| FORM 990, PART III, LINE 4A, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS: |
SECOND HARVEST OF SILICON VALLEY (ALSO KNOWN AS "SECOND HARVEST"), A NONPROFIT 501(C)(3) ORGANIZATION ESTABLISHED IN 1974 AND INCORPORATED IN 1979, HAS THE MISSION OF LEADING OUR COMMUNITY TO ENSURE THAT EVERYONE WHO NEEDS A HEALTHY MEAL CAN GET ONE. IN PURSUIT OF THIS MISSION, THE COVID-19 PANDEMIC CREATED UNPRECEDENTED HEALTH AND ECONOMIC DEVASTATION NEVER EXPERIENCED BY MOST AND AS A RESULT, GLOBAL FOOD INSECURITY ROSE TO UNPRECEDENTED LEVELS. THE IMPACT TO THOSE IN THE COMMUNITY SERVED BY SECOND HARCEST WAS NO EXCEPTION, AS THE NUMBER OF CLIENTS SERVED INCREASED FROM APPROXIMATELY 250,000 PER MONTH PRE-PANDEMIC TO MORE THAN 500,000 PER MONTH DURING THE PANDEMIC. THE ECONOMIC CRISIS CREATED BY THE PANDEMIC PUSHED MANY FAMILIES DEEPER INTO POVERTY AND CAUSED OTHERS TO SEEK FOOD ASSISTANCE FOR THE VERY FIRST TIME. NOW, A YEAR AFTER THE ONSET OF THE PANDEMIC, THE HEALTH AND ECONOMIC DAMAGE MANY ARE FACING CONTINUES. ALTHOUGH THE RATE OF INFECTIONS IS DOWN YEAR OVER YEAR AND THE DEATH RATE HAS DECLINED, THE ARRIVAL OF THE DELTA VARIANT HAS DETRACTED FROM MUCH OF THE PROGRESS MADE WITH VACCINATIONS AND SHELTER-IN-PLACE ACTIVITIES. AS A RESULT, THROUGHOUT FISCAL YEAR 2021, SECOND CONTINUED TO SERVE APPROXIMATELY 500,000 CLIENTS PER MONTH. SECOND HARVEST ANTICIPATES THIS LEVEL OF FOOD CRISIS WILL CONTINUE FOR THE NEAR FUTURE. THE PANDEMIC CHANGED THE WORLD IN WHICH SECOND HARVEST OPERATED. PRIOR TO THE PANDEMIC, SECOND HARVEST DELIVERED ITS FOOD VIA FARMERS MARKET-STYLE DISTRIBUTIONS. THIS TYPE OF FOOD DELIVERY WAS TRANSITIONED FROM A HIGH-TOUCH, CLIENT INTERACTIVE ACTIVITY TO A LOW-TOUCH, DRIVE-THRU WHERE VOLUNTEERS PLACED FOOD DIRECTLY INTO CLIENTS' TRUNKS WITHOUT PERSON-TO-PERSON CONTACT. PRE-PANDEMIC THERE WERE ONLY THREE DRIVE-THRU DISTRIBUTIONS IN SANTA CLARA AND SAN MATEO COUNTIES; BY THE END OF THE FISCAL YEAR 2021 THERE WERE OVER 130 DISTRIBUTION SITES. IN ADDITION TO THE TRANSITION TO DRIVE-THRU DISTRIBUTIONS, SECOND HARVEST EXPANDED ITS HOME DELIVERY PROGRAM TO SERVE VULNERABLE, HOMEBOUND RESIDENTS IN SANTA CLARA AND SAN MATEO COUNTIES. WORKING WITH PARTNERS LIKE CATHOLIC CHARITIES, TEAM RUBICON, CATHEDRAL OF FAITH AND MANY OTHERS, SECOND HARVEST HAS BEEN MAKING TWICE-MONTHLY DELIVERIES OF PRE-BOXED GROCERIES TO AN AVERAGE OF MORE THAN 4,000 HOUSEHOLDS OF HOMEBOUND SENIORS AND HIGH-RISK INDIVIDUALS (5,500 HOUSEHOLDS IN FISCAL 2020). DELIVERING ALMOST TWELVE MILLION POUNDS PER MONTH DURING FISCAL 2021, WAS A MAJOR CHALLENGE FOR SECOND HARVEST. THE EXISTING FACILITIES WERE NOT SUFFICIENT TO MEET THE NEEDS RESULTING IN SECOND HARVEST LEASING ADDITIONAL SPACE IN SAN JOSE AND INCREASING ITS FLEET OF TRUCKS TO 36. DURING FISCAL 2021, SECOND HARVEST DELIVERED 143.9 MILLION POUNDS VERSUS 91.6 MILLION POUNDS IN FISCAL 2020. SECOND HARVEST REALIZES THAT ITS ABILITY TO MAINTAIN OR SCALE ITS OPERATIONS UNDER THE CURRENT CONDITIONS IS NOT SUSTAINABLE OPERATING OUT OF THREE SITES. AS A RESULT, IN MAY 2021, SECOND HARVEST ENTERED INTO AN AGREEMENT TO PURCHASE LAND IN NORTH SAN JOSE, WITH THE INTENTION OF BUILDING A NEW OPERATIONS WAREHOUSE TO CONSOLIDATE ITS OPERATING ACTIVITIES INTO ONE LOCATION. THE PURCHASE OF THE PROPERTY IS IN ITS EARLY STAGES AND HAS CERTAIN CONTINGENCIES. SECOND HARVEST DOES NOT EXPECT TO BEGIN CONSTRUCTION UNTIL ALL CONTINGENCIES HAVE BEEN REMOVED AND DOES NOT EXPECT TO MOVE INTO THE FACILITY UNTIL 2024. PURCHASING THIS PROPERTY IS A MAJOR STEP FOR SECOND HARVEST TO IMPROVE AND EXPAND ON ITS ABILITY TO DELIVER A NUTRITIOUS MIX OF FOODS TO THE COMMUNITY. IN ADDITION TO DELIVERING FOOD TO THOSE IN NEED, SECOND HARVEST ACTS AS AN ADVOCATE HELPING SCHOOL DISTRICTS AND COMMUNITY GROUPS NAVIGATE EXISTING FEDERAL FEEDING PROGRAMS AND LEVERAGING PUBLIC FUNDS AVAILABLE TO FEED MORE CHILDREN. SECOND HARVEST IS PROUD TO HAVE PARTICIPATED ALONGSIDE VARIOUS PARTNERS TO SUPPORT A STATE BILL THAT RESULTS IN CALIFORNIA INVESTING $650 MILLION ANNUALLY TO PROVIDE UNIVERSALLY FREE BREAKFAST AND LUNCH TO ALL STUDENTS, AFFECTING MORE THAN 247,000 STUDENTS IN SANTA CLARA AND SAN MATEO COUNTIES. SECOND HARVEST WILL CONTINUE TO ADVOCATE ON THE FEDERAL LEVEL FOR ALL CHILDREN IN THE U.S. TO RECEIVE FREE SCHOOL MEALS. VOLUNTEERS AND DONORS CONTINUE TO BE KEY TO SECOND HARVEST'S ABILITY TO MEET THE NEED FOR FOOD IN OUR COMMUNITY. DURING FISCAL YEAR 2021, SECOND HARVEST'S 176,875 DONORS PROVIDED MORE THAN 191,000 GIFTS. THESE GIFTS TOTALED A RECORD $112.5 MILLION FOR FISCAL YEAR 2021. AS PREVIOUSLY DESCRIBED, SECOND HARVEST BELIEVES THE INCREASED NEED FOR ITS SERVICES WILL LAST FOR MANY YEARS TO COME AND THE SURPLUS GENERATED THIS YEAR FROM THE HIGH LEVEL OF CONTRIBUTIONS WILL BE USED NEXT YEAR AND IN SUPPORT OF FUTURE YEARS AS AVAILABLE. IN ADDITION TO THE FAVORABLE DONOR PERFORMANCE, SECOND HARVEST WAS FORTUNATE TO BE ABLE TO LEVERAGE OVER 422,000 VOLUNTEER HOURSE (INCLUDING NATIONAL GUARD AND SAN JOSE CONSERVATION CORP SUPPORT) OR APPROXIMATELY 203 FULL-TIME EMPLOYEES TO ITS WORKFORCE. DESPITE THE CHALLENGES RAISED BY THE PANDEMIC, SECOND HARVEST HAS CONTINUED TO FOCUS ON ITS COMMITMENT OF DELIVERING HEALTHY FOOD TO ITS PARTNER AGENCIES AND CLIENTS IN THE COMMUNITY. AS WE MOVE OUT OF THE DEPTH OF THE PANDEMIC, SECOND HARVEST DOES NOT ANTICIPATE A REDUCTION IN NEED ANYTIME SOON - HISTORY HAS SHOWN THAT THE PEOPLE WHO ARE THE MOST VULNERABLE HAVE BEEN HIT HARDEST AND WILL TAKE THE LONGEST TO RECOVER. SECOND HARVEST INTENDS TO BE THERE TO DELIVER TO THOSE MOST VULNERABLE AND THOSE IN NEED NEAR TERM AND FOR THE LONG TERM. |
| FORM 990, PART VI, SECTION B, LINE 11B |
THE PROCESS THE ORGANIZATION USES TO REVIEW 990: THE CFO OR INTERIM CFO REVIEWS THE DRAFT FORM 990 AND ADDRESSES ANY FOLLOW UP QUESTIONS WITH THE AUDITORS. THEN THE FORM 990 IS SUBMITTED TO THE BOARD FOR THEIR INPUT. ANY IDENTIFIED ISSUES ARE RESOLVED AND THE FORM 990 IS FINALIZED. |
| FORM 990, PART VI, SECTION B, LINE 12C |
MONITORING AND ENFORCING COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY: CONFLICT OF INTEREST STATEMENTS ARE COMPLETED AND SIGNED BY EMPLOYEES AND BOARD MEMBERS. EMPLOYEE STATEMENTS ARE REVIEWED BY HR AND CORPORATE COUNSEL TO IDENTIFY ANY POTENTIAL CONFLICTS REQUIRING FURTHER REVIEW BY THE CEO. BOARD MEMBER STATEMENTS ARE REVIEWED AND ANY POTENTIAL CONFLICTS ARE COMMUNICATED TO THE CEO. ANY BOARD MEMBER STATEMENTS REQUIRING FURTHER CONSIDERATION ARE COMMUNICATED TO THE BOARD FOR FINAL DECISION. |
| FORM 990, PART VI, SECTION B, LINE 15 |
IN ORDER TO REVIEW AND APPROVE THE RECOMMENDED SALARY INCREASES FOR MEMBERS OF THE LEADERSHIP TEAM AND THE CEO, THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS REVIEWED COMPILED MARKET DATA PROVIDED BY VARIOUS SURVEY SOURCES FOR EACH POSITION INCLUDED COMPARABLE POSITIONS IN LOCAL NON PROFIT ORGANIZATIONS AND IN SELECT LARGE URBAN AREAS NATIONALLY. IN ADDITION, THE COMMITTEE REVIEWED THE COMPENSATION OF EACH INDIVIDUAL BASED ON MARKET DATA, INPUT ON PERFORMANCE AND ACHIEVEMENTS, AND CONSIDERED THE PRIOR YEAR ADJUSTMENTS. SPECIFIC TO THE CEO, THE COMMITTEE REVIEWED LOCAL MARKET DATA AND SPECIFIC PEER DATA ON CEO POSITIONS IN LARGE URBAN CENTERS THAT ACTIVELY PARTICIPATED WITH FEEDING AMERICA. BASED ON THE REVIEW AND CONSIDERATION OF MARKET DATA AND PERFORMANCE INFORMATION FOR EACH LEADERSHIP POSITION, THE COMMITTEE FULLY SUPPORTED ALL BASE SALARY AND BONUS RECOMMENDATIONS, AND SIGNED APPROPRIATE DOCUMENTATION TO EFFECTUATE COMPENSATION CHANGE. THIS IS AN ANNUAL PROCESS. THE PROCESS WAS LAST COMPLETED IN SEPTEMBER 2021. |
| FORM 990, PART VI, SECTION C, LINE 19 |
THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE POSTED ON THE ORGANIZATIONS WEBSITE AND ALSO AVAILABLE UPON REQUEST. |
| FORM 990, PART XII, LINE 2C: |
THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. |
Attach to Form 990 or 990-EZ.