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 ‘__solutions_example_solution_name__’ in the __solutions_example_sector__ sector:
__solutions_example_sector__:
= $137 per ton for labor Solution Providers:
= $1,196 per ton to store food
Government:
= $163 per ton for reduced tax revenue from donations tax deductions
Consumers:
$0 cost
All Stakeholders Combined:
= $137 + $1,196 + $163
= $__solutions_example_us_dollars_cost_per_ton__ 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 ‘__solutions_example_solution_name__’ in the __solutions_example_sector__ sector:
__solutions_example_sector__:
= $163 per ton for cash tax savings from enhanced tax deductions as opposed to taking a regular loss deduction
+ $45 per ton for waste hauling savings
Solution Providers:
= $0 (most donations organizations do not charge businesses to donate food so they do not generate revenue)
Government:
= $0
Consumers:
= $4,432 per ton from the retail value acquired from donated food
All Stakeholders Combined:
= $163 + $45 + $4,432
= $__solutions_example_us_dollars_financial_benefit_per_ton__ per ton
|
Annual Solution Diversion Potential |
See Diversion Potential calculations above. |
ReFED estimates that ‘__solutions_example_solution_name__’ could divert __solutions_example_tons_diverted__ tons of __solutions_example_refed_food_department__ __solutions_example_cause_name__ annually in the __solutions_example_state__ __solutions_example_sub_sector__ __solutions_example_sub_sector_category__ __solutions_example_sector__ sector. |
Annual Cost to Implement |
= Cost per Ton Diverted * Annual Solution Diversion Potential |
__solutions_example_sector__:
= $137 per ton for labor * __solutions_example_tons_diverted__ tons diverted
= $11,508
Solution Providers:
= $1,196 per ton to store food * __solutions_example_tons_diverted__ tons diverted
= $100,318
Government:
= $163 per ton for reduced tax revenue from donations tax deductions * __solutions_example_tons_diverted__ tons diverted
= $13,641
Consumers:
= $0 * __solutions_example_tons_diverted__ tons diverted
= $0
All Stakeholders Combined:
= $11,508 + $100,318 + $13,641
= $__solutions_example_us_dollars_cost__
|
Annual Gross Financial Benefit |
= Gross Financial Benefit per Ton Diverted * Annual Solution Diversion Potential |
__solutions_example_sector__:
= ( $163 per ton for cash tax savings + $45 per ton for waste hauling savings ) * __solutions_example_tons_diverted__ tons diverted
= $17,406
Solution Providers:
= $0 * __solutions_example_tons_diverted__ tons diverted
= $0
Government:
= $0 * __solutions_example_tons_diverted__ tons diverted
= $0
Consumers:
= $4,432 per ton from the retail value acquired from donated food * __solutions_example_tons_diverted__ tons diverted
= $371,689
All Stakeholders Combined:
= $17,406 + $371,689
= $__solutions_example_us_dollars_financial_benefit__
|
Annual Net Financial Benefit |
= Annual Gross Financial Benefit - Annual Cost to Implement |
__solutions_example_sector__:
= $17,406 gross financial benefit - $11,508 cost
= $5,899 net financial benefit
Solution Providers:
= $0 gross financial benefit - $100,318 cost
= -$100,318 net financial benefit
Note: Notice that Solution Providers are not usually profitable for this solution. Since most donations
organizations do not generate revenue from donated food, their costs are usually covered by grants so that they can remain operational.
Government: = $0 gross financial benefit - $13,641 cost
= -$13,641 net financial benefit
Consumers: = $371,689 gross financial benefit - $0 cost
= $371,689 net financial benefit
All Stakeholders Combined:
= $5,899 + -$100,318 + -$13,641 +$371,689
= $__solutions_example_us_dollars_profit__ 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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