Where does $1 to Palm Beach County Food Bank go?
A food bank is a a place where stocks of food, typically basic provisions and non-perishable items, are supplied free of charge to people in need.
The Palm Beach County Food Bank (PBCFB) is dedicated to fighting hunger by collecting and distributing food to agencies in Palm Beach County, Florida that feed the hungry. For the year ending June 30, 2015, PBCFB distributed approximately 5 million pounds of food to 131 local agencies. With 34 employees, PBCFB spends approximately 15 cents of every dollar on functional expenses (net of depreciation and grants) distributing the 83 cents worth of food to feed the hungry. The remaining 2 cents was left unspent (in the fund balance which had $2 million at year-end).
According to the most recent IRS Form 990 (2014), PBCFB raised $10.8 million in revenue – most of which ($8.6 million or 80% of total revenue) were non-cash contributions (more than 5 million pounds of food – primarily produce, non-perishables, and beverages – valued at $1.72 per pound by 328 contributors). $8.9 million was distributed in grants to other organizations while $1.6 million was used to cover the following expenses:
- $1,018,830: Salaries, Benefits, Payroll Taxes (9% of revenue)
- $ 335,592: Office, IT, Insurance, Meetings, Occupancy (3% of revenue)
- $ 138,195: Advertising, Promotion, Accounting and Other Services (2% of revenue)
- $ 112,345: Truck, Freight, Fuel, Warehouse (1% of revenue)
Grants and assistance of $5,000 or more were made to 114 local organizations with the largest three grants in unrestricted support to:
- $345,496: Wayne Barton Study Center, Boca Raton, FL
- $286,751: United Haitian Baptist Food Ministry, West Palm Beach, FL
- $247,509: Feed the Hungry/Village Baptist Church, Lake Worth, FL
In summary, $1 in revenue (whether cash or non-cash) was spent as follows:
-$0.09: Salaries, Benefits, Payroll Taxes
-$0.03: Office, IT, Insurance, IT, Occupancy
-$0.02: Advertising, Promotion, Accounting, and Other Services
-$0.01: Truck, Freight, Fuel, Warehouse
-$0.15: Subtotal Functional Expenses (net of depreciation and grants)
$0.85: Revenue (net of functional expenses)
-$0.83: Grants to local organizations
$0.02: Amount Remaining (to fund balance)
As illustrated above, 83 cents of every $1 in revenue (most of which are in non-cash contributions of produce, non-perishables, and beverages valued at $1.72 per pound) was granted to local organizations to feed the hungry.
The PBCFB has $2.1 million in total assets concentrated in cash (approximately $1 million), inventory (about $500,000), and equipment (about $500,000). The organization has virtually no liabilities (less than $100,000 in accounts payable and other liabilities) leaving $2 million in net assets. Other notable information includes:
- Only 1 person – the Executive Director – receives more than $100,000 in total compensation; his was $133,350.
- No first class travel or social/health club memberships were purchased for staff.
- The single largest expense after staff compensation is occupancy (about $200,000) which appears to be their warehouse expense in Lantana, Florida.
- Two charity events raised $112,343. After deducting expenses of $8,258, the net amount raised was $104,458 (although $68,944 of these funds are recognized by the IRS as the actual contributions and netted out of the net amount raised).
To read the IRS Form 990 (2014) of the PBCFB, click here.