Charity Review

Issued: February 2017 Expires: February 2019

United Food Bank

Accredited Charity
Meets Standards
 
(480) 926-4897 245 South Nina Drive, Mesa AZ 85210 www.unitedfoodbank.org
  1. Conclusions
  2. Purpose
  3. Programs
  4. Governance & Staff
  5. Fund Raising
  6. Tax Status
  7. Financial
Conclusions

United Food Bank meets the 20 Standards for Charity Accountability.

Purpose

To stabilize the lives of hungry, low-income people within Eastern Maricopa, Gila and Pinal, and Southern Navajo and Apache Counties of Arizona by actively acquiring, storing and distributing large quantities of wholesome and nutritious foods to our network of community and strategic partners, combined with advocacy and educational initiatives that enhance lives.

Incorporated: 1985 in AZ

Programs

United Food Bank collects, stores, and distributes bulk food to a network of agencies, including local food pantries, faith-based organizations, and other nonprofits, that then distribute emergency food boxes to those in need for their programs like meal sites, residential facilities, and senior programs. The Mobile Food Pantry offers direct client distribution in a dry or refrigerated truck to provide food that traditional pantries cannot accept or distribute, usually due to storage or refrigeration capacity. United Food Bank’s Helping Hands program is an emergency food resource for “First” and “Second” responders like police, firefighters, social and outreach workers, protective services case managers, and others who respond to emergency or crisis situations and encounter a family or household without food or food resources. A Helping Hands food box contains enough food for three days. The Help Yourself program allows clients to purchase a variety of fresh meats, produce, and dry goods to create five meals for a family of four without needing to meet any criteria or qualifications. According to the organization, in 2015, United Food Bank distributed 467,341 food boxes through its network of agencies.

United Food Bank partners with after-school programs throughout the East Valley and Eastern Arizona to provide at-risk children with free nutritious meals and snacks. The organization provides food at Title 1 schools through its Backpack Program to low-income children identified by their school as food insecure. The backpacks contain nutritional, child-friendly, non-perishable foods that are ready to eat or easily prepared by the children who receive them. Food for Thought is a resource for teachers and educators of Title 1 schools that provide structured extended after-school or before-school mentoring or tutoring programs for at-risk children and youth, to help ensure all children meet challenging state academic standards. The program allows children to receive prepackaged, nutritionally balanced food boxes through their participation in a range of tutoring, mentoring, and other educational enrichment activities. According to the organization, in 2015, United Food Bank served an average of 15,385 meals and snacks weekly at its Kids Cafes.

For the fiscal year-ended June 30, 2016, United Food Bank’s program expenses were:
Program Services                    40,312,634
Total Program Expenses:  $40,312,634

Governance & Staff

Board Chair: Mr. John Seli, Director of Finance Business Affiliation: IES Commercial

CEO: Ms. Ginny Hildebrand, Chief Executive Officer

Board Size: 25

Staff: 29

Fund Raising
Method(s) used: Direct Mail Appeals Invitations to Fundraising Events Print Advertisements (Newspapers, Magazines, etc.) Grant Proposals Internet Appeals Appeals via Social Media (Facebook, etc.)

% of Related Contributions on Fundraising: 1.48%

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on United Food Bank's Audited Financial Statements for the fiscal year ending Thursday, June 30, 2016.

Source of Funds
Donated food, supplies and other items $37,291,788
Contributions $2,496,020
Contracts and grants $1,396,879
Help Yourself program $193,436
Shared maintenance $167,528
Other program $47,262
Investment income $74,954
Interest $2,386
Other revenues $57,330
Special events (less cost of direct donor benefits of $133,982) $17,485
Unrealized loss on investments ($95,136)
Loss on interest rate swap ($50,585)
Total Income: $41,599,347
 
Fusion Chart
 
Program Expenses: $40,312,634
Fundraising Expenses: $608,758
Administrative Expenses: $598,123
Total Expenses: $41,519,515
 
Income in Excess of Expenses: $79,832
 
Beginning Net Assets: $5,091,993
Ending Net Assets: $5,171,825
Total Liabilities: $2,663,595
Total Assets: $7,835,420


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Standards Legend

  • Meets Standards IconMeets Standards
  • Standards Not Met IconStandards Not Met
  • Did Not Disclose IconDid Not Disclose
  • Review in Progress IconReview in Progress
  • Unable to Verify IconUnable to Verify
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Standard 1: Board Oversight


Description:

Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

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Standard 2: Board Size


Description:

Soliciting organizations shall have a board of directors with a minimum of five voting members.

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Standard 3: Board Meetings


Description:

An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

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Standard 4: Board Compensation


Description:

Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

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Standard 5: Conflict of Interest


Description:

No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

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Standard 6: Effectiveness Policy


Description:

Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

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Standard 7: Effectiveness Report


Description:

Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

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Standard 8: Program Expenses


Description:

Spend at least 65% of its total expenses on program activities.

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Standard 9: Fund Raising Expenses


Description:

Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

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Standard 10: Accumulating Funds


Description:

Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

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Standard 11: Audit Report


Description:

Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

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Standard 12: Detailed Expense Breakdown


Description:

Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

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Standard 13: Accurate Expense Reporting


Description:

Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

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Standard 14: Budget Plan


Description:

Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

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Standard 15: Truthful Materials


Description:

Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

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Standard 16: Annual Report


Description:

Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

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Standard 17: Website Disclosures


Description:

Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

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Standard 18: Donor Privacy


Description:

Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

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Standard 19: Cause Marketing Disclosures


Description:

Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

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Standard 20: Complaints


Description:

Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.