Our Funding and Finances

Audits and "Good Standing" Status

Eastern Illinois Foodbank is a private, non-profit human service organization, which operates on a fiscal year that extends from July 1 to June 30.

The Foodbank is audited by McGladrey & Pullen, Certified Public Accountants, and the most recent Financial Statements of December 31, 2002 were completed in April 2003 with an unqualified opinion and as having been in conformity with generally accepted accounting principles. The audits are shared with the Board of Directors, along with monthly accounting reports. Copies of the audited Financial Statements may be acquired by contacting the Executive Director.

Eastern Illinois Foodbank is properly registered with the Illinois Attorney General's Office as a nonprofit organization, with the highest rating of "Good Standing."

Revenues

As a nonprofit organization, the Foodbank is supported through a variety of sources including donations, grant funding, contracts and the shared maintenance or handling fees. Increasingly, the Foodbank has sought and received gift support from corporations, agencies (e.g., faith-based organizations) and foundations, as well as from individuals and groups. In addition, the costs are kept low because of the reliance upon volunteers and community assistance program workers

Shared Member Maintenance Fees	60%
Contract/Public Support	16%
Private Gift Support	14%
Corporate/Agency Gift Support	5%
Corporate/Foundation Grant Support	3%
Community Gift Support	2%

In 1993, or about ten years ago, the Foodbank was generating about 4% of its funding from private gift support, and the operating budget was $200,000 rather than the current $800,000 plus budget. Agency fees were slightly more than 65% of revenues, and it would be an appropriate goal to continue to reduce that reliance on agency handling fees, as well as be in a position to plant more agencies and reach still more of the underserved people in eastern Illinois.

Operating Expenses

With regard to operating expenses, the Foodbank operates currently on an $800,000 annual budget with cost centers and expenses as described below. For all practical purposes, 95% of the funds are spent on food product acquisition, storage, maintenance and distribution services for hunger relief.

47% Personnel Costs, including staff for food acquisition/procurement, warehouse and delivery, as well as agency services, customer services and administrative support.

27% Food Product Procurement Costs, including the actual food bulk purchases and salvage payments, including freight and truck-load transportation costs of the donated, salvaged and/or reduced-cost products.

19% Physical Plant Operations, including plant utilities, insurance, materials/supplies and repairs, as well as vehicle operations, freight fuel and depreciation of capital assets.

5% Administrative Support, including warehouse and distribution processes, finance and accounting, customer service, audits/compliances, legal fees and communications (telephone, electronic, advertisements), and membership fees.

2% Miscellaneous, including payments of interest charges related to banking, as authorized by the Board of Directors, for payment of food procurement and debt reduction.

Capital Assets

The Foodbank maintains fixed capital assets, including the warehouse physical plant and storage units, warehouse equipment, and vehicles for an estimated value of $1.4 million. The Foodbank operates without capital debt service. Thus currently there is no Capital Fund, and all revenue generating efforts are directed at operational costs through accumulation of fund assets.

In addition, the warehouse food product inventory would, at any one time, be valued at $1 million, following the guidelines of America's Second Harvest regarding the average pound of food being valued at $1.59 per pound. Once acquired by the Foodbank, of course, the "value" of the food products is in terms of the numbers of people who can experience hunger relief rather than any market valuation.