Here are just a few reasons why:
- Tax Deduction - The 1976 Tax Reform* allows companies to deduct costs associated with donating food to non-profit organizations
- Inventory Control - A food donation can help reduce your surplus of hard-to-move inventory, and inventory that can be eaten but not sold.
- Generates Goodwill - Your support and goodwill may win you the respect of your community and staff
* Tax Benefits of Donating Food
In the 1976 Tax Reform Act (Section 2135), Congress refined what had been the general rule since 1969, entitling corporations to an increased deduction under certain circumstances* for contribution of ordinary income property to a public charity or to a private operating foundation.
Your company may take:
1.) The sum of one-half of the unrealized appreciation (market value minus cost equals appreciation) plus the taxpayer's cost, BUT
2.) Not in excess of twice the cost of the contributed property.
For more information, contact your tax professional or www.irs.gov.
*Under IRC Section 170 (E)(3), a corporation is entitled to a deduction with respect to a contribution to a public charity or to a private operating foundation of appreciated property described in Section 1221 (1) & (2).
Am I Protected from Liability?
