June 13, 2017 Board of Directors Meeting. Fiscal Year 2018 Budget and Supporting Materials

Transcription

1 June 13, 2017 Board of Directors Meeting Fiscal Year 2018 Budget and Supporting Materials 1

2 Overview Executive Summary FY 2017 Operations & Financial Review FY 2018 Operational Plan Overview FY 2018 Financial Budget Required Resources 2

3 Executive Summary for FY18 Budget Targeted growth from 94K to 106K children. Focus on 4 current RMD Target Markets Chicago, Louisville, Jacksonville and SW Florida. 3 New Target markets for late-spring LA, DC, ATL. Funding to be raised in advance of RMD hires. Due to financial constraints, Food Logistics services are not in the budget, but are still a big focus. Cash flow critical first 5 months of the fiscal year 3

4 Fiscal Year 2017 Operational & Financial Plan Highlights 4

5 Fiscal 2017 Program Dept. Highlights Overall Goal: Headcount Growth of 16,500 to 104,500 children served Develop infrastructure to support growth in the areas of: ü Staff including Boots on the Ground ü Program Support Strategy v Pricing Structure v Enhanced Volunteer Support ü Food Logistics ü Chapter Structure Implementation All others, 27,596, 29% Optimu Publix, m Foods, 2,316, 3,855 3%, Meijer, 4% 11,649, 12% Sysco, 25,370, 27% Walmar t/sam's Club, 21,812, 23% 5

6 FY17 in Review: Staff Additions = Boots on the Ground 2017 Approved Plan Establish boots on the ground to grow regional base in the following areas: ü Southwest Florida (PT to FT) 7/1/16 target, implemented 11/1, once Jacksonville RMD was hired and trained ü Jacksonville Florida 8/1/16 target, hired 9/21/16 ü Chicago 8/1/16 target, hired 9/11/16 ü Louisville 1/1/17 target, implemented 1/1/17 Selection criteria included strong local advisory board in place (except Chicago where overseeing NUDM funding was a key requirement) Hire in advance of positions being able to support their own costs. Expected year 2 to be self-funding. Expected cost was $66K ($56K salary + $5K travel + $5K misc.) 2017 Results/Findings Regional Managing Directors in FL markets spend more time than anticipated on local advisory board development and maintaining existing programs vs. fundraising and program growth Actual RMD cost higher than expected. FY 2018 budget $84K average or $18K higher than FY 2017 expected Positions require financial support for marketing and PR, geographic-specific website, etc. in addition to salary/benefits/travel Each market has different attributes that impacted growth Headcount Growth FY 2017 Region Begin End* Change % change Plan Southwest Florida 2,752 3, % 4,615 Jacksonville Florida 9,772 10, % 11,731 Chicago 4,987 5, % 7,236 Louisville 7,457 7, % 9,250 * Projected 6

7 FY17 in Review: Program Support Pricing Strategy 2017 Approved Plan Major initiative: New Pricing Rollout 2017 Findings/Results $10 per child nonfood program support to take effect in the school year was announced in October 2017 Backlash from existing legacy programs was extremely negative Following Board of Directors input, a Pricing Task force convened in December 2017 A revised price structure for legacy programs was approved and implemented 2/1/17 Impact is effectively $2/child vs. $10/child; however, risk of losing children served was lessened 7

8 FY17 in Review: Program Support Volunteer Resources 2017 Approved Plan Major initiatives: Enhanced Volunteer Support 2017 Findings/Results PC newsletter was launched in May to coincide with National Volunteer Week Significant enhancements to the PC Toolkit for volunteer Program Coordinators (PCs) Comprehensive updated Operations Manual to be released by June 30, 2017 Possible National PC Conference was delayed to 2018 to focus on reaching PCs through newsletter and PC Toolkit and to ensure adequate sponsorship support 8

9 FY17 in Review: Food Logistics 2017 Approved Plan Create a National agreement with incumbent Sysco or other appropriate food vendor Pilot a prepackaged solution with Champion Foodservice Create an advisory committee to weigh in on possible solutions 2017 Findings/Results A National agreement with Sysco would have added 10% to food cost Prepackaged solution with Champion was piloted in Florida and Louisville through Sysco ü Very successful in Florida ü Mixed results in Louisville ü Sysco s lack of willingness to stock both prepackaged solution and line item menu was a significant obstacle to further roll-out Attempts to address food logistics with probono consultants were not successful ERA hired to support food logistics reengineering in April. Detail analyses completed in May. Initial recommendations expected by the end of June 9

10 FY17 In Review: Chapter Structure Implementation 2017 Approved Plan Develop a model to replicate in new markets Standardize local advisory boards 2017 Findings/Results Initiative was assumed by Director, Strategy and New Initiatives in connection with new market roll-outs Templates developed included: ü Operating Practices and Principles ü Advisory Board Member Job Description ü Advisory Board Member application Regional Managing Directors are using templates as guidelines in working with established local advisory boards in moving to best practices, modifying as appropriate for local market needs. Some cultural resistance to overcome (i.e. no prior dues or give or gets ) 10

11 Fund Development Davidoff Consulting Project Develop corporate partnership program to develop a pipeline of national corporate partnership opportunities. What Was Successful o Defined our program, what we offer and how to activate partnership o New sponsorship program to leverage marketing dollar o Better understanding of who we are, how others see us, and how to leverage that o 41 new corporate donors as of 3/31/17 o 4 new cause marketing partners, 3 on partnership agreement phase, 4 developing What Was Not Successful/Lessons learned o Cold outreach gets lost in the noise. Decision makers don t respond without a known contact sending the correspondence o Large corporations see us a small fish in the pond more influencers we have, the better o Corporations default to school investor support working on how to change that o Cause marketing has much slower lead time than the standard corporate relationship 11

12 FY 2017 Budget to Projected - Statement of Operations Restricted FY17 Unrestricted FY17 Total FY 2017 Budget Projected Budget Projected Budget Projected Variance Revenues Unrestricted Donations $2,356,654 $2,275,956 $2,356,654 $2,275,956 ($80,698) -3% Program Revenue $8,029,936 $7,190,895 $8,029,936 $7,190,895 ($839,041) -10% Fundraising Events (Net) - Unrestricted $206,500 $198,433 $206,500 $198,433 ($8,067) Other Income/Gift $12,836 $12,836 $12,836 Investment Income $22,800 $30,330 $22,800 $30,330 $7,530 Total Revenue $8,029,936 $7,190,895 $2,585,954 $2,517,555 $10,615,890 $9,708,450 ($907,440) Expenses Food & Backpack $8,157,936 $7,018,961 $66,850 $55,336 $8,224,786 $7,074,297 $1,150,489 14% Staff $1,810,980 $2,007,957 $1,810,980 $2,007,957 ($196,977) -11% Contract Services $207,195 $146,454 $207,195 $146,454 $60,741 29% Administrative $524 $351,256 $329,699 $351,256 $330,223 $21,033 Depreciation Expense $12,000 $15,478 $12,000 $15,478 ($3,478) Marketing $4,500 $74,650 $26,686 $74,650 $31,186 $43,464 58% Travel $128,860 $128,502 $128,860 $128,502 $358 Other $1,426 $0 $1,426 ($1,426) Total Expenses $8,157,936 $7,023,985 $2,651,791 $2,711,538 $10,809,727 $9,735,523 $1,074,204 Increase (decrease) in Net Assets ($128,000) $166,910 ($65,837) ($193,983) ($193,837) ($27,073) $166,764 Direct Program Expense %, prior to Indirect Expense Allocation 76% 73% Total Non-Food Revenue is below budget, mainly due to a shortfall in program driven revenue as there was a change in the program fee from $10 to 2%. Food revenue is lower than budget, because we were feeding less children in the program during the year compared to budget. Full year we are approx. 10K children behind Food expense is lower than budget, because we were feeding less children in the program during the year compared to budget. Full year we are approx. 10K children behind Staff expense is projected over budget, in part do to the hiring of the Director of Strategy, which was not budgeted. Also the Communications Manager went FT from PT Staff expense was also higher as 1 new FTE position was originally in Contract Services. (Volunteer Engagement Coordinator) Contract Services is lower as food logistics services were lower than budget and due to a staff position being moved to salaried staff vs contract, per above. 12 Marketing expense is ahead of budget as we did not spend as much as planned. Savings were used to help offset other costs.

13 FY 2016 Actual vs FY 2017 Projected Balance Sheet Assets Cash ST Investments Acct Rec Pledges Rec Other Current Assets Fixed Assets Acc Depr Total Total Assets 6/30/ Actual Restricted Unrestricted Total $ 4,170,684 $ 360,391 $ 4,531,075 3,090, ,761 3,360,303 4,920-4, , , ,059 34,543 16,815 51,358 96,204 96,204 (83,333) (83,333) 12,871 12,871 $ 7,530,637 $ 997,949 $ 8,528,586 6/30/ Projected Restricted Unrestricted Total $ 4,647,620 $ 516,131 $ 5,163,751 14% 2,962, ,097 3,099,639-8% 2,959 1,302 4, , , ,715-32% 4,782 18,688 23, , ,038 24% (98,870) (98,870) 20,168 20,168 $ 7,902,109 $ 793,895 $ 8,696,004 Liabilities and Net Assets Liabilities Accounts Payable Accrued Liabilities Total Liabilities $ 116,001 $ 61,828 $ 177, ,227 44, , , ,516 $ 320,563 $ 25,221 $ 345, ,752 71, ,023 95, ,996 Net Assets - Temp Restricted Net Assets - Unrestricted Total Net Assets Total Liabilities and Net Assets $ 1,122,942 $ 338,529 $ 1,461,471 6,291, ,366 6,844,600 7,414, ,895 8,306,071 $ 7,530,637 $ 997,950 $ 8,528,587 $ 506,516 $ 117,754 $ 624,270-57% 7,074, ,168 7,654,738 7,581, ,922 8,279,008 $ 7,902,109 $ 793,895 $ 8,696,004 Cash has increased mainly due to increased growth in children feed and NUDM Funds transferred from Investments Investments decreased at 6/30/17 due to $234K of NUDM Funds transferred to cover children feed in FY17. Unrestricted Pledges Receivable decreased since 6/30/16, as we collected $290K from Meijer in Sept 2017 Fixed Assets increased due to the purchase of laptops for new staff hires. Temp Restricted Net Assets have decreased at 6/30/17 as NUDM and other food related Funds have been released during the year to feed kids. 13

14 FY 2017 Unrest Rev Budget vs Forecast Thru March Nonfood Budget Not Identified Identified Total Thru March Nonfood Actuals Not Identified Identified Total Variance, Thru March Budget to Actuals Not Identified Identified Total Category Athletes 10,000 58,520 68,520 46,406 41,120 87,526 36,406 (17,400) 19,006 Corporations 158, , , , , , ,022 (14,106) 107,916 Events, Net YTD 18,000 78,000 96,000 14,383 95, ,925 (3,617) 17,542 13,925 Foundations 79, , ,900 62, , ,122 (16,504) 250, ,222 Government 0 10,710 10, ,679 23, ,969 12,969 Individuals 121, , , , , ,262 36,387 37,825 74,212 Other 2, ,250 10, ,733 8, ,483 Total $ 389,890 $ 1,010,300 $ 1,400,190 $ 573,068 $ 1,297,855 $ 1,870,923 $ 183,178 $ 287,555 $ 470,733 FY17 Nonfood Budget Not Identified Identified Total FY17 Forecasted Total Revenue Not Identified Identified Total FY17 Forecast To Secure Not Identified Identified Total Category Athletes 16,000 79,120 95,120 51,500 43,620 95,120 5,094 2,500 7,594 Corporations 454, , , , , , ,803 84, ,591 Events, Net 21, , ,500 23, , ,433 9,050 79,458 88,508 Foundations 104, , ,300 62, , ,621 (0) 9,500 9,499 Government 0 21,420 21, ,123 64, ,444 40,444 Individuals 143, , , , , ,244 59,900 62, ,982 Other 3, ,000 10, , Total $ 742,750 $ 1,630,560 $ 2,373,310 $ 796,914 $ 1,576,627 $ 2,373,541 $ 223,846 $ 278,772 $ 502,618 14

15 FY17 In Review: Children Served Budget Projected Variance Beginning Headcount Actual 88,000 88, National Managed Relations (1) 4,000 1,721 (2,279) NUDM 2,200 2,200 - Dale Jr. 1,422 1,422 - New Regional Directors (2) 2,180 2, Grass Roots: - New Programs 1,921 Legacy 5,552 Total Grassroots 13,400 7,473 (5,927) Less Estimated Attrition (3) (6,700) (8,565) (1,865) Grassroots, net of attrition 6,700 (1,092) (7,792) FY Ending Balance 104,502 94,499 (10,003) (1) Includes appx. 4,000 children from Ohio Dept. Of Health, an increase of appx. 3,000 (2) Includes all children in programs assinged to RMD, even if outside target market. i.e. RMD for Jacksonville also has responsibility for program oversight for Alabama and select areas in FL (3) Actual attrition for FY17 will be determined once 6/30/17 childcount numbers are available 15

16 FY17 In Review: Children Served Primary Reasons Growth Objectives Were Not Achieved Hiring program team staff took longer than anticipated New Regional Managing Directors (RMDs) in place for 9 months or less New Program Managers (PMs) in place for 8 months or less New pricing roll-out was a significant distraction in moving forward Higher attrition than anticipated in the FY17 Plan Pricing structure changes Expiring commitments for previous growth spurred by People Magazine Historical lack of proactive outreach to support program volunteers due to PM coverage limitations (3.1 FTEs for 88,000 children) Some programs are serving fewer children as the need has decreased at individual schoolsàimproving economy? 16

17 Fiscal Year 2018 Operational Plan Highlights 17

18 FY18 Program Priorities Overall: Breaking the Code to Sustainable Growth to serve 106,400 by 6/30/18 Maximize assets already in place: Regional Managing Directors Fundraising plans are being developed by each RMD for their respective markets RMDs to identify key memberships that will enhance their networking for purposes of fundraising Further collaboration with the National Fund Development Department to enhance local fundraising skills and opportunities Identify opportunities for collaboration and partnerships to significantly increase growth: Develop a comprehensive list of prospective collaborators, preferably national in scope (I.e. Share Our Strength/No Kid Hungry, Feeding America, United Ways, Boys & Girls Clubs, large religious groups, police departments.) Conduct research to identify feasibility/pros and cons of collaboration Create partnerships aimed at significantly increasing numbers of children served as well as funding opportunities. 18

19 FY18 Program Priorities Overall: Breaking the Code to Sustainable Growth Establish Food Logistics Solutions as a Competitive Advantage over other weekend food programs 50% of food purchases are at retail prices 60% of food purchases require volunteers to pick up food (vs. delivery to packing site) Food purchases from 220 sources monthly do not leverage total food spend A cost-effective and efficient food logistics solutions: is key to minimizing attrition for those who believe they can run their programs more costeffectively on their own is necessary to accelerate future growth in children served 19

20 Roles and Responsibilities of Managing Directors vs. Program Managers Summary Regional)Managing)Director Implement(Blessings(in(a(Backpack(strategic( plan(in(assigned(geographic(territory(with( oversight(for(all(local(fundraising,(program( operations(and(execution.(("boots(on(the( Ground"/face(of(BIB(in(the(local(community. Program)Manager Act(as(the(liaison(between(resources(of(the( National(office(and(local(volunteer(program( coordinators.((pcs). FY18) Fundraising) Goal Fundraising Strategic $237,000 $0 Work(with(the(local(advisory(board(to(develop( needed(resources. Build(partnerships,(establishing(relationships( with(the(funders,(political(and(community( *((Corporate(asks *((Grant(writing Complete(the(strategic(business(planning( process(for(program(expansion. Seek(and(build(board(involvement(with( strategic(direction. Operational) Support(startNup(of(new(programs: Support(startNup(of(new(programs: Menus Menus Food(logistics Food(logistics How(to(run(a(program How(to(run(a(program Working(with(volunteers Working(with(volunteers Ongoing(support(of(programs Ongoing(support(of(programs Food%logistics%solutions,%as%needed Food%logistics%solutions,%as%needed Provide(donor(and(financial(reports Provide(donor(and(financial(reports Field(ongoing(questions Field(ongoing(questions *((Chapter(board(liason(&(advisor *(((Represent(the(national(office(at(local( events(when(feasible.(i.e.(local(program( *((Local(board(&(school(event(support fundraisers,(check(presentations,(etc. Act(as(a(spokesperson(at(external(programs( and(events(for(constituents(and(the(general( public,(when(feasbile *((Volunteer(coordination *((Volunteer(coordination Coverage Serve(50N200(schools,(<10k(children Serve(200N300(schools,(20N30K(children Specified(region MultiNstate(geographical(footprint 20

21 FY17 Year in Review: Program Team Footprint 21

22 FY17 Year in Review: Regional Managing Director Model Current State Key Responsibilities: Interface with local Advisory Boardàlimited structure or succession planning; no established give/gets; work of committees loosely defined (if at all) Program Operationsàoversee an average of 6,400 children, programs, with an average of 140 children per program. (RMDs with larger counts also have some Program Management responsibilities.) Fundraising in the local community to cover operating expenses and feed additional children Average cost of Regional Managing Director direct expenses = $82,000 Includes Salary/benefits, Marketing, Phone, Supplies, Travel $10/child = 8,200 childrenàhigher than current assignment Unrestricted $s expected to be raised to help cover costs. Realities: Targeted Salary for this position is extremely low given the skillset required 8,200 children is higher than current assignments-->mds are at capacity On average, 77 % of children covered by MDs are legacy, not $10/child (varies greatly by market 22

23 Regional Managing Director Model Future State Key Responsibilities: Interface with local Advisory Boardàboards created with guidance from national; best practices; fundraising expectations defined upfront Program Operationsàoversee an average of 10,000 children, max. of 50 programs with a minimum average of 200 children per program Fundraising in the local community Average cost of Regional Managing Director direct expenses = $100,000 Increase from Current State for more competitive pay $10/child = 10,000 children Unrestricted $s expected to be raised to help cover indirect costs and legacy programs Requirements: Need to identify partnerships that will DRAMATICALLY increase the number of children served per programàcan t rely on grassroots growth with 50 children/school Need to increase the fundraising capabilities of MDsàtraining, networking/memberships 23

24 FY18 Program Priorities: New Regional Managing Directors in New Geographic Target Markets Los Angeles and Washington, D.C. Revenue Goals before hiring a local RMD Raise $135K (LA) and $105K (DC) through Advisory Boards, Sponsorship, and Personal Donations Atlanta Revenue Goals before hiring a local RMD Raise $135K through Advisory Board, Sponsorship, and Personal Donations Target hire dates, depending on fundraising goals, are late Spring early Summer of 2018 In the year following the hire of a new RMD in each new market, the goal is to increase child count by 1,500. Once a new market has a RMD in place, then National BIB would start the new market process over, by adding another city. 24

25 FY18 Budget Student Headcount Growth Children Served 7/1/17 Projected Balance 94,499 Existing Legacy Programs 6,693 New Grassroots Growth 5,408 Program Staff Driven 5,408 Less Attrition (5,600) 6/30/18 Projected Budget 106,408 Notes: Increase of appx. 12,000 students, net of attrition, is nearly double FY17 growth Looking for increased productivity of assets put in place Need to identify partnerships that will DRAMATICALLY increase the number of children served per programàcan t rely on grassroots growth with 50 children/school The 5 year strategic plan called for FY17 ending headcount to be 140, ,000 for FY17 and FY18, respectively 25

26 Organizational Growth FY 2018 budget includes one FD position empty July to mid-september, that role being part-time starting in September and the addition of 1 new FTE in Fund Development, starting in Jan Green= Currently Filled Positions Blue= New Budgeted Positions for FY18 CEO Executive Assistant Director of Strategic Initiatives CFO/COO Chief Development Officer Chief Marketing Officer Chief Program Officer Director of Accounting Vendor Relations Manager Director of Athletic Partnerships Communications Manager Director of Program Operations Accounting Specialist Accounting Coordinator Associate Director of Corporate Relations Program Managers 1 FT 3 PT HR and IT Contract work as needed Manager, Foundation & Corporate Relations Fund Development Coordinator Associate Director of Development (Empty July & August, PT Mid- Sept On) Associate Director of Individual Giving (Jan 18) Volunteer Services Manager Volunteer Services Coordinator Regional Managing Directors Chi, Lou, Jax, SWFL 26

27 Fiscal Year 2018 Financial Budget Highlights 27

28 Fiscal 2018 Budget Key Assumptions Student Headcount/Food Revenue Headcount growth and food revenue is distributed during the year based on a 3 year average of headcount/food revenue distribution Program Support Revenue The $10 per child program support revenue from schools will be measured based on headcount in a school at the end of month in October and March. Payment to corporate will be made in November and April with $5.00 being charged at each measurement. Revenue, however, is spread across each 6 month associated with each measurement date. Legacy schools program charge is 2% of collections each month with monies coming to corporate at that time. Oct - 17 Measurement Nov - 17 Payment Dec-17 Jan-18 Feb-18 March - 18 Measurement April - 18 Payment May-18 Jun-18 Jul-17 Aug-17 Sep-17 Headcount Growth Distribution 12% 15% 14% 5% 6% 7% 3% 10% 9% 12% 5% 2% Food Revenue Distribution 9% 9% 8% 10% 9% 10% 6% 8% 7% 9% 6% 7% Revenue Example: Headcount Measurement 1,000 1,200 Charge Per Headcount $ 5.00 $ 5.00 Amount Charged $ 5,000 $ 6,000 Monthly Revenue Recognition $ 833 $ 833 $ 833 $ 833 $ 833 $ 833 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Cumulative $ 833 $ 1,667 $ 2,500 $ 3,333 $ 4,167 $ 5,000 $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 Regional Managing Director (RDM) Additions Targeted markets to expand into include Los Angeles, Atlanta and DC. Director of Strategic Initiatives to obtain the funding of the annual expected cost (approx. $100k) of an RDM prior to hiring of the position. Expected hire dates are: Los Angeles March 2018 Atlanta May DC May 2018

29 FY 2018 Budget - Statement of Operations Restricted Unrestricted Total FY Budget 2018 Projected 2017 Budget 2018 Projected 2017 Budget 2018 Projected 2017 Variance Revenues Unrestricted Donations $3,420,860 $2,266,092 $3,420,860 $2,266,092 $1,154,768 51% Program Revenue $8,998,306 $7,190,895 $8,998,306 $7,190,895 $1,807,411 25% Fundraising Events (Net) - Unrestricted $0 $171,520 $198,433 $171,520 $198,433 ($26,913) Other Income/Gift $0 $22,700 $22,700 ($22,700) Investment Income $28,091 $30,330 $28,091 $30,330 ($2,239) Total Revenue $8,998,306 $7,190,895 $3,620,472 $2,517,555 $12,618,778 $9,708,450 $2,910,328 30% Expenses Food & Backpack $9,203,855 $7,018,961 $73,775 $55,336 $9,277,630 $7,074,297 $2,203,333 31% Staff $2,348,869 $2,007,957 $2,348,869 $2,007,957 $340,912 17% Contract Services $93,500 $146,454 $93,500 $146,454 ($52,954) -36% Administrative $524 $375,296 $329,699 $375,296 $330,223 $45,073 Depreciation Expense $14,400 $15,478 $14,400 $15,478 ($1,078) Marketing $4,500 $83,242 $26,686 $83,242 $31,186 $52, % Travel $167,744 $128,502 $167,744 $128,502 $39,242 31% Other $1,426 $1,426 ($1,426) Total Expenses $9,203,855 $7,023,985 $3,156,826 $2,711,538 $12,360,681 $9,735,523 $2,625,158 27% Increase (decrease) in Current Net Assets ($205,548) $166,910 $463,646 ($193,983) $258,097 ($27,073) $285,170 Direct Program Expense %, prior to Indirect Expense Allocation 75% 73% Non-food Revenue has increased due to increased Fund Development work, as well as the 2% Program fee and $10 Program Fee that will be in effect all year. Program Food Revenue has increased because we are adding approx 10K children, plus the food cost is moving from $80 to $90 year child per year. Food Expense as increased, because of the child count increase and food cost increase mentioned above. Staff Increase - There is 1 new staff FTE projected in Jan 18, there are 3 projected Managing Directors in late spring, only if funding is raised in advance. The other driver of the staff increase, are the new staff positions that were hired mid-year 2017, that will now have a full year of salary impact. Contract Services are down because there is currently no budget for Food Logistics or services from Davidoff Consulting. Marketing is up to help in the existing markets, as well as new target markets. We also have money budgeted for National PC Conferences. 29 Travel is up due to the work in the existing target markets (Managing Directors), new target markets (LA, DC and Atlanta) and for Program Managers within their territories.

30 FY 2018 Statement of Monthly Net Income Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Full Year FY18 Total Income 1,082, , ,927 1,217,732 1,337,049 1,442, , , , ,987 1,111,507 1,351,375 12,618,778 Total Expense 235, ,833 1,199,526 1,191,169 1,202, ,301 1,233,106 1,243,727 1,251,242 1,277,386 1,294, ,800 12,360,681 Net Income(Loss) 846, ,530 (509,599) 26, , ,116 (364,255) (336,834) (463,853) (352,399) (183,281) 816,575 Cumulative YTD 846,381 1,014, , , ,029 1,142, , ,056 (22,797) (375,196) (558,477) 258, , ,097 Restricted - Food Revenue 963, , , ,043 1,017, , , , , , , ,801 Food Expense - (462,714) (941,078) (946,554) (953,176) (720,701) (964,146) (975,287) (985,292) (998,706) (1,004,182) (252,019) Net 963, ,673 (354,928) (122,511) 64, ,376 (407,357) (289,109) (430,838) (316,919) (463,017) 666,782 YTD 963,593 1,304, , , ,533 1,034, , ,443 (92,395) (409,314) (872,331) (205,548) Unrestricted - Non-food Revenue 118,696 94, , , , , , , , , , ,574 Operating Expense (235,908) (267,119) (258,448) (244,615) (249,719) (245,600) (268,960) (268,440) (265,950) (278,680) (290,605) (282,782) Net (117,212) (172,144) (154,671) 149,074 69, ,740 43,103 (47,726) (33,015) (35,480) 279, ,792 YTD (117,212) (289,356) (444,027) (294,953) (225,504) 107, , ,613 69,598 34, , ,646 Grand Total 258,097 8,998,306 (9,203,855) (205,548) 3,620,472 (3,156,826) 463,646 National Operations runs a net loss for the first 5 months of the year. $425K of the full year National Office Net Profit occurs in the last 2 months of the year 30

31 FY 2018 Statement of Monthly Unrestricted Cash Flows Unrestricted Cash Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Beginning Balance 516, , , , , , , , , , , ,923 Collections School 2% - 6,653 13,335 13,344 13,356 10,027 20,062 20,091 20,118 20,154 20,168 5,047 School $10 pp , , Regional Manager 14,167 14,167 14,867 33,417 30,167 33,917 15,967 15,167 15,167 15,167 19,667 15,167 National Board of Directors 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 New Target Markets ,500 37,500 30,000 22,500-82,500 52,500 30,000 97,500 - Ohio Health - 15, , , ,000 - National Driven Events ,000 20,625 5,730-10,000 20,000 27,930 12,235 25,000 Individuals 15,000 21,000 20,750 21,350 60, ,250 33,100 25,100 37,100 61,100 27,100 31,100 Atheletes 6,375 8,000-26,175 37,500 26,100 4,375 21,720 26,500 3,875 2,500 2,000 Corporations 65,650 12,600 14, ,400 39, , ,700 9,400 39,900 58,400 29, ,200 Foundations ,000 55, ,500 50, , ,000 40,515 Other Interest Income 1,156 1,276 1,254 1,230 1,237 1,244 1,220 1,164 1,078 1, Transfers from investments 40,000 18,000 Purchase of Assets (5,000) - (5,000) - - Collections on AR 46,000 8,267 3,000 5, Less Disbursements Non Payroll Operating Expense (64,564) (95,776) (68,861) (75,028) (70,132) (66,014) (82,107) (81,587) (71,830) (84,560) (83,315) (75,491) Payroll & Taxes (170,143) (170,143) (178,387) (178,387) (178,387) (178,387) (185,653) (185,653) (192,920) (192,920) (206,091) (206,091) Ending Balance 477, , , , , , , , , , ,923 1,090,090 Regional Manager Restriction Revenue - - (22,500) (37,500) (30,000) (22,500) - (82,500) (52,500) (30,000) (97,500) - Expense 2,000 2,000 3,000 1, ,864 10,664 24,282 24,282 Net Balance Cumulative 2,000 4,000 (15,500) (52,000) (82,000) (104,500) (104,500) (187,000) (230,636) (249,972) (323,190) (323,190) Net Balance after New Markets 479, , , , , , , , , , , ,900 Peg Balance - 2 months avg opr exp 500, , , , , , , , , , , ,000 Over (Under) Peg (20,479) (171,685) (340,177) (239,926) (168,960) 83, ,371 (31,477) (119,751) (116,161) 78, ,900 31

32 FY 2018 P&L Geographical Overview Southwest Market Louisville LA DC Atlanta Chicago Jacksonville Fl Date of Hire Jan-17 Mar-18 May-18 May-18 Aug-17 Sep-17 Nov-16 All Other Non-Target Corporate Total Beginning FY Headcount (projected) 6, ,664 10,008 3,162 68,152 N/A 94,499 Ending FY Headcount (budget) 8, ,000 7,650 10,773 4,142 73,340 N/A 106,408 Revenue Food 725,462 15,603 34,728 74, , , ,265 6,233,847. 8,998,306 Nonfood 76, , , , ,451 60,905 87, ,811 2,672,245 3,620,472 Total Revenue 801, , , , ,343 1,006, ,045 6,448,659 2,672,245 12,618,778 Cost of Food (725,462) (15,603) (34,728) (74,061) (626,893) (945,448) (342,265) (6,439,396) - (9,203,855) General & Administrative (76,074) (40,256) (19,184) (16,651) (88,807) (83,778) (83,954) (278,603) (2,469,519) (3,156,826) Increase/(Decrease) in Total Net Assets (23) 95,851 87, ,374 37,644 (22,873) 3,826 (269,340) 202, ,097 Less Balance Revenue Raised in FY18 for future years expenses 94,744 85, ,349 Net Contribution to National Office (23) 1,107 2,098 4,024 37,644 (22,873) 3,826 (63,792) 202, ,737 =(Non-Food Revenue Less G&A Expense) LA, DC, ATL only start when money is raised up front SWFL was part time RMD since 2015, went full time as RMD Nov 2016

33 FY 2017 vs FY 2018 Balance Sheet Projected Assets Cash ST Investments Acct Rec Pledges Rec Other Current Assets Fixed Assets Acc Depr Total Total Assets 6/30/ Projected Restricted Unrestricted Total $ 4,647,620 $ 516,131 $ 5,163,751 2,962, ,097 3,099,639 2,959 1,302 4, , , ,715 4,782 18,688 23, , ,038 (98,870) (98,870) 20,168 20,168 $ 7,902,109 $ 793,895 $ 8,696,004 6/30/2018- Forecast Restricted Unrestricted Total $ 4,695,800 $ 1,090,090 $ 5,785,890 12% 2,674,542 93,450 2,767,992-11% 2,959 1,302 4, ,206 38, ,448-16% 4,782 18,688 23,470 0% 129, ,038 8% (127,670) (127,670) 1,368 1,368 $ 7,662,289 $ 1,243,141 $ 8,905,429 Liabilities and Net Assets Liabilities Accounts Payable Accrued Liabilities Total Liabilities $ 320,563 $ 25,221 $ 345, ,752 71, ,023 95, ,996 $ 286,291 $ 25,221 $ 311, ,752 71, ,751 95, ,724 Net Assets - Temp Restricted Net Assets - Unrestricted Total Net Assets Total Liabilities and Net Assets $ 506,516 $ 117,754 $ 624,270 7,074, ,168 7,654,738 7,581, ,922 8,279,008 $ 7,902,109 $ 793,895 $ 8,696,004 $ 218,516 $ 77,754 $ 296,270-53% 7,157,022 1,069,414 8,226,435 7,375,538 1,147,168 8,522,705 $ 7,662,289 $ 1,243,141 $ 8,905,429 Cash has increased due to increased growth in children feed, revenue for new market expansion and NUDM Funds transferred from Investments Investments decreased at 6/30/18 due to NUDM Funds transferred to cover children feed in FY18. Unrestricted Pledges Receivable decreased since 6/30/17, as we collected outstanding pledges during the year. 33 Fixed Assets increased due to the purchase of replacement laptops for old units. Temp Restricted Net Assets have decreased at 6/30/18 as NUDM and other food related Funds have been released during the year to feed kids.

34 Nationally Driven Revenue Trend 2015 Actual 2016 Actual 2017 Projected 2018 Budget Grand Total Food 0 2,704,969 1,802,749 1,773,436 NonFood 1,524,278 2,141,528 2,373,551 2,614,154 Total 1,524,278 4,846,497 4,176,300 4,387,590 Athletics Food 423, , ,540 NonFood 79,720 86,720 95, ,120 Total 79, , , ,660 Corporations Food 1,317, , ,896 NonFood 535, , ,267 1,025,099 Total 535,352 1,928,290 1,694,430 1,925,995 Events, Net Food 639, NonFood 139, , , ,520 Total 139,979 1,117, , ,520 Foundations Food 239, ,485 0 NonFood 504, , , ,015 Total 504, , , ,015 Government Food 85, , ,000 NonFood 21,420 64,123 60,000 Total 0 107, , ,000 Individuals Food 75,273 0 NonFood 245, , , ,400 Total 245, , , ,400 Other Food NonFood 18,727 3,144 10,733 3,000 Total 18,727 3,144 10,733 3,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Total Nationally Driven Revenue 2015 Actual 2016 Actual 2017 Projected 2018 Budget NonFood Food Please note, 2016 included NUDM and some school investors donating their 2017 gift early. Also, in FY15, National Staff did not have goals/responsibilities to raise food support, and thus was not tracked at that time. 34

35 FY18 Total Nationally Driven Revenue Forecasted FY17 and budgeted FY18 total (food and nonfood) revenue driven by national staff members, not including managing directors or nonfood support from volunteer teams. FY17 Forecast FY18 Budget FY17 Revenue Transferring to MDs Category Food Nonfood Total Food Nonfood Total Food Nonfood Total Athletes 496,158 95, , , , , Corporations 841, ,267 1,694, ,896 1,025,099 1,925, ,806 64, ,223 Events, Net YTD 0 198, , , , ,301 22,301 Foundations 149, , , , , ,883 23, ,600 Government 240,670 64, , ,000 60, , Individuals 75, , , , , Other 0 10,733 10, ,000 3, Total $ 1,802,749 $ 2,373,551 $ 4,176,300 $ 1,773,436 $ 2,614,154 $ 4,387,590 $ 296,689 $ 110,435 $ 407,124 Forecast to Budget % Variance % Variance with Transferring Revenue Category Food Nonfood Total Food Nonfood Total Athletes 21.4% 73.6% 29.8% 21.4% 73.6% 29.8% Corporations 7.1% 20.1% 13.7% 25.4% 27.7% 26.5% Events, Net YTD 0.0% -13.6% -13.6% 0.0% -2.3% -2.3% Foundations 0.0% 2.9% 2.9% -4.4% 6.5% 4.5% Government 9.1% -36.2% -3.3% 9.1% -36.2% -3.3% Individuals 0.0% 3.7% -10.2% 0.0% 3.7% -10.2% Other 0.0% -72.0% -72.0% 0.0% -72.0% -72.0% Total -2.5% 9.4% 4.4% 14.7% 14.0% 14.3% Key Notes 1) In addition to increasing nationally driven revenue, the national organization must also fill the gap from transferring donors to MDs. 2) FY17 Foundation food support is transferring to MDs. 3) FY17 Individual food support was Larry Patrick. 35

36 FY18 Nonfood Revenue from National Donors FY17 Budget Nonfood Revenue FY17 Forecasted Nonfood Revenue FY18 Budgeted Nonfood Revenue Not Not Category Identified Identified Total Identified Identified Total Prospective Veteran Total Athletes 16,000 79,120 95,120 51,500 43,620 95,120 33, , ,120 Corporations 454, , , , , , , ,149 1,025,099 Events, Net YTD 21, , ,500 23, , ,433 70, , ,520 Foundations 104, , ,300 62, , ,621 63, , ,015 Government 0 21,420 21, ,123 64, ,000 60,000 Individuals 143, , , , , , , , ,400 Other 3, ,000 10, ,733 3, ,000 Total $ 742,750 $ 1,630,560 $ 2,373,310 $ 796,914 $ 1,576,627 $ 2,373,541 $ 1,086,065 $ 1,528,089 $ 2,614,154 Variance, FY17 Forecast to FY18 Budget Category Prospective Veteran Total Athletes (18,500) 88,500 70,000 Corporations 109,285 62, ,832 Events, Net 47,407 (74,320) (26,913) Foundations 1,019 18,375 19,394 Government 0 (4,123) (4,123) Individuals 157,673 (139,517) 18,156 Other (7,733) 0 (7,733) Total $ 289,151 $ (48,538) $ 240,613 FY2016 FY2017 FY2018 Nonfood Budget Forecast Budget Forecast Budget Prospective 665, , , ,334 1,086,065 Total 2,075,890 2,108,544 2,373,310 2,372,090 2,614,154 % of Total 32.1% 33.8% 31.3% 34.5% 41.5% Inc. Over Prior 47,678 29,189 75, ,731 Due to FY18 s increase in the nonfood revenue goal of $240k over FY17 forecast plus transferring FY17 donors that gave $110k of nonfood support to MDs, the national donor nonfood revenue goal for prospective donors is substantially higher in both dollar amount and percentage of total revenue than in past years. This is noteworthy as it costs more and is more difficult to raise a dollar from a prospective donor than a current one. 36

37 New Areas of Work Fund Development In addition to continuing past efforts, new areas of work with a focus on building critical nonfood or general operating support include: Athletics: Transition the remaining food-only school investors to provide nonfood support needed for their school. Work to raise more general operating support to support our work nationally or in a specific region. Better leverage our relationships with activation agreements with defined support beyond financial. Corporate Partnerships: o Target more corporations for sponsorships ($75,000 of prospective) and cause-marketing campaigns ($185k total, $55k of which is prospective). o Secure travel/hospitality in-kind support ($50,000 of prospective support) o o Increase revenue from grant applications ($125,000 of prospective support) Build the corporate pipeline through employee engagement packing events and transitioning packers to additional support. Foundations Secure $63k in new revenue Individuals: Retain new donors secured in FY17 Move more donors up the giving ladder Greater donor stewardship Fully leverage Marketing s efforts to replenish the donor database. Other new tasks include: Review and update current donor marketing materials and create new ones to align with the focus areas above. Improve use of donor database and other technology tools to increase efficiency and identify opportunities. Lead national efforts to build BIB s presence in the geographic areas targeted for infrastructure development. Expand the tools and trainings offered to managing directors and volunteers. 37

38 Revenue by Channel With the evolution of Blessings in a Backpack s organizational structure, the organization s revenue channels have also evolved. Below shows what fundraising channel is responsible for food and nonfood revenue, whether it be national staff, managing directors, or grassroots volunteers. This diversification expands the organization s sustainability and further diversifies the funding Actual 2016 Actual 2017 Projected 2018 Budget National Staff Food 0 2,704,969 1,802,749 1,773,436 Nonfood - School Investor & GOP* 1,524,278 2,141,528 2,373,551 2,614,154 Total 1,524,278 4,846,497 4,176,300 4,387,590 Managing Directors (4 Current) Food 0 0 1,806,000 2,640,067 Nonfood , ,187 Total 0 0 1,877,000 2,991,254 All Other Markets Food 6,223,545 4,843,810 3,582,146 4,584,803 Non Food , ,039 Total 6,223,545 4,843,810 3,611,984 4,746,842 All Channels Food 6,223,545 7,548,779 7,190,895 8,998,306 Nonfood - School Investor & GOP* 1,524,278 2,141,528 2,474,389 3,127,380 Total 7,747,823 9,690,307 9,665,284 12,125,686 *GOP = General Operating revenue. Can be used as needed to fund the organizations operations. Compared to School Investor nonfood support that is restricted to expenses necessary to feed that child. Fiscal Year 2018 reflects the second year of execution of the strategy to grow within geographical regions under the direction of managing directors and new grassroots schools funding a portion of their non-food expense. The four managing directors were hired throughout FY17, with all starting by December. Excludes 3 new target market revenue and National board support. 38

39 Revenue by Channel, Food only 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 All other markets Managing Directors NaEonal Staff 2,000,000 1,000, Actual 2016 Actual 2017 Projected 2018 Budget Fiscal Year 2018 reflects the second year of execution of the strategy to grow within geographical regions under the direction of managing directors and new grassroots schools funding a portion of their non-food expense. The four managing directors were hired throughout FY17, with all starting by December. 39

40 Revenue by Channel, Non-food only 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 All other markets Managing Directors NaConal Staff 1,000, , Actual 2016 Actual 2017 Projected 2018 Budget Fiscal Year 2018 reflects the second year of execution of the strategy to grow within geographical regions under the direction of managing directors and new grassroots schools funding a portion of their non-food expense. The four managing directors were hired throughout FY17, with all starting by December. 40

41 Strategic Plan Highlights and Risks The FY 2018 Budget reflects a tight budget that allows us to solidify and to maintain the foundation needed to move forward through the strategic plan. There are risks in the budget that will require us all to participate in fund raising at every level. The strategic growth model is based on strengthening the new chapter structure in Chicago, Louisville, Southwest Florida and Jacksonville. Those positions are now all up and running and have responsibilities to increase the dollars and child numbers during this year. The budget also reflects stage two of our new markets board and staff roll in Los Angeles, Atlanta and Washington DC. This will be supplemented by one new target market in the spring. National corporate relationships are requiring time to nurture. Our new Program Price Points for grass roots programs are up and running but we must still expect some fallout in our numbers in this area. Time and effort will be spent on continued messaging and delivery of this across the country. Our efforts to provide revision of our food logistics across the country need a supplement of donor dollars to quickly get this up and running. Overall, we are aware of the challenges and the risks but these are necessary to affect change in the organization. We are fully committed to the work that is involved and continue to dedicate ourselves to feeding more hungry children across the country while keeping our eye on building a sustainable program for the future. 41

42 Resources Needed Expansion of fund raising through Board efforts o Identification and cultivation of potential new donors corporate, foundation, individuals o National speaking opportunities o Introductions to influencers especially in our target Markets ( Atlanta, Washington DC and Los Angeles) o Athletes o Prominent persons and community leader o National associations and organizations Lead gifts to fund our growth particularly for food logistics and for national sponsorships Gift to draw from during seasonal cash flow periods We have two positions we had hoped to add which are not funded. One for marketing and one for fund development. 42