That translation is faulty. Let me copy for you the "definitive"
(or widely recognized definitive translation) Majjhima Nikaya
translation (which I have read bottom to end 1367 pages not
counting glossary/index) by Bhikkhu Bodhi, now placed neatly near
Buddha's statue in consideration of Dharmapala's dream admonition

"28. Then, knowing that the Blessed One had consented, Saccaka
the Nigantha's son addressed the Licchavis: "Hear me, Licchavis.
The recluse Gotama together with the Sangha of good bhikkhus has
been invited by me for tomorrow's meal. you may bring to me
whatever you think would be suitable for him.
29. Then, when the night had ended, the Licchavis brought five
hundred ceremonial dishes of milk rice as gifts of food. Then
Saccaka the Nigantha's son had good food of various kinds prepared
in his own park and had the time announced to the Blessed One: "It
is time, Master Gotama, the meal is ready."
30. Then, it being morning, the Blessed One dressed, and taking
his bowl and outer robe, he went with the Sangha of bhikkhus to the
park of Saccaka the Nigantha's son and sat down on the seat made
ready. Then, with his own hands, Saccaka the Nigantha's son served
and satisfied the Sangha of bhikkhus headed by the Buddha with the
various kinds of good food. When the Blessed One had eaten and had
put his bowl aside, Saccaka the Nigantha's son took a low seat, sat
down at one side, and said to the Blessed One: "Master Gotama, may
the merit and the great meritorious fruits of this act of giving be
for the happiness of the givers."
"Aggivessana, whatever comes about from giving to a recipient
such as yourself - one who is not free from lust, not free from
hate, not free from delusion - [237] that will be for the givers.
And whatever comes about from giving to a recipient such as myself
- one who is free from lust, free from hate, free from delusion -
that will be for you."^note 379
note 379: Though Saccaka admitted defeat in debate, he must have
still considered himself a saint, and thus did not feel impelled to
go for refuge to the Triple Gem. Also, because he continued to
regard himself as a saint, he must have felt that it was not proper
for him to dedicate the merit of the alms offering to himself, and
thus he wished to dedicate the merit to the Licchavis. But the
Buddha replies that the Licchavis will gain the merit of providing
Saccaka with food to offer to the Buddha, while Saccaka himself
will gain the merit of offering the food to the Buddha. The merit
of giving alms differs in quality according to the purity of the
recipient, as explained at MN 142.7.