2012 Annual Report The difference YOU make: A story of HOPE THANK YOU. Dear Friend, OUR VISION NO CHILD OR FAMILY GOES TO BED HUNGRY Your support of Feed The Children makes such a difference for children and families here in the U.S. and in countries around the world. You meet critical needs by providing food, clean water, medical care, school supplies and more. Just as important is something less tangible: HOPE. Each meal, box of food, backpack of school supplies, bar of soap or toothbrush meets a need AND lets someone know you care. It begins ‘A story of HOPE.’ And that’s why it’s the title of our fiscal year 2012 Annual Report. Part of Feed The Children’s story of hope this past fiscal year (July 2011-June 2012) was our successful search for a new leader. We are thrilled that Kevin Hagan joined us as President and CEO last June. He brings an impressive background in food distribution and operational management to his new role. Just as important, Kevin is passionate about helping children and families in need. Most recently, he served as Chief Operating Officer for Good360, a nonprofit organization dedicated to fulfilling the needs of nonprofits with corporate product donations. Before Good360, Kevin honed his industry expertise at U.S. Foodservice, Inc., and also worked at the U.S. Postal Service headquarters. Kevin is immersed in the work to further strengthen Feed The Children, fully committed to complete transparency and accountability, and having already achieved recertification from the Better Business Bureau (BBB) for meeting all 20 standards of the BBB Wise Giving Alliance. Thanks to individual donors, corporate partners, partner agencies and our dedicated staff and volunteers, 2012 was a great year of meeting needs and providing hope. I’m so thankful for the important role you play in offering people in need ‘A story of HOPE.’ Sincerely, Rick England, Chairman of the Board Feed The Children Our new President and CEO, Kevin Hagan, is already traveling to see the work of Feed The Children firsthand. While visiting Maparasha, Kenya, in August 2012, Kevin jumped right in to help. Year in Review: A New Day of HOPE In 2012, the U.S. and global economies continued to struggle. But thanks to generous individual and corporate donors, Feed The Children helped meet critical physical needs and offered hope to millions of children and their families both in the U.S. and overseas. Here are a few highlights from the past year: Americans Feeding Americans Caravan The continuing downturn of the economy means the Caravan is more important than ever. In the past year, much-needed food and other supplies were delivered to approximately 129,000 families. This was made possible by generous friends like you, partner agencies, corporate supporters and individuals. Kids’ School Basics Budget cuts and unfulfilled requests for federal funding have left schools in dire need of education resources. Each semester, Feed The Children’s Kids’ School Basics targets 10 schools and shelters in need in every state and distributes bundles of books, hygiene items, school supplies and more. Your cash donations or gifts-in-kind help us provide Title I schools with the supplies and tools they need to succeed. The Teacher Store The cost of school supplies can be overwhelming for struggling families. Many teachers reach into their own pockets to provide school supplies for their students, but today’s economic challenges make that difficult. That’s why Feed The Children has two Teacher Store locations to provide needed school supplies at no cost to teachers from pre-K through 12th grade. In 2012, Feed The Children provided close to a million American children with books and other needed school supplies, thanks to friends like you and generous donations from corporate partners. “Since April 2011, Grace Bridge Food Bank has been able to meet the needs of over 500 families in the North Dallas area through its relationship with Feed The Children. It is a privilege to serve families in our area during their time of need.” — Carter Morris, Minister to Young Adults Prestonwood Baptist Church, North Campus 2 | FEED THE CHILDREN Disaster Relief Numerous corporate and church partners, along with many individual donors like you, made Feed The Children’s disaster response possible through their generous support. Staff and volunteers helped survivors of severe storms, flooding, wildfires, tornadoes and Hurricane Irene. The Office Depot Foundation, Lowe’s, Guess, Inc., Teleperformance, YUM! Brands and many other corporate partners helped Feed The Children deliver food, essentials and relief supplies to hard-hit areas. International School and Community Feeding Programs Our first step when we arrive in a poor community is to organize meal centers to feed hungry children. We usually set up at a school or community center. Your support provides wholesome food and nutrition education for 350,000 children around the world like this. At the same time, you also contribute significantly to a child’s education. In a 2012 study, we were able to demonstrate that school attendance increased by 60% or more when feeding programs were implemented. Abandoned Babies and Children At the Abandoned Babies and Children (ABC) Center in Nairobi, Kenya, Feed The Children cares for more than 100 orphaned babies and children every day. In addition to the ABC Center, there’s a feeding program, a center for rehabilitating children suffering from disabilities and deformities, community outreach and more. A newer program is the Hardy House, a special home for mentally- and physically-challenged young men who grew up at the ABC Center. A child thanks YOU for a backpack filled with HOPE Food Education Essentials Disaster United States: HOPE in our own backyard FOOD, EDUCATION, ESSENTIALS In 2012, Feed The Children partnered with over 1,000 local agencies, including food pantries, churches and soup kitchens, to distribute meals and necessities to families nationwide. Additionally, Feed The Children supplied backpacks filled with ready-to-eat snacks, toothbrushes, school supplies and age-appropriate books to 140,000 homeless students enrolled in public schools. Children also received school supplies or books through education-focused projects, while the Teacher Store program provided much-needed school supplies and resources to teachers, free of charge. DISASTER Because of our fleet of 40 semitrucks, Feed The Children is often one of the first relief agencies to respond after a disaster. In 2012, our trucks traveled to areas affected by flooding, tornadoes, wildfires and hurricanes. In Fiscal Year 2012 alone, Feed The Children provided $594 million worth of food and essentials to children and their families across the U.S., thanks to friends like you. 4 | FEED THE CHILDREN e co lor. bag. I like th k o bo w e n y for m bo oks I’m thankful e botto m, my th t a d e p p ri bag was as My o ld bo ok mother. She w y m ld to I fall o ut. ll my was go ing to o ug h to put a n e g bi ’s It y. very happ in the thankful and anges things h c f o d in k bo ok bag. It y items in my e to get on m m ti n o d e iz an I can get org stuff morning. N ow was a lot of re e h T e. c fa smile on my bus. It put a on and much ti lo , sh u br th , to o as bo dy wash I nee d such h. yo u very muc more. Thank FOOD to bring HOPE Ja’Quetta and her family received much-needed food and other essential items, thanks to friends like you. How you gave HOPE to a hungry American family Ja’Quetta’s Mississippi community has government assistance, been hit especially hard by the economy. so they really needed There are hundreds of parents, like her these supplies. MISSISSIPPI mom, who are without work. Ja’Quetta and her This 5 grader is a good helper, family also met with frequently taking on the daily chores, a representative from including cooking, so her mother can a Feed The Children look for a job. But cooking makes partner agency in their community. In Ja’Quetta sad because there often isn’t the future, when they have emergency enough food for her brothers and sister, needs, they can get help through this her mom and herself. She tries to save partner agency to make ends meet. Feed part of the meal for the next day because The Children has delivered food and they don’t know if there will be enough other essentials to many in Ja’Quetta’s food. But that means Ja’Quetta goes to community, helping struggling families bed hungry almost every night. get back on their feet. th Thankfully — because of caring friends like you — Feed The Children staff members visited Ja’Quetta and her family at their home to provide food and other essential items. The family doesn’t receive In this land of plenty, how can so many go hungry? THANK YOU for giving HOPE to American families like Ja’Quetta’s through YOUR SUPPORT of Feed The Children. 6 | FEED THE CHILDREN “I have had many parents during the course of the school year come to us for support. When we are able to give them some basic supplies such as food, they are so grateful. One father broke into tears because he couldn’t feed his children. His toddler was smiling on his lap and wiped the tears from his face. It was very touching and made us all cry. We appreciate all the support you are able to offer our students.” — Food Pantry Coordinator, Arkansas 1 in 5 children in America is at risk of hunger — that’s 17 million boys and girls. Source: U.S. Department of Agriculture, U.S. Census Bureau, U.S. Bureau of Labor Statistics, Food Research Action Center International: HOPE around the world EL SALVADOR PROBLEM: Hunger Undernutrition contributes to 2.6 million deaths of children under the age of five each year. GUATEMALA HAITI HONDURAS KENYA MALAWI NICARAGUA PHILIPPINES TANZANIA UGANDA SOLUTION: Food & Nutrition PROBLEM: Disease SOLUTION: Health & Education Supplied nutritious meals to 350,000 children daily through school and community-based feeding programs. Every 20 seconds a child dies as the result of poor sanitation. Provided 14 million children with deworming medications and treated 13,500 patients in medical clinics. Every day 350,000 children around the world receive a nutritious meal and HOPE because of caring friends like you. PROBLEM: Dirty Water SOLUTION: Clean Water & Sanitation PROBLEM: No Future 780 million people don’t have access to clean water. Implemented clean-water practices, facilitated point-of-use purification, installed community wells and constructed latrines. 67 million school-aged children can’t attend school because their families aren’t able to afford school fees and they need their help at home. 8 | FEED THE CHILDREN SOLUTION: Livelihood Development Engaged individuals and families in programs that help them make money and reinvest it in their community to create self-sufficiency. FEED THE CHILDREN | 9 FOOD & EDUCATION to bring HOPE John’s dream to have his own boat could come true because he’s receiving food and other assistance that’s allowing him to stay in school, thanks to friends like you. You’re giving this family HOPE for the future John dreams of having his own boat through a someday to explore his homeland in the feeding program. Philippines. But right now, his biggest In addition, wish is for enough food to eat. His family John receives lives under a bridge, along with six other assistance with families. Their small space is only big school fees, enough to sleep in and hold their small uniforms and number of possessions. supplies. Because Philippines of friends like you, When they’re not in school, John and his John has regular four siblings help his parents scavenge meals and can stay for plastics and other recyclables. On in school. As his mom a good day, they bring in about $2. “It’s knows, this can make all the difference not enough for our daily needs,” says for the family. Christina, John’s mom. “Sometimes my kids go to school with empty stomachs.” “I hope that they can finish their studies and get an education,” Christina says. Thankfully, John now attends a school “That’s the only thing that will lift them where Feed The Children provides meals out of this hardship and poverty.” THANK YOU for giving HOPE to struggling families like John’s in countries around the world through YOUR SUPPORT of Feed The Children. 10 | FEED THE CHILDREN How YOUR gift ships food to hungry families This is how YOUR donation to feed hungry families gets to children around the country: 1 Feed The Children seeks donations from food producers and corporations. 2 3 Friends like YOU give generously. Your gifts send Feed The Children trucks around the country, distributing donated food and other essentials to families in need. 4 Hungry children and families all over America receive nutritious food. THANK YOU for giving HOPE. 12 | FEED THE CHILDREN “In the time that NBTY has been working with Feed The Children, we have been able to witness firsthand the commitment, love and care with which Feed The Children operates. It is an organization that is tied to health and wellness in every sense, and this ties directly to our company’s mission. Seeing the profound difference that our donated vitamins, food and nutrition drinks make in the lives of these hungry children has been a rewarding experience for NBTY and we look forward to our continued partnership.” — NBTY, INC. PARTNERS Thank you to our Feed The Children partners! Actavis Avery Avon Barcel USA Better World Books Church & Dwight Co., Inc. Colomer USA Cott Beverages USA, Inc. CVS Dannon Company, Inc. Davis Vision Direct Brands, Inc. Disney Publishing Worldwide Energizer Personal Care Esselte Corporation Exel/Clorox Ferrara Candy Company FGX International Filmyard Holdings, LLC First Book Frito-Lay, Inc. Guess, Inc. Hachette Book Group USA Half Price Books Hero USA Hirzel Canning Co. & Farms H.J. Heinz Institution Recycling Network International Masters Publishers JAKKS Pacific KAO USA Lowe’s Mars Chocolate N.A. Nestle Prepared Foods Niagara Bottling, LLC Nourish The Children Office Depot One World Enterprises, LLC Ora Optical Penguin Random House, Inc. Perfect Timing, Inc. Pharmavite Ralston Rich Products Corp. Teleperformance TEVA Pharmaceuticals USA TOMS Tyson Foods, Inc. Unilever Vi-Jon Laboratories, Inc. White Wave Foods YUM! Brands Feed The Children BOARD OF DIRECTORS Rick England Chairman Leo B. Fundaro, Jr. Vice Chairman Dr. Mary Schrick, N.D., Ph.D. Dr. C. Earnest Wyatt, D.V.M. Gregg A. Yeilding Secretary/Treasurer EXECUTIVE STAFF Kevin L. Hagan President & CEO Travis Arnold Chief Operating Officer Christy Tharp Chief Financial Officer Chris Cleghorn Interim Chief Development Officer This list represents the top corporate donors that gave gift-in-kind donations of $1 million or more in FY 2012. “It means so much to know that you’ve helped put food in somebody’s mouth, and that they have a chance to become something in the world someday. I think there’s just too many kids out there that just don’t have that chance, even in our own country.” — Hirzel Canning Co. & Farms Going Green initiative saves energy and money Feed The Children’s Going Green initiative has Other energy-reducing improvements include saved energy — and money — throughout either partial- or full-roof replacements 2012. Changes included replacing older at the corporate building, transportation fixtures with energy-efficient lighting building and two distribution centers. throughout the Oklahoma City corporate Paper, cardboard, and plastic recycling has office. This has reduced electricity usage by been implemented. In addition, changes in 25%. Half of the lighting in the transportation plumbing and information technology have building has also been replaced, and future led to better energy efficiency and less waste lighting replacements are scheduled for three exposure for our environment. distribution centers. 14 | FEED THE CHILDREN FEED THE CHILDREN | 15 $ FINANCIALS YOU helped provide millions of hungry people with food and essentials in 2012 Feed The Children Consolidated Statement of Activities For the Year Ended June 30, 2012 Gifts in Kind$545,570,833 OUR MISSION Contributions$70,422,915 Government Grants $1,399,946 Investment Income ($974,783) Other Revenue $4,307,544 PROVIDING Total Revenue: $620,726,455 Program Services: Childcare, Food and Medical$493,844,076 Disaster Relief Education and Community Development$117,541,321 HOPE AND $7,777,248 Total Program Services: $619,162,645 Supporting Services: Fundraising$37,354,685 RESOURCES Management and General $19,503,133 Total Supporting Services: $56,857,818 Total Expenses $676,020,463 FOR THOSE Change in Net Assets ($55,294,008) Net Assets, Beginning of Year$179,686,057 Net Assets, End of Year$124,392,049 Through the combined efforts of our partner agencies, corporate supporters and generous friends like you, Feed The Children is changing lives. We continue to work toward greater transparency and accountability to ensure that every dollar is used wisely to accomplish the most good. “TEVA is proud to be working with Feed The Children. The partnership has had a lasting impact on the lives of many people, bringing tangible help for today and hope for tomorrow. We are grateful to continue working with an organization that is always there to help in times of need around the world, and provide care in vulnerable and underserved communities worldwide.” — TEVA Pharmaceuticals USA 16 | FEED THE CHILDREN 2012 Allocation of Expenditures 92% Program Services 3% Management and General 5% Fundraising To see a full financial report, go to FeedTheChildren.org/2012. WITHOUT LIFE’S ESSENTIALS
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