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June 6, 2018

Where Does $100 to God’s Love We Deliver Go?

by Anne Paddock

God’s Love We Deliver (GLWD) is a New York City-based 501 (c) (3) that prepares and delivers “high quality and nutritious” meals (approximately $1.6 million worth in 2016) to people who are living with serious illnesses in the New York City metropolitan area who are unable to provide or prepare meals for themselves. The organization also provides nutrition education and counseling.

Housed in a 48,000 square-foot relatively new building (2015), the 6-story facility (including rooftop garden) was named for the designer, Michael Kors whose personal donation in 2012 kicked off the building project, and whose rooms looks like a whose who of New York with The Joan Rivers Bakery and the Anna Wintour Volunteer Center.

The Form 990 (2015 for the year beginning July 1, 2015 and ending June 30, 2016) filed by GLWD provides a wide range of information for the public to review including details on revenue and expenses, assets, liabilities, and the net fund balance, executive compensation, fundraising, and more.

REVENUE AND EXPENSES

$14.5 million was collected in 2016 (down from $22.6 million in 2015).  Most of the revenue ($11.7 million) came from contributions, gifts, and grants (including $2.5 million in government grants) followed by revenue ($2.4 million) from the organization’s managed care program.

Expenses totaled $13 million (not including $1.8 million in depreciation) and can be viewed two ways:  by broad category (i.e. program services, management, and fundraising) or by specific line-item category (i.e. compensation-related, office-related, food and containers, etc). Both are beneficial with the former providing a general overview and the latter giving more specific information on how revenue was spent.

Expenses by Broad Category

  • $13 million in expenses were reported in the following categories:
  • $10.3 million (or 71% of revenue):  Program Services
  • $ 1.9 million (or 13% of revenue):  Fundraising Costs
  • $ .8 million (or 6% of revenue):  Management Costs

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$ 13:  Fundraising Costs

-$  6:  Management Costs

-$ 19: Total Fundraising and Management Costs

$ 81:  Revenue Remaining

-$ 71:  Program Services

$ 10

As illustrated above, the organization spent a significant sum – $10.3 million or $71 out of every $100 on program services.

Expenses By Specific Line-Item Category

$13 million in expenses were reported in the following categories:

  • $ 7.1 million (or 49% of revenue):  Compensation-related Expenses
  • $ 3.1 million (or 21% of revenue):  Food and Containers, Meal Delivery
  • $ 1.5 million (or 10% of revenue):  Office-related Expenses
  • $  .5 million (or 3% of revenue):  Other Fees for Services (no detail provided)
  • $  .3 million (or 2% of revenue):  Advertising and Promotion
  • $  .2 million (or 2% of revenue):  Fees for Services (i.e. legal, accounting, lobbying)
  • $  .2 million (or 2% of revenue):  Conferences and Meetings
  • $  .1 million (or 1% of revenue):  Bad Debt Expense

As illustrated above, almost half of revenue is used for compensation-related expenses which is to be expected for an organization that is purchasing, preparing, and delivering meals.  The second highest expense was for food and containers which accounted for $3 million or $21 out of every $100 in revenue.

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$ 49:  Compensation-related Expenses

-$ 21:  Food and Containers, Meal Delivery

-$ 10:  Office-related Expenses

-$  3:  Other Fees for Services (not detail provided)

-$  2:  Fees for Services (i.e. legal, accounting, lobbying)

-$  2:  Conferences and Meetings

-$  1:  Bad Debt Expense

-$ 90:  Total Expenses

$ 10

EXECUTIVE COMPENSATION

In 2016, GLWD reported having 121 employees who were compensated $7.1 million, which equates to an average compensation of $59,000. However, 8 individuals received more than $100,000 in compensation with the 7 most highly compensated individuals listed below:

  • $375,284:  Karen Pearl, President and CEO
  • $279,161:   David Ludwigson, Chief Development Officer
  • $237,242:  Candy Bonder, Chief of Staff
  • $169,610:  W M Kanyuck, CFO
  • $149,691:  Nic Cortese, Director of Culinary Services
  • $146,158:  Patrick Schultz, Director of Development
  • $126,371:  Dorella Walters, Sr Director of Program Services

Of the 7 most highly compensated individuals, 4 are men and 3 are women, including the President and CEO, Karen Pearl.

FUNDRAISING

GLWD held 32 fundraising events in 2016 (including an annual awards dinner) that generated gross receipts of $3.8 million. After deducting $3.6 million (contributions), about $200,000 in gross income was reported. From this amount, about $550,000 was deducted to cover direct expenses of the events (i.e. food and beverages, rent and facility costs, entertainment and other direct expenses) creating a net loss of nearly $400,000.  It appears these events are used for marketing and public relations given that no additional revenue beyond contributions are obtained.

ASSETS, LIABILITIES AND NET FUND ASSETS

Assets were reported to be $48 million in 2016 and consisted primarily of land, buildings, and equipment ($33 million) and $9 million in cash and publicly traded securities. Liabilities totaled $7.5 million, most of which were unsecured notes payable ($4.1 million) and construction loans payable ($2.5 million).

Net Fund Assets were just over $40 million, $39 million of which were unrestricted funds.

SUMMARY AND CONCLUSION

GLWD is a labor intensive non-profit that is primarily engaged in raising money to buy, prepare, and deliver meals to people in the NY metropolitan area who cannot obtain or prepare a “nutritious” meal.  Two years ago, the organization moved into a new state of the art building in Soho although it is unclear if GLWD actually owns the building. The balance sheet indicates GLWD has land with a book value of $32,500 and buildings with a book value of nearly $33 million (note:  given that the 48,000 square foot building is in Soho on prime real estate, it doesn’t appear they own the land but could own the building improvements – the 990 doesn’t provide more detail).

In 2016, GLWD spent about $70 out of every $100 in revenue on staff compensation, food and containers, and delivery of meals (surprisingly, the food and containers only amounted for $2.6 million or 37% of revenue) .  About $20 out of every $100 was spent on other expenses including office-related expenses, conferences, and fees for outside services.

To read the Form 990 (2015), click here.

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