NAEIR Offers Free Excess Inventory Donation Information Kit
Furniture World Magazine
Many companies and trade associations are not aware of a quick and easy solution to excess inventory problems.
National companies and associations can turn that problem into a federal income tax deduction by donating that overstock merchandise to charity.
This deduction has been available since 1976 under the U.S. Internal Revenue Code Section 170 (e)(3).
By donating new product overruns, returns, or usable seconds, regular (C) corporations may deduct the cost of the goods plus half the difference between cost and fair market value. Your deduction could be up to twice cost. S corporations, partnerships and sole proprietorships earn a straight cost deduction.
This deduction is very beneficial for many industries, where buyers’ changing needs may result in overstocks or returned orders. Donating can be preferable to liquidating the product at a lower rate or throwing it away and taking a loss.
You as the donor also get the important benefit of knowing that your product is helping the needy.
Over 7,000 companies have donated $2 billion in inventory to the National Association for the Exchange of Industrial Resources since it’s founding in 1977. NAEIR accepts donations of new, overstock merchandise, then provides the proper tax documentation. The goods you donate are redistributed to 10,000 qualified schools and nonprofit organizations nationwide.
The donation process is simple. To begin, a company sends in a written proposal or list of product they want to donate, including a short description, quantities and a value. NAEIR has a committee that reviews and approves proposals within 72 hours.
NAEIR notifies the donor and then sends shipping instructions and labels. Although the donor company is responsible for the shipping cost, that is also a tax deductible expense of the donation process. NAEIR’s Traffic Department can provide reduced rates for shipping.
Your donation will be redistributed to groups such as elementary and high schools, YMCAs/YWCAs, community centers, rescue missions, shelters for abused women and children, hospitals, nursing homes, churches of all denominations and many other social service agencies.
There is no cost to corporations for NAEIR’s service. For a free Donation Information Kit, please contact NAEIR’s Corporate Relations Department at 1-800-562-0955 or email firstname.lastname@example.org.
Emily Collins has been the Communications Associate at The National Association for the Exchange of Industrial Resources for two years but has been with the organization since 2001.