Revolutionize Your Approach to Food Donations and Shrink Management
September 1st marks National Food Bank Day, an important day dedicated to acknowledging the heart-wrenching reality of families battling hunger. This initiative is championed by World Food Program USA, which plays a pivotal role in fundraising, advocacy, and engagement across the United States to support the U.N. World Food Programme’s mission to eradicate hunger. It is heartwarming to witness the independent grocers we collaborate with actively contributing to this cause and supporting their communities.
It is important to note that the Good Samaritan Food Donation Act of 1996 protects grocers who donate to help combat hunger. This legislation was enacted to promote more donations by alleviating concerns about potential repercussions and to alleviate retailers’ apprehensions, thus encouraging more donations.
So, are you maximizing your donation opportunities and facilitating the process for your team?
Retailers who create a food donation program face an often-overlooked obstacle. Donations to food pantries require inventory adjustments and must be accounted for as shrink. Detailed records of the donations – what was donated, to whom, and when – are essential for quantifying the shrink. This information must then be shared with your accountant to leverage the tax benefits associated with the value of the donations, possibly resulting in significant tax deductions. You can consult your tax advisor to understand the tax implications at both personal and business levels.
FMS’ G.O.T. Systems’ Shrink and Markdown product streamlines the entire process, making it easier for retailers to manage their inventory and contribute to food banks/pantries.
How it works:
Data Sharing: Share your Point of Sale (POS) basics – item lists by PLU/UPC, regular retail, and other identifying information – with G.O.T. weekly.
Shrink Management: Use the provided handheld scanner and mobile printer to record shrink, whether it’s due to disposal, transfer between departments or stores, or donations. This information will be included in daily and weekly reports, enabling you to monitor your margins, analyze losses, and, ultimately, reduce shrink.
Markdowns: Identify products with a limited selling life, scan them, and choose the discount amount. Print a discount label that can be scanned at the POS. Daily and weekly reports will help you analyze the markdowns and adjust processes to minimize shrink.
Donations: Scan the markdown labels or UPCs/scale labels of products to be donated and select one of the registered food banks/pantries. G.O.T. will notify the food bank via email about the available products. Store perishable items safely in a freezer until collected by the food pantry.
By reducing shrink, you directly increase your bottom line. G.O.T.’s donation program assists in this and may help reduce your tax liability with minimal effort.