Case Study: The River Food Pantry

The River Food Pantry in Madison, Wisconsin, has been a vital resource for underserved communities in Dane County since 2006, serving more than 3,000 people each week with food, resources, and support. Over the years, the number of Dane County residents seeking The River’s support has drastically increased, necessitating a need for a larger space to meet growing demand. Designing a new, 32,500-square-foot space presented an opportunity to incorporate sustainability measures to reduce its environmental impact, decrease operational costs, and create a welcoming space for Dane County residents.

Congressionally allocated funds accelerated this project, enabling The River’s project leadership, Midwest Solar Power, and Advanced Building Corporation to initiate the design and construction of its new facilities. With construction kicking off in 2024, The River’s new facilities will have significant clean energy upgrades, a fully-electric kitchen, energy-efficient lighting, reintroduced programs like clothing distribution and on-site meals, a weatherized drive-through food distribution area, and native pollinator landscaping to support local ecology and community well-being.

The River’s Clean Energy Upgrades

Solar Energy: A 113-kilowatt, 207-panel solar array is expected to generate more than 140,000 kWh annually. Once Midwest Solar Power completes installation, this rooftop solar array will fully power The River’s new electric kitchen. The total system cost is $209,500 with an estimated pay-back period of 5-7 years after incentives.

Fully Electric Kitchen: The River’s new kitchen space will be the first of its kind for food pantries in Dane County. By completely electrifying the kitchen system, The River will reduce its reliance on fossil fuels, resulting in lower emissions.

Geothermal HVAC System: While a traditional HVAC system has a lower up-front cost, The River opted for a zero-emission geothermal HVAC system that harnesses the earth’s thermal properties to heat and cool their new facility. Once installed, this $629,000 system will be eligible for the 30% Elective Pay tax credit through the Inflation Reduction Act.

Electric Forklift: By working closely with the Dane County Office of Energy and Climate Change, the team identified further opportunities to incorporate sustainable measures into their operations and receive funding for clean energy upgrades. The River is exploring options for a new electric forklift, further enhancing its energy efficiency and maximizing savings through Elective Pay.

The River Food Pantry’s Clean Energy Funding Sources

Through its Recipe for Hope Campaign, The River has successfully raised more than $11.9 million from private and public funding sources. Many of these funding opportunities are available to other Madison and Wisconsin-based nonprofits.

MadiSUN Backyard Grant: The MadiSUN Backyard Solar Grant is the City of Madison’s program to help nonprofits and affordable housing providers access clean, renewable energy through the power of solar. In the Fall of 2023, The River was awarded $20,000 to install its 113-kilowatt solar system.

To learn more about the MadiSUN Backyard Program, reach out to madisun@renewwisconsin.org.

Solar for Good: The Solar for Good program grants solar panels and canopy grants to nonprofit organizations across Wisconsin. Through the generous funding of the Couillard Solar Foundation, the Solar for Good Program helps organizations like The River harness the power of solar. In the Spring of 2024, The River was awarded a grant valued at $16,982 for its rooftop solar array.

To learn more about the Solar for Good program, reach out to solarforgood@renewwisconsin.org.

Elective Pay: Through the passage of the Inflation Reduction Act in 2022, tax-exempt organizations including nonprofits, schools, tribal entities, and local governments are eligible to receive a one-time payment for certain clean energy projects after they are completed. With guidance from the Dane County Office of Energy and Climate Change, The River invested in energy-efficient technology that made them eligible to receive 30% of the project cost back as a tax credit for the 2025 tax filing year. The River’s renewable energy projects are also eligible for 10% bonus credits for domestically manufactured content and serving low-income communities.

To learn more about Elective Pay, reach out to info@renewwisconsin.org.

Focus on Energy: Focus on Energy’s Energy Design Assistance Program gave The River strategic guidance that enabled the team to maximize financial incentives from Focus on Energy for sustainability upgrades during the building design process. Based on the selected bundle of design options, The River expects to receive a $1,105 incentive for the design process and a $12,173 incentive for the construction of the building. Additionally, The River expects to receive $14,064 from Focus on Energy for its solar system.

Additional Funding Resources

The River’s new building is supported by a true public-private partnership, with significant financial support provided by many facets of the community.

Private Foundation Funding: The River has garnered support from a range of philanthropic partners, including many family, business, and community foundations. Support from these organizations has provided over $2 million for the construction of the new pantry. Combined with other donations from individuals and businesses, the private sector contributed nearly $7,000,000 towards the project.

Government Funding: By working with elected officials and state representatives, The River secured congressionally allocated funds to support the construction of its new facility. In 2021, they were invited to apply for congressionally directed spending and received notice of a $3 million award in the Spring of 2024. The River’s project also benefited from an early investment of $1.5 million by Dane County, and the purchase of the property for the new facility was partially supported by $400,000 from the City of Madison’s Community Facilities Loan program.

Private Loan: In addition to sourcing financial resources through fundraising and grants, The River secured a construction loan. Even with generous community support, establishing a reliable line of credit for construction expenses is important, as the full amount of many grants and pledged donations may be paid out over multiple years. The team has also considered leveraging Slipstream’s Commercial Property Assessed Clean Energy (C-PACE) Financing to cover any remaining costs needed for the project’s sustainability components.

Powerful Advice

For nonprofits interested in incorporating clean energy into their operations, review these helpful tips from The River’s Grants Manager, Ryan Holley:

Start searching for funding opportunities as soon as possible in the planning process.
When possible, align the project’s design with the requirements of the funding sources being pursued. For example, if a grant received requires steel or manufactured goods to be domestically sourced materials, factor this requirement into any additional grant opportunities. Government grants may also require compliance with guidance on prevailing wages.
Closely align the sustainability project with the organization’s mission to foster community buy-in; projects that reflect community needs garner greater support and long-term success.
Partner with clean energy funding experts or community members who have pursued similar funding opportunities and can provide guidance on project implementation and potential avenues of support.
Anticipate varying waiting periods throughout the project development and funding process, and identify ways to make use of that time.
Maintain an open line of communication about resources and funding with board members, contractors, and project partners to build trust and facilitate collaboration.