[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR250.41]

[Page 469-470]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 250_DONATION OF FOODS FOR USE IN THE UNITED STATES, ITS 
TERRITORIES AND POSSESSIONS AND AREAS UNDER ITS JURISDICTION--Table of Contents
 
           Subpart D_Eligible Recipient Agencies and Programs
 
Sec.  250.41  Charitable institutions.

    (a) Distribution. (1) The distributing agency shall distribute 
donated food only to those charitable institutions which have entered 
into a written agreement for participation in the program with the 
distributing agency in accordance with Sec.  250.12(b). Prior to 
entering into a written agreement, the charitable institution shall 
provide verification of the institution's tax exempt status under the 
Internal Revenue Code. In addition to the terms and conditions set forth 
in Sec.  250.12(b), written agreements shall, at a minimum, include:
    (i) The name and location of the charitable institution;
    (ii) Total number of days meals will be served;
    (iii) Average daily number of participants;
    (iv) Total number of meals by type to be served daily to needy 
persons;
    (v) Data that show the number of needy persons receiving benefits 
under another means-tested program or financial data that show the total 
annual amount of funds received by the institution that are derived, 
respectively, from (A) subsidized income and (B) nonsubsidized income. 
For the purpose of this section ``subsidized income'' shall mean income 
from public tax funds which are provided on behalf of participants that 
have been determined to be in need of financial assistance through a 
means-tested program such as Medicaid or income received through private 
federally tax exempt contributions which are provided for the care of 
participants which the institution had determined to be in need of 
financial assistance. ``Nonsubsidized income'' shall mean all other 
income, including payments made on behalf of participants by persons 
legally responsible for their support;
    (vi) Indication of whether the charitable institution will employ 
the services of a food service management company to conduct its food 
service operations;
    (vii) Assurance that proper inventory controls will be maintained; 
and
    (viii) Assurance that all reports will be submitted as required by 
the distributing agency.
    (2) Adult correctional institutions are eligible to receive donated 
foods as charitable institutions, to the extent that needy persons are 
served, if they conduct rehabilitation programs that are:
    (i) Available to either a majority of the total inmate population 
(including inmates awaiting trial or sentencing) or to a majority of 
sentenced inmates; and
    (ii) Of sufficient scope to permit participation for a minimum of 10 
hours per week per inmate by either a majority of the total inmate 
population or a majority of sentenced inmates.

Prior to entering into an agreement for donation of foods to an adult 
correctional institution, the distributing agency shall require the 
institution's director or other responsible official to provide a 
written statement certifying that the institution conducts such 
rehabilitation programs. The statement shall be reviewed annually and 
maintained as part of the agreement.
    (3) Charitable institutions may employ food service management 
companies to conduct food service operations in accordance with Sec.  
250.12(d).
    (b) Quantities of donated foods. Distribution of donated foods to 
eligible charitable institutions shall be made on the basis of the 
average number of meals served daily to needy persons. To determine the 
number of needy persons being served, the distributing agency shall 
determine the proportion of subsidized income by dividing the subsidized 
income by the total subsidized and nonsubsidized income (as defined in 
paragraph (a)(1) of this section) and multiplying that number by the 
average daily number of participants as required in Sec.  
250.41(a)(1)(v), or by simply counting the number of participants that 
receive benefits under another a means-tested program. The distributing 
agency shall use the income and average daily participation figures 
reflected in the agreement in determining the number of needy persons 
being served by the institution in accordance with the above formula. 
Income and participation figures shall be based on the institution's 
records for the previous year. The distributing agency shall obtain 
updated pertinent

[[Page 470]]

information by September 30 of each fiscal year.
    (c) Types of donated foods authorized for donation. Charitable 
institutions are eligible to receive donated foods under section 416, 
section 32, section 4(a), and section 709.

(Approved by the Office of Management and Budget under control number 
0584-0305)

[53 FR 20426, June 3, 1988, as amended at 59 FR 16972, Apr. 11, 1994; 62 
FR 53729, Oct. 16, 1997]