CharityWatch REPORT
Issued May 2017

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

Note(s)
According to the Feeding America audit of June 30, 2016 (Note 2(g), Donated Goods and Services), Feeding America received approximately $2,288,551,000 in donated goods and services in fiscal 2016. The value of donated food inventory received was $2,286,529,169, or about 99.9% of the total, according to Feeding America's fiscal 2016 tax filing (IRS Form 990, Schedule M).

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
According to the Feeding America audit of June 30, 2016 (Note 8, Related-Party Transactions) [$s are in thousands, as indicated]:

"For the years ended June 30, 2016 and 2015, Feeding America recorded approximately $31,015 [thousand] and $29,497 [thousand], respectively, in cash and pledges and $1,342,179 [thousand] and $1,327,102 [thousand] in goods and services from companies that have representatives who are members of Feeding America's board of directors..."

[...]

"On May 22, 2014, Feeding America issued a $750 [thousand] revolving line of credit to a start-up food bank member for the acquisition of trucks and warehouse equipment. The line of credit bears interest at LIBOR plus 2.00% beginning in year three of the agreement. The agreement expires on December 31, 2017. As of June 30, 2016 and 2015, $638 [thousand] and $413 [thousand] are outstanding, respectively."

"On June 24, 2015, Feeding America issued a $300 [thousand] revolving line of credit to a food bank member for operating purposes. The line of credit bears interest at the LIBOR three-month maturity rate plus 2.00% beginning in year three of the agreement. The agreement expires on June 30, 2017. As of June 30, 2016 and 2015, $160 [thousand] and $80 [thousand] are outstanding, respectively."
According to the Feeding America audit of June 30, 2016 (Note 2(i), Donated Media (Unaudited)) [$s are in thousands, as indicated]:

"Feeding America considers donated media as contributions because they are voluntary nonreciprocal transfers from other entities. However, the value of donated media has not been recognized as donated services revenue in fiscal year 2016 or 2015 as management of Feeding America is currently unable to validate the methodologies used to estimate the fair value of donated media. Accordingly, donated media is not recognized as in-kind contribution revenue in the...financial statements given the major uncertainties about the estimated value of donated media. During the period from July 1, 2015 to March 31, 2016 and the year ended June 30, 2015, Feeding America's Public Service Announcement campaign in partnership with Ad Council received $57,407 [thousand] and $55,221 [thousand], respectively, in donated media support, mainly through radio, television, and outdoor channels, as estimated by the Ad Council."

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]

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