Many food manufacturers and ingredient suppliers face a common dilemma—what to do with out-of-spec food ingredients that can no longer be sold for human consumption. Some companies consider donating these products for a tax write-off, but is that really the best option?

While donating might seem like a responsible and charitable choice, selling your ingredients for alternative uses—such as animal feed or industrial applications—can actually provide more value, less hassle, and greater flexibility. Let’s break down the key reasons why selling beats donating.

Cash Now vs. Uncertain Tax Benefits

One of the biggest myths about donation is that it provides an equal return through tax deductions. In reality, a tax write-off only offsets taxable income, meaning:

• If your company has low or no taxable income, the deduction won’t provide full financial value.
• A tax write-off isn’t cash in hand, it’s just a reduction in taxes owed (if applicable).
• The IRS places limits on deductible donations, which may reduce how much you can claim.

Selling your ingredients, on the other hand, provides immediate cash flow—a guaranteed return instead of hoping for future tax savings.

Our Advantage: We offer real money today, ensuring you get immediate value instead of waiting on uncertain tax benefits.

No Hassle, No Paperwork, No Delays

The donation process isn’t as simple as just giving products away. Many donation programs require:

• Compliance paperwork & tracking
• Proof of donation for tax purposes
• Approval from recipient organizations
• Logistics coordination & transportation costs

Selling to us eliminates all of these hurdles. No forms, no delays—just a straightforward transaction.

Our Advantage: We make it fast and easy to offload inventory with no paperwork or logistical headaches.

Eliminating Compliance & Liability Risks

When donating food ingredients, companies may still be liable for potential issues down the supply chain. If something goes wrong, your business could be responsible—even after donation.

By selling your out-of-spec ingredients for animal feed or industrial use, you ensure:

• No risk of your product being resold improperly
• No liability concerns related to food safety
• A controlled and documented sale for peace of mind

 Our Advantage: Selling removes any liability concerns while ensuring responsible product use.

Move More Product, More Often

Many donation programs have restrictions on what they can accept. Some won’t take:

• Large quantities
• Certain types of off-spec ingredients
• Product that doesn’t meet donation quality guidelines

This can leave companies with excess inventory they still have to manage. We purchase all quantities, ensuring your product moves quickly and efficiently.

Our Advantage: We buy in bulk or small batches, giving you a consistent and reliable outlet for inventory.

Sustainability & the Circular Economy

Companies are under more pressure than ever to reduce waste and improve sustainability. Rather than letting ingredients sit unused—or worse, go to landfill—selling them for alternative uses ensures:

• Zero waste—products are repurposed instead of discarded
• Sustainability goals are met by keeping materials in circulation
• Ingredients contribute to agricultural and feed markets

Donating food doesn’t always guarantee it will be used. Many donated products end up discarded due to logistical issues, expiration dates, or supply chain breakdowns. Selling ensures every pound has a purpose.

Our Advantage: We help companies meet sustainability goals while maximizing product utility.

Why Work With Us?

At MGM Excess Ingredients, we specialize in purchasing out-of-spec food ingredients and repurposing them for animal feed and industrial applications. Instead of dealing with the uncertainties of donation, we offer:

• Immediate cash payments
• Hassle-free transactions with no paperwork
• Full compliance and zero liability risk
• Flexible volume purchases—big or small
• Sustainable solutions that keep products in use

 Got out-of-spec ingredients to sell? Contact us today.

Final Thoughts

While donating can be a noble choice, it’s not always the most practical or financially beneficial. Selling your out-of-spec ingredients ensures:

• Immediate revenue instead of delayed tax benefits
• No compliance or paperwork burdens
• No liability risks
• More product moved, more often
• A sustainable, circular solution

Next time you have out-of-spec inventory, consider a smarter approach—sell it, don’t donate it. It’s better for your bottom line, your operations, and your sustainability efforts.

Let’s turn your surplus into value. Reach out to us today!