Financial and strategic management analysis of Farmer Foodshare Inc., a nonprofit food organization

Abstract

Following best financial management practices that increase the likelihood of long-term economic sustainability is likely not the primary concern of nonprofit organizations. Nonprofits focus their attention primarily on achieving mission-driven goals. However, research reports that balancing financial sustainability with an organizational mission is a core challenge for most nonprofits, particularly for organizations serving low-income households. This article provides a case study of Farmer Foodshare Inc., a US nonprofit social enterprise in the food sector working with financially challenged family farms, food-insecure households, and low-income elementary school students. This case study was prepared with primary data collected during interviews and secondary sources. In the summer of 2019, the management team of Farmer Foodshare needed to revisit the organization’s operating model. Management in this organization was concerned about whether strategic decisions, such as discontinuing or re-designing some programs, should be made. The case provides firm and industry data to evaluate Farmer Foodshare’s economic sustainability. Enterprise economic sustainability can be assessed by combining an inherent financial analysis with a strategic management analysis. The strategic management analysis, which complements the financial analysis, can be performed with an organizational strategic self-assessment framework by answering questions related to the organization’s mission, results, and plans.