The Financial Backbone of Hunger Relief
Today we will discuss a large contributing factor to running a food pantry. Along with determined staff, dedicated volunteers, and food donations, we would not be able to run without the finances that support us. I know that reading about finances can be boring – and that’s coming from an accounting major – but truthfully, finances are the backbone behind everything we do. Finances drive how we make our decisions from a leadership perspective and how we continue to operate as a successful nonprofit. Now that you know how important finances are, let’s dig into the details!
As many people know, Yad Ezra is a “total choice” pantry. This means that our client families can select the exact grocery items they want. To continue operating this way, which has been extremely successful, we have to have the funds to purchase food for our clients. To buy the food that meets our clients’ needs, we rely heavily on monetary donations. We are fortunate enough to have a strong community of donors here at Yad Ezra who care about our clients and wants to help those in need.
In addition to our annual fundraiser in the fall, we also have different appeals where donors can give specifically to support a particular event. For instance, during holidays such as Thanksgiving or Rosh Hashana, client volume is often high. So that we can nourish families during those times and provide them with food for the holidays, donor contributions go directly toward the appeal they gave to.
Along with contributions from donors, other forms of funding are also important for sustaining our organization.
One type of funding we utilize is endowments. Here’s how they work: a principal amount donated to us, often by foundations. That principal amount gets invested, and over time, we are permitted to withdraw a percentage of the interest it earns to spend. The principal itself continues to grow over time, making endowments a powerful tool for ensuring long-term financial stability within the nonprofit.
Another type of funding we receive is grants. Various local foundations generously provide us with grants. Since grant funding doesn’t need to be repaid, there are often requirements for how we allocate and spend the money. We’re also required to report on how the funds were spent, to confirm they met the grant’s intended goals.
Whether it’s feeding our clients, paying our staff, covering invoices, or having funds on hand for the unexpected – these funding sources make all the difference.
Speaking of unexpected things, let’s talk about that!
Recently, Yad Ezra experienced a power outage and our generator broke down. This, of course, caused us to lose power, and our freezer stopped working – the very freezer that stores all the meat and other frozen items we provide to our clients. We needed to resolve this as quickly as possible, and thanks to our funding, we had the money readily available to put toward the repair.
As I mentioned earlier, finances are truly the backbone behind every business from a managerial perspective to the food that ends up on clients’ tables. We are incredibly grateful for every source of funding, every contribution, and every food donation we receive. Without this funding, we would not be able to nourish over 1,500 families each month.