Revenue (Income)
All revenues received by or accruing to the nonprofit food service account must only be used for the operation and improvement of child nutrition programs.
Types of Revenue: Revenues include, but are not limited to, the following sources of income:
- Catering, snack and a la carte revenues
- Credits, discounts, and rebates awarded for the purchase of products or services as well as the value of USDA Foods
- Earnings on SFA investments
- Federal and state reimbursements received by or accruing to the nonprofit food service account
- Non-federal funds supporting the meal or milk programs
- Other local revenues that support the meal or milk programs
- Student and adult meals or milk in the National School Lunch Program (NSLP), School Breakfast Program (SBP), or Special Milk Program (SMP)
- Vending machine income if operated by the SFA
Catering - If the SFA operates a catering program, it must ensure that the income received for catering events covers the full cost of preparing and serving the catered items.
Fundraising - The SFA may use funds from its nonprofit food service account fundraising activities for any allowable cost.
Funds Raised by Recycling - If Child Nutrition funds are used to purchase recycling equipment or products purchased with Child Nutrition funds are recycled, any funds raised from these efforts must be credited to the nonprofit food service account. If the cost and items for recycling is shared with other programs, any funds raised from these efforts must be credited to the nonprofit food service account in proportion to the contribution.
Investments - Earnings on investments using child nutrition funds totally or in part for investment purposes must accrue to the nonprofit food service account and must be used for authorized program purposes.