Friday, November 7, 2014

Food Bank Business Plan

Creating a food bank involves strategies and creating partnerships throughout the community to ensure that people are fed. A detailed strategy with an understanding of network affiliations is the key to building a strong community food bank.


Creating a Plan to Feed the Poor


Food banks operate a full warehousing function that collects, stores, sorts and redistributes food to charitable and community organizations. A proposed food bank should create a plan with a mission based on service to the community and other community organizations. Creating a food bank requires establishing relationships and coordination with community groups and government resources. The plan should designate the role that the food bank is to play in the community.


Feasibility studies should be formulated including areas to be served by census track and Metropolitan Statistical Information. Most community-based organizations receive information from the Department of Housing and Urban Development and local initiatives such as faith-based coalitions and associations that are concerned with the needs of the community.


Traditionally, a food bank does not distribute food directly to the public through neighborhood organizations such as churches, neighborhood support centers, food pantries and shelters. Through the power of automation, some food banks are creating ways to store and distribute food directly through the community through the power of computer automation.


Legal Structure of a Food Bank


Most food banks are nonprofit organizations. Nonprofit structures allow food banks to receive federal funding for various community based programs involved with feeding the poor. To create a legal structure, apply for a state and federal nonprofit designation. The federal form to apply for a nonprofit designation is IRS Form 1023, Application For Non Profit Tax Exempt Status. State nonprofit forms vary among states.


Other items must be created such as bylaws, operating procedures and most importantly, a strong board of directors. The board of directors can assist in planning and act as consultants in developing and formulating the nonprofit concept. A board with experience in food bank related management or processed is valuable to the operation of a food bank.


Logistical Considerations


Logistics of a food bank are critical to serving community organizations. The food bank should have a location that is convenient for distributors and clients. Most food banks are operate from warehouse spaces close to an interstate or main highway. If there are major affiliations with donors such as a grocery chain or national food distribution center, the food bank should be located in a neighborhood with no trucking or weight restrictions. When looking for a location, an industrial zoned area near an interstate or major transportation artery is acceptable.


Finding Donors and Distributors


A food bank plan must include manufacturers, vendors and grocers that are willing to participate in the food bank. These resources can be found through marketing or creating an affiliate with the corporate headquarters of a store. The food bank program can be marketed as a tax write-off while assisting organizations to feed the community. There are national distributors such as "Feeding America" that distribute food to regional food banks.


A food bank strategy can also target farms and private donors and also, obtaining annual grants to improve distribution system of food and resources to other food banks and neighborhood groups. Through use of groupware, regional food banks are sharing resources through inter-organizational information systems. If a food bank lacks an item, computer technology makes it possible to see whether another food bank has the item.


Business Plan Is Important


Every organization should have a business plan and food banks are no exception. A business plan can communicate strategies to network affiliates involved with serving the community.


When seeking a manufacturer or donor of food, a business plan can reveal your services and distribution system and analyze how much food was processed to community organizations in a given year. A sound business practice is generating an annual report of activities to all donors involved with your food bank program. If a food bank is applying for a government or foundation grant, business plan information is considered in the funding process.


The business plan should address internal operations, marketing, accounting, creating vendor networks and the use of information systems to track workflow. The management section should contain the experience of board members and managers responsible for the operation of the food bank.