Issues & Advocacy

Issue Brief

Food Donation

America’s restaurants give back to their communities in many ways, including through charitable donations of food.

The federal tax deduction for businesses that donate food inventory to charity is a critical tool in fighting hunger. It helps offset the costs associated with preserving, storing and transporting food donations.

In December 2015 Congress passed and President Obama signed into law a provision long supported by the National Restaurant Association. This change permanently extends the enhanced deduction for charitable contributions of food inventory to pass-through entities such as Subchapter S corporations and limited liability companies.

WHY IT MATTERS TO RESTAURANTS

According to National Restaurant Association research, 83 percent of restaurants that made a charitable contribution donated food to individuals or charitable organizations. Tax policy that helps offset the costs associated with donating food and will encourage restaurants to continue and increase their food donations.

The NRA has partnered with the Food Donation Connection to strengthen food donation efforts. Founded by a former restaurant executive, FDC serves as the liaison between restaurants and social service agencies adept at getting food to people in need. FDC helps restaurants develop and implement programs designed to provide an alternative to discarding edible food. Since 1992, FDC has helped facilitate the donation of more than 210 million pounds of food to non-profit hunger relief agencies.

NRA POSITION

The NRA applauds the recent move by Congress and the President to enact a permanent, enhanced tax deduction for all companies that contribute food inventory to charities.