July 19, 2001

Bill helps ensure restaurant industry's role as cornerstone of the community

Washington, DC--Underscoring the central role restaurants play in communities across the country, the National Restaurant Association called upon Congress to pass legislation in the House of Representatives that would make it easier for restaurants to donate surplus food to charities.

"Nine out of 10 restaurateurs actively participate in a variety of community-service programs. And as community involvement is widespread in the restaurant industry, we have long been a leader in food donation efforts," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "We applaud Congress for making it easier for many more restaurants, regardless of size, to go above and beyond current efforts to help feed the needy and fight hunger in this country."

Because much of the food donated by restaurants is perishable, restaurants must follow a number of regulations to ensure donated food is transported and delivered safely. A vast majority of restaurants give back to their communities in a variety of ways. But considerable costs accompany recovering and properly preparing unsold food for delivery to a charity.

The bill, H.R. 7, the Community Solutions Act of 2001 would, among other provisions, expand the food-donation tax deduction to restaurants structured as LLCs, S corporations or partnerships (the vast majority of restaurants). Currently, only restaurants set-up as C corporations can deduct costs associated with preparing and donating food.

The measure, part of President Bush's "faith based" initiative, is sponsored by Reps. J.C. Watts (R-OK) and Tony Hall (D-OH).

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http://www.restaurant.org/pressroom/pressrelease.cfm?ID=261

If you have questions, please contact the National Restaurant Association's Media Relations Division at [email protected], or call (202) 331-5944.

Source: National Restaurant Association