Are Food Bank Donations Tax Deductible? How to Claim Them

Donating to food banks helps communities in need and can provide tax benefits. The IRS allows deductions for charitable contributions, including food donations, if certain conditions are met. Understanding these rules ensures you maximize tax savings while supporting a good cause.

To claim a deduction, specific guidelines must be followed regarding eligible organizations, donation valuation, and proper documentation.

Qualifying Tax-Exempt Organizations

For a food donation to be tax-deductible, it must go to an IRS-recognized tax-exempt organization, typically a 501(c)(3) public charity. This includes most food banks, soup kitchens, and religious organizations that distribute food to those in need. These groups must operate solely for charitable purposes.

Not all food assistance groups qualify. A local community organization handing out meals may not have formal tax-exempt status, making donations to them ineligible for deductions. To verify eligibility, donors can use the IRS Tax Exempt Organization Search (TEOS) tool, which lists registered 501(c)(3) charities.

Government entities, such as public schools or state-run food programs, also qualify. Because these institutions are part of the government, contributions to them are treated as charitable gifts under IRS rules. However, donations given directly to individuals do not qualify for tax deductions.

Valuation of Noncash Food Donations

The deductible value of donated food is based on its fair market value (FMV) at the time of donation. FMV is the price an item would sell for on the open market between a willing buyer and seller. For food donations, this typically means the retail price in a grocery store or similar establishment.

Businesses donating food inventory—such as restaurants, grocery stores, or farms—may qualify for an enhanced deduction under Section 170(e)(3) of the Internal Revenue Code. This allows eligible C corporations, S corporations, partnerships, and sole proprietors to deduct the lesser of:

1. Twice the basis of the donated food (usually the cost to produce or acquire it), or
2. The basis plus half the difference between FMV and basis.

For example, if a grocery store donates food with a cost basis of $1,000 and an FMV of $2,500, the enhanced deduction would be $2,000—calculated as $1,000 (basis) plus $500 (half the difference between FMV and basis).

To qualify for this enhanced deduction, the food must be wholesome, intended for human consumption, and donated to a qualified charity that uses it for the care of the ill, needy, or infants. The donor must also obtain a written statement from the recipient organization confirming that the food will not be resold and will be used for charitable purposes.

If food is near its expiration date or otherwise unsellable, valuation becomes more complex. If an item is still safe to eat but would have been sold at a discount, the FMV should reflect that reduced price. However, food with no market value—such as expired or heavily damaged items—generally does not qualify for a deduction.

Documentation Requirements

Proper records are required to substantiate a charitable deduction, especially for noncash donations like food. The IRS has different documentation standards based on the value of the contribution.

For donations under $250, a receipt or written acknowledgment from the charity is recommended but not required. However, donors should still keep reliable records, such as a list of donated items and their estimated FMV.

If total food donations to a single organization exceed $250 in a year, a written acknowledgment from the charity is mandatory. This document must include the organization’s name, a description of the donated items, and a statement confirming that the donor did not receive goods or services in exchange for the contribution.

For noncash donations exceeding $500, donors must complete IRS Form 8283, providing details such as how and when the items were acquired and their cost basis. If the total exceeds $5,000, a qualified appraisal may be necessary unless the donation falls under an exemption. While food donations are generally excluded from appraisal requirements, businesses claiming an enhanced deduction must maintain records supporting their valuation method, including cost and FMV calculations.

Deducting Donations on Tax Forms

Charitable contributions, including food donations, are reported on Schedule A of Form 1040 as itemized deductions. Since the Tax Cuts and Jobs Act of 2017 increased the standard deduction, fewer taxpayers benefit from itemizing. In 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. Taxpayers should determine whether their total eligible deductions exceed these amounts before itemizing.

The deduction applies in the tax year the donation was made, meaning contributions must be completed by December 31 to be claimed for that year. Noncash donations exceeding $500 require Form 8283, detailing the nature and valuation of the items. Businesses claiming an enhanced deduction must document specific calculations in their corporate filings, with C corporations reporting under Section 170(e)(3) and pass-through entities reflecting deductions on individual returns.