Kehe Cares Foundation Inc.

KeHE Cares Foundation is a corporate foundation of KeHE Distributors — a $5.5B employee-owned natural and organic food distributor headquartered in Naperville, IL. This origin is the single most important factor shaping a successful approach.

Lead with employee engagement, not just grant need. The foundation's governance structure (the KeHE Cares Employee Outreach Committee) and its "Serving and Giving" pillar both emphasize direct employee volunteer involvement. Proposals that offer concrete volunteer opportunities — packing events, site visits, skill-based service — are far more compelling than those seeking passive financial support. The Blessings in a Backpack partnership succeeded precisely because KeHE employees physically participated in food packing at warehouse locations.

Align with the three pillars explicitly. Structure proposals around one of the three program pillars: (1) Serving and Giving for direct service and grant requests, (2) Redemptive Investing for social enterprises creating dignified employment in marginalized communities, or (3) KeHE Leadership Academy for nonprofit capacity-building and leadership development. Off-pillar requests will struggle.

Emphasize relational poverty alongside material poverty. KeHE Cares' language consistently emphasizes "relational poverty" as distinct from — and as important as — material poverty. Proposals should articulate how the work restores dignity, belonging, and lasting relationships, not merely addresses immediate need.

International organizations have a pathway. The foundation funds work in 27+ countries with deep presence in Honduras and Guatemala. International social enterprises and development organizations should highlight connection to KeHE's supply chain geography where possible.

Match the corporate philanthropy cycle. As a corporate foundation funded by a percentage of annual company profits, giving capacity tracks KeHE Distributors' performance. Timing outreach to align with the company's fiscal year planning (calendar year) and the annual trade show cycle (KeHE Summer and Holiday Shows) may improve responsiveness.

KeHE Cares Foundation has demonstrated exceptional growth and a distinctive giving pattern:

Scale and trajectory. Annual giving has grown from $890K (2017) to $6.8M (2024) — a 7.6x increase over seven years. Total assets reached $14.75M in 2024. With a 2024 payout ratio of approximately 46% of assets, the foundation gives at nearly double the 5% minimum required for private foundations, signaling genuine grantmaking intent rather than asset accumulation.

Grant volume and size. In 2024, the foundation distributed 335 grants to 93 partner organizations, implying an average grant of approximately $20,300. In 2023, 86 awards totaling $5.54M implied an average of $64,400 — suggesting the 2024 data reflects a shift toward more numerous, smaller grants and broader partnership diversity. Typical individual grants likely range from $5,000 to $100,000 depending on program pillar and relationship maturity.

Community development dominates (61%). The largest share of giving flows to community development broadly defined — hunger relief, disaster relief, and neighborhood restoration. Education (7%), anti-trafficking (6%), and food insecurity (6%) are secondary priorities.

Employee-driven allocation. Grants appear to follow where KeHE employees are actively serving — organizations that can absorb and deploy employee volunteers alongside financial support receive preferential consideration. The foundation reports 1,000+ employees engaged in 2024.

Redemptive Investing is distinct. The investment portfolio (25+ funds and direct investments) targets social enterprises creating thrivable-wage jobs. These are program-related investments or below-market loans, not traditional grants. Organizations that are revenue-generating social businesses with a justice mission should approach this track separately from the grant track.

Repeat partnership emphasis. 19 of 335 grants in 2024 went to 17 new partners — meaning 94% of giving flowed to existing relationships. New applicants face a high bar; relationship cultivation before formal application is essential.

## KeHE Cares Foundation — Peer Comparison

Key differentiators: KeHE Cares stands out among foundations of similar asset size for (1) its extraordinarily high payout ratio (~46% vs. the 5% legal minimum), (2) its global reach (27 countries) despite a mid-sized asset base, (3) its distinctive three-pillar model blending grants, impact investing, and leadership development, and (4) its explicit employee-engagement requirement as a condition of partnership. These characteristics are uncommon among peer foundations in the $10–$30M asset range.

2024 Program Milestones - 335 grants distributed to 93 partner organizations (up from 86 grants in 2023), reflecting significant expansion in partnership breadth - 31 multi-day serving experiences and 36 serving events — more than one volunteer mobilization per week - 1,000+ KeHE employee-owners engaged in direct service globally - 19 grants to 17 new partners in 2024, indicating selective but consistent pipeline development - Compassion International partnership (since 2017) now encompasses 12 Child Development Centers across Honduras (11) and Guatemala (1), serving 2,500+ children and 170 sponsored children

Leadership Academy expansion. In 2024, KeHE Cares partnered with Breakthrough to develop leadership curriculum and led a Leader Wholeness Training Retreat for staff using the R.A.R.E. model (Remain Relational, Act Like Your Best Self, Return to Joy, Endure Hardship Well) from Jim Wilder's work. This signals deepening investment in organizational capacity-building.

Financial growth. Total giving increased 23% year-over-year from $5.54M (2023) to $6.80M (2024), while assets grew from $14.07M to $14.75M. Revenue remains primarily contribution-driven (94–99% of annual inflow), tracking KeHE Distributors' profit share model.

2024 KeHE Summer Show tie-in. KeHE Cares maintained public visibility at the 2024 KeHE Summer Show, connecting the foundation's work with KeHE's supplier and retail customer base — a recurring pattern that creates outreach opportunities for organizations in the natural/organic food supply chain.

1. Build the relationship before the ask. With 94% of 2024 grants going to existing partners, cold applications face long odds. Contact outreach@kehecares.org to introduce your organization and explore volunteer opportunities first. Attend KeHE trade shows (Summer Show, Holiday Show) if your organization has any connection to the natural/organic food industry.

2. Make employee volunteering central. Your proposal must include a concrete, logistically feasible volunteer engagement plan for KeHE employee-owners. Think: warehouse packing events, team service days, skill-based consulting. The more specific and operationally ready the volunteer component, the stronger the proposal.

3. Match the language of wholeness. Avoid transactional grant framing ("we need $X to serve Y people"). Instead, use KeHE Cares' own vocabulary: dignity, relational poverty, from dependence to dignity, transformational impact, hope and wholeness. Show your theory of change addresses root causes, not just symptoms.

4. Identify your pillar clearly. State explicitly which pillar your work aligns with — Serving and Giving, Redemptive Investing (social enterprise track), or Leadership Academy (capacity building). Proposals that blur across pillars without a primary anchor are harder to evaluate internally.

5. Quantify relational outcomes alongside outputs. KeHE Cares tracks "lasting relationships" not just beneficiary counts. Include metrics like participants who remain engaged 12+ months, community leadership positions held by program alumni, or local ownership transfers.

6. International organizations: leverage the Honduras/Guatemala connection. KeHE Cares has deep infrastructure in Central America through Compassion International. Organizations operating in these geographies — or in communities where KeHE has distribution centers (Chicago, Dallas, Portland, Phoenix, Atlanta, Denver) — should make that geographic alignment explicit.

7. Social enterprises: pursue Redemptive Investing, not the grant track. If your organization generates revenue and creates dignified employment in marginalized communities, the Redemptive Investing portfolio is a better fit than traditional grant-seeking. This track is explicitly designed for values-driven businesses.