Net Financial Benefit
In ReFED’s data model, the following calculations are repeated for every sector, state, food type, and stakeholder before any aggregation is done.
DATA ITEM |
DATA SOURCE OR CALCULATION |
EXAMPLE |
---|---|---|
Cost per Ton Diverted |
Multiple data sources (See Appendix G for the data sources for each solution) |
Estimated costs for each stakeholder involved in ‘Donation Storage Handling & Capacity’ in the Foodservice sector:
Foodservice Companies:
= $0 per ton for labor
Solution Providers:
= $0 per ton to store food
Government:
= $0 per ton for reduced tax revenue from donations tax deductions
Consumers:
$0 cost
All Stakeholders Combined:
= $0 + $0 + $0 + $0
= $0 per ton
|
Gross Financial Benefit per Ton Diverted |
Multiple data sources (See Appendix G for the data sources for each solution) |
Estimated financial benefits for each stakeholder involved in implementing ‘Donation Storage Handling & Capacity’ in the Foodservice sector:
Foodservice Companies:
= $0 per ton for waste hauling savings plus cash tax savings from enhanced tax deductions as opposed to taking a regular loss deduction
Solution Providers:
= $0 (most donations organizations do not charge businesses to donate food so they do not generate revenue)
Government:
= $0
Consumers:
= $0 per ton from the retail value acquired from donated food
All Stakeholders Combined:
= $0 + $0 + $0 + $0
= $0 per ton
|
Annual Solution Diversion Potential |
See Diversion Potential calculations above. |
ReFED estimates that ‘Donation Storage Handling & Capacity’ could divert 0.00 tons of Prepared Foods Catering Overproduction annually in the Florida Limited Service Restaurants Mexican Foodservice sector. |
Annual Cost to Implement |
= Cost per Ton Diverted * Annual Solution Diversion Potential |
Foodservice:
= $0 per ton for labor * 0.00 tons diverted
= $0
Solution Providers:
= $0 per ton to store food * 0.00 tons diverted
= $0
Government:
= $0 per ton for reduced tax revenue from donations tax deductions * 0.00 tons diverted
= $0
Consumers:
= $0 * 0.00 tons diverted
= $0
All Stakeholders Combined:
= $0 + $0 +0 + $0
= $0
|
Annual Gross Financial Benefit |
= Gross Financial Benefit per Ton Diverted * Annual Solution Diversion Potential |
Foodservice:
= $0 per ton for waste hauling savings plus cash tax savings * 0.00 tons diverted
= $0
Solution Providers:
= $0 * 0.00 tons diverted
= $0
Government:
= $0 * 0.00 tons diverted
= $0
Consumers:
= $0 per ton from the retail value acquired from donations food * 0.00 tons diverted
= $0
All Stakeholders Combined:
= $0 + $0 + $0 + $0
= $0
|
Annual Net Financial Benefit |
= Annual Gross Financial Benefit - Annual Cost to Implement |
Foodservice:
= $0 gross financial benefit - $0 cost
= $0 net financial benefit
Solution Providers:
= $0 gross financial benefit - $0 cost
= $0 net financial benefit
Note: Notice that Solution Providers are not usually profitable for this solution. Since most donations
organizations do not generate revenue from donations food, their costs are usually covered by grants so that they can remain operational.
Government:
= $0 gross financial benefit - $0 cost
= $0 net financial benefit
Consumers:
= $0 gross financial benefit - $0 cost
= $0 net financial benefit
All Stakeholders Combined:
= $0 + $0 + $0 + $0
= $0 net financial benefit
Reminder: This example calculation is not the total net financial benefit potential for the solution. These
calculations were repeated for every sector, cause, food type, and state before aggregating and summing the total net financial benefit for each solution.
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