Local pantries hope tax credit will boost food donations

by Nancy Hogland

Citizens and business have the opportunity to receive tax credits for helping others in need.

The credits are provided thru the Food Pantry Tax Credit, established in 2007. Under the program, individuals or businesses get a 50-percent tax credit for donations of cash or food to organizations that directly distribute emergency food to low-income people as part of their mission.

Pat Woodward, director of Lamb House in Camdenton which takes care of 800 to 1,000 people each month, said she welcomes anything that will help her feed the hungry.

“This time of year is always difficult. Businesses are shutting down for the winter, construction workers are laid off – it’s just a tough time. However, with the economic downturn we saw this year, a lot of people got their hours cut or got laid off a whole lot earlier than normal and needed help much sooner,” she said, adding that the additional needs, coupled with fewer people who able to make donations, is cause for concern not only for her pantry but for others around the area. “We’re all wondering how we’re going to make it through the winter.”

Alana M. Barragán-Scott, director of the Missouri Department of Revenue, recently visited two Missouri food pantries, the Visions Unlimited Food Pantry in Eldon and the Cherith Brook Food Pantry in Moberly, to promote the program.

“During these challenging economic times, one in seven head of households struggles to provide adequate food for their families,” Barragán-Scott said. “As more people seek assistance, the dedicated staff and volunteers at food pantries all over the state are on the front line of providing hunger relief to the families that need it. Anything that can be done to promote the efforts of these food pantries is worthwhile, and the state’s Food Pantry Tax Credit is one way that helps sustain their important mission.”

To be eligible, the food pantries or other groups must also be 501(c)(3) organizations. Donations must be made directly to food pantries that distribute food, not to food banks that store food. Barragán-Scott said most food banks also operate food pantries, but donors should contact their local food banks first to see if they qualify before a donation is made. A person associated with the food pantry must verify the donation.

The tax credit is for 50 percent of a cash contribution or 50 percent of the value of the food donated to a food pantry. For example, if a person donates $100 to an eligible food pantry, he or she gets a $50 credit on the amount of individual income tax owed to the state. The tax credit per individual or business is capped at $2,500, so only donations of up to $5,000 in cash or food apply. Returns claiming the tax credit must be filed by April 15. The total amount available for the tax credit in any one fiscal year is $2 million.

The Food Pantry Tax Credit can be applied not just to individual income tax, but also to corporate income tax or to the “fiduciary tax” assessed on estate interest income. It can’t be applied to business sales taxes that are collected from customers and remitted to the state or to the “withholding tax” that businesses withhold from employee paychecks to pay for employees’ state income tax obligations.

In the first two fiscal years that the tax credit has been in existence, 1,607 people or businesses donated $1,389,926, which resulted in $694,963 in tax credits. The average donation was $864.91; the average tax credit was $432.45.

According to the U.S. Department of Agriculture, about 17 million households find it difficult to feed all of their family members. These “food-insecure” households represent about 49 million or 14.6 percent of all U.S. households.

For more information on the Food Pantry Tax Credit, go to http://dor.mo.gov/tax/taxcredit/fpt.htm. For answers to other questions about the tax credit, e-mail the Department of Revenue at taxcredit@dor.mo.gov or call 573-526-8733.

The Missouri Food Bank Association also provides information and links to food banks and pantries at www.feedingmissouri.org.