Pastor started a salvage grocery store to pay for his nonprofit

Bargain Grocery uses 'entrepreneurial business model' to feed those in need.

Pastor Mike Servello joined Fox Business’ “Bulls & Bears” on Wednesday to explain how his nonprofit gives away about $20 million of food a year with no outside funds needed.

Continue Reading Below

Servello discussed starting his organization, the Compassion Coalition, 20 years ago and realizing “there's a cost to maintain an operation” such as paying for transportation and staff.

Servello said his team applied for grants but realized, because so many other nonprofits need help as well, the “pie was getting sliced smaller and smaller.”

EXTREME SAVER WANTS TO SKIP RETIREMENT SO SHE CAN GIVE HER MONEY AWAY

“I got this idea to start a salvage, low-cost grocery store in the back part of our warehouse.”

- Pastor Mike Servello, founder of the Compassion Coalition

A salvage grocery store sells items a traditional grocery provider wouldn't usually sell such as products that were overstocked, have dented or torn packaging or are nearing their expiration date for lower prices. Servello opened Bargain Grocery in hopes of making "just enough profit to sustain the operation.”

It has “worked phenomenally well,” he said.

HOW MUCH DO BILLIONAIRES DONATE TO CHARITY?

“We wanted to make food available to those that were on EBT and food stamps,” he told FOX Business’ David Asman. “So, we contacted our social-service commissioner, asked them to send those folks.”

This Thanksgiving, Servello’s organization is distributing hundreds of meals to inner-city schools, the elderly, the disabled and other groups in need.

CLICK HERE TO READ MORE ON FOX BUSINESS

Asman said the Compassion Coalition has a “kind of entrepreneurial business model” that it can credit for its success.

GET FOX BUSINESS ON THE GO BY CLICKING HERE