FEEDING AMERICA IN 2025 BOARD VISION EXCHANGE. Houston - 5/26/17 FEEDING AMERICA / 1 /

Transcription

1 FEEDING AMERICA IN 2025 BOARD VISION EXCHANGE Houston - 5/26/17 FEEDING AMERICA / 1 /

2 Our Vision and Strategic Goal FEEDING AMERICA / 2 /

3 Our vision is a hunger-free America Our mission is to feed America s hungry through a nationwide network of member food banks and engage our country in the fight to end hunger. FEEDING AMERICA / 3 /

4 Our Goal By 2025, Feeding America, in collaboration with our network and our partners, will ensure access to enough nutritious food for people struggling with hunger, and make meaningful progress toward ending hunger. FEEDING AMERICA / 4 /

5 Our Recent Performance and The Remaining Unmet Need FEEDING AMERICA / 5 /

6 We ve achieved significant growth in meals provided, driven by retail Food Service SNAP Assist Fed Com Purchasing Produce Retail Manuf. 2.6B Volume by Channel (in B meals) 4.0B Annual Growth (%) n/a n/a 1% 5% 9% 19% 1% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 7% overall FEEDING AMERICA / 6 /

7 But growth is showing signs of slowing down Total Feeding America Network (incl. FANO) 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Fundraising Food Sourcing 0.0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 YTD FY18 Proj Source: Annual Network Activity Report (FY10 FY16). QPR (FY17YTD). FANO Supply Chain (FY18 Proj.) FEEDING AMERICA / 7 /

8 We believe we are at an inflection point Food systems at the center of decisions Network-wide Meal Equivalents Enabled (in billions) Operating Model Evolution People we serve at the center of decisions What s Next? Network Expansion National Donor Growth Source: data estimated data from A2H Annual Reports from Feeding America Network Activity Report FEEDING AMERICA / 8 /

9 There is more than enough food to feed everyone facing hunger, but capturing it will require developing new food recovery capabilities. FEEDING AMERICA / 9 /

10 Food insecurity persists and food budget shortfalls are rising for those who remain food insecure. A Meal Gap remains of ~1.6B meals Individual needs are increasing 7.6B 4B 2B 1.6B Meal Gap Meals Enabled Estimated by FA Network Meals from Other Sources* Unmet Need 42 million American remain food insecure, more than pre-recession FEEDING AMERICA / 10 /

11 Underlying Trends FEEDING AMERICA / 11 /

12 Broadly, income inequality is growing and upward mobility is declining 100% 80% 60% 40% 20% Income Inequality Is Growing US Households by Annual Income, And Opportunities to Move Up are Eroding Percentage of Children Earning More than their Parents, by year born 0% Gini Index of Income Inequality Lower class (<$35K) Middle class ($35-100K) Child Cohorts Barring a reversal of trends, the need is likely to grow with each generation Note: Gini Index measures the inequality of among distribution of income on a scale of 0-1, with a higher number indicating higher inequality. Middle class defined by Pew Research Center as 2/3 2x of nat l median income (2015 median HH income was $56K). Parent and child income measured at age 30 for children and age for parents. Source: US Census HH and Income Dispersion data; CNN Money What is Middle Class, Anyway ; Raj Chetty, et al. The Fading American Dream: Trends in Absolute Income Mobility Since 1940 FEEDING AMERICA / 12 /

13 Key determinants of food insecurity and hunger include poverty, unemployment and home ownership*. *Source: Craig Gundersen, Principal Researcher on Feeding America s Map the Meal Gap Study and Soybean Industry Endowed Professor in Agricultural Strategy in the Department of Agricultural and Consumer Economics at the University of Illinois FEEDING AMERICA / 13 /

14 Food insecurity is marked by difficult financial tradeoffs that compromise basic household needs The people Feeding America serves report that their household income is inadequate to cover their basic household expenses. 69% HAVE HAD TO CHOOSE BETWEEN PAYING FOR UTILITIES AND FOOD 67% HAVE HAD TO CHOOSE BETWEEN PAYING FOR TRANSPORTATION AND FOOD 57% HAVE HAD TO CHOOSE BETWEEN PAYING FOR HOUSING AND FOOD 66% HAVE HAD TO CHOOSE BETWEEN PAYING FOR MEDICINE AND FOOD Financial constraints perpetuate hunger and compromise health Source: Hunger in America 2014 FEEDING AMERICA / 14 /

15 Food security and health are mutually dependent Coping mechanisms Co-incidence of disease Unhealthy cycle 79% 58% Food Insecurity Stress Purchase Inexpensive, Unhealthy Food 40% Water Down Foods or Drinks Of households served by our network report a member with high blood pressure 33% Of households served by our network report a member with diabetes Financial Strain Medical Costs Diabetes, Hypertension & Obesity Nutrition and health must be addressed to improve quality of life and improve the likelihood of ending hunger Source: Hunger in America 2014 FEEDING AMERICA / 15 /

16 SNAP has been shown to contribute to food security, but the program is at risk SNAP is far-reaching and effective Program funding remains at threat ~42M PARTICIPANTS ~45B* MEALS ~$64B BENEFITS ~20%** LESS FOOD INSECURE Proposal to block grant could result in: ~$25B ANNUAL REDUCTION IN FUNDS ~18B ANNUAL REDUCTION IN MEALS SNAP is an ESSENTIAL building block in support of Feeding America s vision *The average SNAP benefit per person is about $126 per month, which works out to about $1.40 per person per meal (CBPP) **SNAP recipients are at least 20% less likely to be food insecure than non-recipients, all other things being equal. (Gunderson) FEEDING AMERICA / 16 /

17 In light of these trends, how do we define the problem we are trying to solve? Ending hunger is not just about providing enough food to close the meal gap today. FOOD MEDICAL CARE RESOURCE GAP NEEDS FOOD SECURE HOUSEHOLD HOUSING DEPENDENT CARE THE PROBLEM: Food insecurity is a symptom of a resource gap where personal resources are insufficient to meet basic needs, creating a shortfall in the household budget available to afford adequate nutritious food TRANSPORTATION UTILITIES PERSONAL RESOURCES* *Personal Resources include income, assets, and support from family and friends; Access to these resources is mediated by a variety of factors. FEEDING AMERICA / 17 /

18 Our Theory of Change, Outcomes and Ultimate Intended Impacts FEEDING AMERICA / 18 /

19 What s required to make meaningful progress toward ending hunger? Increase the quantity and quality of meals to fill the gap Reduce the need / shrink the meal gap End Hunger Today (fill the meal gap by providing more nutritious food) End Hunger Tomorrow (remove barriers that perpetuate food budget shortfalls so that no one is at risk of hunger) Change Public Perceptions to Affect Change FEEDING AMERICA / 19 /

20 OUR THEORY OF CHANGE if we help working families access enough nutritious food to prevent hunger today and we help them make nutritious food choices so that their health and household financial situation are not compromised and they have sufficient, stable resources to provide enough nutritious food for themselves they can live healthier lives and pursue the promise of a better future We believe if we raise public consciousness that hunger is an issue that must be solved and evoke empathy for working families facing hunger, invoking an emotional response we can strengthen personal engagement and action to help end hunger and hunger will become so socially unacceptable that we will realize our vision of a hunger-free America FEEDING AMERICA / 20 /

21 OUR FRAMEWORK FOR A HUNGER FREE AMERICA a hunger free America Ending Hunger Today Ending Hunger Tomorrow Ultimate intended impacts Everyone can benefit from nutritious food Hunger becomes unacceptable in America No one is at risk of hunger By 2025, Feeding America, in collaboration with our network and our partners, will ensure access to enough nutritious food for people struggling with hunger, and make meaningful progress toward ending hunger. Outcomes we seek to achieve by 2025 Increased access to nutritious food Improved diet quality Increased public passion to end hunger Food security for working families FEEDING AMERICA / 21 /

22 External Forces that Will Shape our Strategies FEEDING AMERICA / 22 /

23 We have identified and discussed a variety of forces poised to disrupt our mission Technology s Impact on Society Threats to the Social Contract Personal Connectivity and Customization Last Mile Food Distribution Efficiencies Changing Funder Expectations Feeding America Network Local Food Movements Growing Emphasis on Wellness Food Industry Consolidation Climate Issues FEEDING AMERICA / 23 /

24 These four disruptive forces were identified as most likely to have a big influence on key areas for Feeding America and the people we serve Food Industry Transformation Food Industry Changes Innovation in Technology Innovation in Technology Sources of food Sources of funds Feeding America s network People we serve Shifting Funder Expectations Changing Funder Threats to to the Social Contract Social Contract FEEDING AMERICA / 24 /

25 Disruptors that create opportunities and threats to our mission DISRUPTIVE FORCES RELEVANT DYNAMICS PRIMARY EFFECTS Threats to the Social Contract Safety Net Restructuring Shift in responsibility people who are poor away from government, resulting in significant lost nutritious meals and increased need. Food Industry Transformation Growth in Digital Retailing, Freshness and Convenience Auto-replenishment minimizes center-store surplus inventory. Growth in fresh perimeter departments, prepared foods, smaller stores and ethnic formats. Innovation in Technology Increase in Automation, Artificial Intelligence, Big Data, Mobile Connectivity Destruction of jobs outpacing job creation. More efficient processes, new business opportunities and new ways of connecting people to customized information are creating both new competitive threats and new opportunities for innovation. Changing Funder Expectations The Rise of Millennials and Strategic Philanthropy Loyalty to causes vs. organizations, coordination of interventions and shared economy partnerships encouraged, growing emphasis on outcomes FEEDING AMERICA / 25 /

26 What strategic implications emanate from the Case for Change for our model? DISRUPTIVE FORCES Threats to the Social Contract Food Industry Transformation STRATEGIC IMPLICATIONS Leverage key alliances to aggressively defend federal nutrition programs and charitable tax incentives. Hold the line on SNAP. Begin to change the narrative about people facing hunger. Transform the network operating model to capture fresh produce and prepared foods and to prepare for the shelf-stable shift to digital retailing REASONS TO BELIEVE WE CAN ADDRESS Broad bi-partisan support Network influence in every district Longstanding ag and hunger alliances Strong industry partnerships History of food bank model adaptation Growing capability in nutrition Promising pilots (produce, meal connect, Amazon) Innovation in Technology Changing Funder Expectations Step change investment, partnerships and alliances in technology to capture efficiencies and new capabilities for growth (i.e. mobile connectivity and data analytics) Scale partnerships that create pathways out of hunger. Demonstrate our impact on hunger and health, environment, and society to attract new investors in our mission and attract a younger base of individual supporters. Past support from platform partners (Rackspace, Google, Facebook, Microsoft, Tableau) Recent improvements at FANO (ERP, CRM) Strong member presence in Silicon Valley Development Team leadership and track record of fundraising success Leadership in research on hunger, food insecurity Millennials are concerned about hunger and are interested in the environmental impact of food waste FEEDING AMERICA / 26 /