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Nonprofits work to navigate food costs, donation challenges

Nonprofits focused on food distribution are facing challenges with increased food costs compounded by current demand spikes for local food assistance.

While these challenges affect all food-focused organizations, nonprofits such as the Randolph Area Christian Assistance Program are having to be more creative with solutions due to the organization being fully funded through donations and the member churches.

RACAP Director Lisa Loftus said the summer months have been more difficult than previous years due to higher numbers of meals handed out, while donations were down.

“The food was just flying off the shelves,” she said. “Normally, we see food coming in as it is going out, but that wasn’t the case this summer.”

The overview

Eric Cooper, president and CEO of the San Antonio Food Bank, said nonprofits are seeing an increase in demand due to increasing costs of rent, utilities and other living expenses while wages have seen little change.

Cooper said the four main barriers are:

  • Income: wages within the San Antonio area
  • Geography: how far people live from food resources
  • Education: what people know about food preparation
  • Commerce: cheaper foods being unhealthier in the long-term

People typically make an effort to pay off other living expenses, leaving food as a lower priority in monthly budgeting, he said.

Utility bills during the summer months are also higher when compared to the rest of the year, according to CPS Energy.

“As housing costs went up, that really put families in a struggle to pay that and then buy food at an increased cost,” Cooper said.

Alongside increased living expense costs, the cost of food has risen, meaning nonprofit organizations are having to stretch dollars further to accommodate the people in need of food.

Mike McGuire, director of Real Life Community Outreach, said it has been more difficult providing dry goods as there is more demand. For nonprofits like RACAP, these challenges lead to the reduction of services.

“We are food first,” Loftus said. “If it comes down to cutting from other programs, then that is what it will come down to.”

A closer look

According to data from the U.S. Bureau of Labor Statistics, between September 2023 and 2024, the overall cost of food in the Southern portion of the U.S. increased by around 2.2%.

Comparing all cities in the country, items such as bread and eggs have seen a more than 50% increase in cost between 2019 and 2024.

The increased cost of canned goods, dry foods and other nonperishable items has caused nonprofits to be more cognizant of the items they can give out, and how they can get the most value out of grocery shopping, Loftus said.

“Canned fruit is so expensive now, it is absolutely ridiculous,” she said. “If it comes down to spaghetti sauce or fruit, we are giving them spaghetti sauce.”

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Managing the impact

One of the main strategies food banks have used to keep up with food costs is to compare prices between different retailers.

RACAP is an independent nonprofit and not supported by other organizations, meaning increased costs and decreased donations have a more immediate impact.

When nonprofits are unable to provide assistance, people in need will have to go to other organizations.

Jay Higginson, president and CEO of the Greater Randolph Area Services Program, said the community food banks facing increased economic pressure have been difficult to address as some of the larger organizations cannot provide as much support.

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Who it’s for

Higginson said the highest demand for food is from families, especially those who receive Supplemental Nutrition Assistance Program benefits but are not able to cover the cost of meals. Seniors are also an increasing demographic of people in need.

“We have around a 30% increase in [total] demand,” he said. “Then we have a greater increase of repeat visitors.”

The U.S. Department of Agriculture defines food insecurity as “a household-level economic and social condition of limited or uncertain access to adequate food.”

Real Life Community Outreach gives out around 350-400 meals each week, which is around a 15% increase compared to previous years, McGuire said.

In 2023, the San Antonio Food Bank gave away more than 85 million pounds of food, serving around 105,000 individuals each week, according to data from the San Antonio Food Bank.

Data from Feeding America shows the food insecurity rate in Texas at 16.4% as of 2022. Bexar County is slightly above this average with an estimated 351,000 food insecure individuals.

Cooper said the increased need for food assistance will continue to rise until wages are adjusted to accommodate living expenses and food costs.

“Hunger isn’t as much of a food issue as it is an income issue,” he said. “The wages are still fairly conservative for the majority of households.”

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How to help

The best way for the community to support nonprofit organizations is by donating money, time or food items, Higginson said.

Each organization hosts food drives with drop-off locations for nonperishable foods.

For people looking to help their community, Higginson recommended donating to local organizations where money and food are concentrated in specific regions.

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