Fundraising 3
Fundraising 3
Fundraising 3
Departmental Budget
Melissa Carril
a network of more than 200 food banks, 21 statewide food bank associations, and over 60,000
partner agencies, food pantries, and meal programs, we helped provide 5.2 billion meals to
tens of millions of people in need last year. Feeding America also supports programs that
prevent food waste and improve food security among the people we serve, brings attention to
the social and systemic barriers that contribute to food insecurity in our nation, and advocates
"Feeding America shares concerns on several programs at the front of the fight for
hunger relief. Several programs are America's Harvest Box proposal in the president's fiscal year
2020 budget as well as hundreds of billions in cuts to federal nutrition program budgets,
including $220 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) and $1.7
While these concerns exist, recognition and support from the government are activated.
Congress overwhelmingly passed, and the president signed the 2018 Farm Bill—bipartisan
legislation that maintained the proven structure of SNAP. Retailers, anti-hunger experts, and
economists agree that SNAP works to help people put food on the table while boosting local
"While we await details on this year's specific proposal, we know that last year's budget
provisions would have partially replaced the efficient EBT program that allows SNAP
participants to shop in their communities with an unworkable bureaucracy (Return,
2019)."
While developing The Departmental Budget (Budget), guidelines and concepts are taken
into consideration. Nonprofits need to spend money to raise money, explaining why the
The combination of direct costs (program expense) with office operations (indirect
costs) represents the accurate and complete Budget required for fundraising. Preparation of
the Budget for the year should be based on an analysis of prior years' expenses and individual
program results.
Feeding America was proactive at the first mention of the COVID-19 pandemic. The
preparation for the pandemic began when discussing the Budget, as shown in Table A1.
The supporting information to procure the data in Table A1 is taken from the Public
Disclosure Copy of Feeding America's 2020 990 IRS Tax Exempt Return. Section IX, shown in
Figure 1.
Some of the line items in the Budget are described in the following paragraphs.
Just like for-profit businesses, a nonprofit can deduct wages it pays to employees,
including holiday bonuses. For many organizations, this is one of the biggest — if
not the biggest — annual expenses. Note that wages must be reasonable for the services
performed. Also, know that nonprofits can be penalized for paying excessive compensation.
Although most not-for-profits do not pay volunteers or interns, some organizations pay
average salary of $120,150, and wages range from a low of $102,567 to a high of $140,543.
Individual salaries will, of course, vary depending on the job, department, and location, as well
as each employee's unique skills and education. According to the Auditor's Report, Notes to the
Financial Statements, the retirement plan has Feeding America providing a 401(k) defined
contribution plan (the Plan) for substantially all employees. In addition to employee
contributes a minimum of 1% of their salary to the Plan. Total retirement expenses and
contributions made by Feeding America for the years ended June 30, 2020, and 2019 are
$1,688 and $1623, respectively, and are included in the Budget Worksheet (WSM, 2020).
In the for-profit world, marketing and advertising expenses can consume a large part of
a company's Budget. These expenses typically are not as consequential for nonprofits.
Nonprofits must get the word out about their mission, programs, and activities. Depending on
professional license to conduct their work. If a state regulates the licensing process, the cost
can be deducted. The same holds for continuing education credits. The cost of the training —
Rental & Occupancy expenses include an operating lease for specific office space in
Chicago, Illinois, which commenced in January 2001. Feeding America has amended the
operating lease periodically to include additional office space, and the lease expires in
November 2020. In February 2020, Feeding America signed a new operating lease in Chicago for
its new headquarters. The initial term of the lease is 15 years, with a lease commencement date
of November 1, 2020, and a lease expiration date of October 31, 2035. The Organization may
occupy the space before November 1, 2020, at no additional cost other than electricity and
Feeding America also has an operating lease for certain space in Washington D.C. that
commenced on June 1, 2012, and expires in May 2023. In January 2018, Feeding America
entered into a sublease agreement with a third party, whereby the third party is leasing
Feeding America's office space through ay 2023. Subleases monthly payments started in July
2018 after a five-month rent abatement period. Additionally, in July 2017, Feeding America
entered into another lease agreement for new office space in Washington D.C. for an initial
term of 10 years and six months, expiring May 2028. After substantial renovation, Feeding
America began occupying the space in December 2017. Office lease annual cost is recorded on
Legal expenses are incurred as Feeding America, from time to time, is named in various
lawsuits arising in the ordinary course of business. Management is unaware of any asserted
FEEDING AMERICA
THE DEPARTMENTAL BUDGET WORKSHEET 2020
Figure 1
action-alerts-week-of-march-5th/
Return. (2019, March 11). Feeding America Statement on FY2020 Budget Proposal.
https://www.feedingamerica.org/about-us/press-room/feeding-america-statement-
fy2020-budget-proposal
%20Feeding%20America%202020%20FS.pdf