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1 Measuring Return on Social Investment Lynn Marmer, Kroger Alice Archabal, America s Second Harvest Paula Berezin, Social Capital Partnerships May 17, 2007

9 America s Second Harvest The Nation s Food Bank Network Outcomes in the next five years: Provide access to food for one million more people each year who are hungry or at risk of hunger Increase participation in federal nutrition programs by at least 25% Social Capital Partnerships. All Rights Reserved.

10 America s Second Harvest The Nation s Food Bank Network 2012 Measures: Increase people served from 25 million to 31 million, while also reducing the overall number of people in need Increase product distribution from 2.2 billion to 3 billion annually Increase the number of participants in the federal Food Stamp program by at least 1 million Social Capital Partnerships. All Rights Reserved.

12 KaBOOM! Build 7,000 play spaces in 5 yrs: Advocate for space & time Seed 6,000 play spaces - 1,300 via University of Play! and KaBOOM! trainings - 3,700 via grants, online community tools and Toolkit publications improvement projects Lead all-volunteer planning and construction of 1,000 projects Social Capital Partnerships. All Rights Reserved.

15 Mission Measures: Changed Behavior Measure: Number of people who change their behavior United Way of America and MTV s Alternative Spring Break: sought to re-norm behaviors around young people and civic engagement Results of participant survey: 100%: more likely to volunteer as a result of the program 89%: indicated plan to activate their experience at home Social Capital Partnerships. All Rights Reserved.

16 Mission Measures: Program Impact Measure: Number of Projects, People Served & Engaged Results of KaBOOM! and The Home Depot Initiative: Community Impact: 700 of 1,000 playgrounds completed to date, serving 7M kids over the next generation Employee Team Building: 65,000 Team Depot associates of 100,000 goal involved so far in hands-on volunteer construction projects alongside 40,000 community volunteers Social Capital Partnerships. All Rights Reserved.

17 Mission Measures: Operations Impact Measure: Efficiencies resulted from in-kind support or funds for operational needs America s Second Harvest Mission Partner ConAgra invested in technology that improved food inventory management by helping food banks track and manage food Result: Product allocation & distribution up more than 35% without increasing storage space Social Capital Partnerships. All Rights Reserved.

18 Business Measures: Consumer Engagement Measure: Gauging consumer opinions How do partners consumers feel about the brand now that it has a relationship with your cause? Has it impacted purchasing decisions or feelings of loyalty? Results of Whirlpool s sponsorship of Reba McEntire s tour to benefit Habitat for Humanity: Saw rise in customer loyalty index values from a baseline of 15% to 28% Social Capital Partnerships. All Rights Reserved.

19 Business Measures: Sales Measure: Year-over-year product sales Has purchasing activity changed among partners customers? Can partner attribute that change to cause promotion? Are partners trying to engage its preferred customers in a targeted fashion? Are your partners extending elements of the partnership to their retailers/business partners/vendors? Results: Kroger engaged vendors around breast cancer promotion Participating vendor Campbell s Soup s themed pink & white cans doubled in sales to Kroger stores from 3.5M to 7M Oct Social Capital Partnerships. All Rights Reserved.

20 Business Measures: Employee Engagement Measures: Scope of engagement How many hours did employees spend volunteering? How much did employees donate individually? What did the employees accomplish for the cause? Have employee feelings toward the company changed? Starbucks Make Your Mark program: supports employee volunteerism by donating $10 per volunteer hour; Annual Results: 74,000 employees volunteered 360,000 total hours spent in service $1.49 million donated by Starbucks corporate office Social Capital Partnerships. All Rights Reserved.

23 Overview Donation of $150 million to charities and communities in 2006 $45 million in food donations via reclaim Kroger is one of Top 10 donors to America s Second Harvest $30 million to schools and local service organizations via sales based programs Social Capital Partnerships. All Rights Reserved.

24 Process for Establishing CRM Program & Measurement Establish vision for the future Determine strategy for achieving vision Assess current relationship Assess individual and combined goals/measures Execute program Report on key measures Use analysis to help establish future programs Social Capital Partnerships. All Rights Reserved.

25 Solid Partnership Foundation 20-year history of food donations, support for public policy, board participation, employee volunteerism, financial contributions, and local fundraisers Policy Leadership Food Donations Partnership: Shared Commitment to a Hunger-free America Local Fundraising Kroger Employees Board Support Social Capital Partnerships. All Rights Reserved.

26 A Vision of Further Integrated Partnership Enhanced through engagement of consumers, key stakeholders, and business partners on a national level Government Officials Food Donations Local Fundraising Kroger Employees Partnership: Shared Commitment to a Hunger-free America Media Consumers Key Stakeholders Business Partners Social Capital Partnerships. All Rights Reserved.

27 Partnership Goals: Joint Objectives Enhanced awareness for the issue of hunger in the communities where Kroger operates Directly impacting the lives of those in need on a national and local level Furthering the successful partnership between America s Second Harvest, local food banks & Kroger Successful, sustainable sales campaign with a measurable return on investment Social Capital Partnerships. All Rights Reserved.

28 Partnership Goals: Kroger Engage manufacturer partners in a highly visible forum in a common cause Drive sales in Kroger stores across the country Generate media opportunities on a national and local level Create customer goodwill and loyalty Social Capital Partnerships. All Rights Reserved.

29 Partnership Goals: America s Second Harvest Establish a highly-visible national program a key partners Raise significant funds and food for the national office and local food banks Leverage partner relationships to establish foot-hold with new donors Increase visibility for our organization Social Capital Partnerships. All Rights Reserved.

30 The Program Kroger launched Bringing Hope to the Table, a multi-million dollar fundraising program benefiting America s Second Harvest and food banks across the country Social Capital Partnerships. All Rights Reserved.

31 Kroger Objectives and Results Objective Engage manufacturer partners Drive sales Generate media Build customer affinity Result 25+ vendors partners in all 11 Kroger divisions 12 of 15 participating categories increased sales Significant increase in local media exposure Positive feedback from Kroger customers Social Capital Partnerships. All Rights Reserved.

32 America s Second Harvest s Objectives and Results Objective Raise funds & food Establish new partnerships Result Generated $3 million benefiting entire network Entrée to 6 new manufacturers Increase visibility Kroger s in-store visibility and communications resulted in increased manufacturer engagement and donations Social Capital Partnerships. All Rights Reserved.

34 QFC Ad QFC s ad benefiting Food Lifeline and the Oregon Food Bank Program earned $3 million in cash and $1 million in equivalent food Kroger committed to 2007 program Social Capital Partnerships. All Rights Reserved.

38 Measuring Return on Social Investment Lynn Marmer, Kroger Alice Archabal, America s Second Harvest Paula Berezin, Social Capital Partnerships May 17, 2007

Chief Development Officer Las Vegas, Nevada

Chief Development Officer Las Vegas, Nevada Providing wholesome food to hungry people, while passionately pursuing a hunger-free community The Organization Three Square is the fastest-growing food bank