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Second Helpings’ approach to food insecurity

By Feature, Programming

By Lynn Sygiel, editor, Charitable Advisors |

The problem was an old one: hunger in America. Or more specifically, hunger in Indianapolis. What was needed was a new solution, and with that forward thinking, Second Helpings was born.

In 1998, three area chefs – Kristen Cordoza, Bob Koch and Jean Paison — saw tremendous waste in the food service industry. At the same time, they could see that local nonprofit food service programs were struggling to provide nutritional meals. Surely, there had to be a way to channel the excess in one area to fill a need in another.

The trio took their chef’s hats off for a moment and put their business minds to work. Their creation — Second Helpings – was launched as a food rescue and hunger relief organization. And in doing so, Second Helpings had yet another mission: to train young chefs.

Second Helpings spokeswoman Betsy Whitmore wasn’t involved with Second Helpings when it began, but she has seen it grow to the successful organization it is today.

The Second Helpings formula works like this: the community kitchen accepts donated perishable and overstocked food and in turn daily prepares nutritious meals, and distributes them free of charge through local social service agencies. Second Helpings also trains unemployed and underemployed adults for meaningful careers in the culinary industry. The food comes from wholesalers, retailers and restaurants.

“The first 60 meals went to Holy Cross Family Shelter, and it was salad and a stew. The model — taking rescue food and making sure it’s prepared for nutrition and balance – hasn’t changed. The chefs were very smart about knowing, ‘Here’s this overage, here’s this need, how do we connect this?’” said Whitmore, the communications manager, who keeps the organization’s first meal ticket on her desk as a reminder.

Whitmore said Second Helpings was just something the chefs knew they had to do. One chef said it was not a project she found, it was a project that found her. Because they worked in the food industry, hunger was a problem they couldn’t understand.

What Whitmore believes has changed in 17 years is the face of hunger.

“What people don’t understand is what hunger really looks. Most of them are working families. They’re people who may have had major life changes, change in jobs, things like that. She said most of the people who receive food from Second Helpings, food pantries or feeding programs are from working families.

On a daily basis, Second Helpings volunteers prepare and deliver 4,000 meals. Last year, the nonprofit prepared and delivered 955,869 meals to 80 social service agencies. Forty-seven percent went to children, 31 percent to adults, 17 percent to families and 6 percent to seniors.

From a food standpoint, it adds up to about 2.3 million pounds of food. Kroger, Trader Joe’s, US Foods, Dr. Pepper Snapple group, Fresh Thyme Farmers Market and Sysco, are the top retail contributors, each contributing more than 100,000 pounds.

People who run food drives, for the nonprofit are typically asked to collect pasta and rice because those are not perishables. Weekly the organization goes through 70 pounds of rice and 350 pounds of pasta, which they incorporate into the meals. And while technology has been used by some operations, Second Helpings uses people to gauge what’s coming in and what’s going out, typically taking inventory by sight.

“We do everything by weight. Everything’s by weight because from a tax standpoint, whether it’s a can of beans or a rack of lamb, it’s pound for pound,” she said.

Whitmore also mentions the savings to the local nonprofits on the receiving end of the food. “Those agencies don’t have to spend that money on food, so they can use their dollars and resources to help people better,” she said. Whenever Second Helpings on boards a new agency, it makes sure the organization and nonprofit are ready.

Whitmore mentions, another food source in the community, St. Vincent DePaul at 30th and Rural. One unique element is its grocery store set-up.

“There is a lot of dignity that is put into it,” she said. “I think that awareness and education has changed. I think that people are starting to get a better understanding of what hunger really looks like in a community. There will always be some who don’t understand. But I think the more we educate people, so that people realize that it’s not just soup kitchens. Hungry people are your neighbors.”

There are also sites that serve meals provided by Second Helpings, which have food pantries. Families get a meal and have food for tomorrow. Some of the stigma, too, is reduced at the community-feeding sites.

“Nobody wants to show up and say, ‘I’m here because I’m hungry.’ I think it’s nice to know that it’s not just one way that we’re feeding people. One model that may work for one family may not work for the other.”

At these sites, besides getting a hot, nutritious meal, people get introduced to foods. Vegetables are often added to mac and cheese or a curry dish will be distributed.

“In a lot of ways, hunger is something people deal with very privately. It’s a dignity thing. But if it’s a community meal where my neighbors can just sit down and eat, it’s OK. I like to think of it as the extended family table because you don’t sit next to someone at a communal table and not eventually talk to them,” she said.

Whitmore said she sees the need increasing, and Second Helpings has seen a 12 percent growth in meal production annually.

“The model that we have here is always poised for growth, and we’re always reassessing what does our future look like, and what is our plan for the future if growth happens. It’s something you have to do, because especially when you’re dealing with hunger relief, it is tied to so many other problems in the community,” she said.

Living the dream

By Sponsor Insight

By Patrick M. Rooney, associate dean for academic affairs and research, IU Lilly Family School of Philanthropy at IUPUI |

In sports terms, Wes Boone is lighting ‘em up.

The Indiana University Lilly Family School of Philanthropy sophomore won a $100,000 scholarship in the Dr. Pepper Tuition Giveaway last month. The 19-year-old won the award during halftime of the ACC Football Championship game last month.

His win is also a victory for sports-minded youth around the world who lack the most basic athletic equipment. To date, the nonprofit Boone founded in 2013 and leads, Gear Going Global, has provided sports gear to impoverished and orphaned kids in 15 countries around the globe, including Cameroon, Haiti, Nicaragua, Nigeria and the Philippines.

“For many of them, the ability to play some semblance of sports is food for their souls,” he said.

When Boone was a high school junior at North Montgomery High School, his mother showed the family a documentary, “Power to the People”, about life in Guatemala and Hoosier REMC linemen who brought electricity to three remote villages in Guatemala. Beyond the overall poor standard of living for many Guatemalans, what stood out to this teen was video of kids playing soccer with an empty water bottle — playing with trash because they didn’t have a ball.

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Wes Boone, a sophomore at the IU Lilly Family School of Philanthropy, has already racked up an impressive list of accomplishments, including:

  • Creating a nonprofit organization, Gear Going Global, while still a high school junior.
  • Providing sports gear to impoverished kids in 15 countries around the world.
  • Receiving a $5,000 national scholarship from org.
  • Earning the Jefferson Award for Public Service.
  • Won the 2015 Outstanding Young Adult Indiana Philanthropy Award from the Association of Fundraising Professionals-Indiana Chapter.
  • Is half way to a goal of collecting 500,000 pieces of sports gear in partnership with the Jefferson Awards’ Lead 360
  • Won a $100,000 scholarship in the Dr. Pepper Tuition Giveaway in December 2015.
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“I’d been playing soccer since I was four or five years old, and I’d always had easy access to sports equipment,” Boone said. “I was awestruck that other kids didn’t have that. I asked my parents what I could do, and they told me I could make a difference.”

Boone set out to do just that. Beginning by asking family and friends to donate sports gear, he soon created a 501(c)3 organization. Three years later, it’s a global enterprise. “It’s just amazing how fast this has all gotten so big. I’ve been able to travel, speak and raise awareness for the needs Gear Going Global is working to meet.”

The Dr. Pepper award, which Boone won on live-national television during the Atlantic Coast Conference’s football championship game, follows other impressive accolades. In recent months he’s received a $5,000 national scholarship from DoSomething.org (an organization encouraging youth to engage in social change), the Jefferson Award for Public Service and the 2015 Outstanding Young Adult Indiana Philanthropy Award from the Association of Fundraising Professionals-Indiana Chapter.

The Jefferson Awards’ Lead 360 program has now partnered with Gear Going Global to help the nonprofit reach a goal of 500,000 pieces of donated equipment. In the first nine months, the organization is halfway to the goal. The tally is tracked publicly online.

Many of the youth international organizations, which receive this sports equipment, send back photos of these local children using the donated gear.

“The most rewarding part of what we do is the look on the kids’ faces in those pictures. They work so hard just to try to have what they need to play sports. In some places, the coolest kid is the one who has a long-sleeved shirt they can stuff with newspaper and tie into a ball so they can play soccer,” Boone said.

This past fall, Boone got to see that look first hand, making his first international trip to deliver gear to kids at the Minmahaw School in Thailand.

“It’s a small school and the kids travel hours to get there. They’re creating a soccer team and this new equipment will help a lot. I even got to play a game of soccer with them, which was really fun.”

His experiences have inspired him to make leading the nonprofit, based in Darlington, Ind., his full-time job after commencement.

“Winning the $100,000 will allow me to graduate with a philanthropic studies degree from the Lilly Family School of Philanthropy without any debt, which will help me grow Gear Going Global faster, and ultimately give the gift of play to more children in developing countries around the world,” Boone said.


patrick-rooneyPatrick M. Rooney, Ph.D., is associate dean for academic affairs and research at the Indiana University Lilly Family School of Philanthropy at IUPUI.

Nonprofits assail IRS rule

By Feature, Fundraising

By Tim Devaney, staff writer, The Hill |

Nonprofit groups are assailing a proposed rule from the Internal Revenue Service, warning the regulations could dry up donations and leave them vulnerable to hacking.

The IRS is proposing new requirements for nonprofits to collect the Social Security numbers of their donors.

Currently, nonprofits send donors a form verifying their contributions, which they use for tax purposes. However, the IRS is proposing changes that would require these nonprofits to collect their donors’ SSNs to provide directly to the agency.

But this could put a bull’s-eye on nonprofits, critics say.

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Congress passes bill to make charitable IRA rollover, other tax incentives permanent

By Feature, Fundraising

By Sherri Welch, senior reporter, Crain’s Detroit Business |

The U.S. Congress has approved a bill that would make three charitable tax incentives permanent, according to Washington, D.C.-based Independent Sector, which called the move “a monumental victory on Capital Hill” in an open letter to its members.

Independent Sector and the nonprofit sector as a whole have been advocating to make the charitable incentives a permanent part of the tax code for a decade. During that time, the incentives have repeatedly expired before, in some cases, being retroactively renewed, confounding and frustrating donors and advisers alike.

Part of the Protecting Americans from Tax Hikes Act of 2015, the charitable tax incentives set to become permanent include:

  • the IRA charitable rollover, which allows donors age 70½ and older to give to charities up to $100,000 tax-free annually from their IRAs
  • enhanced deductions for gifts of excess food inventories and conservation easement provisions under which private owners promise not to develop land in exchange for the deduction while still retaining ownership of the land.

The act also includes provisions to make the child tax credit and the earned income tax credit permanent, according to Independent Sector.

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Making big bets for social change

By Feature

By William Foster, Gail Perreault, Alison Powell and Chris Addy, Bridgespan, for SSIR |

When Don Fisher stepped down as chief executive of the Gap in the late 1990s, he and his wife, Doris, decided that they wanted to tackle one of the most difficult social challenges in the United States: improving public education.

Through an expert advisor, they learned about the Knowledge Is Power Program (KIPP), which at the time consisted of just two charter middle schools — one in Houston and one in New York City. And after lengthy due diligence, the Fishers committed to giving $15 million over three years (roughly three times the organization’s annual revenue at the time) to bring KIPP’s results- oriented methods to many more communities and students.

The Fishers bet big, and they bet smart.

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Evaluating the right income strategies for your nonprofit

By Sponsor Insight

By Jamie Levine Daniel, assistant professor of nonprofit management, SPEA IUPUI |

Nonprofits often engage in earned revenue activities to generate revenue to fund their mission-driven programs and services. These market-based income activities can take many forms — some directly related to the organization’s mission, some not.

For example to generate funds, an art museum can charge admission to an exhibit, which is directly related to mission or the organization can sell food in a café, which does not have a direct connection to mission. Both generate income, but each may not ultimately affect the organization’s program/service delivery in the same way.

Certain revenue activities may, indeed, ultimately support the organization’s mission. However, these other activities may draw organizational attention and resources away from the mission-related activities. The connection between the earned-revenue activity and the mission matters, and the following embeddedness framework offers a way to assess whether an earned revenue activity will have the desired effect for an organization.

The embeddedness framework looks at two aspects of an earned revenue activity to evaluate its connection to an organization’s mission. The first is organizational technology or the resources (human, physical, capital, etc.) used to delivery both the earned revenue activity and the organization’s core mission-related services. The second aspect is the target audience(s) for both the earned revenue activity and the mission-related service.

If the organizational technology and target market for both the earned revenue and core mission activity are the same, or an organization monetizing what it already does related to its mission, the earned revenue activity is considered to be fully connected or embedded within the organization.

Consider the art museum selling admission tickets. The core service and earned revenue activities are not differentiated. The organizational technology required is the same, and the target audience is the same.

On the other hand, that same museum’s café would be considered external (or unconnected) to the mission. The resources needed to run a café differ from those needed to mount an exhibit. A customer can eat in the café without entering into an exhibit hall, further differentiating the earned revenue activity from the core mission activities.

If the earned revenue activity and the mission activities share only one aspect in common – either the necessary inputs or the target audience — then the earned revenue activity is considered integrated. It is not fully connected or embedded, nor is it external to the core.

The museum taking a traveling exhibit to a nontraditional audience — an elementary school, or a civic festival — could be using existing resources/processes to target new audiences.

Using revenue and program consumption data from the Cultural Data Project from 2007-2010, my initial research shows that embeddedness matters. Both embedded and external activities are positively connected to program attendance, a signal of core mission activity. In embedded case of admission tickets, the organization makes money on what it already does. In the external case of the cafe, since the activities are separate or external and that activity that does not make money for the organization, it would be easy to shut it down, without detriment to core activities.

However, integrated revenue activity show mixed results. These types of activities show a negative relationship to both access and attendance. The negative effect is especially visible when looking at earned revenue activities that use the same organizational resources used by mission activities. This is noteworthy given conversations many nonprofits may have about maximizing resources.

My findings are that earned revenue can serve as an important element of organizational strategy and sustainability, but the nature of the activity is important. By considering the connections between the earned-revenue activity and the mission activity, organizations can use the embeddedness framework to determine the best use of resources that ultimately best serve program outcomes and client interests.


jamie-levine-daniel Jamie Levine Daniel is an assistant professor at the IU School of Public and Environmental Affairs at IUPUI. She has a Ph.D. in Public Policy and Management from Ohio State University and studies nonprofit management and nonprofit revenue trends.

 

Zuckerberg’s pledge reflects a new era in philanthropy

By Feature, Fundraising

By David Crary, reporter, Associated Press |

The huge philanthropic pledge by Facebook CEO Mark Zuckerberg and his wife — totaling perhaps $45 billion — reflects the fast-paced emergence of a new Gilded Age of giving. The changes excite many in the charity world, but also raise questions about effectiveness, ethics and the impact on older charities that may not share in any windfall.

Foremost, there is applause for the new wave of philanthropists — led over the past five years by Bill Gates and Warren Buffett, and subsequently joined by Zuckerberg and scores of other billionaires in the United States and abroad.

The Giving Pledge, founded in 2010 by Gates and Buffet, now has 138 billionaire signatories from 15 countries who have pledged to give away more than half of their wealth. Many, including Zuckerberg, want to be personally engaged in the oversight and management of their pledged funds, and are finding nontraditional ways of leveraging them.

Amir Pasic, dean of Indiana University’s Lilly Family School of Philanthropy, drew parallels between these modern-day philanthropists and those from the earlier Gilded Age, roughly a century ago, when the Carnegie, Ford and Rockefeller families pioneered a new type of charitable foundation.

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Five visionary tech entrepreneurs changing the world

By Feature, Technology

By Laura Arrillaga-Andreessen for The New York Times |

Suppose you want to help people in struggling communities become better health care consumers. Or to try to prevent terrorist attacks using Big Data. Or to develop lab tests that cost a fraction of what most providers charge. Do you create a business or a nonprofit?

There is no right answer. Because for a new generation of innovators, notions of what is right are different. The important questions are: What is the problem? What solutions can I develop to address it? And, can I help more people by operating as a nonprofit, founding a company, or utilizing elements of both?

A profound change is sweeping across the entrepreneurial landscape. In the quest to improve lives or preserve the earth’s natural resources, today’s top minds are not only coming up with game-changing products and services. They are also reinventing systems and harnessing diverse tools — from cross-sector partnerships to capital markets — to meet their goals. Many of these innovative thinkers are young, coming of age in the aftermath of Sept. 11, amid the destruction of two protracted wars and the economic uncertainties ushered in by the Great Recession. They are digital experts, who, thanks to social media, smartphones and access to limitless information, have grown up with a sense of global community that transcends geographic boundaries. And they seem to have social consciousness embedded in their DNA.

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Five 2016 nonprofits trends to watch

By Feature, Trends

By Nell Edgington, president, Social Velocity |

This is my favorite time of year. Despite the darkness of the last few months, December is often about reflecting on the year that is drawing to a close and hopes for the new one coming.

And as is my tradition on this blog, I like to look ahead at the trends that may affect the nonprofit sector in the coming year. I have never claimed to be a clairvoyant, but I am an admitted optimist, so my predictions are less about telling the future and more about wishful thinking. This year, more than ever, I want to see opportunity amid the uncertainty and the challenges we face.

So here are five things I’m really hopeful about for the nonprofit sector as we head into 2016.

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Nonprofit finance study: Challenges for nonprofit finance professionals

By Sponsor Insight

By Jim Simpson, CPA and director, Financial Technologies & Management  |

In 2013, over 1.5 million tax-exempt organizations in the U.S. reported $1.74 trillion in total revenues and $1.63 trillion in total expenses, according to the National Center for Charitable Statistics. That means nonprofits are responsible for reporting and tracking all that financial information.

In September, Abila, a nonprofit software company, set out to understand this current financial landscape and interviewed 350 nonprofit finance professionals. Specifically, they wanted to:

  • learn about the day-to-day challenges facing nonprofit finance professionals
  • define emerging trends in fund accounting and technology
  • apply how trends and challenges differ based on the organization

Nonprofit boards and leaders should pay careful attention to the Nonprofit Finance study. The study reveals that the trends are for smaller, leaner finance teams and the importance for leaders to improve the finance department by implementing more efficient software products and processes.    

Finance teams staff feels too many of their limited resources are spent on day-to-day activities, and not on more important strategic and planning activities. A typical finance team says they spend significantly more time than they would like in the following areas: helping other departments, month-end-closing, financial reporting, grant reporting, bookkeeping, accounts payable, accounts receivable and payroll processing. Their preference would be to spend more time with strategic and planning activities including strategic accounting, financial analysis, budget planning, and board engagement and development department activities.

Here are some key findings and study recommendations for how you, as a nonprofit finance professional, can overcome similar challenges.

  • Interruptions are common:It would help if other departments would schedule collaboration times and learn to self-manage their finance role to minimize interruptions to the finance department.
  • Nobody is above the basics:Nearly all financial/accounting professionals continue to be involved in the day-to-day activities of the organization. This is reflective of a trend towards smaller, leaner finance teams.
  • Funding is (obviously) key:Organizationally, finance/accounting professionals identify long-term sustainability and finding new funding sources as the biggest challenges.
  • Embracing the cloud:Larger organizations are moving to the cloud quicker, and see greater value and benefit to cloud-based software. Overall, most of the respondents see the cloud as beneficial, with security being the biggest area of concern.
  • Finance/accounting professionals want to focus more on strategy:By and large, respondents spent much of their time focused on either running reports or preparing for monthly presentations, and would like to spend more time on strategic and budget planning.

The full study is available for download at: http://www.ftmllc.com/training.html


jim-simpson Jim Simpson, CPA and director of Financial Technologies & Management, is a financial leader and trainer, Software Advisor, CFO advisor, controller and forensic accountant to nonprofit organizations since 1999, serving over 350 nonprofit clients. He has worked as a CFO, controller and software advisor for over 25 years.

Contact Financial Technologies & Management to learn how our firm can improve your organization’s financial management operations and capacity. You can schedule an appointment directly from the website at WWW.FTMLLC.COM, or email info@ftmllc.com; or phone at 317-819-0780.