TOGETHER WE CAN SOLVE. HUNGER Rescuing Excess Food to Feed People in Need FEEDING AMERICA / 1 /
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1 TOGETHER WE CAN SOLVE HUNGER Rescuing Excess Food to Feed People in Need FEEDING AMERICA / 1 /
2 Feeding America: An Efficient Collection and Distribution Network of 200+ Food Banks FEEDING AMERICA / 2 /
3 Today, 70 billion pounds of safe, healthy food go to waste each year 70 Billion lbs of Food Waste Could fill the Houston Astrodome almost 12x FEEDING AMERICA / 3 /
4 Impact of Food Waste on Greenhouse Gas Emissions Food waste in U.S. landfills accounts for roughly 20M Tons of greenhouse gas emissions Metric If global food waste were a country, it would be the world s 3rd Largest Emitter of greenhouse gases, behind the U.S. and China Source: Environmental Protection Agency; National Geographic, 2015 FEEDING AMERICA / 4 /
5 Client and Donor Protection are Paramount BILL EMERSON GOOD SAMARITAN FOOD DONATION ACT PUBLIC LAW Protects companies from liability when donating to a nonprofit organization Protects companies from civil and criminal liability should the product donated in good faith later cause harm to the needy recipient Standardizes donor liability exposure. Legal counsel no longer has to investigate liability laws in 50 states Sets a floor of "gross negligence" or "intentional misconduct" for persons who donate food FEEDING AMERICA / 5 /
6 Client and Donor Protection are Paramount FOOD SAFETY COMES FIRST IMPLEMENTING AIB CERTIFICATION Proactive preventative food safety policies and programs are in place to ensure that food is safe. Typical food safety policies and programs include: Cleaning/Preventive Maintenance Integrated Pest Management (IPM) Good Manufacturing Practices (GMP) Food Safety Auditing Product Recall Warehousing and Distribution Regulatory Contacts AIB CERTIFICATION Chemical Control All Feeding America food banks, including branch locations, must pass an AIB scored audit by March FEEDING AMERICA / 6 /
7 Food Value Chain Food Agri- Processing Manufacturing Primary Distribution Donation Distribution Growing Harvesting Post-Harvest Processing Production Packaging Wholesaling Grocery/Foodservice Warehousing Agency/Client/Dist. Opportunity 48 Potential usable food loss pre-distribution Billion lbs 22 Billion lbs Of additional opportunity in local markets FEEDING AMERICA / 7 /
8 U.S. EPA Food Recovery Hierarchy A hierarchy exists for food recovery today: Feeding people is the highest value once produced. Source Reduction Rescue the volume of food waste generated Feed Hungry People Donate extra food to food banks, soup kitchens and shelters Feed Animals Divert food scraps to animal feed Industrial Uses Provide waste oils for rendering and fuel conversion; and food scraps for digestion to recover energy Composting Create a nutrient-rich soil amendment Food Waste Diversion Landfill/ Incineration Last resort for disposal Food Waste Disposal Source: EPA, FWRA 2012 FEEDING AMERICA / 8 /
9 Feeding America is the Leading Waste Diversion Partner Across the Food Chain 2.6b Pounds diverted from landfills = 2.1b Meals to feed communities across the country FARMING AGRI- PROCESSING MANUFACTURING AND DISTRIBUTORS RETAIL GROCERS FOODSERVICE Note: Assumes 100% of food from manufacturers and retail, 50% of produce stream would otherwise not feed people; excludes purchased and federal commodities FEEDING AMERICA / 9 /
10 Examples of Donations Captured by Diverting Useable and Safe Product from Waste Stream Out of spec product Tortillas Granola bars Production overruns Cereal Pasta Excess ingredients Flour, salt Pureed vegetables Dried kidney beans Lime juice Frozen carrots Excess produce Potatoes, onions Notes: Product can be packaged or bulk, labeled, unlabeled, or mislabeled USDA has issued new labeling guidelines to make donation easier FEEDING AMERICA / 10 /
11 Examples of Donations Captured by De-Branding, Re-Labeling or On-Site Distribution Frozen bread sticks from 3rd party DC Granola bars with unlabeled allergen; level 1 recall Frozen vegetables improperly labeled Frozen vegetable protein patties improperly labeled Notes: Unlabeled or mislabeled USDA has issued new labeling guidelines to make donation easier FEEDING AMERICA / 11 /
12 No Donation Too Large for 200 Food Banks to Share One-time Mega Donations to Feeding America* 13.2 million lbs. of water (given 6 months to assign & pickup) 7 million lbs. of bagged frozen vegetables 7 million lbs. of canned vegetables & soup ( first run product & rec d PR) Millions of lbs. of canned tomatoes 5 million lbs. of canned vegetables & fruit ( first run product & rec d PR) 3.5 million lbs. of boxed cereal ( first run product & rec d PR) 3 million lbs. of boxed cereal ( first run product & rec d PR) 2 million lbs. of canned soup 1.5 million lbs. of soup 1 million lbs. of boxed frozen sandwiches 900,000 lbs. of boxed cereal 792,000 lbs. of packaged coffee *Data based on 22,000 lbs. per truckload FEEDING AMERICA / 12 /
13 Saving safe food from landfills can alleviate hunger and bring significant rewards Community Impact Financial Impact Environmental Impact Triple Bottom Line Impact FEEDING AMERICA / 13 /
14 Success Stories: Diverting More Usable Food from the Waste Stream Second Harvest Heartland Oregon Food Bank Food Bank of South Jersey Feeding America Network Sweet Corn from Seneca passed fields with General Mills, Cargill, SuperValu Aseptic Soup from excess produce with Pacific Foods Peachy Salsa with excess peaches processed by Campbell Soup Company Del Monte Foods cans rejected pieces of peaches for food banks FEEDING AMERICA / 14 /
15 Enhanced Tax Benefits for C Corporation Taxpayers that Donate Food Inventory General Rule Taxpayers are allowed a deduction for charitable contributions of food inventory to a qualifying I.R.C. 501(c)(3) organization equal to the lesser of the donor s ATB in the food inventory or the fair market value ( FMV ) of such food inventory. Enhanced Deduction C corporations can claim an enhanced charitable contribution deduction for food inventory donated to a qualifying I.R.C. 501(c)(3) organization for the care of the ill, the needy, or infants. The deduction is equal to the ATB of the food inventory plus one-half of the difference between the ATB and the FMV of the food inventory, but the total deduction may not exceed twice the ATB of the food inventory. Source: Deloitte Development LLC, 2013 FEEDING AMERICA / 15 /
16 Qualified Charitable Contributions of Food Inventory Donee must be certified by the IRS as a tax-exempt organization under I.R.C. 501(c)(3) 1 2 Food Inventory must be used by the donee organization solely for the care of the ill, the needy, or infants 3 Donee s use of the donated food inventory must be related to its tax-exempt purpose and the donee must provide the donor with a written statement to this effect 4 Generally, food inventory must satisfy applicable requirements under the Federal Food, Drug, and Cosmetic Act on the date of the contribution and 180 days prior to that date (see however, Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. 1791(b)(2)) If donee charges a fee (other than a nominal amount) for the transfer of the donated food inventory to the needy individual, the donor s deduction will be limited to its ATB in the contributed food inventory 5 6 Generally, the enhanced deduction is only available for food intended for human consumption that meet all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions Source: Deloitte Development LLC, 2013 FEEDING AMERICA / 16 /
17 Wasted Food Recovery Leadership Demonstrated on Food Waste Reduction Alliance (FWRA) Three Major Industry Associations + 26 Companies FEEDING AMERICA / 17 /
18 Partner Practices to Maximize Tax Benefits Waste audits Partner relationship building Close monitoring of code dates Tax accounting involvement for cost allocation Support of pending legislation to clarify fair market value for less than finished goods Industry Leaders FEEDING AMERICA / 18 /
19 Contacts Amy Kosar FEEDING AMERICA Sr. Account Manager, Retail Product Sourcing Liz Baldridge FEEDING AMERICA Sr. Account Manager, Manufacturing Product Sourcing FEEDING AMERICA / 19 /
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