Is Food Donation Dangerous? Debunking the myth

Is there really any legal risks in donating food? Have we not all heard that old story about a food business shutting down all operations because of the kind donation they made to the homeless outside, who in turn brought in a team powerful lawyers to sue the business. Indeed, Food donation being dangerous remains a myth out there among restaurateurs in the U.S.

Since the Good Samaritain Bill Emerson Act has been enacted in 1996, there has been zero cases recorded of a food business being sued because of food donation. Despite the various efforts made by the U.S government 22 years ago to protect and encourage people to donate their surplus food, more 35 millions tons of perfectly edible food goes to the trash everyday. Enough to fill an entire stadium. Some expert refer to this phenomenon as the generational sin of our great era. We clearly have enough food to feed the entire planet yet some of us go to sleep without eating.

A closer look into the Bill Emerson Act. In 1996, Congress passed the federal Bill Emerson Good Samaritan Food Donation Act. Under this law, those who donate food in good faith to nonprofits for distribution to people in need are exempt from liability in the event that the donated product causes harm. In other words, you can’t be held liable if anyone gets sick from donated food (except in cases of gross negligence or intentional misconduct).

Since the passing of the Good Samaritan Act more than twenty years ago, no one has ever been sued for a food donation.

(In case you’re wondering: Mr. Emerson was a Republican congressman from Missouri who fought hard for the proposal but died of cancer three months before it was passed.) according to the DoorDash Blog.

The Good news is that food donation is not only safe but also profitable. According to Refed, Tax incentives make food donation more cost effective and economically beneficial. The federal government recognizes the importance of food donation and provides tax incentives to incentivize businesses to donate food. These federal incentives have been extraordinarily successful in motivating food donation. After the incentives were temporarily expanded to cover more businesses in 2005, food donations across the country rose by 137% in 2006. With the passage of the Protecting Americans from Tax Hikes (PATH) Act in December 2015, all businesses — including C-corporations, S-corporations, limited liability corporations (LLCs), partnerships, and sole proprietorships — are eligible for an enhanced tax deduction for donations that meet certain eligibility criteria. If the donated food does not meet the criteria, they can still claim a general tax deduction in the amount of the property’s basis. According to Ismael Diaby, Founder of Surplus a food recovery startup facilitating food donation.

Recovering and donating surplus food would allow the food industry to save up to $5 billion taxable income a year and eliminate $1.2 billion in disposal fees.

It is therefore our role as food lovers and food provider to educate ourselves on the matter and get passed our old beliefs. I say Follow your heart and donate your leftovers.