Where Does $100 to Feed the Children Go (2024)?

Feed the Children (FTC) is a tax-exempt non-profit 501 (c) (3) based in Oklahoma City, OK.  Established in 1979, FTC is primarily engaged in obtaining and distributing food, medicine, and clothing to those in need through grants, primarily to non-profits in the USA.

FTC is governed by 12 independent voting members (directors) of the governing body (Board of Directors);  8 (67%) of whom are male and 4 (33%) whom are female.

In trying to understand how $100 is spent at FTC, it is important to consider what the organization primarily does:  they collect non-cash contributions and distribute these items.  So, if the $100 donation is a non-cash item, then the contribution is distributed to another organization (another non-profit that is probably in the USA). But, if the donation is cash, then the $100 is used to pay for the organization costs of FTC. So, there are two ways to look at how $100 is spent, both of which will be presented in the following paragraphs.

In 2024, FTC reported total revenue of $409 million (compared to $502 million in 2023, $388 in 2022, $599 in 2021 and $467 million in 2020).  Most revenue (89%)  – $352 million – were non-cash contributions.  The $57 million in cash revenue came from contributions ($49 million), grants from the gov’t ($7 million) and other income ($1 million).

Expenses totaled $429 million (not including $2 million in depreciation) in 2024:  $20 million more  than the organization collected.  Expenses can be categorized as follows:

• $378 million (92% of revenue):  Grants
• $ 20 million (5% of revenue):  Compensation
• $ 15 million (4% of revenue):  Direct Mail, Digital Fundraising, Shipping and Handling
• $  6 million (2% of revenue):  Fees for Services/Contracted Services
• $  5 million (1% of revenue):  Office-Related Expenses
• $  5 million (1% of revenue):  Other Expenses (detail not provided), travel,

As illustrated above, FTC spent $105 for every $100 in revenue with the largest expense reported to be grants (primarily non-cash).  FTC awarded $378 million in grants (almost all of which – $350 million domestically and $28 million internationally 0r $352 million were non-cash grants) in 2024 which means the organization received $352 million in non-cash contributions and granted $352 million in non-cash contributions, while $26 million in cash grants were made.

In 2024, FTC collected $57 million in cash contributions and grants, and spent $51 million on organization expenses (compensation, fundraising, fees, office, and other expenses) and $26 million on cash grants, all of which means the organization spent $20 million more than they raised.

How $100 Was Spent if Non-Cash Contributions Are Considered

In 2024, FTC reported total revenue of $409 million, of which $57 million were cash contributions, grants, and investment income, and $352 million were non-cash contributions (primarily food, personal care and hygiene products, and office supplies).

Expenses totaled $429 million and can be categorized as follows:

• $352 million (86% of revenue):  Non-Cash Grants
• $ 26 million (6% of revenue):  Cash Grants
• $ 20 million (5% of revenue):  Compensation
• $ 15 million (4% of revenue):  Direct Mail, Digital Fundraising, Shipping and Handling
• $  6 million (2% of revenue):  Fees for Services/Contracted Services
• $  5 million (1% of revenue):  Office-Related Expenses
• $  5 million (1% of revenue):  Other Expenses (detail not provided)

Using the above information every $100 in revenue (both cash and non-cash) was spent as follows:

$100:  Revenue

-$ 92:  Grants

 $  8:  Revenue Remaining

-$  5: Compensation

-$  4:  Direct Mail, Digital Fundraising, Shipping and Handling

-$  2:  Fees for Services/Contracted Services

-$  1:  Office-Related Expenses

-$  1:  Other Expenses

-$ 13:  Subtotal:  Compensation, Office, Mail, Other, SH, and Fees

-$  5:  Excess Expenses 

As illustrated above, $92 of every $100 in non-cash and cash contributions were distributed in grants. $13 out of every $100 was used for organization expenses, all of which means FTC spent $105 for every $100 in revenue received.

In order to see how cash contributions were used, we need to just look at cash revenue and cash expenses:

How $100 was Spent if Non-Cash Contributions and Non-Cash Grants Are Not Considered

$57 million in cash revenue (contributions/investment income)  were reported in 2024.

$77 million in cash expenses were reported in 2023:

• $26 million (46% of cash revenue):  Cash Grants
• $20 million (35% of cash revenue):  Compensation
• $15 million (26% of cash revenue):  Direct Mail, Digital Fundraising, Shipping and Handling
• $ 6 million (10% of cash revenue):  Fees for Services/Contracted Services
• $ 5 million (9% of cash revenue):  Office-Related Expenses
• $ 5 million (9% of cash revenue):  Other Expenses (detail not provided)

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

$100:  Cash Revenue

-$ 35:  Compensation

-$ 26: Direct Mail, Digital Fundraising, Shipping and Handling

-$ 46: Cash Grants

-$ 10: Fees for Services/Contracted Services

-$  9:  Office-Related Expenses

-$  9:  Other Expenses (detail not provided)

-$135:  Total Expenses

 -$ 35:  Excess Expenses

As illustrated above, $89 out of every $100 of cash revenue were spent on organization expenses while $46 out of every $100 was spent on cash grants.  For evert $100 in cash received, Feed the Children spent $135.  In actual dollars, Feed the Children spent $20 million more than the organization raised, which was the primary reason net assets decreased from $185 million at the beginning of the year to $168 million at the end of the year.

In summary, FTC is primarily engaged in collecting and distributing non-cash contributions (in the form of grants to other non-profits primarily in the USA) but they rely on cash contributions to pay the expenses of running the organization.  If you made a non-cash contribution, that contribution was distributed via a non-cash grant.  If you made a cash contribution, those funds were used to pay the administrative expenses of the organization or used as a cash grant to another organization.

To read the IRS Form 990 (2023 for the year ending June 30, 2024), click here.