second harvest heartland - 2010 annual report

1

INSIDE THE NUMBERSThe need is growing, but so are we!

We distributed 59.6 million pounds of food in 2010: the equivalent of 46.5 million meals.

DISTRIBUTION

TIME

Last year, more than 9,000 unique volunteers gave more than 52,000 hours of their time toward our mission – an increase of 2,000 people and 12,000 additional hours from 2009.

EFFICIENCY

In 2010, we put 94% of donations directly into our programs.

2 3

Second Harvest Heartland is pleased to announce the recipients of its second annual Hunger Hero awards, which were created to honor and recognize organizational partners who make a compassionate and transformational impact on

those who are hungry in the Heartland.

Last year, 1 in 10 Minnesotans was at risk of not having enough to eat, and hungry Minnesotans missed 125 million meals. As the demand for emergency food increased, so, too, did the generosity of many of Second Harvest Heartland’s charitable partners, six of whom demonstrated extraordinary leadership in meeting the unprecedented demand for food. It is those six partners that Second Harvest Heartland honors this year with its Hunger Hero award, a seal of appreciation designed to publicly acknowledge those who contributed the most by way of foods, funds, hours, ideas, awareness and more.

“Second Harvest Heartland works passionately every day to feed our hungry neighbors, but our success is dependent on the benevolence and conviction of our outstanding community partners who continue to demonstrate equal passion for and commitment to our cause,” said Rob Zeaske, executive director of Second Harvest Heartland. “We are proud to recognize to this year’s Hunger Heroes for their leadership in substantially and sustainably impacting our hungry neighbors.”

Hunger Heroes are recognized in six categories, each of which is critical to Second Harvest Heartland’s mission of ending hunger through community partnerships and all of which must work in tandem to collectively achieve that goal.

To read more about our Hunger Heroes, turn the page!

A LOOK INSIDE 2010

MEASURING IN POUNDS AND MEALS, PEOPLE AND POTENTIALAs the upper Midwest’s largest hunger relief organization, Second Harvest Heartland leads the fight against hunger throughout the region, with a vigorous focus on efficiency. Benchmarks such as 92% more fresh product—and increasingly low handling costs—have made the food bank the core supplier for more than 1,000 community agencies and programs. Second Harvest Heartland operates a fleet of 19 trucks, including seven dedicated to food rescue, facilitating the collection and delivery of donated food from generous corporate partners, organizations and benevolent individuals. Our cadre of faithful volunteers fuel the operations at our Maplewood warehouse and Minneapolis distribution center, helping sort, package, label and otherwise prepare well-rounded, nutritious food for food pantries, shelters, soup kitchens and other programs in 59 Minnesota and Western Wisconsin counties.

With nearly 60 million pounds of donated canned, boxed and fresh foods in the pipeline, each dollar contributed to the cause provides more than a day’s worth of meals for a hungry neighbor. In 2010, generous cash donations of more than $12 million

supported timely food distribution and programs that continue to transform the daily lives of the almost half-million children, seniors and families seeking our help.

Innovation also distinguishes our outlook on hunger relief, as we serve for today but also solve for tomorrow. In partnership with Hunger-Free Minnesota, with support from Cargill and General Mills, we’ve helped form a plan and system that will supply more than 100 million meals

in Minnesota each year. And fresh ideas, literally, such as harnessing the sustenance of 12 million pounds of produce, meat and bakery items in partnership with 200+ grocers, bolster our ability to provide fresh food for our neighbors in need. For the future, we’ve reset the horizon based on innovative research into the capacity of the sector: we’ll set pace at 20 million

pounds of fresh food per year by 2013, enough to provide 15.6 million healthy meals.

These rich collaborations with partners—corporate and individual, community, civic and church, urban, suburban and out-state—characterize today’s work, and tomorrow’s potential, for Second Harvest Heartland and the people we serve.

RECOGNIZING OUR 2011 HUNGER HEROES

TABLE OF CONTENTSP.2 - INTRODUCTIONP.3 - RECOGNIZING OUR 2011 HUNGER HEROESP.4-5 - HUNGER HERO AWARDEESP. 6-7 - DONOR SPOTLIGHTSP. 8-11 - TOP FINANCIAL, FOOD AND INDIVIDUAL DONOR LISTSP. 12-13 - 2010 AUDITED NUMBERS

Second Harvest Heartland is pleased to announce the recipients of its second annual Hunger Hero awards, which were created to honor and recognize organizational partners who make a compassionate and transformational impact on those who are hungry in the Heartland.

Last year, 1 in 10 Minnesotans was at risk of not having enough to eat, and hungry Minnesotans missed 125 million meals. As the demand for emergency food increased, so, too, did the generosity of many of Second Harvest Heartland’s charitable partners, six of whom demonstrated extraordinary leadership in meeting the unprecedented demand for food. It is those six partners that Second Harvest Heartland honors this year with its Hunger Hero award, a seal of appreciation designed to publicly acknowledge those who contributed the most by way of foods, funds, hours, ideas, awareness and more.

Hunger Heroes are recognized in six categories, each of which is critical to Second Harvest Heartland’s mission of ending hunger through community partnerships and all of which must work in tandem to collectively achieve that goal.

TO READ MORE ABOUT OUR HUNGER HEROES, TURN THE PAGE!

3

4 5

PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C

SECOND HARVEST HEARTLANDHUNGER HERO

I N NOVAT I O N’10


F O O D’10


VO L U N T E E R’10


AWA R E N E S S’10


G R E E N’10


F I N A N C I A L’10

PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



AWARENESSPartner generating outstanding visibility in delivery of programs.

PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



FINANCIALPartner with the leading financial impact on hunger relief programs.

General Mills has a longstanding commitment to hunger relief at both a corporate and an employee level. The manufacturer of many beloved brands delivered transformational financial support to food bank programs and operations, nearly 1/3 of which was the result of employee contributions.

VOLUNTEERPartner with the largest impact on operational productivity via donated time and labor.

Target has a nationally recognized employee volunteer program. In 2010, the retailer kept hunger relief in the center of its hometown bullseye by packing boxes and directly assisting struggling families as frontline partners in solving child hunger.

FOODPartner with outstanding value and volume of donated food.

Supervalu has demonstrated a “super” ability in the delivery of high-volume, nutritious charitable pounds to hometown neighbors, touching more than 1,000 hunger relief programs and innumerable lives with its generosity in 2010.

AWARENESSPartner generating outstanding visibility in delivery of programs.

Bremer Bank is a premier program partner with a far-reaching voice in community affairs. The organization has generated outstanding visibility and made a deep impression with its multimedia Take Action Against Hunger campaign and as lead sponsor of our Food & Fund program.

INNOVATIONPartner with unique vision and volume delivery of a program or product.

BoThesThe The ton Consulting Group is a breakthrough thought-leader for ending hunger in Minnesota, identifying key initiatives for closing the state’s missing meals gap and challenging Minnesotans to think differently about federally funded nutrition assistance.

GREENRetail partner with outstanding contribution to the “rescue” of food (produce, dairy, meat and bakery).

Walmart has become a critical partner in the success of our Food Rescue program by donating a volume-enhancing refrigerated truck and filling it with millions of pounds of fresh meats, dairy and deli products, produce, and baked goods.

PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



PANTONE404C

PANTONE697C

PANTONE5635C

PANTONE5763C

PANTONE145C

PANTONE384C




F O O D’10






G R E E N’10



General Mills has a longstanding commitment to hunger relief at both a corporate and an employee level. The manufacturer of many beloved brands delivered transformational financial support to food bank programs and operations, nearly 1/3 of which was the result of employee contributions.

Target has a nationally recognized employee volunteer program. In 2010, the retailer kept hunger relief in the center of its hometown bullseye by packing boxes and directly assisting struggling families as frontline partners in solving child hunger.

Supervalu has demonstrated a “super” ability in the delivery of high-volume, nutritious charitable pounds to hometown neighbors, touching more than 1,000 hunger relief programs and innumerable lives with its generosity in 2010.

Bremer Bank is a premier program partner with a far-reaching voice in community affairs. The organization has generated outstanding visibility and made a deep impression with its multimedia Take Action Against Hunger campaign and as lead sponsor of our Food & Fund Drive program.

The Boston Consulting Group is a breakthrough thought-leader for ending hunger in Minnesota, identifying key initiatives for closing the state’s missing meals gap and challenging Minnesotans to think differently about federally funded nutrition assistance.

Walmart has become a critical partner in the success of our Food Rescue program by donating a volume-enhancing refrigerated truck and filling it with millions of pounds of fresh meats, dairy and deli products, produce, and baked goods.

SECOND HARVEST HEARTLANDYOUR 2011 HUNGER HEROESPROUDLY PRESENTS

5

5

“SECOND HARVEST HEARTLAND WORKS PASSIONATELY EVERY DAY TO FEED OUR HUNGRY NEIGHBORS, BUT OUR SUCCESS IS DEPENDENT ON THE BENEVOLENCE AND CONVICTION OF OUR OUTSTANDING COMMUNITY PARTNERS WHO CONTINUE TO DEMONSTRATE EQUAL PASSION FOR AND COMMITMENT TO OUR CAUSE. WE ARE PROUD TO RECOGNIZE THIS YEAR’S HUNGER HEROES FOR THEIR LEADERSHIP IN SUBSTANTIALLY AND SUSTAINABLY IMPACTING OUR HUNGRY NEIGHBORS.”

ROB ZEASKE , EXECUTIVE DIRECTOR, SECOND HARVEST HEARTLAND

6 7

CORPORATE & INDIVIDUAL DONOR SPOTLIGHTS

A GOOD REASON TO WINEWhat began in 2005 as a wine enthusiast group’s dream of a charitable wine-tasting event has blossomed into an elegant winter evening featuring an unparalleled selection of high end wines from all over the world. Every January for the past six years, wine lovers and philanthropists alike have gathered together to enjoy the Vintner Ball, an exquisite collection of wine, food and auction items in support of Second Harvest Heartland.

One of the most unprecedented points to note about the Vintner Ball is that 100% of the funds raised at the event are donated directly to Second Harvest Heartland. Every dollar collected at the Vintner Ball provides almost four meals to our neighbors in need by directly assisting Second Harvest Heartland’s programs.

In its first year, the Vintner Ball raised $50,000 and just six years later in 2011, more than tripled that amount, raising an incredible $160,000. In total, the event has raised nearly $800,000—a stirring testament to the compassionate nature of our supporters.

Second Harvest Heartland extends a sincere thanks to hosts Tim Aune, Joel Moline, Jeff Morris, Kevin Spreng, John Wanninger and Jim Wohlford for their ideas, dedication and benevolence over the past six years. Also, a very special thank you to Lunds & Byerly’s, the generous event sponsor who provides so much of what makes the Vintner Ball possible.

THESE DONATIONS AREN’T SMALL POTATOESFor years, potatoes grown in the St. Cloud area that were “too small” or had visual defects went to waste. But thanks to Edling Farms and 17 other potato growers, more than 6 million pounds of these potatoes—perfectly edible and fresh—have been rescued and donated to Second Harvest

Heartland since 2004. “We call, Second Harvest Heartland sends a semi truck, loads up the potatoes and then distributes them,” says Jerome Edling. “It’s a win-win; farmers who are unable to store the potatoes are able to give them to the people who need them.”

Though the unpredictable Minnesota weather means each year can bring a different kind of potato

season, there are always some to give. “Many times we just couldn’t keep the extra or they would spoil before they were used, but because of our partnership with Second Harvest Heartland, we can keep them moving. It’s great for everybody involved,” said Jerome.

Through the potato donations from Edling Farms and other growers in St. Cloud, Second Harvest Heartland can provide even more fresh food for our neighbors in need to enjoy, and we sincerely thank these donors for pioneering this important effort.

PAMPERED CHEFROUNDS UP DONATIONSWhen most people hear the words “Pampered Chef,” it prompts memories of cooking parties among friends while enjoying good eats and sweet treats prepared using top-of-the-line cooking utensils and other products. At Second Harvest Heartland, we think about the Pampered Chef’s meals in a bit of a different context: one million meals on the dinner tables of our neighbors in need.

Since 1996, The Pampered Chef has been a generous partner to Second Harvest Heartland, sponsoring the “Round Up from the

Heart” program through which consultants ask customers if they would like to “round up” their order amount. Customers can round up to the nearest dollar, or add on a donation amount of their choice. 100% of funds raised through “Round Up from the Heart” are passed along to local food banks.

The local Round Up from the Heart Ambassador, Independent Director Phillip Barrett with Pampered Chef, and his team of consultants are very committed to the issue of hunger. Phillip recently asked a team of 25 consultants to tour the Second Harvest Heartland warehouse and volunteer to pack boxes of food for the Commodity Supplemental Food Program (CSFP). He and his team plan to schedule future events as they look to further engage their consultants in support of our work.

Sincere thanks to The Pampered Chef and Phillip Barrett for their tremendous efforts in support of our work.

A FOOD RESCUE RENEWALSometimes, less-than-ideal fruits and vegetables are passed over by shoppers in favor of “perfect” apples or the freshest lettuce. Lunds and Byerly’s recognized that this fresh, nutritious, less-than-perfect food is still perfectly edible and began donating it to Second Harvest Heartland’s Food Rescue program in 2005.

Since the partnership began, Second Harvest Heartland, along with the Salvation Army, has collected donations from Lunds and Byerly’s stores across the metro, making a significant impact on the people who need it most.

Just recently, to ramp up participation and make it simpler for more stores to get involved in Food Rescue, Lunds and Byerly’s invited a team from Second Harvest Heartland and the Salvation Army to revisit their stores and reintroduce the program. The team attended department meetings and presented on how the program can efficiently and effectively provide even more fresh food to our neighbors in need.

Food Rescue’s renewal process at Lunds and Byerly’s is complete and progress has been significant—more departments, such as dairy, deli and meat, are participating and the amount of food that has been donated continues to increase. As stores adapt to the new process, donations will continue to grow each month.

Sincere thanks to Lunds and Byerly’s for their partnership and for going above and beyond to ensure that our neighbors have access to the fresh food they desperately need.

IN ADDITION TO OUR HUNGER HEROES, SECOND HARVEST HEARTLAND IS PLEASED TO RECOGNIZE THE FOLLOWING CORPORATE AND INDIVIDUAL DONORS WHO HAVE MADE A GREAT IMPACT ON OUR HUNGRY FRIENDS AND NEIGHBORS.

A PERSONAL APPROACH TO GIVINGWhen Deb was in high school, a series of personal events took a toll on her family, causing them to fall on some financial hard times. “I remember my mom working full-time in a retail job that just didn’t provide enough income,” Deb recalls. “My parents used food stamps to help through the tough transitional time, but all the while they were trying to get back on their feet. They knew they had enough work ethic to pull themselves out.”

Deb and her husband, Scott, have been fortunate in their adult lives, both employed by a Twin Cities-based company that provides stable incomes. When they decided to seek out a hunger relief organization to which to contribute, Second Harvest Heartland rose to the top of the list. “I did some research on efficiency and administrative costs, and Second Harvest is impressive in that regard,” Deb says. “We contribute to other hunger relief organizations too, but are proud of how much Second Harvest can do with our gifts.”

Deb’s Christian faith reinforces her conviction that it is her duty in the world to serve others, and urges others to follow suit, no matter your beliefs. “So often, when people need help, it’s just due to an unfortunate sequence of events,” Deb says. “We shouldn’t be judgmental of people in need or how they got there—all of us are a layoff away from needing help.”

Deb and Scott are significant financial supporters of Second Harvest Heartland, helping to provide almost 57,000 meals through their contributions to date. Second Harvest Heartland extends a sincere thanks to Deb and her family for their tremendous commitment to our work.

8 9

Leadership ($250,000 +) General Mills Target

Mission ($100,000 +) 3M Bremer Bank Cargill ConAgra Store Brands Division of The Saint Paul Foundation Cub Foods Ecolab Otto Bremer Foundation Taste of NFL/Vikings Children’s Fund Thomson Reuters Vintner Ball

Supporting ($50,000 - $99,999) Ameriprise Financial Inc. Fred C. and Katherine B. Andersen Foundation Frey Foundation Let’s Kick Hunger Day Lunds and Byerly’s Macy’s Margaret Rivers Fund SUPERVALU The RRW & Florence Berglund Family Foundation

Supporting ($25,000 - $49,999) CID, Inc. Clear Channel Radio Grainger Hugh J. Andersen Foundation Qwest Foundation Rose Francis Foundation Sit Investment Associates Foundation The Andersen Corporate Foundation The Bank of America Foundation The David B. Gold Foundation The Mosaic Company Wells Fargo Bank

Supporting ($10,000 - $24,999) Advance Auto Parts Affinity Plus Federal Credit Union Alliant Energy Foundation Inc. BankCard Service Worldwide BI Birmingham-Dorsey Charitable Trust of the US Private Client Reserve Calhoun Square Carl and Eloise Pohlad Family Foundation

Casey Albert T. O’Neil Foundation Chanhassen Dinner Theater

Crystal Farms Dean Foods Deluxe Corporation Foundation Dovenberg Family Foundation Freier Family Foundation, Inc. Get in Gear, Inc. GiveMN Gordon and Margaret Bailey Foundation ING Lifetime Fitness Foundation MAZON: A Jewish Response to Hunger Minnesota Cable Communications Association Minnesota’s Own/Minnesota Grocers Association Moore Family Foundation Pepsi Company Procter & Gamble Production Sheet Metal Workers Local 10 Sodexo Syngenta Seeds Taste of the Nation/Share Our Strength The American Bottling Company The Curtis L. Carlson Family Foundation The Evert Foundation The Mortenson Family Foundation The Pampered Chef The Patch Foundation The Simmet Foundation UnitedHealthcare W. Duncan and Nivin MacMillan Foundation Walk to End Hunger Wolters Kluwer Financial Service

Supporting ($5,000 - $9,999) Acosta Sales & Marketing Advantage Sales & Marketing AgriBank FCB Arizant Inc. Arrow Tank & Engineering Co. Athwin Foundation Best of the Best/MSP Communications Blue Cross and Blue Shield of Minnesota C.H. Robinson Worldwide Inc. Cameron’s Coffee Carlson Capital Management, Inc. Coca Cola Bottling Dakota Growers Pasta Co., Inc. Data Recognition Corporation Edward and Karayn Cunnington Family Foundation Frantic, Inc. Frito Lay FRWD Co. Great River Energy Hardenbergh Foundation

Herr Family Foundation Honeybelles, Inc. IBEW/NECA Holiday Lights Iron Fork/City Pages J.A. Wedum Foundation Kellogg’s Sales Company Kemps Kraft Foods Kraus-Anderson Construction Lawson Software Lifecore Foundation Mackall Crounse & Moore, PLC Malt-O-Meal Margaret H. and James E. Kelley Foundation Marquette Financial Companies McVay Foundation Metro Legal Services, Inc. Michael Foods Midstate Reclamation SD Milestone AV Techologies Minnesota Pollution Control Agency Minnesota State Wireless Association NBC Foundation Northern Lights Combined Federal Campaign Old Dutch Foods Olympus Padilla Speer Beardsley Patterson Companies Pentair PricewaterhouseCoopers LLP RC Lilly Foundation Robins, Kaplan, Miller & Ciresi, L.L.P. Rocco Altobelli Saatchi and Saatchi Sara Lee Securian Foundation Shakopee Mdewakanton Sioux Community Solutran St. Paul USBC Association Tankenoff Families Foundation The Cheesecake Factory The Robins Family Foundation Thrivent Financial for Lutherans TOSA Foundation Unisys Corporation University of Minnesota Venture Bank WellPoint Associate Giving Campaign Westminster Presbyterian Church Win and Christie Neuger Family Foundation Wonderbread/Hostess Zimmer Spine

Albert’s OrganicsAmerican Bottling CompanyAmport FoodsApple Jack OrchardsApplewood OrchardArden CulinaryAsian FoodsBen Holmes Potato CompanyBest Maid Cookie CompanyCargill Animal NutritionCargill Kitchen SolutionsCatallia Mexican FoodsCavendish FarmsCoca-ColaCub FoodsDakota Growers Pasta Co.Dean FoodsDeChene Boys PotatoesDel Hayes & SonsDeli ExpressEdling FarmsEwing FarmsFairmont Foods of MinnesotaFrito-LayG.O. FreshGeneral MillsGold’n Plump PoultryKaiser InternationalKemps KMART Distribution CenterKowalski’s MarketsLand O’LakesLegendary BakingLettieri’sLunds and Byerly’sMalt-O-MealMinnesota Freezer WarehouseMission FoodsMN Harvest Apple OrchardNutrisystemsOberweis Dairy Old Dutch FoodsPan O Gold Baking CompanyPepperidge FarmsPepsiPeterson Brothers PotatoesPlum Crazy OrchardReinhart Food ServiceRiverside PotatoRoland MarketingSam’s ClubThe Schwan Food CompanySeneca FoodsSilver Spring Gardens

CORPORATE & FOUNDATION FINANCIAL DONORS FOOD DONORS

SPECIAL THANKS TO OUR GENEROUS DONORS

10 11

SUPERVALUTargetThorpe Distributing Co.Tony Downs FoodUS Foodservice-MinnesotaWalgreensWalmartWholesale Produce Supply

$25,000+ The Roger & Fay Bredesen Family Gift Fund of the Advisor Charitable Gift Fund Susan & James Cargill Vera Likins* Charles F. Murphy* Susan M. Walz*

$10,000 - $24,999 Arthur Andriessen Susan M. Barnes Shirley R. Boyd Deborah & Scott Brown Judith & David Buerkle Sharon & J. Randal Cochrane Joan & Ronald Cornwell Jill Doescher Bonita & William Frels Kathleen & James Gelder Ann M. Gilsdorf Tessa Gunther & Scott Haag Susan Haugerud Rosemary & Art Janousek Morton and Merle Kane Family Philanthropic Fund of the Minneapolis Jewish Federation Elizabeth & James Mennell The Walter Parkins Fund of the Catholic Community Foundation Katherine A. Payne Bean Robinson & Walter Sawicki Carl Schenk* Mary S. Tichenor Eleanor & John Yackel

$5,000 - $9,999 The John & Carolyn Allen Fund of the Fidelity Charitable Gift Fund Robert S. Appleby

Erica & Tim Austrums fund of the Renaissance Charitable Foundation Keith Bares Sherry & Steve Barnes Brandon & Ana Gronseth Bartz Edward R. Bazinet Foundation of the Minneapolis Foundation Ralph & Charlotte Bearman Philanthropic Fund of the Minneapolis Jewish Federation The Beaverdale Foundation of Lowry Hill Bernard Berrian Ann & Todd Bjorklund Blue Rock Charitable Fund of the Minneapolis Foundation Richard Braun The Buuck Foundation of Lowry Hill Diane & Peter Byrne Vanessa & James Cochran Terri & Robert Crosby Gretchen & Joseph Docter Nikki & Jon Edwards Alhea R. Erdahl Rosemary Kessler & Kevin Filter Sarah Geisert & Scott Rans Jennifer & Scott Gill Jonathon T. Guyton The Philip Hadley Fund of the Fidelity Charitable Gift Fund Janet & Glenn Hansen fund of the St. Croix Valley Community Foundation Mark B. Hanson Mark D. Hanson Alice S. Hart Wendy & Eric Hawkins Deirdre McMahon & Michael Headrick Maggie & Robert Henry Randall Herman Jean & Kevin Holm Marna & John Holman Shirley Hughes Kris & Rob Johnson Kim & Garry Kieves Kathryn Shaw & Larry LaBonte Deborah & Vincent Louwagie Sandra & Michael Luker Susan & Timothy Malecha Wendell and Ethel Manske Christian Foundation of The Saint Paul Foundation Charles May Nancy & John McEnroe Michael McGuire Barb & Greg Miller Vincent Moccio Joel Moline The Mary E. Morris Fund of the St. Paul Foundation

FOOD DONORS, CONT.

INDIVIDUAL DONORS

Mark Newhall Bernard & Barbara Ortt Diane & Peter Peterson Perry C. Plank Renee & Fred Pritzker Kristen & Thomas Ritchie Jeff Ross Andrea & Brian Sattler Christina & Henry Shea Doris M. Tschudy Barbara & William Welke Fund of the Vanguard Charitable Endowment Program Peter West Judi Lamble & Andrew J. Winton Peggy & Charles Zender Anne & Phillip Zink

* Bequest

COST/BENEFIT HUNGER IMPACT STUDYWith a mission stake in ending hunger through community partnerships, Second Harvest Heartland invested in a new level of collaboration in 2010, moving beyond its service boundary as an individual agency, to co-lead a statewide platform for systematic hunger relief in Minnesota. With funding from Target, Minnesota’s six Feeding America food banks released the Cost/Benefit Hunger Impact Study in September, 2010, offering a unique look at the depth and breadth of hunger in Minnesota, including its reach, implications and costs.

The research pinpointed upwards of $1.62 billion annually in direct and indirect health and education cost, related to food insufficiency statewide; it also suggested that interventions aimed at preventing hunger are sound moral, social and financial investments. According to the study, those who are hungry experience significantly poorer health and education outcomes than do well nourished individuals. Hungry children, for example, are more likely to experience headaches, stomachaches, ear infections, and colds, and are more likely to repeat a grade. Hungry teens are more likely to suffer from depression and commit suicide. And hungry adults are more likely to be obese and experience diabetes.

These mental and physical health problems come with a hefty price tag for Minnesotans, who pay $925 million in annual direct medical expenditures such as hospitalizations and medications and another $333 million annually in indirect medical expenditures such as treating headaches and colds. Authored by researchers at the University of Minnesota’s Food Industry Center, the study is the fourth in a series of groundbreaking hunger-related reports that characterize hunger in Minnesota. This suite of studies provides current and compelling data on hunger’s hold on Minnesota families, schools, businesses and communities—data that is so compelling, in fact, that a coalition of organizations is initiating Hunger-Free Minnesota, a movement designed to change the way individuals, organizations and governments view and respond to hunger.

For more information and to read the full study, visit hungerfreemn.org.

<<From all of us at Second Harvest Heartland and on behalf of those we serve, we extend our sincerest gratitude to the donors listed here, as well as the thousands of other organizations and individuals who contribute generously to the fight to end hunger in the heartland.

For your efforts in 2010 and beyond, we thank you.

“HUNGRY CHILDREN...ARE MORE LIKELY TO EXPERIENCE HEADACHES, STOMACHACHES, EAR INFECTIONS, AND COLDS, AND ARE MORE LIKELY TO REPEAT A GRADE.”

SPECIAL THANKS TO OUR GENEROUS DONORS

12 13

94%IN 2010, WE COLLECTED AND DISTRIBUTED 92% MORE FOOD THROUGH THE FOOD RESCUE PROGRAM THAN IN 2009.

REVENUE F2009F2009F2009F2009 F2010F2010F2010F2010 % Change% Change% Change% Change

Food Donations, In Kind 60,899,413$ 71,273,239$ 17.0%

Program Services 4,968,304$ 6,461,154$ 30.0%

Contributions 10,101,995$ 12,239,745$ 21.2%

Government Contracts 1,748,656$ 2,281,039$ 30.4%

Other revenue 118,142$ 60,610$ -48.7%

77,836,510$ 92,315,787$ 18.6%

PROGRAM EXPENSES

Food Distributed, In Kind 63,221,220$ 77,883,379$ 23.2%

Programs 6,062,750$ 9,230,635$ 52.3%

Administrative expenses 1,661,349$ 2,277,020$ 37.1%

Fundraising expenses 3,213,257$ 3,234,952$ 0.7%

Total Functional Expense 74,158,576$ 92,625,986$ 24.9%

Net Excess (or Deficit) 3,677,934$ (310,199)$

ASSETS

Current AssetsCurrent AssetsCurrent AssetsCurrent Assets

Cash and Cash Equivalents 1,239,431$ 1,642,252$ 32.5%

Investments 3,339,063$ 2,196,149$ -34.2%

Accounts Receivable:Accounts Receivable:Accounts Receivable:Accounts Receivable:

Trade 563,823$ 844,059$ 49.7%

Grants 156,517$ 499,587$ 219.2%

Other 34,109$ 240,667$ 605.6%

Inventory 5,447,507$ 4,713,907$ -13.5%

Prepaid Expenses 70,857$ 28,679$ -59.5%

Total Current Assets 10,851,307$ 10,165,300$ -6.3%

Land, Buildings and

Equipment Net 4,994,942$ 5,338,921$ 6.9%

Other Assets 10,309$ 10,309$ 0.0%

Total Assets 15,856,558$ 15,514,530$ -2.2%

LIABILITIES AND NET ASSETS

Current LiabilitiesCurrent LiabilitiesCurrent LiabilitiesCurrent Liabilities

Accounts Payable 989,558$ 917,169$ -7.3%

Current Maturities of

Long-Term Debt 162,519$ 172,200$ 6.0%

Fiscal Agent Payable 53,238$ 16,662$ -68.7%

Accrued Expenses 360,205$ 599,860$ 66.5%

Total Current Liabilities 1,565,520$ 1,705,891$ 9.0%

Long-Term Debt,

Net of Current Portion 1,507,093$ 1,334,893$ -11.4%

Total Liabilities 3,072,613$ 3,040,784$ -1.0%

Net Assets

Unrestricted

Operations 7,537,168$ 8,291,203$ 10.0%

In Kind 5,050,120$ 4,100,760$ -18.8%

12,587,288$ 12,391,963$ -1.6%

Temporarily Restricted 196,657$ 81,783$ -58.4%

Total Net Assets 12,783,945$ 12,473,746$ -2.4%

Total Liabilities

and Net Assets 15,856,558$ 15,514,530$ -2.2%

Program Expense: 93.4% 94.0%

General & Administration Expense: 2.2% 2.5%

Fundraising Expense: 4.3% 3.5%

IN 2010, WE APPPLIED 94% OF EVERY DONATION TOWARD HUNGER PROGRAMS.

FOR THE FULL REPORT, VISIT 2HARVEST.ORG/FINANCIALS

*

* In accordance with USDA policy memo FD-104 issued February 18, 2010, our valuation method changed and thus the 2009 numbers reported have been restated to reflect this change. For more information, visit 2harvest.org/financials.

MORE FOOD TO MORE PEOPLE, EVERY YEAR.Thanks to your generous contributions of food, funds and time, Second Harvest Heartland has nearly doubled the amount of food we were able to distribute just five years ago. In 2010, we provided more than 46.5 million meals to our hungry friends and neighbors.

Thanks for all you do, and we look forward to providing food for even more of our neighbors in 2011.

*1.28 lbs per meal.

60

50

40

30

20

2006 2007 2008 2009 2010

po

und

s o

f fo

od

(m

illio

ns)

46,562,500 meals provided*in 2010.

29.8

34.4

41.3

49.1

59.6

AUDITED NUMBERS

92% 13

INCREASING DISTRIBUTION, INCREASING COMMUNITY VALUE.In addition to providing more meals and better nutrition to our neighbors, Second Harvest Heartland helps our partners do more with less. We have passed on our cost savings to our agency partners, so that their shared maintenance—the contribution they make to help offset the storage and handling costs we incur—has dropped dramatically despite the increase in both food prices and need.

Shared maintenance fees in 2010 were $.014 per pound—50% lower than 2007!

2007 2008 2009 2010$.00

$.010

$.015

$.020

$.025

$.030

$.035

$.024

$.028

$.017

$.014

14

Joel AndersonSVP – Northern Plains Division, Walmart

Jill Bickford Executive Vice President, Branch Director, Bremer Bank

Tom Butterfield, Member-At-Large Vice President, Strategy & Operations, Target

Erin Carnish, Vice Chair Sr. Vice President – Innovative Health and Technology Solutions, Optum Health Care Solutions

Patrick Deconinck Vice President and General Manager - Industrial Adhesives and Tapes, 3M

Bill Finnegan Executive Account Manager, Information Builders, Inc.

Sarah Geisert Sr. Director, Product Safety, General Mills, Inc.

Jim Gilliam, Chair President, Northern/Northwest Region, SUPERVALU INC.

John Hausladen President, MN Trucking Association

Shirley Hughes, SecretaryVice President (retired), Ceridian Corp.

Rob Johnson Senior Vice President (retired), Cargill, Inc.

Tom JollieVice President, Padilla Speer Beardsley

Russ Kaegebein, Treasurer Sodexo USA (retired)

Peter LawyerSenior Partner and Managing Director, Boston Consulting Group

Dr. Craig LewisPresident/CEO, People Serving People

Bill McDonald Partner, Oppenheimer Wolff & Donnelly LLP

Jon McTaggartChief Operating Officer, American Public Media

Joel Moline Vice President, Financial Advisor, Merrill Lynch

Jamie Rice Principal and Chief Operating Officer, Yukon Partners.

Kirsten Vosen Partner, CPA, Deloitte & Touche LLP

Mike Witt Vice President, Merchandising, Cub Foods

BOARD OF DIRECTORSSPECIAL THANKS TO THE SECOND HARVEST HEARTLAND 2010-2011

2HARVEST.ORG | 651.484.5117

second harvest heartland - 2010 annual report

Documents