🍪 Can You Get a Tax Break for Donating Leftover Cookies?
If your Crumbl store finishes the day with extra inventory, you might wonder—is there any benefit to donating these instead of tossing them?
Yes! Donating your end-of-day cookies to a qualified charitable organization can do more than support your community—it can also help you save on taxes.
💰 The IRS Offers an Enhanced Deduction
Under IRC Section 170(e)(3), businesses that donate “apparently wholesome food” to nonprofits serving the ill, needy, or infants may be eligible for an enhanced charitable deduction.
This special deduction allows you to write off more than just your cost of goods. You may be able to deduct:
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Your cost plus half the profit you would have made, or
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Up to twice your cost, whichever is less.
That’s a bigger break than a standard inventory donation—and it adds up fast.
📉 Is There a Limit?
Yes, but it’s generous. You can deduct up to 15% of your business’s net income from all trades or businesses.
Have more than that to donate? No problem—unused deductions can be carried forward for up to five years.
📋 What You Need to Claim the Deduction
To take full advantage of this tax break, you’ll need:
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A qualified 501(c)(3) charity as your donation recipient
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A written statement from the charity confirming the donation and its use
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Detailed records of what you donated (type, quantity, date)
Your tax preparer will calculate your deduction based on this information.
🍩 Real-World Example: How Much Can You Save?
If your cookie business donates 300 regular cookies and 175 mini cookies every month, you could potentially generate a $15,000 tax deduction annually on your personal return.
That’s money back in your pocket for something you were already willing to give away.
🎯 The Takeaway
Donating your cookies helps:
✅ Reduce food waste
✅ Support your local community
✅ Lower your tax bill
✅ Build goodwill for your brand
If you haven’t looked into food donation as a business strategy, now’s a great time.
👋 Let’s Make Every Cookie Count
Need help tracking food donations or reporting them properly? We help food businesses like yours stay tax-savvy while making a difference.
👉 Contact us today or schedule a quick call.