Board of Directors

Budget Presentation

June 22, 2018 DRAFT

(As of 5/17/2018)

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Overview FY 2017-18 Year-End Report

Final Revenues and Expenses Summary of Changes

FY 2018-19 Annual Budget Overview Revenues Expenditures Summary Plant Improvements and Acquisitions Board Funding Recommendations

Questions and Next Steps

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FY 2017-18 YEAR-END REPORT Summary of Changes

REVENUES

Originally Budgeted

$10.56 million

Projected Year-End

$10.41 million

Revenues were (1.4%) below budget

EXPENSES

Originally Budgeted

$8.16 million

Projected Year-End

$8.15 million

Expenses were (.2%) below budget

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FY 2017-18 YEAR-END REPORT Summary of Changes

REVENUES Original Budget vs. 2017-18 Year-End

Unrestricted Public Support Revenues were below budget: Foundations & Non-Government, ($78K) primarily due to increased level of grantor restrictions

which creates a different category of revenue and is booked within “restricted” grants Private Donors, ($47K) primarily due to less than expected direct mail contributions Food2Families, ($46K) due to both decreased sponsorships and increased level of grantor

restrictions Organizations, ($45K) due to organizational contributions that did not materialize

Unrestricted Operating Revenues were below budget: Shared Maintenance Fees were ($125K) less than expected due to decreased Donated Food

distribution levels (18% below original budget)

Food & Service (Restricted) Grants performed better than expected. Major contributors were unanticipated grant awards of: EFSP/FEMA Grant, $62K as our original estimates were based upon shrinking Federal Government

funding HPNAP Grant Awards , $45K unexpected HPNAP Legislative Grant Award Other Restricted Organization and Foundation Grants: Fidelis Care (School Pantry), $60K; Morgan

Stanley (Food For Kids), $50K, Other Food For Kids, $30K

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FY 2017-18 YEAR-END REPORT Summary of Changes

Expenses

Original Budget vs. 2017-18 Year-End

Salaries & Wages/Employee Taxes & Benefits are ($93K) below budget due to Operations Staff changes, restructure of the Development/Fund Raising department

Temporary staff and related Agency Fees budgeted for but not utilized ($35K)

Direct Mail Expenses are projected ($56K) below budget primarily due to planned direct mailings that did not occur

Warehouse Utility, Material & Supply expenses were ($17K) less than expected primarily due to milder weather patterns and slightly reduced supply requirements associated with reduced distribution levels

Unemployment compensation payment were ($10K) less than anticipated

Employee Training and Education expenses were ($10K) less than anticipated due to scheduling

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Past 3 Years Net Fund Activities and Significant Variance Highlights

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NET FUND ACTIVITIES ACTUAL 15-16 ACTUAL 16-17 FORECAST 17-18 YEAR

END

Operating & Admin $ 1,882,330.99 $ 1,631,423.96 $ 2,459,664.90

Plant*** $ 259,660.58 $ (118,026.24) $ (191,308.00)

Food & Service Grants $ 879,699.22 $ 408,992.51 $ -

COMBINED NET ACTIVITY $ 3,021,690.79 $ 1,922,390.23 $ 2,268,356.90

FY 2015-2016 Largest Private Foundation Grant of $500K received by The Ralph C. Wilson Jr. Foundation Total Plant Investment of $239K FY 2016-2017 Total Plant Investment of $462K (Including Barcoding Project, Chautauqua Truck, Trailer, Re-Pack Area

and Major Roof Repairs) FY 2017-2018 Largest Private Donation Grant of $821K received by The Estate of N. Greenauer Total Plant Investment of $457K (Including Warehouse Floor Sealing, 2 Trucks, and Falconer

Warehouse Cooler/Freezer

FY 2018-19 ANNUAL BUDGET Overview

• Overall Food Insecurity levels for All Counties remain at or slightly above current levels:

County Total Population Food Insecure % Food Insecure Individuals Erie 921,584 13.5% 124,030 Niagara 214,150 12.8% 27,350 Chautauqua 132,646 12.7% 16,910 Cattaraugus 78,962 13.3% 10,520

• Food-insecure households are those not able to afford adequate diet at

times in the past twelve months • 32% of our service population area earn too much to qualify for most

federal nutrition assistance • Average cost per meal is $2.93

Feeding America “Map The Meal Gap” Using Data from Current 2001-2016 Current Population Survey and 2016 American Community Survey, and 2016 Bureau of Labor Statistics

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FY 2018-19 ANNUAL BUDGET Summary of Changes

REVENUES Total Revenues

$10.04 million Revenues are (3.6%) below

last year

EXPENSES Total Expenses

$8.70 million Expenses are 6.8% above

last year

TOTAL POUNDS HANDLED

Anticipating continued agency sourcing of food within the community.

Food Bank is anticipating an increase in purchased food to offset reduction in USDA

and Donated Food Products.

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FY 2018-19 Annual Budget Revenue Budget FY 2018-19

REVENUE OVERVIEW

Total Revenues $10.04 million

Projection of 6% or $248K growth over last year in Food & Service Grants primarily due to decreasing trend of donated food and the need to purchase additional food to meet client food insecurity needs

Although Private Donor contributions reflect a decrease of (58%) compared to last year, netting the largest private donation of the Estate of N. Greenauer of $821K results in a modest increase of 2.12% overall

Direct Mail campaigns are expected to contribute 83% (or $1.2M) of Total Private Donor contributions of $1.5M

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FY 2018-19 Annual Budget Revenues Budget FY 2018-19 (con’t)

REVENUE OVERVIEW

Total Revenues $10.04 million

Projection of 32% growth (or $85K) over last year within Organization Contributions through increased cultivation and organizational giving efforts

13.9% (or $49K) of Organizational Contributions are planned through targeted Direct Mail campaigns throughout the year

A 19% (or $78K) growth over last year within Foundations and Non-Government Grants is planned through dedicated internal resources

Projected growth within the Major Events of Sweet Charity, up 6% and Food2Families, up 45% over last year primarily due to event popularity and targeting of additional sponsors

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FY 2018-19 Annual Budget Revenues Budget FY 2018-19 (con’t)

REVENUE OVERVIEW

Total Revenues $10.04 million

Shared Maintenance fees are reduced by 3% or ($14K) to reflect a decreasing trend of donated food distribution

Handling Fees are reduced by 8% or ($27K) to reflect a one-time HPNAP Grants not anticipated this upcoming year

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FY 2018-19 Annual Budget Expense Budget FY 2018-19

EXPENSE OVERVIEW Total Expenses $8.70 million

Salaries and Wages reflect an increase of 2% or $32K and include a merit pool of 3%

Fund Raising Expenses reflect a 38% increase overall primarily due to planned Direct Mail expense increases of $35K and increased Advertising and Brand Awareness Study expenses of $78K

***Plant Balances are not a deficit, but rather a reflection of depreciation

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FY 2018-19 Annual Budget Expense Budget FY 2018-19 con’t

EXPENSE OVERVIEW

Total Expenses $8.70 million

Operating Expenses reflect an overall increase of 12% or $25K to reflect increases associated with greater distribution of purchased food and expenses associated with new equipment purchases and related distribution costs.

Food Expenses reflect a 10% or $17K increase due to the anticipated increase in the amount of purchased product to be sourced as a result of declining donated product availability

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FY 2018-19 Annual Budget Expense Budget FY 2018-19 con’t

EXPENSE OVERVIEW

Total Expenses

$8.70 million

Administrative Expenses reflect an overall increase of 19% or $13K to reflect the incorporation of lockbox services for enhanced inbound payment processing and additional payment security.

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Overview of 2018 –19 Plant Budget

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Summary Plant Improvements and Acquisitions

Total Budgeted: $1.66 million

Major Highlights

Buildings (Sub-Total: $1,420,500)

New Garage Project: $1.25M

73 Holt Parking Lot, Security and Lighting: $85K

Garden Project: $25K

Notable Repairs and Others: $60.5K

Vehicles (Sub-Total: $175,000)

Niagara County Delivery Truck: $130K

Trailer 53’: $15K

Other: $30K

Overview of 2018 –19 Plant Budget

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Summary Plant Improvements (con’t)

Total Budgeted: $1.66 million

Major Highlights

Operations Program and Admin Equipment (Sub-Total: $43,000)

Forklift and Truck Batteries: $15K

Other: $28K

Technology (Sub-Total: $27,500)

Phone System and MicroSoft Licensing and Upgrades: $17.5K

Other: $10K

Summary FBWNY Projected Year-End Surplus (2017 – 2018): $2.46 million Year-End Surplus Funding Recommendations

(1) Agency Assistance Program (AAP): $1,200,000 Note: A projected AAP Surplus of $200K is included in the above Specific MINIMUMS for $75K (Personal Care Items), $75K (Milk Coupons)and $100K (Protein)

(2) Plant Fund: $1,100,000

(3) Board Designated Endowment: $0 (4) Designated to Remain in Operating Fund: $159,000 (4) Consideration of Endowment Distribution to fund remainder of planned Plant Expenses

or other funding alternatives (5) Recommended 401K Profit Sharing Percentage of 6% for all eligible Food Bank of WNY

Employees

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Questions and Next Steps

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1. 2. 3. 4.