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Table of Contents

       1.0    Executive Summary

       2.0    About the Problem
              2.1 Working Poor
              2.2 Poverty and the Elderly
              2.3 Related Problems
              2.4 The Problems in the Valley

       3.0     How we will help

       4.0     Objectives and Goals

       5.0    Organization
              5.1 Staff
              5.2 Volunteers

       6.0     Funding
               6.1 Cash
               6.2 Business and Corporate Donors
               6.3 Government Grants
               6.4 Startup Funding
               6.5 Private Foundations
               6.6 In-Kind Food Donations

       7.0     Timelines

       8.0     Marketing

       9.0     Facilities

       10.0    Budget

       11.0    SWOT analysis

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1.0      Executive Summary

Food Bounty is a start-up food bank organized as a California not-for-profit, 501(c) 3 Corporation. Food
Bounty will build a ―franchise‖ template for a local food bank start-up. Our first food bank will be located in the
San Fernando Valley because of the lack of food bank services in the area. During the recent economic
downturn the need for food bank assistance nationwide increased 133% and the need in the Valley witnessed
a similar increase. While we recognize the economic conditions will improve, we face long term challenges
with food insecurity among the elderly and working poor. Food Bounty will provide food security for those in

“Our mission is to ensure people in need have access to healthy food..”

Our staff is comprised –largely-- of former food industry managers and business executives that have a
wealth of experience. We will keep our overhead cost low by repurposing vacated municipal buildings or by
acquiring low rent commercial space. The buildings will serve as both the food bank warehouse and offices.
Instead of investing in costly refrigeration equipment, we will procure used refrigerated ocean containers to
provide temperature control for perishable food items. We will have a small paid staff and a robust volunteer
workforce. We have already readied a significant volunteer network. Our funding will come from an array of

         Private                                                          Government Gants
         Private donations                                                Emergency Food Assistance Program
         Corporate sponsorship                                            Community Development Block Grant
         California Endowment (Private philanthropy)                      Community Services Block Grant
         Bill and Melinda Gates Foundation (Private philanthropy)         Brown Bag Program
         Idol Gives Back (Private philanthropy)                           Community Food and Nutrition Program
                                                                          Federal Emergency Management Agency

Food Bounty’s model is somewhat a departure from a traditional food bank. We plan to create smaller
―satellite‖ food banks. We have surveyed our potential client and volunteer populations and have found the
key impediment to volunteerism in the current food banks is access. Our satellite food banks will be closer and
more convenient than the large distribution center model currently employed. While we will sacrifice some
economies of scale, our research shows we will garner many more volunteer hours. We anticipate our paid
staff to volunteer staff ratio to be one half that of a large distribution center model.

Food Bounty’s Valley Food Bank is just the first step. Our intent is to build a ―franchise‖ template for a food
bank start-up. We have discovered the initial start-up is the biggest barrier to entry. By developing our ―start-
up staff‖ we will flatten the learning curve and build a more robust food bank network. Our start-up team will
provide site acquisition, establish logistics, accounting and fundraising components. We will hire and train food
bank staff. Once the food bank is fully established we will start-up another food bank in another community in

We understand that the Food Bank is multidimensional and it is essential to make the food bank work for each
of our stakeholders. In all of our decision-making Food Bounty will always consider the impact on our
           People in need
           Social services needing food support
           Individuals donating food
           Volunteers donating time
           Businesses donating money or food
           Governmental agencies

We anticipate funding the food bank with approximately $600,000 in local, state and federal grant support,
and our intent is to exceed that sum with individual and corporate donations. Food Bounty’s goal is to provide
at least 30% of the projected need (20 million pounds of food) during our first full year of operation.

Food insecurity leads to many social ills. Studies show where food insecurity is high, crime, domestic violence,
school performance are all adversely affected. When the most fundamental human need is met other social ills
are easier to address. Food Bounty will not only help provide this most basic need, it will be the first step in
strengthening our community.

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2.0         About the Problem

 A national study sponsored by Feeding America (the nation’s largest food distribution network),
 reviewed the effectiveness of emergency food distribution throughout the United States. The findings
 were startling; there was a 133% increase in the number of individuals needing food bank services
 since the last study was released in 2006! The report reflects the skyrocketing unemployment and
 economic distress impacting American households.

 At least 38 million U.S. citizens can't count on having enough food throughout the year ( Tufts
 University) and the number is increasing. Unemployment in California is over 20% in eight California
 counties. The state's January 2010 jobless rate of 12.5% was its worst on record, and fifth-highest in
 the nation. Joblessness, personal debt and declining home values and a decline in real wages have all
 contributed to an increasing level of food insecurity. While the recession has pushed many American
 households to the brink, we recognize the economy will turn around; unfortunately, some trends
 apparently intractable.

2.1 The Working Poor

 The working poor are a structural and long term problem. Although U.S. policymakers have adopted the
 view that a job is the solution to poverty, a job does not guarantee freedom from food insecurity. A working
 family’s budget includes housing, child care, health care, food, transportation, and taxes. The ―real world‖
 family budget stands in stark contrast to the federal poverty line. The federal poverty line is a woefully
 inadequate as a measure of need. If one uses a practical ―budget litmus test‖ the number of families that
 fall below the poverty line increases by 150% (Economic Policy Institute). The 2008 Working Poor Families
 Project reveals that more than 28 percent of American families with one or both parents employed are living
 in poverty. These families struggle under poverty conditions despite parents working long hours. According
 to the report, "Adults in low-income working families worked on average 2,552 hours per year in 2006, the
 equivalent of almost one-and-a-quarter full-time workers. 72 percent of poor families, according to the US
 Bureau of Labor Statistics report, hold jobs. More than half are headed by married couples. Only 25 percent
 receive food stamp assistance.

 The US Bureau of Labor Statistics report notes that working poor families "lack the earnings necessary to
 meet their basic needs—a struggle exacerbated by soaring prices for food, gas, health and education."
 About 60 percent of low-income working families are forced to spend more than one-third of their income on
 housing (40 percent in Los Angeles County spend more than 40 percent of their income on housing) Often
 times these working families fall through the cracks. They make too much money for direct federal
 assistance yet their income is woefully inadequate. The elderly on fixed income face a similar future.

2.2       Poverty and the Elderly

 Currently, 3.4 million seniors age 65 and older live below the poverty line. Millions more are barely making
 ends meet just above the poverty line. While 9.4 percent of seniors had incomes in 2006 below the poverty
 threshold of $9,669 for an individual and $12,186 for a couple, nearly a quarter of older Americans (22.4%)
 had family incomes below 150 percent of the poverty line $14,000 for an individual or $18,279 for a couple.

           Over 2.3 million women over the age of 65 (11.5%) live at or below the poverty line, while slightly
            over 1 million -6.6 percent- of senior men live in poverty.
           Nearly one in five (19%) of single, divorced, or widowed women over the age of 65 are poor, and the
            risk of poverty for older women only increases as they age.
           Women ages 75 and up are over three times as likely to be living in poverty as men in the same age

Among married women, longer female life expectancy makes it likely that they will outlive their spouses, and
be left without any additional sources of income they bring to the household. A great swath of the Baby
Boomers are entering retirement with essentially no significant savings. They appear likely to depend entirely
on government benefits in retirement (Congressional Budget Office).

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                                                   The Baby Boomers are entering retirement age with what
                                                   many analysts think is not nearly enough savings to support
                                                   themselves. The concern of poverty among the elderly is
                                                   acute in the San Fernando Valley. Older Valley residents that
                                                   enjoyed the suburbs during their work life now are isolated
                                                   by it. Lacking mobility the Valley presents unique challenges
                                                   for seniors. Accessing help will be a key component to the
                                                   Food Bounty approach to providing food to seniors. The
                                                   demographic shift and projected need of the elderly is
                                                   staggering; consequently, our business plan and food bank
                                                   model is designed to be elder-friendly.

                                                   The working poor and the elderly present a massive
                                                   challenge to food banks; however, there are troubling trends
                                                   that transect each of the populations in need.
2.3 Related Problems of Food Insecurity

Food insecurity still exists in its traditional terms (as outlined above); we believe we need to expand the term
to include access to healthy food. Paradoxically, obesity among those in need continues to increase, along
with the associated health risks (diabetes, heart disease etc…). Obesity among the poor is at epidemic levels.
Among populations with moderate food insecurity, 52% were overweight One may ask, ‖Why would obesity be
more prevalent within a group of people with fewer resources?‖ The answer is simple, good, healthy food
costs more than junk food. High calorie junk food is a better bargain for someone of limited means. High
calorie munchies cost on average, $1.76 per 1,000 calorie s, compared with $18.16 per 1,000 calories for low
calorie, nutritious foods (University of Washington). Junk foods have many preservatives so poor consumers
buy these foods because they are less likely to spoil. The survey also showed that low-calorie foods were more
likely to have prices impacted by inflation. Just within the last two years ―wholesome foods‖ price surged 19.5
percent; conversely, junk foods prices fell by 1.8 percent. Food Bounty intends to address this growing
problem by providing healthy, fresh foods and providing nutrition education.

Food Insecurity in the Valley

The need for food bank services in the Valley mimic the increasing need we see nationwide. As we stated
earlier, Los Angeles was hit hard by the recession. It is estimated that the unemployed and under-employed in
the Valley topped 20%. Los Angeles and the Valley in particular are ill-prepared for the food bank demands we
face in the outlying years.

                                                           The Valley represents a big part of the City of Los
                                                           Angeles. The Valley constitutes 47 percent of the
                                                           land area and 37 percent of the population of Los
                                                           Angeles. Remarkably, there are only two Food
                                                           Banks affiliated with Feeding America (the nation's
                                                           largest   domestic     hunger-relief   organization)
                                                           servicing the greater Los Angeles area with a
                                                           population of 9.8 million. There are no Feeding
                                                           America affiliated food banks operating in the San
                                                           Fernando Valley with a population of 3.5 million
                                                           residents. Currently a number of small church-
                                                           based food pantries operate in the Valley; however,
                                                           operate only a few days a week. Food Bounty will
                                                           establish a more robust presence to meet the
                                                           increasing need.

One problem is a common misperception that the Valley is relatively affluent. There are, however, serious
pockets of poverty in the Valley, and the problem is getting worse. The number of people living in poverty in
the San Fernando Valley soared by 56.2 percent between 1990 and 2000. The rate of increase in poverty was
3 times greater than in the rest of Los Angeles. In the last few years the trend appears to have been only
exacerbated by the economic downturn. We estimate currently over 250,000 Valley residents are now living in
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poverty. The increase in the numbers of Valley residents living in poverty has been coupled with middle-class
workers leaving the Valley. This is a trend that was witnessed in the 60’s and 70’s in urban areas. It creates a
vicious cycle; middle class flight leads to a smaller tax base combined with an increase in need for services
paid by tax-payers dollars. Between 50,000 to 100,000 people left Los Angeles County last fiscal year (the
bulk of which occurred in the Valley

While those residents who remain in the Valley still identify themselves as middle class, many constitute the
working poor (Beth Barrett). Even before the recession hit in late 2007, the Valley had lost a huge swath of
middle-class workers. Only 43 percent of Valley families by 2006 meet the definition of middle class and
above. California State University Northridge professor Eugene Turner states, ―It means exactly what we think
it means: a growing population that’s not in the middle class.‖ The Valley’s economic decline occurred so
rapidly that there is not a well establish food distribution network, as we mentioned previously, there are no
food banks (affiliated with Feeding America) operating in the San Fernando Valley. Dr. John Cook of Boston
University did an evaluation of America's hunger for the Bread for the World Institute's annual report. He
developed a simple formula: The number of people living poverty X 234 lbs of food= the unmet food need.
Using this formula, the Valley has an unmet food need of 58.5 million pounds of food per year.

How we will help:

Food Bounty will provide satellite food banks throughout the community to improve access of healthy food to
those in need. Accessibility to social services is always major concern. Do those in need have transportation?
Do they have child care? Do they have mobility issues? Having our neighborhood based food banks will make
food more available to the most vulnerable.

Food Bounty will emphasize fresh and healthy foods versus the processed dry foods normally associated with
Food Banks. Perishable foods present unique challenges for distribution. Using refrigerated containers and
strong knowledge base of cold chain logistics, we believe we will create a new fresh food bank distribution
model. We will organize a robust gleaners program (harvesting product left after commercial harvesting) to
provide a steady stream of vegetables. Food Bounty will leverage its industry contacts with fresh produce
growers and importers to further our goals to provide fresh, healthy foods to those in need.

Food Bounty will institute processes and procedures to simplify the tasks of warehouse, distribution and
human resource (paid and volunteer) management. We wish to become facilitators to encourage the
volunteers to provide the bulk of our personnel hours. Our lean, highly skilled, staff which will reassure our
donors that support is largely going directly to our mission.

We have developed a human resource management cloud computing database that can provide HR support
for several food banks without having redundant staff. Similarly, our warehouse management system will
provide state-of-the-art traceability yet it is easy to use and completely scalable. Food Products are bar-coded
and scanned into the warehouse and scanned out of the warehouse. The system will reduce shrinkage,
spoilage (by rotating product correctly) and provide recall capability into the operation. The processes will also
provide valuable information regarding who, what, where, and why product is being donated. Having easily
customizable database provides a wealth of information for analysis to refine our processes and ensure a
steady supply of donated food.

Our outreach efforts will include:

        1. Emergency Food Assistance Program (EFAP)
        2. Community Food Distribution: We work with hundreds of non-profit organizations that provide
           services to those in need.
        3. Brown Bag Program: Our Bank’s Brown Bag Program provides weekly nutritious groceries to
           senior individuals (ages 60+) and disabled individuals (ages 55+) at distribution sites in Los
           Angeles County
        4. Federal Emergency Management Agency (FEMA)
        5. Community Food and Nutrition Program (CFNP) Nutrition training and healthy food delivery
        6. Mobile Pantry: Distributes pre-packaged, non-perishable items, fresh dairy products, and produce
           to residents of geographically isolated, low-income neighborhoods who do not have consistent
           access to nutritious food.
        7. Provide food to After-School programs (i.e. Boys and Girls Clubs)

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        8. Nutrition Education: provides low-income families, seniors, and individuals with resources for
            improving health, nutrition, and wellness. Nutritionists support partner agencies through
            workshops on nutrition topics such as food safety, children's nutrition, and more.
        9. Pantry Shopping: traditional pantry in convenient locations
        10. Provide food to Senior Nutrition partner agencies

4.0     Objectives and Goals

“Our mission is to ensure people in need have access to healthy food.”

We will provide quality caring services to all of our clients, regardless of age, sex, race, color, religion, national
origin, sexual-orientation, mental or physical disabilities

We have already discussed we anticipate the unmet food need in the Valley to be 50 million pounds annually.
We are confident that we will be able to meet 20% of the need during our first full year of operation. Our
expectation is Food Bounty will provide all of the unmet food need by Year 3. Our aggressive goals were
established because we need to quickly meet the existing need so we can prepare for the daunting task
ahead. As we have discussed, the problems of poverty and food insecurity among the elderly and the working
poor is growing at an alarming pace. Our unique franchise model for local food banks makes our aggressive
goal setting possible. Our physical plants are smaller and easier and more cost effective to find. Using
refrigerated containers allow Food Bounty to quickly react to the increasing or decreasing needs in an area.
For example, should an employer lay-off significant numbers of workers, Food Bounty can react and provide a
more robust level of support to areas that experience a greater economic impact. We designed the Food
Bounty small, scalable food bank not just for flexibility but for the sake all of our stakeholders. Food Bounty
recognizes that, in order to be successful, our customers are not merely those in need.

Food Banks have several stakeholders we consider customers including:

           People in need
           Social services needing food support
           Individual donating food
           Volunteers donating time
           Businesses donating money or food

For people in need, Food availability is key. Our intent is to provide satellite food banks throughout the
community. Access for the poor to services is always major concern. Do they have transportation? Do they
have child care? Do they have mobility issues? Having our neighborhood based food banks will make food
more available to the most vulnerable.
For social services (i.e., women's shelter, elder care, homeless shelters, after school programs) needing
food support will benefit from the accessibility of the food banks. Since these facilities, generally, do not have
large staffs so sometimes it is problematic to pickup the food. Having conveniently located satellite food banks
will allow for easy outreach of these social services.
For individuals donating food, they will appreciate the ease of donating food. It becomes more convenient;
therefore, we are confident it will result in more donations. The local satellite food banks will create a sense of
ownership in the neighborhood and will -again- result in more donations.
For volunteers donating time. We are confident that our satellite food banks will successfully draw from
surrounding neighborhoods, schools, churches and civic groups for volunteer work. The convenience will allow
more people to "put in a few hours." Centralized food banks often require traveling some distance to the
facility so it becomes a dedication of a significant amount of time. Centralized food banks are often times in
industrial areas and seem more intimidating to an average volunteer
Businesses will appreciate the local food bank organization. We expect to be more successful soliciting
donations from mid-sized and small business since the food bank is located near their business. Large
business will participate in the local food banks and will appreciate the ease of donating food. Since the
locations are nearby, pickups of donated food will be quicker and the logistics more convenient.

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5.0        Organization Summary                                                            Food Bounty is a start-up food bank
                                                            7 Member Board of Directors
                                                                                           organized as a California not-for-profit,
                                                                                           501(c) 3 Corporation. We are organized with
                                                            CEO (see resume in appendix)   a seven member Board of Directors (see
                                                                                           Articles of Incorporation and By Laws in the
                                                            COO (see resume in appendix)   appendix). We have a small and elite group of
                                                                                           paid staff. Our objective is to maintain a 10:1
                                                                                           volunteer to paid staff ratio regarding hours

                                      Program Director (see resume in appendix)            We have a select group of paid employees
                                                                                           that constitute the start-up staff. These are
                                                                                           the CEO, COO and Program Director. These
                                                                                           key staff members will spearhead the startup
                                                                                           of the first Food Bounty location and all
                                                                                           subsequent locations. Once the first food
                                                                                           bank has been established (i.e.,the staff and
                                                                                           volunteers are trained, programs and facilities
      Warehouse Supervisor (see resume in appendix)                                        established and a consistent stream of food
                                                                                           donations and financial donations are
                                                                                           established) the start-up team will find
                                                                                           another location for another Food Bounty to
5.1     Staff
Food Bounty is committed to having a 10:1 volunteer hour to staff hour ratio; as-a-result, the staff must be
highly skilled, innovative and energetic. We believe it is important that we do not advance the problem of the
working poor so we intend on paying market level, living wages. We will foster a work culture to entice the
most gifted to work for Food Bounty because it encourages innovation, provides avenues for personal growth
and provides a workplace that employees feel their efforts make a difference.

      CEO is a salary position. The food bank CEO is responsible for the organization's effectiveness in meeting
      its mission. This includes but is not limited to:
         Ensuring the food bank operates within the guidelines established for a 501 (c) non-profit
         Meet of exceed the food distribution goals set forth by the Feeding America parent organization
         Hire and mentor personnel
         Manage administrative staff (salaried and volunteer staff)
         Develop volunteer base and manage their effectiveness
         Maintain facilities
         Develop fundraising and donor pools
         Establish business practices and procedures
         Report to the Board of Directors
         Establishes partnerships with business, non-profits and governmental entities

      COO is a salaried position. The position is largely to support the director's efforts in by providing oversight
      of the day-to-day running of the food bank.
         Develop food donation programs
         Follow all rules and regulations governing food distribution facilities
         Establish warehouse policies and procedures
         Hire and mentor warehouse personnel and volunteers
         Enforce the organization's rules of conduct and codes of ethics
         Ensure governmental reports and information is provided in a timely manner
         Facility controller (manage cash flow) and advise director of cash management status

      Project Director is a salaried position. The Project Analyst establishes grants and programs
        Help form volunteer base
        Develop the training and safety program
        Establish KPI’s and reporting (volunteer hours, food distribution goals etc…)
        Assist in Marketing efforts and community outreach
        Implement new (pilot) programs and monitor and report their effectiveness
        Update and add content to the website

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   Develop statistical surveys to measure food bank effectiveness.

Bookkeeper is a part-time salaried position. The bookkeeper is responsible for maintaining the
organization's books.
   Accounts Payable
   Accounts (donor) receivables
   Post checks
   Reconcile
   Maintain physical asset inventory list

Warehouse Supervisor The warehouse supervisor is responsible for the warehouse operation including:
 Properly receiving, bar-coding and storing donated foodstuffs
 Taking physical inventories
 Entering inventory into warehouse inventory system
 Properly distributing foodstuffs per procedures
 Shipping foodstuffs from the inventory system
 Manage FIFO (first in, first out) policy
 Supervise volunteers
 Report volunteer hours to the volunteer coordinator
 Drive truck for pickups and deliveries when volunteers are unavailable

5.2 Volunteers

We have already formed the nexus of our volunteer base. As mentioned previously, our food bank model
was established to ensure a robust volunteerism. We specifically sought to eliminate many of the
impediments to volunteering. Our local food banks ease access for volunteers and garner a sense of
ownership. Our information system (i.e., warehouse inventory and shipping) programs are easy to use
and highly intuitive so the volunteers will feel confident performing almost any task.

The volunteers will be recruited from San Fernando Valley High School Key Clubs, church groups, sports
clubs, AARP, community colleges and state university campuses. High school and college students will
appreciate the fun environment and the ability to gain course credit. We intend to use our volunteer base
as a potential resource for future management. Elderly volunteers will appreciate the ease of volunteering
and the sense of community we will encourage. Volunteers are the backbone of Food Bounty so the
business plan started with that simple concept and we built around it. We intend to aggressively use
volunteers throughout the organization including the following areas:

    Gleaners                Administrative Support          Marketing
    Warehouse staff         Maintenance                     Fund Raising
    Drivers                 Repacking                       Events

6.0 Funding

Food Bounty will fund its operation with a combination of corporate and private donations and a host of
private foundation and governmental grants. The key to success of Food Bounty is expected to be
corporate donors. We plan to provide aggressive marketing and acknowledgement of corporate sponsors
including prominent display of logos and corporate names.

6.1 Cash
Individual cash donations provides the funding that is the most versatile because it generally comes
without restrictions on how the money is spent. Conversely, governmental and private foundation grants
have a host of specific directions on how the grant money is to be used. It is important that we develop
private cash donations because (being a new start-up) we will inevitably have unforeseen expenses. We
will actively solicit cash donations on our website via a Paypal credit card processing feature. Donors will
get tee-shirts, reusable shopping bags with the Food Bounty logo prominently displayed. We will go into
our specific marketing campaign later in this plan; however, we have an aggressive goal of obtaining 20%
of our operating revenue via private cash donations.

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6.2 Business and Corporate Donations
The 2009 Valley Economic Summit is a group of San Fernando Valley based businesses formed to enhance
the business environment and community. The Economic Summit specified the need of business to assist
non-profit Food Banks. They recently published their objectives in supporting non-profits in the Valley as
one of the goals in their mission statement.

The Valley Economic Summit Goals are outlined below:
       Adopt a charity and find out how your business can be most helpful during the next year
       Conduct food and clothing drives for poverty-relief agencies, or target your drives to fill unmet
        needs (i.e. canned or fresh food, after school supplies, etc)
       Conduct a fundraising event to benefit a charity.
       Promote individual volunteer Organize groups of employees to do work projects at local nonprofits
        opportunities at several charities via your company’s internal newsletter or e-blasts
       Ask company executives to consider using their professional skills by consulting pro bono for a
        period of time with a charity (i.e.share expertise in finance, HR, strategic planning, PR, etc.)
       Plan, purchase supplies, and run a party or special event for needy children, the physically or
        mentally disabled, veterans or other targeted group
       Encourage employee involvement by matching their personal financial or volunteer donations
        with a business monetary gift to the employees’ charities

Summit Members:

JetBlue                             Providence Healthcare Services   Jones Lang LaSalle
Southwest Airlines                  Los Angeles Times                ADG
Bank of America                     The San Fernando Valley Sun      Trammel Crow Company
Santa Barbara Bank and Trust        Paris Industrial Parks

We will aggressively solicit the private sector for direct contributions, food donations and volunteers. We
intend to demonstrate how sponsoring a food bank is good for business. Food Banks are generally
perceived as purely altruistic and not laced with any potential political stigmas. By helping to support more
food security we will demonstrate to would-be donors that the community is more stable, and by
extension, a better place to do business.

The members of the Valley Economic Summit are unique because they are businesses that identify
themselves with the San Fernando Valley. Generally, most companies identify themselves with Los
Angeles so we believe these participants will be fruitful to solicit support. There own mission statement
included supporting Valley-based nonprofit organizations.

                                                             In order to maintain a healthy pipeline of
                                                             donations we believe maintaining our
                                                             milestone deadlines are essential. We
                                                             have an online project management
                                                             program to maintain accountability and
                                                             determine if we --as an organization-- are
                                                             falling short of our marketing plan and
                                                             fund raising goals.

                                                             The database provides all the participants
                                                             to see the status of the individual task
                                                             and percentage toward completion.
                                                             Regular meetings and donation reviews
                                                             will determine which marketing activities
                                                             are proving to be the most effective.

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Government Gants

Governmental grants represent a large portion of most food bank funding. The drawback with
governmental grants is that the funds come with qualifications and restrictions. The restrictions on funds
will become acute if the majority of Food Bounty’s revenue is obtained through governmental programs.
Cash flow would become problematic. For example, most food banks receive the following governmental
grants. Food Bounty intends to receive these grants too; however, they must not represent more than
45% of our operating revenue.

Emergency Food Assistance Program           Community Services Block Grant
Community Food and Nutrition Program        Brown Bag Program
Community Development Block Grant           Federal Emergency Management Agency

Community Development grants will be important for building improvements. We anticipate that grants
will be an important part of our yearly funding, and that is why a professional grants consultant will hired.

Start-up Funding
A critical phase of funding Food Bounty will be the start-up funding. We will draw upon private and
corporate donors for these funds.
Start-up Donor Drive. The Start-up Donor Drive effort depends on the commitment of key staff to raise
funds through corporate and individual contributors throughout the area. This includes leveraging the
resources of corporate sponsors and initiating the Valley Economic Summit program where businesses are
partnered with specific areas of need. Sponsors and Donors are recognized in numerous ways for the
valuable role they play in the organization. We anticipate the drive to cover the opening expenses.
Monthly revenues. Revenues for the 2010-2011 opening will be supported by programming and
memberships and acknowledging our cornerstone donors. The forecasted revenue ranges fluctuate from a
beginning low of just a few thousand dollars in our first month as we get open to a high of over
$25,000 in November at the peak of season. We expect our Thanksgiving annual fundraiser to result in
over 30 percent of our annual financial donations reoccurring donations will provide regular revenue. It is
essential that we solicit regular donations (ideally reoccurring credit card donations).
Participation with Food Bounty will have many benefits, and by extending an impressive value proposition
at all levels, we expect to quickly expand our membership to include a wide variety of people, and our
retention and renewal level should remain high as a result of updating and perpetually adding new and
exciting benefits.

The first stage of Food Bounty’s fundraising will be the development of the Founding Circle. This will be
the group of corporations and individuals who participated in the ground floor construction phase of the
Food Bounty, and will be acknowledged on a bronze plaque placed prominently on premise. Through either
in-kind or cash donations or a combination of both, membership in the Founding Circle of the Food Bounty
will be achieved on several levels:

       Founding Premiere Sponsor ($25,000 and above). This level will receive a customized benefit
        package that individually suits the provider, with the most prominent presentation credit. For
        example, on the Food Bounty refrigerated containers we will prominently display the logo of
        Founding Premiere Sponsors.
       Founding Sponsor ($10,000 and above). This level will also receive a customized benefit
        package that individually suits the provider, with second most prominent presentation credit,
        customized On-Screen Ad, and 160 complimentary tickets to regular attractions.
       Founding Premiere Patron ($5,000 and above). Customized signage for six months and 75
        tickets to regular screenings.
       Founding Patron ($2,500). Customized animated logo for one month, customized signage for
        one month, 5 tickets to the Golf Tournament, Tennis Tournament or Thanksgiving Ball.
       Founding Donor ($1,000). Customized ad in programs and newsletter, 2 tickets to the Golf
        Tournament, Tennis Tournament or Thanksgiving Ball.
       Founding Friend ($500). Listing in programs and newsletter, 1 ticket to Golf Tournament, Tennis
        Tournament or Thanksgiving Ball.
       Charter Premiere Member ($100). Special offers from corporate sponsors, Food Bounty T-shirt,
        plus membership benefits.
       Charter Member ($50). Special offers from corporate sponsors, subscription to the newsletter,
        invitations to special events and parties. Student and Senior Annual Members receive 25% off.
        Annual membership starts the day the Food Bounty opens, but Charter and Founding Members

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        pay in advance, allowing those doors to open! Regular ticket prices for the Golf and Tennis
        Tournaments will be $75 and $65 for Students and Senior Annual Members. Special events are
        priced separately, and don't apply to discounts unless stated.
       Thanksgiving Fundraising. This annual November event and will quickly become one of
        the most anticipated parties of the year. This is due to continued public appeal, corporate
        sponsorships, and experienced volunteer leadership. This fundraiser should give a financial push
        after our first few months, just as the previous ones have given a base for our start-up funding.

Private Grants
There are a number of private grants Food Bounty will solicit. At the outset these will be relatively modest
since they too come with many restrictions and are generally program specific (i.e., elderly nutrition). We
included a copy of the RFP to the Bill and Melinda Gates Foundation for review. As Food Bounty matures
and its cash flow stabilizes, Private Foundation grants will become increasingly important. For the first few
years we expect the private grants to only account for 5% of our operating revenue.

California Endowment (Private philanthropy)
Bill and Melinda Gates Foundation (Private philanthropy)
Idol Gives Back (Private philanthropy)

6.6 In-Kind Food Donations
We will solicit corporations, restaurant chains, farming operations for in-kind food donations. The
executive staff will leverage their industry contacts to develop the in-kind food donation program. We will
offer same day pickups for any food donations. The key with expanding the food donation stream is
ensuring we react to the needs of the donor’s operation. Similarly our gleaners will be prepared to quickly
react to available harvesting opportunities.

7.0 Milestones

Milestone                    Start Date       End Date       Budget       Manager               Department
Website                       4/16/2010       5/16/2010           $0       Sullivan                        IT
Social Networking             4/16/2010       5/16/2010           $0       Sullivan                        IT
Marketing material            4/16/2010       5/16/2010         $500       Sullivan               Marketing
Thanksgiving Ball             4/16/2010      10/12/2010      $10,000       Hatchell              Fundraising
Golf Tournament               4/16/2010       6/12/2010      $10,000       Hatchell              Fundraising
Tennis Tournament             4/16/2010       7/12/2010       $5,000       Hatchell              Fundraising
Flyers                        4/16/2010       6/12/2010         $500       Sullivan               Marketing
Chamber of Commerce           4/16/2010       7/12/2010         $500       Sullivan            Administration
Advertisement print           4/16/2010       8/12/2010       $2,000       Sullivan               Marketing
Advertising (multi-media)     4/16/2010       8/12/2010       $5,000       Sullivan               Marketing

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8.0       Marketing Strategy

The Website will always be mentioned in advertisements as a place to buy advance tickets and other
products. By selling advance tickets to the fundraisers, we will know our capacities in advance and be able
to judge when extra marketing is necessary. Once at the site, there will be constant direction to revenue
generating centers, such as the merchandise page full of interesting things to purchase. The website will
also be a base for our mission of education with the tour of the food bank "The History of Food
Bank Programs".

The website will serve several functions. First, it will inform the community of our
existence and what our mission is. Two, it will provide a user friendly way of donating money or food
products via a shopping cart function. Third, the website will provide a platform for which a variety social
services and community non-profit organizations can have links to their websites.

Our website address will be included on all printed materials (i.e., business cards, stationary, truck
signage, print advertisements). Our website will be fully optimized by linking to national food banks,
California food banks and other charitable websites. We will solicit search engines for free pay-per-click
add search placement. We will use meta tags, reciprocal links to increase our visibility on organic key work
internet searches.

          The website will profile volunteers and offer acknowledgement for their service.
          The website will profile businesses that participated in offering food donation.
          The website will display our food donation goals and our current status in achieving our goals

Development Requirements website will be initially developed by the founding team. Once established staff will be
trained to update the website and add content.

The website aesthetics will evoke an emotional response from the viewer. We will emphasize the help
being provided to children and the elderly. Photos and profile stories will help to outline our mission and
the help the food bank provides the community. The profiles and photos will also serve in inspire the


           “Our Bounty,‖ the email newsletter and direct mailings will be our regular marketing platform
           for products, services, and events. It will also be a way to document the history of the Food
           Bank and show new visitors what they will receive as a member.
          Telemarketing will be the follow-up to direct mailings to make the sale if the mailings haven't
           yet. Telephone calls will be a way to keep in touch individually with members, and get feedback
           and requests.
          On-site Marketing of Food Bounty products and services will be one of our most important ways
           to convey messages and direct people to revenue generating centers. There will be constant
           awareness of what one can see, do, and buy through a variety of imaginative graphic placements
           Tee-shirts, mugs and reusable canvas shopping bags. We will be successful in spreading the word
           of all we have to offer, enjoying a word-of-mouth push that keeps people coming.
          Targeted Advertisements will form a diversity of support for the Food Bounty. Instead of
           concentrating on daily promotions we will have targeted fundraisers (sporting events, wine tasting
           and holiday events).
          General Listings will also be broad in scope; giving information and the number you can call for
           more information. Details will be provided in listings when needed and appropriate.
          There will be a strategic placement of links to and from other websites.
          Radio and PSAs will form a support group from a wider area, and we will participate in creative
           giveaways for awareness in targeted radio stations. The Food Bank will specialize in innovative
           methods of collecting food made by volunteers (i.e., Victory Gardens and Gleaners).
          Flyers, programs, and brochures will be an important source of information and education to
           convey the mission of the Food Bank. The Food Bank will be a wealth of visual material for a rich
           tradition of good work.
          The Database of our donor pool will be ever changing, and like the website, it will require
           constant updating. There will be an expansion of our present database to the categories of Present
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              Members (in all categories), Nonmembers but on the mailing list, Potential Donors, Alliances,
              Vendors, Distributors and Producers, and Volunteers. By keeping good track of our customers, we
              will be better suited to market to them in certain ways. When they arrive with an advance
              purchase or a membership card that can be swiped for identification
             Press Contacts will be expanded to include an array of publications and journalists that are
              interested in the Food Bounty and what is has to offer. Organized and well timed press releases
              will be able to inform a variety of target markets what is happening.

             Businesses will appreciate the local food bank organization. We are confident that we will
              be more successful soliciting donations from mid-sized and small business since the food bank is
              located near their business. Large business will participate in the local food banks and will
              appreciate the ease of donating food. Since the locations are nearby pickups of donated food will
              be quicker and the logistics more convenient.

9.0       Facilities
          Food Bounty’s facility will be a repurposed municipal building or a low rent commercial location. Unlike
          the traditional food bank facility in a large warehouse and industrial setting, we plan to capitalize on
          the overhang of commercial retail space to leverage a preferred lease rate or work with the City for a
          rent free location. Our facility will be about 1/3 the size of a traditional food bank and located more
          within the neighborhood for which we serve. We have identified a number of potential locations of
          which here is one example:

                                                           For purposes of the business plan we will use this
                                                           facility as an example. Efforts continue to have a facility
                                                           donated to us rent free or donation of the entire
                                                           property for the food bank. Using the lease model we
                                                           will assume the rent and NNN will be roughly $4500 per

                                                           To ready the facility, we will need to invest in some
                                                           safety equipment various signage and lighting for
                                                           operation and to get our certificate of occupancy. Soon
                                                           after we move-in we will need to obtain permits to
                                                           erect racking. We will not need this at the startup but
                                                           space will be at a premium soon after operations
                                                           This warehouse is located in the Sylmar / Valley area of
                                                           the Valley. This area has the lowest per capita incomes
10.0      Budget
                                                           in the entire Valley area. It is conveniently located near
                                                           the 5 Fwy / 405 Fwy. It is located near several large
                                                           commercial grocery distribution centers and 45 minutes
                                                           from the Oxnard growing region.
11.0      SWOT Analysis

          Strengths, Weakness, Opportunity and Threats (SWOT) is a helpful method to review your
          business plan’s viability. Let us start with our internal strengths and weaknesses.


         Administrators have strong relationships with corporate suppliers that donate food.
         Administrators have extensive expertise in food and produce warehousing, inventory management and

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      Excellent and stable staff, offering specialized database management and administrative services
      Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
      Strong merchandising and product presentation.
      Good referral relationships with complementary vendors and some marketing agencies.
      Established network of individuals for donations and volunteer service


      Access to operating capital.
      Cash flow continues to be unpredictable, and presents a periodic problem.
      Principals are still climbing the "non-profit experience curve."
      Establishing ourselves among the non-profit sector professionals
      Finding and preparing a warehousing facility for the food bank


      A significant percentage of our target market still not knowing we exist.
      Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
      Increasing need in many areas beyond our "40-mile" target area including several smaller
       communities that have produced a faithful following of customers.
      Internet marketing potential for drawing awareness on the issues of food security.
      Internet and social networking to solicit donations.


      The downturn in the economy has impacted charitable giving. Giving in 2008 declined by 5.8%
       adjusted for inflation. Thrift shops and food banks have been hurt still further as Americans use goods
       and food rather than donate them.
      Due to the economic downturn the increase in need threatens to overwhelm our ability to satisfy those
       in needs.‖ Household Food Security in the United States, 2008," the number of families who qualified
       as having low food security rose to 14.6 percent, up 3.5 percent from 2007.
      Budget deficits at the city, state and federal level present potential cuts in block grants CNMI for food
       banks. .

Important Assumptions

   The financial plan depends on important assumptions, most of which are shown in the following table. The
   key underlying assumptions are:
      We assume direct food costs will be equal to or less than 10% of total direct costs. .
      We assume that there will be a 10% reduction in government grant funding availability.
      We assume a continued interest in using the food bank by organizations in the San Fernando Valley
      We assume the availability of donated space via LA Unified School District, City or Los Angeles or
       corporate donors

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