Civic Intelligence

Second Harvest Heartland

990 • Fiscal year 2016 • EIN 23-7417654

Oct 01, 2015 to Sep 30, 2016 • Filed on Feb 20, 2017

1140 Gervais AvenueMaplewood, MN 55109

(651) 484-5117

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

37th percentile

0.22x

Higher debt load relative to assets than 37% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Liabilities / Revenue

6th percentile

0.03x

Higher debt load relative to revenue than 6% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Net Margin

50th percentile

2.6%

Higher net margin than 50% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Top Officer Pay

30th percentile

$324,397

Higher top officer pay than 30% of similar nonprofits.

Top officer pay equals 0.2% of source-year revenue.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Asset Growth

92nd percentile

25%

Faster asset growth than 92% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2015 to 2016

Revenue Growth

85th percentile

19%

Faster revenue growth than 85% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2015 to 2016

Assets

Up

$20,711,200

Up $4,096,676 (+25%) from 2015

Net Assets

Up

$16,130,434

Up $3,926,956 (+32%) from 2015

Liabilities

Up

$4,580,766

Up $169,720 (+3.8%) from 2015

Revenue

Up

$144,515,358

Up $22,821,152 (+19%) from 2015

Expenses

Up

$140,721,346

Up $18,668,448 (+15%) from 2015

Net Income

Up

$3,794,012

Up $4,152,704 (+1158%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$150M$100M$50M$0Assets 2010: $15,514,530Liabilities 2010: $3,040,784Net Assets 2010: $12,473,7462010Assets 2011: $16,356,400Liabilities 2011: $2,447,895Net Assets 2011: $13,908,5052011Assets 2012: $19,658,291Liabilities 2012: $3,354,779Net Assets 2012: $16,303,5122012Assets 2013: $18,220,586Liabilities 2013: $3,563,490Net Assets 2013: $14,657,0962013Assets 2014: $16,451,076Liabilities 2014: $3,888,906Net Assets 2014: $12,562,1702014Assets 2015: $16,614,524Liabilities 2015: $4,411,046Net Assets 2015: $12,203,4782015Assets 2016: $20,711,200Liabilities 2016: $4,580,766Net Assets 2016: $16,130,4342016Assets 2017: $36,736,052Liabilities 2017: $17,086,317Net Assets 2017: $19,649,7352017Assets 2018: $42,603,651Liabilities 2018: $17,665,320Net Assets 2018: $24,938,3312018Assets 2019: $51,714,126Liabilities 2019: $21,822,075Net Assets 2019: $29,892,0512019Assets 2020: $102,263,171Liabilities 2020: $19,386,823Net Assets 2020: $82,876,3482020Assets 2021: $115,779,386Liabilities 2021: $13,885,958Net Assets 2021: $101,893,4282021Assets 2022: $100,651,861Liabilities 2022: $10,599,608Net Assets 2022: $90,052,2532022Assets 2023: $108,099,013Liabilities 2023: $9,724,882Net Assets 2023: $98,374,1312023Assets 2024: $123,126,842Liabilities 2024: $10,017,974Net Assets 2024: $113,108,8682024

Highlighted filing

2016

Assets$20,711,200
Liabilities$4,580,766
Net Assets$16,130,434

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$400M$300M$200M$100M$0-$100MExpenses 2010: $92,033,9862010Expenses 2011: $104,559,5102011Expenses 2012: $113,111,4822012Expenses 2013: $135,485,2422013Revenue 2014: $131,852,203Expenses 2014: $133,947,129Net Income 2014: -$2,094,9262014Revenue 2015: $121,694,206Expenses 2015: $122,052,898Net Income 2015: -$358,6922015Revenue 2016: $144,515,358Expenses 2016: $140,721,346Net Income 2016: $3,794,0122016Revenue 2017: $141,451,724Expenses 2017: $138,115,853Net Income 2017: $3,335,8712017Revenue 2018: $153,165,074Expenses 2018: $147,816,090Net Income 2018: $5,348,9842018Revenue 2019: $161,802,097Expenses 2019: $157,091,345Net Income 2019: $4,710,7522019Revenue 2020: $236,949,005Expenses 2020: $184,150,172Net Income 2020: $52,798,8332020Revenue 2021: $221,947,314Expenses 2021: $203,262,780Net Income 2021: $18,684,5342021Revenue 2022: $225,815,554Expenses 2022: $227,608,481Net Income 2022: -$1,792,9272022Revenue 2023: $260,459,497Expenses 2023: $254,670,313Net Income 2023: $5,789,1842023Revenue 2024: $309,241,504Expenses 2024: $300,595,143Net Income 2024: $8,646,3612024

Highlighted filing

2016

Revenue$144,515,358
Expenses$140,721,346
Net Income$3,794,012
Jump To
Filing Snapshot
Filing Period
Oct 1, 2015 to Sep 30, 2016
Signed
Feb 20, 2017
Return Version
2015v3.0
Gross Receipts
$145,792,382
Mission and Program Overview

Mission

Second harvest heartland is the upper midwest's largest hunger-relief organization, with a mission of ending hunger through community partnerships.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$2,855$5,075,466▲ $5,072,611
Inventories for Sale or Use$5,256,059$4,852,048▼ $404,011
Land, Buildings, and Equipment, Net$5,264,731$4,814,467▼ $450,264
Savings and Temporary Cash Investments$4,154,880$2,539,192▼ $1,615,688
Pledges and Grants Receivable$662,938$2,217,239▲ $1,554,301
Accounts Receivable$975,162$858,898▼ $116,264
Prepaid Expenses and Deferred Charges$260,975$314,073▲ $53,098
Cash and Non-Interest-Bearing Accounts$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$16,614,524$20,711,200▲ $4,096,676
Other Assets Total$36,924$39,817▲ $2,893
Liabilities
Other Liabilities$2,557,793$3,092,192▲ $534,399
Accounts Payable and Accrued Expenses$772,825$942,635▲ $169,810
Mortgage Notes Payable Secured by Investment Property$857,506$545,939▼ $311,567
Deferred Revenue$222,922$0▼ $222,922
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$4,411,046$4,580,766▲ $169,720
Net Assets / Fund Balance
Unrestricted Net Assets$11,530,248$12,388,284▲ $858,036
Temporarily Rstr Net Assets$673,230$3,742,150▲ $3,068,920
Permanently Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$12,203,478$16,130,434▲ $3,926,956
Total Liabilities and Net Assets / Fund Balance$16,614,524$20,711,200▲ $4,096,676

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$2,009,611$3,981,761$5,991,372
Other Land Buildings$1,850,256$3,070,911$4,921,167
Equipment$954,600$3,656,797$4,611,396
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Robert ZeaskeChief Executive OfficerFT$269,354$55,043$324,397
Robert ChatmasChief Operating OfficerFT$161,257$25,979$187,236
Marsha ShotleyChief Philanthrophy OfficerFT$163,020$13,027$176,047
Patrick BoranChief Financial OfficerFT$151,603$15,939$167,542
Dawn Marie NelmarkSr Director of Dev Mktg/commFT$112,203$21,559$133,762
Margaret PassmoreDirector of It/business ItellFT$103,010$20,368$123,378
David E LaskeyDirector of Food Bank OperationsFT$101,662$16,922$118,584
Laurel FeddemaChief Comm Engagement OfficerFT$104,304$11,625$115,929

Board Members and Trustees

NameTitle
Peter LawyerBoard Chair
Tom ButterfieldPast-chair
Greg HildingVice Chair
Brian AudetteBoard Member
Brian BuhrBoard Member
Calvin AllenBoard Member
Chris NeugentBoard Member
Colleen DockendorfBoard Member
Dr Jon PryorBoard Member
Emily CobornBoard Member
Glenn MccabeBoard Member
Hunter SakladBoard Member
Jeff PutnamBoard Member
Jill HarmonBoard Member
Jim LemkeBoard Member
Jon MctaggartBoard Member
Kirsten VosenBoard Member
Marie ZimmermanBoard Member
SHAWN O'GRADYBoard Member
Scott PortnoyBoard Member
Bill McdonaldBoard Secretary
Jamison RiceBoard Treasurer
Sarah GavinMember at Large

Highest Paid Contractors

ContractorServicesLocationCompensation
Hunger Solutions MnFees To Acquire Food35 E WACKER DR STE 2000, Chicago, IL 60601$1,772,604
Russ Reid CoFundraising2 NORTH LAKE AVENUE SUITE 600, Pasadena, CA 91101$1,163,324
Mansfield Oil CompanyFuel3475 PIEDMONT RD NE, Atlanta, GA 30305$333,623
Community Counseling Services Co LlCampaign Consulting239 W PHILADELPHIA ST STE 1, York, PA 17401-6509$315,439
Mclane GlobalTransportation16607 CENTRAL GREEN BLVD SUITE 400, Houston, TX 77032$240,299
Revenue and Support

Revenue Composition

Contributions and Grants
$135,327,418
Program Service Revenue
$9,019,979
Investment Income
$151,844
Other Revenue
$16,117
All Other Contributions
$131,245,802
Change in Net Assets
$3,794,012

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
Yes
Third parties used for noncash contributions
Yes

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Food Inventory-$113,541,973Wholesale-weight.avg
Securities Publicly Traded88$397,847Average Cost
Total Noncash Contributions88$113,939,820-

Audited Revenue Reconciliation

Revenue per Audited Statements
$144,515,358
Revenue Not Reported on Form 990
$132,944
Total Revenue per Audited Statements
$144,648,302
Total Revenue per Form 990
$144,515,358
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Grants and Similar Amounts Paid$112,026,685
Other Expenses$16,666,026
Salaries, Compensation, and Employee Benefits$10,761,167
Total Fundraising Expense$4,153,417
Professional Fundraising Fees$1,267,468

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Grants to Domestic Orgs$103,596,319--$103,596,319
Grants to Domestic Individuals$8,430,366--$8,430,366
Other Salaries and Wages$5,292,822$1,099,780$1,547,413$7,940,015
Office Expenses$1,025,537$74,673$323,573$1,423,783
Depreciation Depletion$1,214,789$62,062$112,425$1,389,276
Fees for Services Professional Fundraising--$1,267,468$1,267,468
Other Employee Benefits$620,401$167,992$159,148$947,541
Occupancy$759,774$15,203$54,819$829,796
Current Officers, Directors, Trustees, and Key Employees-$815,841-$815,841
Fees for Services Other$179,260$361,712$207,409$748,381
Payroll Taxes$418,095$178,344$121,117$717,556
Other Expenses$713,466$6,298$353$713,466
All Other Expenses$567,013$37,755-$604,768
Information Technology$312,683$74,124$77,194$464,001
Pension Plan Contributions$239,831$28,035$72,348$340,214
Advertising$33,006$88,008$177,074$298,088
Travel$147,501$20,404$26,006$193,911
Interest$79,720$1,423$822$81,965
Fees for Services Accounting-$51,050-$51,050
Conferences and Meetings$11,964$25,630$6,248$43,842
Fees for Services Legal-$40,693-$40,693
Fees for Services Lobbying-$28,033-$28,033
Fees for Service Investment Mgmnt Fees-$9,813-$9,813
Total Functional Expenses$133,381,056$3,186,873$4,153,417$140,721,346

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$140,721,346
Total Expenses per Audited Statements$140,721,346
Total Expenses per Form 990$140,721,346
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Complete List Available Upon Request--Support Food Distribution to Member Agencies$52,561
Complete List Available Upon Request--Food Distribution-
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
Yes

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$1,267,468
Fundraising Direct Expenses$342,579
Fundraising Gross Income$242,095

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Dish$698,917$185,780$112,492$73,288
Vintner Ball$153,691$56,315$20,965$35,350
Total Events$1,124,725$242,095$342,579$-100,484
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Jim Gilliam Montu StaffingFormer Board ChairTemporary LaborNo$217,078

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Capital Leases, Net of Current$1,327,542
Accrued Expenses$978,565
Line of Credit$500,000
Current Portion of Capital Lea$234,950
Deferred Rent - Current$22,220
Deferred Rent - Long Term$14,554
Fiscal Agent Payable$14,061
Due to Related Parties$300
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
No
Business relationship with organization members
Yes
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Part VI, Section B, Line 10A & 10B

Hunger free minnesota, llc, a disregarded entity for tax purposes, does not have any local chapters, branches, or affiliates. All of their governing policies are the same as second harvest heartland.

Part VI, Section B, Line 11B

The Form 990 is prepared by our Auditor with support from staff at Second Harvest Heartland. The Finance Committee of the Board reviews and approves the Form 990 which is then provided to all Board members prior to filing.

Part VI, Section B, Line 12C

Upon hiring, employees are provided a copy of the conflict of interest policy. Human resources retains a signed copy from each employee stating they understood and accepted the terms of the policy. Members of the board are required to provide a signed agreement annually.

Part VI, Section B, Line 15A & 15B

Shh periodically uses external surveys to evaluate all employees' compensation. Shh also uses other compensation sources as well as considering the cost-of-living adjustment per the federal social security administration guidelines, the consumer price index, and wage and salary trend reports to determine an appropriate average annual percentage. An average increase based on second harvest heartland's financials is approved for budgeting purposes. Employees are given a performance appraisal and a recommendation of an increase (if merited) is made to the executive team.

Part VI, Section B, Line 19

Copies of all information are available upon request. Form 990 is made available through the organization's website.

Filing and Contact Details

Filer

Filer Name
Second Harvest Heartland
EIN
23-7417654
In Care Of
% PAT BORAN
Phone
6514845117
Address
1140 GERVAIS AVENUE, MAPLEWOOD, MN 55109

Signing Officer

Name
Patrick Boran
Title
CFO
Phone
6123325500
Signed
2017-02-20
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Rob Zeaske
Formed
1976
Legal Domicile
Mn
Voting Board Members
20
Independent Board Members
20
Employees
189
Volunteers
28,832

Preparer

Firm
SCHECHTER DOKKEN KANTER CPA'S
Address
100 WASHINGTON AVE SO 1600, MINNEAPOLIS, MN 55401-2192
Preparer
Charles Selcer CPA
Phone
6123325500
Supplemental Narrative

Additional Explanations

Part III, Line 4C

Since FY11, Second Harvest Heartland has enhanced our outreach efforts to connect eligible people with public resources through various programs. Second Harvest Heartlands SNAP Outreach Specialists visit food shelves, soup kitchens, workforce centers and other organizations as well as participate in events to help people understand the program, and to break down barriers to participation-from lack of awareness to difficult application processes or other complications. In FY16, we assisted over 3,600 households with SNAP applications and and re-certifications, adding more than 3 millions meals to families. The Summer Food Service Program is a meal reimbursement program that funds free meals to high-need children 18 and younger during the summertime. This USDA program, administered by the Minnesota Department of Education, provides children with more than 3 million meals at 874 sites (schools, parks, community centers) for children once school is out of session for the summer. Our staff conducts outreach efforts to increase awareness of SFSP, as well as administer 25 mini-grants program funding 204 meal-sites within our service area. At these sites, 590,951 meals were served by grant awareded sponsors. In 2016-2017 school year, Food + You, a school-based program that aims to increase availability of healthy food resources to students and their families partnered with 17 elementary schools in high-need areas of Minneapolis and Saint Paul. This multi-dimensional pilot program offers direct food distributions, support for accessing existing federal nutrition programs and connections to broader community resources.

Part I, Line I & Part III, Line 1

Our mission is to end hunger through community partnerships. In the years since our 2001 founding, Second Harvest Heartland has evolved from a food bank focused almost solely on food distribution, to a hunger relief agency that drives efficiency, innovation and collaboration. Today, Second Harvest Heartland is the largest hunger relief agency in the upper Midwest. In FY16, we distribute over 92 million pounds of food. Partnerships with retail donors, government agencies, corporations, foundations, and individuals coupled with leveraging efficiencies within our organization will allow us to continue to deliver more food. But the emergency food system cant solve the problem of hunger alone, so we are continuing to invest in community outreach efforts, or beyond the food bank initiatives, that connect those in need with the meals they need to live healthy, productive lives. These programs include the SNAP (the Supplemental Nutrition Assistance Program, formerly known as food stamps) Outreach Program , through which Outreach Specialists visit food shelves, soup kitchens, and other organizations and events to help people understand the program, and to break down barriers to participation-from lack of awareness to difficult application processes or other complications. More than one in four people who qualify for SNAP are leaving their benefits on the table in Minnesota. That's the equivalent of nearly $210 million of already-funded food and financial assistance unclaimed which could also help Minnesota's economy. These initiatives also include USDA's SFSP-the Summer Food Service Program-a Minnesota Department of Education administered program that funds free meals to children 18 and younger during the summertime. We identify high-need areas annually in our collaboration with the Minnesota Department of Education using school free and reduced meal program data to promote our mini-grants program to eligible agencies and organizations, as well as planning our outreach efforts for the year, including contacting school districts about the program, etc. Second Harvest Heartland has dedicated staff to conduct outreach in targeted communities and provides mini-grants to organizations to help alleviate the barriers to participation. Fresh Food Increasingly, nutritious food is part of the Second Harvest Heartland offering, as retail partners and growers join hunger-relief efforts and continue to contribute record levels of perishable food. In fact, fresh foods comprised more than 55% of all food distributed throughout the fiscal year. Of this amount, more than 34.4 million pounds were distributed through the Food Rescue program-largely comprised of fresh food such as produce, meat and dairy options. Partnerships continued to be formed or expanded in FY16 with Minnesota growers and farmers, in an effort to begin to capture more of the 300 million pounds of crops-corn, potatoes, apples, watermelon, squash and more-that is either plowed under or unsold each year in our state. This year, the produce capture program collected more than 9.8 million pounds of sweet corn, potatoes, apples, cabbage, carrots cucumbers, watermelon, tomatoes and other produce. Volunteer program Our volunteer program is a vital component of our efforts to bring more food to those who are hungry in our community. In the coming years we will need additional support from volunteers in order to support our continued growth in food distribution, particularly in the areas of our Food Rescue Program and Harvest to Home, which provide opportunities for us to provide increased nutritious food streams for those in need. As a result, over the next five years, the need for volunteers is expected to increase four-fold. In order to meet this rapidly growing demand, and to better serve our volunteers, Second Harvest Heartland is making significant changes and investments in our volunteer program. In FY16, we were able to engage nearly than 29,000 individual volunteers who contributed m

Financial Statement Notes

Part X, Line 2

The organization is exempt, as a public charity, from federal and state income taxes under section 501(c)(3) of the internal revenue code and applicable state statutes. The organization has evaluated its tax positions for uncertainty and has no unrecognized tax matters that are required to be disclosed. The organization is open to examination for tax years 2013 through 2015. The organization had no income tax expense and there were no cash payments for income taxes in fiscal years 2016 or 2015.

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IRS990/Desc0Food Bank: The food bank is the foundation for all our programs, and is Second Harvest Heartland's core business. We receive food donations from manufacturers, growers, retailers, government programs and the community, which are then distributed to member non-profits including food shelves, shelters, soup kitchens and programs throughout our 59-county service area. Over 92 million pounds of food was distributed through the food bank in the 12-month period ending 9/30/2016. See schedule O for additional program service description.
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IRS990/Form990PartVIISectionAGrp/TitleTxt29DIRECTOR OF IT/BUSINESS ITELL
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Document Assets

No mirrored PDF or thumbnail assets are attached yet.

Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Detailed filing. Detailed filing data is available for this year.$123$10.0$113$309$301$8.65
2023Detailed filing. Detailed filing data is available for this year.$108$9.72$98.4$260$255$5.79
2022Facts available. Structured filing facts are available, but richer extracted sections are limited.$101$10.6$90.1$226$228$1.79
2021Facts available. Structured filing facts are available, but richer extracted sections are limited.$116$13.9$102$222$203$18.7
2020Detailed filing. Detailed filing data is available for this year.$102$19.4$82.9$237$184$52.8
2019Detailed filing. Detailed filing data is available for this year.$51.7$21.8$29.9$162$157$4.71
2018Detailed filing. Detailed filing data is available for this year.$42.6$17.7$24.9$153$148$5.35
2017Detailed filing. Detailed filing data is available for this year.$36.7$17.1$19.6$141$138$3.34
2016Detailed filing. Detailed filing data is available for this year.$20.7$4.58$16.1$145$141$3.79
2015Detailed filing. Detailed filing data is available for this year.$16.6$4.41$12.2$122$122$0.36
2014Detailed filing. Detailed filing data is available for this year.$16.5$3.89$12.6$132$134$2.09
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$18.2$3.56$14.7$135
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$19.7$3.35$16.3$113
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$16.4$2.45$13.9$105
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$15.5$3.04$12.5$92.0