FUTURE OF FOOD MINISTRY
HIGHLAND UMC and Beyond
THE PAST EXPERIENCE
• In 2013, served over 160,000 meals out of our kitchen.
• In 2014, we have already exceeded 160,000 meals; as of 10/15/14, we are at
160,140 meals.
• Employ 2 full-time people, and 28 part-time youth
• Have generously subsidized church budget; food ministry costs the church
nothing.
• Participate in 2 government programs:
• Summer food service program (SFSP) – 42 sites
• Child and Adult Care (CACFP) – 14 sites
THE PAST EXPERIENCE-CONTINUED
• Paid for the following capital improvements:
• New Youth Room Floor (14k)
• Air conditioning in fellowship hall (50k)
• Supplied Kitchen with new equipment
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Slicer
Small wares (pots/pans)
New Ice Cream machine (20k)
New freezers/refrigeration
New state of the art fryers
• Paid the majority of Pastor Larry’s salary/benefits
CURRENT SITUATION
• Pastor Larry at new appointment; ¼ time food, ¾ ministry
• Food ministry continues to grow
• Great reputation
• Better food than most other sponsors
• Monthly requests to take on new sites
• Currently leasing kitchen at Children’s Home of Northern KY
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Serve 40 residents 4 meals a day, 365 days a year
Full-time kitchen manager at CHNK
Serve 70 staff lunch meal, and residential staff 4 meals a day
Top of the line facilities at CHNK
CURRENT SITUATION (CONT)
• Pastor Larry currently working ½ time food, ½ time ministry (based on 60 hour
week)
• Food ministry paying 20% of total pay package
FINANCIAL ACCOUNTING
• Food ministry has separate divisions for accounting
• Child Nutrition Program
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Summer Food
CACFP
CHNK CACFP
CIPS (Covington Independent) National School Lunch Program
Underground
Twisty Grill
Wednesday Night
Other Ministry
YMCA Pool
CHNK non-CNP programs
THE FUTURE PLAN
• CREATE NEW STAND ALONE CORPORATION UNDER THE 501(c)(3) TAX-EXEMPT
STATUTS OF THE GLOBAL UNITED METHODIST CHURCH
• Sponsoring organization is the Covington District of the United Methodist
church (Currently, sponsoring organization is HUMC)
• All responsibility for maintaining and managing program moves OUT of
HUMC and to the new 501(c)(3) district level corporation
WHY???
• Moves PRIMARY legal liability to the new corporation and out of HUMC
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General liability (slips/falls, workman’s compensation, negligence)
HUMC can still be sued, but less exposure
Product Liability (we send out tainted food)
Drivers Liability
• Allows us to grow past what HUMC can handle
• Duplicates what HUMC has been able to develop at a district/state level; living
into our connectional call and relationships
• Deep need for child nutrition programs in Northern KY
WHEN?
• January 1, 2015
UNSERVED/UNDERSERVED CNP
We are here
Maysville Trinity
NEW 501(C)(3) STRUCTURE
• District Level
• Made up of:
• District Superintendent
• Representative of all kitchen leases
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HUMC
CHNK
Maysville Trinity
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• At Large Youth Pastor from district
• At large local pastor from district
• Ex-officio members
• Pastor Larry (CEO)
• Jenny Turnbull (Food Ministry Director)
BENEFITS TO HUMC
• Shielded from primary liability
• Duplicates the ministry HUMC started to go district/state wide
• Shielded from Federal/State financial liability
• Ensures the future of Food ministry beyond current CEO
• Wider pool of people from which to choose
• Bishop has the option to appoint the CEO (elder/deacon/LP)
• Provides an un-restricted flow of income to HUMC (currently, all income to
HUMC is restricted/designated income to reimburse actual expenses)
FINANCIAL EFFECTS TO HUMC
• HUMC gets 100% of the surplus (or absorbs loss) from:
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Wednesday night
Twisty Grill
YMCA POOL
Underground
• The Larger CNP grows, the less in house ministries must shoulder the costsharing aspect of any improvements
• HUMC receives a “per meal” rental fee for kitchen, in addition to surplus from
in house ministries
NEW CORPORATION STILL PAYS
FOR:
• Maintenance and purchase of current/new equipment
• Repair non fully-depreciated equipment
• Replace (at Food Ministry discretion) fully-depreciated equipment
• EXAMPLE: Steamer
• All “attached” equipment purchased with Food Ministry Monies remains the
property of HUMC
• All “smallwares” purchased with Food ministry monies are the property of the
new corporation; able to be used at any location
• Surplus CNP monies only used for:
• Personnel
• New/additional equipment at kitchens
IF PLAN WERE IN EFFECT IN 2013…
• HUMC would have received about 7k more in revenue than it did
• Per meal rate for CNP programs
• All surplus (pretty hefty) from in house ministries
• THE GREAT VARIABLE MOVING FORWARD:
• UNDERGROUND!!!
NEGATIVE FINANCIAL ON HUMC
• Difficult to think “outside the box” for cost sharing projects
• Limited projects left that directly benefit CNP
• Potential liability for In-House programs experiencing a loss
• Some cost share items no longer available:
• Audit cost sharing
POTENTIAL POSITIVE TO HUMC
• Larger CNP means:
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Rent local freezer space
Rent local dry storage
Able to share employees
Able to move production in emergency or planned situations
HUMC better able to define peramiters when setting up contract
• Storage areas
• Church needs clause
GROUNDWORK TO DATE
• Presented to Highland UMC
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Trustees
Food Ministry
Staff
Finance
• APPROVED BY:
• District Superintendent
• District Trustees
• Conference Attorney
NEXT STEPS
• Being reviewed by Tom Yocum for HUMC
• Congregational informational sessions
• Vote in November by HUMC Administrative Council