Subject: Update
From: "Rick Leach" <[email-masked]>
Date: Mon, 2 May 2011 11:00:04 -0400

TO:         The Board of Directors of WFP USA
FR:          Rick Leach
DT:         April 30, 2011
RE:          Update

1st Quarter Revenue Surpasses Projections

 *   WFP USA generated over $8 million in revenue in the first quarter of the year thereby exceeding projections by more than $6 million.  The dashboard report describing the breakdown of revenue is attached.
 *   More than 90% of the revenue was generated for non-emergency purposes.  This includes resources for the Urgent Response Fund that was established by WFP USA.
    *   The Urgent Response Fund is designed to help WFP assist vulnerable populations severely impacted by the rising food prices.  These resources are intended to prevent acute hunger and the related societal instability by providing a means for WFP to take action before an emergency-type situation arises.  These funds will allow WFP to ramp up existing safety net programs - like school feeding, food for work and nutrition programs - to distribute food directly to those impacted by food price increases.  Those in extreme poverty spend up to 80% of their income on food and are, therefore, significantly impacted by increases in the cost of food.
    *   We worked with WFP staff, including the head of the Vulnerability Analysis and Mapping unit, to identify the triggers/conditions for use of the funds.
    *   GE has already provided $3.2 million for the Fund and we are planning to secure additional corporate sponsors.  Any suggestions from Board Members concerning possible sponsors are appreciated.  The attached Concept Note describes the Fund.
 *   Because we exceeded projections for both restricted and unrestricted revenue, our current reserve will cover more than 11 months of operational costs.  Initial projections envisioned a 6 month reserve at the end of March.  Board policy requires a 6 month operating reserve.

New USG Funding Challenges are on the Horizon

 *   While the ink has just dried on the FY11 appropriations, immediate budget battles loom.  With the strong bipartisan commitment to reduce federal spending, we need to justify all expenditures and expand support within Congress to ensure adequate funding for global hunger programs in the FY12 appropriations.  In addition, it is important to ensure that the administration remains steadfast in its support for these programs.
 *   We have been working with our coalitions and allies in preparation for these renewed battles.  As Congress returns from recess next week, we are launching a new round of activities, including action by the faith-based coalition that led the nation-wide fast, our Roadmap/NGO coalition and allied business groups.  We have also been working with the Senate Foreign Relations Committee to convene a hearing on Food Security and Global Stability.
 *   We are also working with administration officials to address the cut in emergency food aid in the FY11 appropriation (the only cut to global hunger programs in the FY11 appropriation).  Specifically, we are exploring ways to decrease the congressional set aside of food aid that is "monetized" for development/non-emergency purposes.  Monetization involves the sale of food aid by an NGO to generate funds for a development project.  The GAO, Roadmap coalition and others have highlighted the inefficiency of monetization and recommended that it be significantly reduced.  A reduction in monetization will result in more food aid for emergency needs (WFP receives more than 90% of all emergency food aid and none of the food aid set aside for development purposes).  A reduction in monetization could cover the $200 million emergency food aid cut in the FY11 appropriation (food aid was cut from $1.7 to $1.5 billion).
 *   FYI, a WFP USA Statement and press clip related to the FY11 appropriation is attached.

Award Ceremony Planning Moving Forward

 *   As you know, we plan to present our annual award for leadership in the fight against global hunger to Bill Gates and Howard Buffett for their efforts in establishing WFP's innovative Purchase for Progress program.  Both Gates & Buffett indicated that they would participate in the award ceremony in Washington in the fall.
 *   Similar to last year's ceremony, we are seeking to convene the event at the State Department with the participation of Secretary of State Hillary Clinton.  The State Department has welcomed us back and we are now exploring dates that are convenient for our honorees and Secretary Clinton.  The event will be convened either in late October or early November.

Enhancing Collaboration with WFP

 *   As mentioned at our last Board Meeting, WFP is planning to relocate some of its private sector fundraising staff to the US.  This includes 3 staffers that will be housed in the WFP USA office.  The increased presence of WFP staff in the US provides an opportunity to further enhance coordination between our respective operations.
 *   As part of the effort to enhance collaboration, WFP and WFP USA are working to more clearly define the roles and modes of coordination among our fundraising staff.  It is essential that all fundraising activities comply with federal and state laws to ensure that we maintain our nonprofit status and ability to provide tax deductibility to donors (and that WFP does not unintentionally waive its immunity from US law).  In furtherance of this effort, we convened a meeting of WFP USA's counsel and WFP's general counsel to begin the process of developing a Toolkit that will provide specific guidance to staff.  In addition, we agreed to conduct a series of training sessions for all relevant staff on implementation of the procedures described in toolkit.
 *   The Governance Working Group established at the last Board Meeting is directly involved in this effort.  It is likely that the Working Group will provide recommendations to the Board concerning resolutions or other action that could be taken in support of this effort.  The Working Group is chaired by Bonnie Raquet and includes Carl Stern, Barbara Belmont and me.  WFP USA's counsel recently briefed the Working Group on the status of our efforts.

Thanks again for your support and commitment to addressing global hunger.
All the best,
Rick

Richard Leach
President & CEO

World Food Program USA
1819 L Street NW, Suite 900
Washington, DC 20036
T 202.530.1694
F 202.530.1698
[email-masked]<mailto:[email-masked]>