Civic Intelligence

Second Harvest Heartland

990 • Fiscal year 2017 • EIN 23-7417654

Oct 01, 2016 to Sep 30, 2017 • Filed on Feb 26, 2018

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

65th percentile

0.47x

Higher debt load relative to assets than 65% of similar nonprofits.

2017 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2017

Liabilities / Revenue

16th percentile

0.12x

Higher debt load relative to revenue than 16% of similar nonprofits.

2017 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2017

Net Margin

45th percentile

2.4%

Higher net margin than 45% of similar nonprofits.

2017 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2017

Top Officer Pay

24th percentile

$281,446

Higher top officer pay than 24% of similar nonprofits.

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

2017 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2017

Asset Growth

98th percentile

77%

Faster asset growth than 98% of similar nonprofits.

2017 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2016 to 2017

Revenue Growth

25th percentile

-2.1%

Faster revenue growth than 25% of similar nonprofits.

2017 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2016 to 2017

Assets

Up

$36,736,052

Up $16,024,852 (+77%) from 2016

Net Assets

Up

$19,649,735

Up $3,519,301 (+22%) from 2016

Liabilities

Up

$17,086,317

Up $12,505,551 (+273%) from 2016

Revenue

Down

$141,451,724

Down $3,063,634 (-2.1%) from 2016

Expenses

Down

$138,115,853

Down $2,605,493 (-1.9%) from 2016

Net Income

Down

$3,335,871

Down $458,141 (-12%) from 2016

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

2017

Assets$36,736,052
Liabilities$17,086,317
Net Assets$19,649,735

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

2017

Revenue$141,451,724
Expenses$138,115,853
Net Income$3,335,871
Jump To
Filing Snapshot
Filing Period
Oct 1, 2016 to Sep 30, 2017
Signed
Feb 26, 2018
Return Version
2016v3.1
Gross Receipts
$142,724,234
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
Land, Buildings, and Equipment, Net$4,814,467$17,923,101▲ $13,108,634
Investments in Publicly Traded Securities$5,075,466$6,700,372▲ $1,624,906
Inventories for Sale or Use$4,852,048$4,442,531▼ $409,517
Pledges and Grants Receivable$2,217,239$3,934,780▲ $1,717,541
Savings and Temporary Cash Investments$2,539,192$2,563,917▲ $24,725
Accounts Receivable$858,898$764,720▼ $94,178
Prepaid Expenses and Deferred Charges$314,073$377,873▲ $63,800
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$20,711,200$36,736,052▲ $16,024,852
Other Assets Total$39,817$28,758▼ $11,059
Liabilities
Mortgage Notes Payable Secured by Investment Property$545,939$13,400,000▲ $12,854,061
Accounts Payable and Accrued Expenses$1,921,200$2,221,159▲ $299,959
Other Liabilities$2,113,627$1,465,158▼ $648,469
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$4,580,766$17,086,317▲ $12,505,551
Net Assets / Fund Balance
Unrestricted Net Assets$12,388,284$13,933,394▲ $1,545,110
Temporarily Rstr Net Assets$3,742,150$5,716,341▲ $1,974,191
Permanently Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$16,130,434$19,649,735▲ $3,519,301
Total Liabilities and Net Assets / Fund Balance$20,711,200$36,736,052▲ $16,024,852

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$12,977,411$4,235,229$17,212,640
Equipment$613,749$4,007,393$4,621,142
Other Land Buildings$1,641,941$2,954,355$4,596,296
Land$2,690,000-$2,690,000
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Robert ZeaskeChief Executive OfficerFT$264,726$16,720$281,446
Robert ChatmasChief Operating OfficerFT$161,701$23,168$184,869
Marsha ShotleyChief Philanthrophy OfficerFT$164,097$12,521$176,618
Patrick BoranChief Financial OfficerFT$152,604$19,379$171,983
Dawn Marie NelmarkSr Director of Dev Mktg/communicatFT$126,147$20,404$146,551
David E LaskeyDirector of Food Bank OperationsFT$107,321$16,623$123,944
Michelle HeereyDirector of Field ServicesFT$98,948$19,025$117,973
Constance SchlundtDirector of Food SourcingFT$92,570$18,530$111,100
Jason ReedDirector of Strategy & New VenturesFT$102,761$6,470$109,231

Board Members and Trustees

NameTitle
Peter LawyerBoard Chair
Tom ButterfieldPast-chair
Greg HildingVice Chair
Brian AudetteBoard Member
Brian BuhrBoard Member
Colleen DockendorfBoard Member
Dr Jon PryorBoard Member
Emily CobornBoard Member
Glenn MccabeBoard Member
Jill HarmonBoard Member
Joe MolineBoard Member
Jon MctaggartBoard Member
Kirsten VosenBoard Member
Marie ZimmermanBoard Member
SHAWN O'GRADYBoard Member
Scott PortnoyBoard Member
Bill McdonaldBoard Secretary
Jamie RiceBoard Treasurer
Chris NeugentMember at Large
Sarah GavinMember at Large

Highest Paid Contractors

ContractorServicesLocationCompensation
Hunger Solutions MnFees To Acquire Food35 E WACKER DR STE 2000, Chicago, IL 60601$1,966,253
Russ Reid CoFundraising2 NORTH LAKE AVENUE SUITE 600, Pasadena, CA 91101$1,160,692
Mansfield Oil CompanyFuel3475 PIEDMONT RD NE, Atlanta, GA 30305$342,706
Community Counseling Services Co LlCampaign Consulting239 W PHILADELPHIA ST STE 1, York, PA 17401-6509$289,939
Mclane GlobalTransportation16607 CENTRAL GREEN BLVD SUITE 400, Houston, TX 77032$285,469
Revenue and Support

Revenue Composition

Contributions and Grants
$131,830,366
Program Service Revenue
$9,478,027
Investment Income
$142,773
Other Revenue
$558
All Other Contributions
$128,041,663
Change in Net Assets
$3,335,871

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-$108,603,036Wholesale-weight.avg
Securities Publicly Traded108$665,643Average Cost
Total Noncash Contributions108$109,268,679-

Audited Revenue Reconciliation

Revenue per Audited Statements
$141,451,724
Revenue Not Reported on Form 990
$1,005,092
Total Revenue per Audited Statements
$142,456,816
Total Revenue per Form 990
$141,451,724
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Grants and Similar Amounts Paid$107,678,552
Other Expenses$17,595,705
Salaries, Compensation, and Employee Benefits$11,453,077
Total Fundraising Expense$4,181,938
Professional Fundraising Fees$1,388,519

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Grants to Domestic Orgs$98,506,808--$98,506,808
Grants to Domestic Individuals$9,171,744--$9,171,744
Other Salaries and Wages$5,004,614$1,781,404$1,459,799$8,245,817
Office Expenses$1,246,657$169,807$129,563$1,546,027
Fees for Services Professional Fundraising--$1,388,519$1,388,519
Other Expenses$1,209,786$5,814$1,939$1,217,539
Depreciation Depletion$1,097,885$43,720$64,807$1,206,412
Other Employee Benefits$720,879$188,860$207,710$1,117,449
Current Officers, Directors, Trustees, and Key Employees$617,606$221,763$181,941$1,021,310
Occupancy$839,701$50,712$20,718$911,131
Fees for Services Other$185,993$286,383$241,614$713,990
Payroll Taxes$421,094$126,415$125,528$673,037
Information Technology$437,172$46,067$102,170$585,409
Pension Plan Contributions$220,890$95,778$78,796$395,464
Advertising$32,594$182,813$136,279$351,686
Travel$178,071$51,781$32,483$262,335
All Other Expenses$20,223$135,043$2$155,268
Interest$65,781$57,848$352$123,981
Fees for Services Legal-$66,784-$66,784
Fees for Services Accounting-$56,789-$56,789
Conferences and Meetings$13,895$32,863$9,718$56,476
Fees for Services Lobbying-$46,400-$46,400
Total Functional Expenses$130,284,073$3,649,842$4,181,938$138,115,853

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$138,937,515
Expenses per Audited Statements$138,115,853
Total Expenses per Form 990$138,115,853
Expenses Not Reported on Form 990$821,662
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Complete List Available Upon Request--Support Food Distribution to Member Agencies$111,255
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$1,388,519
Fundraising Direct Expenses$378,137
Fundraising Gross Income$226,592
Gaming Direct Expenses$0
Gaming Gross Income$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Dish$679,444$181,687$122,185$59,502
Vitner Ball$113,104$44,905$19,901$25,004
Total Events$1,078,480$226,592$378,137$-151,545
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$205,213

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$1,183,634
Cur Portion of Capital Lease$254,602
Deferred Rent - Current$14,554
Fiscal Agent Payable$12,368
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
2018-02-26
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
191
Volunteers
31,175

Preparer

Firm
Schechter Dokken Kanter
Address
100 WASHINGTON AVE SO 1600, MINNEAPOLIS, MN 55401-2192
Preparer
Charles Selcer CPA
Phone
6123325500
Supplemental Narrative

Additional Explanations

Part I, Line 1 & 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 one of the nations largest, most efficient and most innovative hunger relief organizations. In FY17, we distribute over 81 million meals. 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 (meats, produce, bakery and dairy) comprised more than 57% of all food distributed throughout the fiscal year. Of this amount, more than 36.4 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 FY17 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 two-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 FY17, we were able to eng

Part III, Line 4C

Community Outreach Program: 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 16 mini-grants program funding 204 meal-sites within our service area. At these sites, 617,355 meals and 46,942 snacks were served by grant-awarded 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 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.

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.

Part XI & XII, Line 2D

Additional special event expenses reclassified out of functional expenses into part viii, line 8b of form 990: professional fees $ 3,000 office expenses 34,634 advertising/marketing 40,185 merchant fees 11,843 ======== total $89,662

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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 93 million pounds of food was distributed through the food bank in the 12-month period ending 9/30/2017. See schedule O for additional program service description.
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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