Rules for donating unsold stock: What UK businesses must follow this festive season
Many UK retailers and hospitality businesses finish the festive season with stock that simply did not sell. Research shows 44% of UK retailers are left with excess stock after Christmas and New Year discounting. Donating it to charity is often the most responsible and cost-effective option.
However, the moment those goods leave your premises, legal duties still apply. Incorrectly donated goods can be legally treated as waste, which could lead to additional charges and compliance issues for both businesses and charities.
This guide explains what UK organisations must do to donate stock safely, legally and without creating unintended waste problems.
Key takeaways
- Donations must be safe, undamaged and usable
- Hazardous or restricted goods cannot be donated
- Traceability and documentation requirements still apply
- Food donations must meet strict safety laws
- Avoid burdening charities with unusable stock
- Seek advice if items require sorting or carry safety concerns
Why companies are donating
more excess stock
After Christmas sales finish, items lose value quickly. January storage and disposal also add costs, especially for stock with a short shelf life or a seasonal purpose. Donating:
- Avoids disposal fees
- Reduces waste sent to landfill
- Supports communities after a financially pressured winter
- Improves sustainability reporting and brand reputation
But there must be a clear process to ensure goods are reused, not rejected as waste.
Which sectors are
most affected
Several industries face significant winter peaks in unsold inventory. Each has different donation considerations:
- Supermarkets and food retailers
Food safety and traceability rules apply to every item.
Hospitality venues and cafés
Common issues include surplus packaged goods and incorrect food labelling.
- Hotels
Toiletries, linens and seasonal gift sets must meet safety requirements before redistribution. - Retailers and offices
Electrical items, cosmetics and branded merchandise often require compliance checks.
Donation rules differ depending on the product type. A compliant process helps avoid confusion and waste downstream.
What rules must businesses follow
when donating stock
1. Items must be fit for use
Stock must be:
- Clean and undamaged
- Fully functional
- Safe for the intended user
If an item is broken, contaminated or past legal sell-by limits, it is classed as waste and must be disposed of through a licensed provider.
2. Duty of care applies from start to finish
The Environmental Protection Act 1990 requires businesses to ensure safe handling of goods until accepted by a legitimate charity. This means:
- Keeping transfer records where required
- Ensuring goods are suitable for reuse
- Passing stock directly to an approved charity or organisation
3. Sorting required? Then it may become waste
If items require:
- Testing
- Repairing
- Sorting for saleability
The load may need to be managed as a waste transfer, which requires correct paperwork and a licensed carrier.
4. Hazardous or restricted items cannot be donated
Products like:
must follow hazardous waste rules. Donating such items can expose charities to risk and lead to legal action.
5. Traceability and compliance still apply
For items such as cosmetics, toys, regulated products and electronics, information must be provided on:
- Storage conditions
- Product recalls
- Batch numbers or product identifiers
Lack of traceability can invalidate the donation.
6. Transport must protect items
If stock becomes wet, broken or contaminated in transit, charities may have to reject it, and the business may be charged for disposal. Proper packaging matters.
7. Food donations have extra legal checks
Food must always:
- Be within use by and safe to eat
- Have clear allergen and storage instructions
- Be transported under appropriate temperature conditions
Food that breaches any of the above becomes illegal food and must be disposed of.
When good intentions turn
into waste problems
Many charities report that a high volume of donated items ends up unusable. This creates:
- Extra operational costs for sorting
- Recycling and disposal charges
- Fire and storage risks
- Resource drain on staff and volunteers
Businesses remain responsible if their donation leads to improper disposal.
Mark Hall, Waste management expert at Business Waste, comments:
A simple donation
readiness checklist
Before sending goods to a charity, check:
- Items are safe, clean and labelled correctly
- No legal restrictions apply
- The receiving organisation can sell or distribute each item type
- All required product documentation is included
- Packaging prevents damage in transport
Mark Hall adds:
How Business Waste
can help
We support over 30,000 businesses across the UK in cutting costs, reducing waste and staying compliant. We can help you:
- Assess stock for donation suitability
- Arrange separate recycling for unsellable goods
- Manage food and packaging waste
- Provide free bins and flexible collections
- Ensure you meet legal responsibilities when donating
If you want to reduce disposal costs and keep useful items in circulation, speak to our team.
Contact us or call 0800 211 8390.
Have your waste collected
Get a fast FREE quote for your waste collection 0800 211 83 90
- Free quote within 1 hr
- Any type of waste
- FREE bins and delivery
- We cover all of the UK