BENEFITS OF GIVING

Bottom Line

Donating food inventories makes good business sense.  It allows you to deduct up to twice the cost of goods, reduce inventory and disposal costs, build corporate goodwill and preserve brand integrity while providing you with liability protection.  Best of all, you’ll help feed thousands of people in North Texas.

As a Tarrant Area Food Bank partner, you receive:

• Liability protection
• Savings in storage, inventory, transportation and disposal costs 
• Safe handling of food
• Product tracking and recall capabilities
• Tax benefits (see below)
• The ability to help thousands of Texans in need of food assistance
• Enhanced public image

Tax Benefits

Tax benefits are available to businesses that donate food. Current tax laws allow generous deductions for contributions of ordinary income property to charitable organizations. Donors are advised to consult with their tax advisors in applying the appropriate deduction.

At present, all business taxpayers—including farmers, food manufacturers, ranchers, restaurants and other small business owners—can take an enhanced tax deduction that is equal to the cost of the food donated plus one-half of the fair market value, not to exceed twice the cost. In October 2008 as part of the economic rescue package for stabilizing financial markets, Congress continued this enhanced tax deduction that was established in the 1976 Tax Reform Act and extended to small businesses in the Pension Protection Act of 2006 (Public Law 109-280).