Donations

Help our Foodbanks continue to provide food to low-income hungry Ohioans and their families by making a donation on-line. All donations are tax-deductible. For every $1 donated OASHF provides 5 meals. To make a donation on-line, please click on the Network for Good icon above. If you want to make a donation, but prefer to make it off-line, please contact Bob Wicks, or send your check or money payable to:

Ohio Association of Second Harvest Foodbanks

51 North High Street, Suite 761

Columbus, Ohio 43215

Thank you for all your help to end hunger in Ohio.

Tax Benefits for Corporate Donations

Contribution of inventory-type property

A corporation (other than an S-Corporation) that contributes inventory, property held primarily for sale to customers in the ordinary course of its trade or business, may deduct its basis for the property plus one-half of the property’s unrealized appreciation. However, the claimed deduction may not exceed twice the basis of the property. In addition, no deduction is allowed for any part of the appreciation that would be ordinary income resulting from recapture. In the case of inventory which is depreciated (i.e. the FMV less than the basis) the charitable contribution is limited to the property’s fair market value.  Basis allocation with respect to spit contribution must be allocated thought the use of a “reasonable” method.

Corporation a 10% charitable deduction ceiling

A corporation’s charitable deduction for a tax year can not exceed 10% of its taxable income for the year. Taxable income for this purpose is computed without deductions for charitable contributions or dividends received, or net operating loss or capital loss carrybacks to the year.

Examples:

• Inventory costing $20 to produce is donated to a charitable organization. The inventory has a FMV of $40 at the time it is donated. The corporation would be entitled to a $30 (20+(40 x 50%)) charitable contribution.   

• Inventory costing $20 to produce is donated to a charitable organization.The inventory has a FMV of $50 at the time it is donated. The corporation would be limited to $40 (20+(50 x 50%) = 45) charitable contributions because deduction can not exceed twice the basis of the property. 

• Inventory costing $20 to produce is donated to a charitable organization. The inventory has a FMV of $10 at the time it is donated. The corporation would be limited to a $10 charitable deduction because FMV less than the basis. 

• Inventory costing $20 to produce is sold and donated to a charitable organization for $10. The inventory has a FMV of $40 at the time it is sold/donated. The corporation would be entitled to a $15 charitable deduction.

Donation Calculation

Bill Emerson Good Samaritan Food Donation Act

Liability Issues

On October 1, 1996, President Clinton signed the Bill Emerson Good Samaritan Food Donation Act to encourage the donation of food and grocery products to non-profit organizations for distribution to needy individuals. This law makes it easier to donate. Here's how:

• It protects donors from liability when donating to a non-profit organization.
• It protects donors from civil and criminal liability should the product donated in good faith later cause harm to the needy recipient.
• It standardizes donor liability exposure. Donors and their legal counsel no longer have to investigate liability laws in 50 states.
• It sets a liability floor of "gross negligence" or intentional misconduct for persons who donate grocery products. (See Act text for further definitions.)
• Congress recognized that the provision of food close to recommended date of sale is, in and of itself, not grounds for finding gross negligence. For example, cereal can be donated if it is marked close to code date for retail sale.

Text of the Act

One Hundred Fourth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Wednesday, the third day of January, one thousand nine hundred and ninety-six.

An Act

To encourage the donation of food and grocery products to nonprofit organizations for distribution to needy individuals by giving the Model Good Samaritan Food Donation Act the full force and effect of law.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Section 1. CONVERSION TO PERMANENT LAW OD MODEL GOOD SAMARITAN FOOD DONATION ACT AND TRANSFER OF THAT ACT TO CHILD NUTRITION ACT OF 1966.

(a) Conversion to Permanent Law. -- Title IV of the National and Community Service Act of 1990 is amended --

1. by striking the title heading and sections 401 and 403 (42 U.S.C. 12671 and 12673); and
2. in section 402 (42 U.S.C. 12672) --

(A) in the section heading, by striking "model" and inserting "bill emerson"

(B) in subsection (a), by striking "Good Samaritan" and inserting "Bill Emerson Good Samaritan:"

(C) in subsection (b)(7), to read as follows:
"(7) GROSS NEGLIGENCE. -- The term 'gross negligence' means voluntary and conscious conduct (including a failure to act) by a person who, at the time of the conduct, knew that the conduct was likely to be harmful to the health or well-being of another person.";

(D) by striking subsection (c) and inserting the following:
"(c) LIABILITY FOR DAMAGES FROM DONATED FOOD AND GROCERY PRODUCTS.

"(1) LIABILITY OF PERSON OR GLEANER. -- A person or gleaner shall not be subject to civil or criminal liability arising from the nature, age, packaging, or condition of apparently wholesome food or an apparently fit grocery product that the person or gleaner donates in good faith to a nonprofit organization for ultimate distribution to needy individuals.

"(2) LIABILITY OF NONPROFIT ORGANIZATION. -- A nonprofit organization shall not be subject to civil or criminal liability arising from the nature, age, packaging, or condition of apparently wholesome food or an apparently fit grocery product that the nonprofit organization received as a donation in good faith from a person or gleaner for ultimate distribution to needy individuals.

"(3) EXCEPTION. -- Paragraphs (1) and (2) shall not apply to an injury to or death of an ultimate user or recipient of the food or grocery product that results from an act or omission of the person, gleaner or nonprofit organization, as applicable, constituting gross negligence or intentional misconduct."; and

(E) in subsection (f), by adding at the end the following: "Nothing in this section shall be construed to supersede State or local health regulations.".

(b) TRANSFER TO CHILD NUTRITION ACT OF 1966. -- Section 402 of the National and Community Service Act of 1990 (42 U.S.C. 12762) (as amended by subsection (a)) --

1. is transferred from the National and Community Service Act of 1990 to the Child Nutrition Act of 1966;
2. is redesignated as section 22 of the Child Nutrition Act of 1966; and
3. is added at the end of such Act.

(c) CONFORMING AMENDMENT. -- The table of contents for the National and Community Service Act of 1990 is amended by striking the items relating to title IV.

Newt Gingrich, Speaker of the House of Representatives

Strom Thurmond, President of the Senate Pro Tempore

Approved 10/01/96 William J. Clinton, President of the United States

P.L. 104-210

Other items needed by low-income families:

If you are interested in donating food or other items

please contact the regional office in the area in which you wish to donate by contacting the Regional Foodbank

© Copyright 2006, No part may be reproduced without expressed written permission from

the Ohio Association of Second Harvest Foodbanks.