Foodlink Foundation Inc

“Arlene santiago and fernando santiago are spouses, and both serve as voting board members.”

“Management reviewed the form 990 in detail and provided a copy to the board of governors for their review and comment prior to filing.”

“The organization requires the members of the board and key members of management to complete a conflict of interest form yearly and the organization collects these forms and follows up, as necessary.”

“All documents are available by request.”

“Contribution from foodlink, inc. 2,769,574. Transfer of equity in foodlink farms, llc to foodlink, inc. -115,592. Provision for credit losses on loans receivable -6,240,000.”

“There were no changes to the organization's oversight process during the current year.”

“During the year ended june 30, 2025, the foundation, foodlink, inc. (foodlink), and a third-party bank entered into arrangements to obtain new market tax credits (nmtc) to finance certain capital projects to expand foodlink's food bank, community kitchen, curbside market, and foodlink farm. The nmtc program was established to encourage private investment in low-income communities. Through this program, a private investor partners with an organization that serves such communities through the formation of a community development entity (cde). The cde channels investor capital, via low-interest loans and/or equity investments, to businesses and not-for-profit organizations with development projects in low-income areas. The investor receives federal tax credits equal to 39% of the total project costs, to be received over seven years. The cde also obtains funding from a "leveraged lender" in an amount that enhances the community impact of each project and allows for a tax credit claim that provides an appropriate return to the investor. These development projects are known as qualified active low-income community businesses (qualicbs). After the end of the seven-year tax credit claim period, the investor typically transfers or sells its ownership interest in the cde to the not-for-profit organization for little to no consideration and the arrangement is "unwound," with the assets financed through the cde becoming assets of the not-for-profit organization. Given this sequence of transactions, the not-for-profit organization obtains the long-term benefit of the investment in the project without having to incur or repay the initial capital investment. The foundation, foodlink, and a third-party bank entered into two qualicbs during the year ended june 30, 2025; one related to foodlink's program site at 2011 mt. Read boulevard and the other related to foodlink's community farm program site at 585 lexington avenue. Foodlink itself serves as qualicb for the 2011 mt. Read project while a foodlink subsidiary, 585 lexington benefit corporation, serves as qualicb for the 585 lexington avenue site. For both projects, foodlink and the investor entered into a "put and call agreement" that allows foodlink to purchase the cde for $1,000 after the end of the tax credit period, effectively ensuring that the "unwinding" process can occur at that time. The foundation serves as the leveraged lender for both projects. At june 30, 2025, the foundation held loans receivable from the cde totaling $6,240,000 that were originated as part of the funding of both qualicbs during the year ended june 30, 2025. Based on the terms and projected activity of these nmtc arrangements, including the elements related to the projects being "unwound" after the seven-year tax credit period, the foundation has determined that there is a high likelihood that these loan balances will not be collected. This determination is consistent with the idea that, ultimately, the nmtc arrangements will be unwound and benefit foodlink in a manner that is consistent with the foundation's mission. The entire balance of the loans has been charged to expense as provision for credit losses on loans receivable. These loans bear interest at a fixed rate of 1.376%, which the foundation expects to receive as cash payments from the borrower going forward.”