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Community. Dignity. Equity. These three words hang above a shelf stocked with rice, prunes and other packaged foods at The Market in Buckley, WA. Despite its unassuming name, this metropolitan-style grocery store is part of an innovative network run by GoodRoots Northwest (formerly Bonney Lake Food Bank). The local nonprofit organization helps feed various members of the community, including working adults trying to make ends meet, families who have lost their source of income, first-time parents and others. But scaling to provide food to more than 250,000 individuals annually across East Pierce County brought many challenges along the way.
Crisis Breeds Innovation
Stacey Crnich had her work cut out for her. Hired as GoodRoots Northwest CEO in 2020 just 10 days before the COVID-19 lockdowns began, she had to quickly get up to speed in her new role and figure out how to scale procurement, distribution and quality, all while the nonprofit was understaffed and facing budget shortfalls. To further complicate matters, more and more members of the community were finding themselves in need of food assistance as the pandemic dragged on. So how does a resource-limited organization navigate all these challenges while executing on its mission of building food-secure communities? By obtaining new funding, taking an innovative approach to technology and forging the right partnerships.
In mid-2020, GoodRoots Northwest received an influx of new funding as Crnich was able to obtain a Paycheck Protection Program (PPP) loan to help pay employees, and the organization secured a charitable donation which would be used to purchase a truck. This was more money than the nonprofit had ever seen, and Crnich planned to put it to good use.
Around the same time, federal grants enabled Crnich to reimagine operations for this next phase of growth. However, there was a catch: With federal grants, purchases must be funded up front. So, GoodRoots Northwest needs to have capital to complete a project in order to receive government reimbursement 30 to 60 days later. Because of this requirement, nonprofits often struggle to gain momentum since access to capital is difficult to come by. And this waiting period simply wouldn't work for the farmers who help supply the food to GoodRoots Northwest, as their income had already been slashed when farmers markets shuttered during the pandemic. Crnich needed business financing and she needed it fast. She turned to BECU.
Crnich and the BECU Business Relationship team devised a plan, opting to first open a business credit card, which would help GoodRoots Northwest establish credit worthiness and be used to buy from farmers at fair market prices and pay them monthly. This also enabled the organization to support a circular economy, one in which all people have access to fresh foods, and where local farms thrive as a result. Additionally, the credit card allowed for some breathing room. Or, as Crnich puts it, “It gave us bandwidth in terms of just running our business and being able to do the most important thing: Focus on feeding people with great care and dignity.”
A Market Improvement
The new credit and funding enabled GoodRoots Northwest to rethink its approach to serving the community, but Crnich needed a banking partner as dedicated to her mission as she was. BECU Business Relationship Manager Brent Robinson was up for the challenge. Over the next few months, Robinson and his BECU colleagues got to know the nonprofit's business in depth, identifying the challenges it faced and developing customized solutions. Their efforts included crafting an investment strategy and helping Crnich better manage cash flow.
Because of GoodRoots Northwest's improved credit worthiness, Robinson was able to help Crnich open a BECU operating line of credit to support operational programming and purchase food. The pieces were falling into place, but what was the best way for the nonprofit to accomplish its mission of promoting health and wellness while protecting the dignity of those in need?
The organization decided to open a first-of-its-kind market. Fashioned after a high-end grocery store and stocked with an abundance of fresh foods, nutrient-rich products, and bulk whole ingredients, The Market is run by volunteers with deep, longstanding ties to the community. Customers shop using a Market Card, which is designed to look like a credit card. This way, parents can shop without their children ever knowing that they are receiving assistance. Crnich explains, “Something simple like a little piece of plastic can actually change how a young person feels about themselves.”
The Good News Keeps Coming
While GoodRoots Northwest was making a big impact, funding continued to be a challenge. Luckily, some good news was on the way.
As part of BECU's efforts to support local nonprofits that drive positive change through service to others, the credit union established the People Helping People Awards in 2013. Each year, BECU members nominate local nonprofits and then vote to pick a winner. In 2021, GoodRoots Northwest won and was awarded $50,000 in grant funds. Crnich says, “The award really gave us flexibility at that time. And it was the coolest compliment to have it be crowdsourced and have our community feel good about that — it felt like we were getting the critics' choice award. And it also gave us bandwidth, so we were able to leverage our grants for capital investment. We were able to do that because we had a safety net. So while we were providing safety nets for others, BECU provided a safety net for us.”
The Beginnings of a Nourishing Network
Crnich was ready to implement the next phase of the plan: Create a food-banking network. In 2022, GoodRoots Northwest deployed its first two Wi-Fi-enabled refrigerated lockers. Now, customers can use a smartphone app or computer to shop for food in multiple languages, check inventory in real time, and pick up their groceries at whichever location and time of day is most convenient. Delivery is available for those who can't make it to a locker or The Market. Additionally, each locker provides braille instructions and a headphone jack for improved accessibility — and, if individuals prefer, they never need to interact with anyone. As Crnich describes, “It's the dignity of your own anonymity. We have a system in place that's so automated that I never need to lay eyes on you as a provider. And I think that's the ultimate dignity.”
The lockers have been a lifeline to the community, but each one costs about $13,000 in freight — a sum that's especially painful for a nonprofit. Luckily, the supplier charges the same $13,000 for delivery of up to four lockers at once. To help with these ongoing expenses, GoodRoots Northwest opened a BECU equipment line of credit in 2024. This will enable Crnich to order multiple lockers at once, save on shipping charges, and spread the costs out over time. GoodRoots Northwest will store the unused lockers until they're ready to be deployed. As Crnich explains, “We're doing some complex scenarios with this line of credit, and it has really taken the team at BECU. And they are really invested in making sure that I'm comfortable with all of that and that I understand it all.”
Even More Good to Come
With one locker at The Market in Buckley and another at the Bonney Lake Library, GoodRoots Northwest has come a long way and fed a lot of people. But there is plenty more to do as the team looks to acquire an agricultural space for farming. For the time being, Crnich is working to secure another order of food lockers. “I was explaining to our board how BECU really went to the plate for us with the manufacturer, so that we would have the best-possible scenario. That's somebody who's really on your side. I think that's really exemplary of the type of service we've had.”
GoodRoots Northwest plans to deploy more lockers by the end of 2024, which will expand its service area from 200 square miles to 500 square miles and encompass most of Pierce County. “Regional networks don't exist in food banking because you would be paying so much for infrastructure. So the lockers enable us to have leaseholds and physical locations like a franchise and be able to fund those locations while not having intense overhead. For example, our locker in Buckley is outpacing 95% of the brick-and-mortar food banks in Pierce County today. So the impact of having five, 10, 15 becomes a food-security solution.”
Learn more about GoodRoots Northwest and its mission at goodroots.org.
BECU is a local, community-driven not-for-profit credit union dedicated to helping other local, community-driven organizations and nonprofits thrive. Learn more about our personalized service and products at becu.org/business.