Food Banks Kanyi Masembwa Juan Pulgarin Andrew O’Shaughnessy Sainath N
Major Players • Direct Donation Model • http://www.secondharvest.org/ • Greater Pittsburgh Community Food Bank • Advertising Support Model • http://www.thehungersite.com/ • Personal involvement: in missions, advocacies, prayers • Food for the Hungry • Share our Strength • Collection & Distribution of Surplus Food • http://www.foodchain.org/
Trends • USDA: Average % of disposable income spent on food • 1996 10.9 % 1960 17.4% 1930 24.7% • Implies food is more affordable than ever • Personal Responsibility and Work Opportunity Reconciliation Act of 1996 • Food Stamps: States have their own welfare reforms • Food Banks: Non profit providers provide food • Food Stamps • Federal Government’s largest food assistance program • Mid 80’s 20 mi. 1994 27.5 mi. 1995 26.6 mi. • 1996 25.5 mi. 1997 21.4 mi. • Spending • 1996 $25 bi. 2002 $28 bi. • Food Banks • Non profit providers of food • Operate internationally and within the USA.
Food banks and E Commerce Donor FOOD BANK Beneficiary Internet Based Non Internet Based • Online Donation • Site click thru • Distribution • Network Management • Supply Chain Management
www.secondharvest.com • Business Model • Founded in 1979: Donation Driven Nation’s largest food bank network • Chicago-based 501(c)(3) nonprofit organization with 185 regional food banks • 1994: 3,500 paid staff + 800,000 volunteers (40 mi. volunteer hours) • Amount of food distributed p.a increased @ 10% p.a. for the last 15 yrs • Monthly corporate sponsor partnership • Donations • Your $1 34 pounds of food + grocery products to network food banks • Beneficiaries • Demographic Profile of beneficiaries • 39% from households with working individuals • 62% are female 38% are children 16% are seniors (65 and over) • Target Audience • Individual donors, corporations, foundations • Contact Strategy • Via email, partnership with Excite!®
www.secondharvest.com • Individual Donation Form to make online payment • Online Cash Donations • Easy to make payment Securities Donation
nonprofit organization committed to eliminating hunger and developing collaborative strategies that encourage self-reliance in areas in which we serve. • Beneficiaries • distributes over 1 million pounds of food and grocery products each month to 340 agencies in the 12 county region of Southwestern Pennsylvania. • Target Audience- individual donors, volunteers, community corporate sponsors • Contact Strategy – Appetizer Cards with participating restaurants, Community Service Events
www.thehungersite.com • Business Model • Supported By Advertisements • Users click on “Donate” button : Donations paid for by corporate sponsors • FREE for the web surfer! • Translated into foreign languages to increase global reach • Accredited with the UN Food Program Credible Signal • Donations • Number of click AND number of sponsors for that day Quantity of food donated • Each sponsor for the say pays for ¼ cup of food per donation • Beneficiaries • All donations are made to the United Nations World Food Program • Donations reach over 80 countries • Cooperation with other relief organizations • Target Audience • Individual web surfers • Contact Strategy • Via word of mouth, actively discourage spamming EVERY 3.6 SECONDS SOMEONE DIES OF HUNGER!
Food for the Hungry • Business Model • International partnership raising funds in Canada, Hong Kong, Japan, Korea, Norway, Singapore, Switzerland, the United Kingdom and the United States. Support also comes from individuals, churches, foundations, businesses, the United Nations and several government sources. • Annual budget exceeds $50 million • More than 90% of total income, including commodities, goes to field programs • Donations • Online, mail-in or fax donations • Target Audience • Individuals, churches, corporations • Contact Strategy • Via word of mouth & (God), churches, free postcards from current donors to their friends
Share Our Strength One of the nation's leading anti-hunger, anti-poverty organizations. establishes long-term relationships with corporations and businesses that meet philanthropic goals as well as business objectives. Share Our Strength develops these assets to create win-win partnerships, which increase awareness and funds for the fight against hunger and poverty. • Donations • Online, mail-in or fax donations, On-line Store, Products • Target Audience - individuals,corporations, foundations and nonprofit organizations • Contact Strategy – National Bulletin, Taste of the Nation, Cause Related Marketing, Licensing w/ E&J Gallo
FoodChain • Business Model • Foodchain's philosophy is that no food should go to waste when people are hungry • FoodChain rescues surplus of food from different food businesses to distribute to different agencies • 200 million pounds of food rescued in 1998; the equivalent of more than 135 million meals • Donations • Becoming a “Link in the food chain” by donating excess food. • Match a Meal program: Corporate employees contribute the amount of money spent on their lunch • Financial donations • Beneficiaries • Agencies throughout the U.S. • Target Audience • Businesses related with the food industry with surplus of food • Contact Strategy • FoodChain publications, conferences
Value Added • Child Sponsorship • Photograph and email communication • Growth and Nutrition Initiatives • prevent the consequences of childhood malnutrition and promote the healthy growth of families. • Culinary Classes for underprivileged communities • Utilization of previously wasted resources for a good cause • Community Building and social change
Retention Strategies • Food for the Hungry • Child sponsorship, free postcards • Share Our Strength • Online store, community bulletin, responsive email system • Community Wealth Ventures, Inc. • provide strategic counsel to corporations, foundations and nonprofit organizations interested in creating community wealth. • FoodChain • “We’ll help you receive positive publicity” • Publication of companies involved in the program, increasing their reputation • The Hunger Site • One Click option to easily donate food • Actual donations are done by sponsors; no hassle to provide personal information
Further Recommendations • Linkage to Corporate Giving • Swapping banner advertisements with high traffic and high profile web solutions • Donation option for other web consumers • E.g. Hotmail customers have an option to donate to a particular food bank. In lieu, they get premium services in Hotmail. Price discrimination of a unique kind • Committed Donations • E.g. AOL customers can opt to pay a fixed fee as part of their annual subscription towards a particular food bank • Streaming Media Publicity • Ticker advertisements on mainline newspapers to increase outreach. The latter sites earn the goodwill by “donating” this space • Personalized contact to all social workers through the website • The site should provide information to social workers in this field • Utilizing ECommerce and EDI for food distribution