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Thursday, Mar 28, 2024

Nonprofit Takes Fallen Fruit to the Food Bank

Old dogs can’t learn new tricks, but they just might lead to new ideas for nonprofit organizations. That was the case when Rick Nahmias, founder and chief executive of Food Forward took his senior canine for a walk around Valley Glen one afternoon in 2009. “I had an older dog that was taking slower and slower walks around the neighborhood, so I got to see things that I didn’t normally see,” Nahmias said. That day, it was all the untouched produce on the ground in parks and backyards – fruits and vegetables fallen from trees or hanging on bushes. That harvest would be welcome at area food banks. Recognizing an opportunity, Nahmias rounded up a team of volunteers to help him collect the fruit and transport it to food pantries. The project quickly attracted more volunteers, he recalled. “It struck a nerve with people wanting to be outside and connected to their food system,” Nahmias said. Food Forward is a newcomer on the Business Journal’s list of Nonprofit Organizations ranked by expenditures, finishing at No. 27. Last year, Food Forward “rescued” nearly 15 million pounds of fruitage, which found its way to more than 300 charities in eight counties, according to its annual report. This year, Food Forwards expects to bring in up to 17 million pounds, Nahmias said. “We’re dealing with (two issues) that are in the news a lot right now: Hunger and food waste,” he explained. “Our work provides a very low-cost, efficient solution to two problems that are plaguing the country.” Finding funds Much of Food Forward’s progress has been made possible by private foundations. About 70 percent of its $1.6 million annual budget is met through contributions from institutions such as the Annenberg Foundation and the David Bohnett Foundation. “The challenge we’ve had is there’s not an organization like us anywhere in the country – possibly in the world – so we’re inventing the model as we go,” Nahmias said. “That means we’re having to educate funders on the validity of what our work is.” Some nonprofits that have traditionally been funded by the public sector are reinventing their business models to include new sources of revenue, said Dena Jenson, executive director of the Center for Nonprofit Leadership at California Lutheran University. Political upheaval has left many in the industry facing a foggy financial future. “The way that you manage and attract public sector contracts is really different from relationship-based fundraising with people, corporations and foundations,” Jenson said. Public contracts are vital to the work of nonprofits like the North L.A. Regional Center, the top company on the Nonprofit Organizations list. The organization uses state funds to match individuals with disabilities to local service providers, such as No. 25 Valley Village and the Tierra del Sol Foundation, No. 41. Demand for their work is rising at the same time housing and labor costs have increased, explained George Stevens, executive director. Applications for providers’ offerings have increased 52 percent year over year, he added. “Our provider community is dealing with minimum wage, but it will have to grow with the population we are beginning to serve,” Stevens said. Fortunately, national data suggests foundations and individuals alike are rallying to the cause. Adjusted for inflation, donations from foundations increased 2.2 percent year-over-year in 2016 to roughly $59 billion, while individual contributions to charities rose 2.6 percent to $282 billion, according to Giving USA, a subsidiary of the Giving Institute, and the Lilly Family School of Philanthropy at Indiana University. For-profit programs In addition to filling financial gaps with funding from foundations and philanthropists, nonprofits also are partnering with for-profit firms to meet the needs of those they serve. For instance, Food Forward has turned hundreds of pounds of unusable kumquats into cash by selling the fruit to Smog City Brewing Co. in Torrance, which uses it to brew an award-winning beer and pays royalties back to the organization. The nonprofit recently established a similar partnership with Salt & Straw, which is using Food Forward’s fare in its “rescued fruit” ice cream. “We actually do come across produce which we get in such abundance that it can’t be used at food banks,” Nahmias said. “We want to turn that into business opportunities, especially since 100 percent of the revenue goes back into feeding the hungry.” Businesses have been integral to advancing the initiatives of Regional Center partners, as well. Service providers such as New Horizons, No. 38, have established employment programs with Jon’s International Marketplace, AMS Fulfillment Inc. and the Valley Motor Center to help individuals with disabilities achieve workforce integration. “It’s about opportunities,” Stevens said. “Give them the opportunity, and folks can really excel.”

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