charitable organizations and individuals in need. For more information, visit www.thrivent.com. About the Lutheran Community Foundation The Lutheran Community Foundation, headquartered in Minneapolis, is a faith-based public charity working nationally to help people give to their favorite charities and causes. Through its flexible giving options and community connections, the Foundation has distributed more than $55 million to charities since its inception in 1995. Together with its donors, the Foundation’s vision is to achieve effective, positive and lasting change throughout our community. For more information, visit www.TheLCF.org. About Lutheran Social Service of Minnesota Lutheran Social Service helps 100,000 Minnesotans each year live and work in community with safety, dignity and hope. Through a wide range of services, the organization seeks to provide safe and supportive homes for children, counseling to restore health and wellness in families, community living for people with disabilities, and options that help seniors develop independence. For comprehensive information about the work of Lutheran Social Service of Minnesota, please visit www.lssmn.org. -END- 200903711 |
| Contact Information: | |||||
| Brett Weinberg Director, Public Relations brett.weinberg@thrivent.com Phone: (612) 844-4272 | Dave Rustad, APR Senior Media Relations Specialist dave.rustad@thrivent.com Phone: (612) 844-7037 | Stacy Eckes-Borys Senior Media Relations Specialist stacy.eckes-borys@thrivent.com Phone: (920) 628-2445 | |||
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