African Economic Development Solutions

What it reported doing in 2024

See schedule o.lending and credit building - african economic development solutions (aeds) build wealth within african immigrant communities in the state of Minnesota through economic development activities. We work throughout the twin cities metropolitan area and other cities in Minnesota to create wealth, lift immigrant communities out of poverty by providing business development training and small business consulting and housing program. In 2024 aeds provided $2.07 million in loan. Credt building program targets clients who need personalized assistance to improve their creditworthiness. This service is delivered through one-on-one, in-person weekly sessions lasting approximately 1.5 hours each. During the reporting period, 73 clients enrolled, and 61 completed the coaching process, achieving a completion rate of 84%. This program has proven particularly effective in helping participants develop better financial habits and improve their access to capital. Those who are credit invisible or need assistance rebuilding credit can apply for a credit builder loan that helps them rebuild their credit based on timely monthly payments entrepreneurship training and business plan consulting - these classes are offered through group sessions conducted via zoom over a 6-week cohort training model. In 2024, six business training cohorts were conducted, each lasting 2 hours, twice a week. This structured training allows participants to gain foundational knowledge in entrepreneurship, business planning, marketing, financial management, and compliance. A total of 163 clients were enrolled, with 124 successfully completing the training, reflecting a 76% completion rate. This high success rate demonstrates the program's effectiveness in delivering accessible and valuable entrepreneurship education. These consultations are provided through one-on-one, in-person sessions held weekly, with each session lasting approximately two hours. This service offers individualized guidance to entrepreneurs as they draft, refine, and finalize their business plans. Out of the 42 clients enrolled, 30 completed the consulting process, resulting in a 71% completion rate. This service is essential for clients seeking tailored advice to enhance the clarity, feasibility, and sustainability of their business models. Upon completion of their business plans and the accompanying financial projections, clients proceed to apply for a business loan with aeds's lending department. Housing - "pre-purchase education (homestretch): this is an intensive 8-hour educational workshop designed to prepare first-time homebuyers for the complex home-buying process. The training covers topics such as credit readiness, mortgage options, home inspections, insurance, and financial management. A total of 220 clients were enrolled, with 192 successfully completing the training, reflecting a 87% completion rate. This high completion rate demonstrates a strong commitment from participants to enhance their knowledge and readiness for homeownership.pre-purchase advising: this service focuses on helping clients become mortgage-ready within a relatively short timeframe (less than 45 days). It involves assessing financial readiness, including income, credit, debt, and savings, and developing tailored savings plans to enhance mortgage readiness. During the reporting period, 52 clients were enrolled, with 30 completing the process, achieving a 58% completion rate. The moderate completion rate suggests ongoing challenges faced by clients in achieving immediate mortgage readiness, necessitating enhanced support and resources.financial wellness coaching: this service provides ongoing support focused on credit building, debt management, savings improvement, and overall financial capability. Clients engage in a longer-term process to establish financial stability and work towards homeownership goals. The service is delivered through weekly, one-on-one, in-person sessions lasting approximately 1.5 hours e

Financial Efficiency

• Mission deployment rate: 36.9%; rating input score 37
• Program expense ratio: 83.6%; rating input score 84
• Fundraising efficiency: $32.65 raised per $1 spent on fundraising; rating input score 71; 71st percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 8 of 8 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 55.8%; rating input score 94; 94th percentile among comparable filings
• Total-asset coverage ratio: 5.98; rating input score 86; 86th percentile among comparable filings
• Liabilities to assets ratio: 0.32; rating input score 32; 32nd percentile among comparable filings
• Officer compensation ratio: 7.4%; rating input score 39; 39th percentile among comparable filings

Growth

• Program expense growth: 20.5% per year; rating input score 100; 86th percentile among comparable filings
• Revenue growth: 25.8% per year; rating input score 100; 92nd percentile among comparable filings
• Asset growth: 35% per year; rating input score 100; 95th percentile among comparable filings