County undecided on food bank funds

Clark County officials are worried about a recent controversy at the Community Food Bank of Clark County, but have yet to decide whether to yank their support from the charity, Assistant County Manager Darryl Martin said on Thursday.

"We're all concerned," he said. "Staff is pulling together our history with them (the food bank). This all hit us very quickly."

A national food bank network dropped Community Food Bank's membership last week amid allegations that the local facility had been selling food and other items it should have given away.

"The activities were so offensive that their membership was directly terminated," said Phil Zepeda, a spokesman for America's Second Harvest, a national network of more than 200 food banks and organizations that salvage food.

Community Food Bank distributes food to churches and social service and other organizations that help the poor.

Mainly at issue is the food bank's practice of holding periodic "reclaimed product sales" at which agencies and individuals can, for a $20 donation each, fill a 33-gallon bag with donated goods including toothpaste, blankets and other items.

America's Second Harvest says the direct sale of any donated product in this manner is inappropriate and a violation of the network's membership contract.

The 28-year-old nonprofit network distributes billions of pounds of donated products from national manufacturers and retailers. It sent staffers and hired private investigators posing as clients to visit the food bank several times. They were able to purchase food and other items, Zepeda said.

"It was $20 to get in," Zepeda said. "Then they (the food bank) had individual stations set up where you could pay additional money for items like sleeping bags. Our private investigators were able to purchase $90 worth of products including food."

Zepeda said federal tax laws allow food banks to charge other charities only "shared maintenance fees" of up to 18 cents a pound for food and other items.

"You can't charge for the product itself. But if you charge a flat fee as a shared maintenance fee, that's allowable," he said, adding that the fee goes toward recouping transportation and distribution costs.

Bessie Braggs, longtime director of the food bank at 4190 N. Pecos Road, has denied any wrongdoing. Braggs said this week that she will no longer comment about the issue.

A member of the facility's advisory board on Thursday said those affiliated with the food bank will no longer be talking to the media.

Meanwhile, Catholic Charities of Southern Nevada agreed this week to help America's Second Harvest steer incoming food donations to charities that need them but that no longer feel comfortable working with Community Food Bank.

"We're going to be working with them (America's Second Harvest) as one team," Catholic Charities spokeswoman Sharon Mann said. "As donations come in, they're going to be calling us, and we're going to be helping by picking up food and making sure it gets to the people who need it."

America's Second Harvest helps route to food banks the surplus and damaged food and grocery items from a long list of donors including Albertsons, PepsiCo, Tyson Foods and Wal-Mart.

The network has been notifying donors of Community Food Bank's dropped membership.

Zepeda said his organization is working to minimize the effect that the food bank's loss of donors could have on the community.

The organization hopes to find local warehouse space within 30 days.

Martin said he met with America's Second Harvest officials this week and hopes to soon meet with representatives from Community Food Bank to discuss the problems.

"My biggest concern is that there is no interruption of services for the people who need it," he said.

Clark County gave nearly $3.2 million in community development block grant funds to the food bank to help it purchase a 50,000-square-foot warehouse a couple of years ago. It also gives $165,000 in county funds to the food bank each year.