Policy Guidelines for Distributing Second Harvest Product

All Second Harvest Member Agencies must be federally exempt 501C(3) organizations, wholly owned by a 501C(3), 501C(3) equivalent (churches), or have an established 501C(3) Separate Fund.

All personnel of the Member Agency who will come in contact with Second Harvest products must be made aware of the following guidelines:

1. Agencies (or individuals/families receiving product from agencies) may not sell, barter or trade Second Harvest product. (Section 170©3, IRS Code).
2. Agencies may not request and/or accept monetary contributions from clients seeking assistance.
3. Agencies will be charged a shared maintenance fee based on pounds of product received from Second Harvest. The amount of the shared maintenance fee can vary anywhere from 1 to 14 cents/pound. The shared maintenance (or handling) fee is not in exchange for the product received and is not based on the value of the product but is charged to cover administrative, warehousing and other similar costs. According to Section 170(E)(3) of the IRS code, this type of fee may only be charged by one organization to another, but no fee may be charged in connection with the transfer of Second Harvest products from an organization to the needy, ill, or infants.
4. Agencies (pantries) must use the income guidelines provided on the top of the pantry sign in log when determining client eligibility guidelines for Second Harvest product. The agency manager may grant exceptions to the income guidelines for special situations. Remember, though, any exceptions made must be consistent, and primary service must still be directed to "the ill, needy, and infants." Non-pantry type agencies (feeding programs) must insure that Second Harvest product is served primarily to the ill, needy, and infants. (Note that the guidelines for USDA commodity distribution are not as flexible.)
5. Second Harvest products must be equally available to all eligible "ill, needy or infants" without regard to race, gender, national origin, handicaps or religious preferences. Food recipients may not be required to listen to preaching or profess a certain faith to receive food service, and may not be denied service or unequal treatment on the basis of their religious orientations.
6. Donated product may not be used for fundraising purposes, either as prepared food (dinners or bake sales) or as prizes for contests.
7. An agency (i.e., senior feeding program, day care, etc.) which serves both needy and non-needy clients must ensure that a majority (51 percent) of its clients are low-income or from low-income families
8. Agencies may not pay or thank volunteers with donated product. Doing so is contrary to both tax and labor law.
9. Designated persons within an agency may consume or take home donated product to: (a) become more familiar with them (and be able to advise clients as to their uses); (b) discover new ways in which they can be used; and (c) test their fitness for consumption.