A Top 5 wholesale food distributor operating a 500,000+ sq. ft. facility partnered with Spoiler Alert in 2016 and has sustained a 6x increase in tracked food donations and the accompanying enhanced tax deductions while significantly improving its reporting and traceability functions.
Since partnering with Spoiler Alert in 2016, the company has:
- Improved tracked donations by $400,000 annually
- Seen a 6x increase in enhanced tax deductions
- Achieved zero-waste-to-landfill by significantly increasing food donations and diverting other product to local farmers
- Increased its donation rate by 80 percent
Prior to Spoiler Alert, this leading broadline distributor lacked a consistent, standardized process for tracking its food donation volumes and destinations, while documenting this information in a way that allowed its Corporate Tax team to account for it appropriately. The company sought to establish a streamlined process to strengthen its donation program to local hunger relief organizations while also giving the CFO the confidence in claiming enhanced tax deductions for this inventory.
Through a combination of on-site sessions, Spoiler Alert guided the facility’s inventory control and finance teams through the deployment of its technology platform. The team also provided hands-on training and coaching to the distributor’s nonprofit partners, explaining how to verify donations via electronic, itemized receipts generated within the platform. Because the distributor’s Item Catalog was fully integrated within the platform, the company could automatically align relevant price and cost information for a SKU with the specific donations for which it was claiming enhanced tax deductions. This improves the integrity of the data, gives confidence against an audit, and provides an added level of traceability and recall management for its Food Safety team. In addition, it established a scalable process to be replicated at other facilities with food donation programs.
Beyond pure tax benefits, the facility saw other operational improvements, including optimizing donation pickup schedules to accommodate increase in fresh product, as well as the introduction of new nonprofit partners to support with excess volume. The distributor’s marketing team is capitalizing on these efforts by incorporating impact metrics from the Spoiler Alert platform in collateral, which they believe will improve brand loyalty, help acquire new customers, and build stronger ties within the communities they work.