What’s Missing from Your CSR Program? In-Kind Donations!

You already know that your corporate social responsibility (CSR) program is good for business. It boosts employee engagement, enhances customer loyalty and lifts your corporate brand. But if your company is like many others, its CSR program is built around two things: monetary donations and employee volunteerism. You may be overlooking another, very beneficial form of giving: making in-kind product donations.

In-kind giving allows you to offload overstocks, obsolete merchandise, discontinued products and even returns with ease. Even when inventory no longer benefits your business, it can still benefit those in need. And when you partner with NAEIR—the largest gifts-in-kind organization in the country—we help you optimize every donation you make.

Four Big Benefits of In-Kind Giving

Besides enhancing your CSR program, donating excess inventory through NAEIR offers multiple business benefits. Our top four include: 

1. You Can Easily Move Unwanted Stock - How do you currently get rid of your dead inventory? By offering steep discounts? Dealing with liquidators? Conducting online auctions? Whatever it is, it’s undoubtedly an investment of your staff’s time and labor—one that’s delivering a poor ROI. With NAEIR, making in-kind donations is fast and easy. And it makes better financial sense, too.
2. Gain a Tax Deductible, Times Two - You may know that product donations are tax deductible. But did you know that, if your company is a C Corp, it’s eligible for a tax deduction up to twice the cost of the donated merchandise? That’s because, according to a little-known section of tax code—IRC Section 170(e) (3)—C Corp tax deductions equal the cost of donated inventory, plus half the difference between the cost and fair market-selling price, not to exceed twice the cost. Do the math: if your product cost $10 and you sell it for $30, the difference is $20. Half of $20 is $10. $10 (product cost) + $10 (half the difference) = a $20 tax deduction. $20 does not exceed twice the product cost, so it’s allowed.   
3. Keep Your Warehouse Current Year-Round - Every square foot of wasted warehouse space is costing you money, every day. In fact, studies show that the real cost of holding onto stale inventory exceeds its cost value. So, each time you donate outdated stock, you’re freeing up valuable warehouse space for more profitable products. 
4. Protect Your Brand Value - It’s a fact of business: discounting and liquidating products diminishes their value as well as your brand. But we developed a careful allocation system that ensure products are distributed thinly across a tightly-closed market. Your products retain their value, while your brand receives CSR recognition. It’s a win/win.

Why NAIER Is Your Ideal Nonprofit Partner  

Sure, you can always seek out local nonprofits to partner with. But finding the right fit—a group or groups that can use all you have to offer, and take it on demand—can become a full-time job in itself.  

An easier approach is to work with NAEIR, a licensed 501(c)(3) nonprofit.. We collect all types of excess merchandise from corporations, large or small, then redistribute this product to member nonprofits—i.e., charities, churches, teachers and schools—that request it. Some of the most in-demand products are office and school supplies, cleaning products, personal care items, electronics, clothing and toys.  

Some of the nation’s largest companies donate their excess inventory through NAEIR—and you’ll find a sample list of them on our website, https://www.naeir.org/. Why’d they pick us? Because: 

•    We do not charge corporations membership or donation fees.
•     We accept donations of nearly any kind at nearly any time.
•     We provide proper tax documentation of every donation for your records.
•     We share our annual results publicly, so you know how much merchandise was accepted and redistributed. (For example, during fiscal year 2018, NAEIR collected more than $99.5 million in inventory and distributed more than $105 million.)

How to Get Started with NAEIR

Simply give NAEIR a call at 800-562-0955, ext. 338 or shoot an email to Paula DeJaynes at [email protected].

Each time you wish to donate, you’ll start by sending us an inventory list. Once we approve it, you simply ship it to our 450,000 sq. ft. warehouse, where we sort it, catalog it and make it available to member nonprofits.

We’ll provide you with tax documentation for your records. Upon request, we’ll also let you know what charities received your goods—which your workforce will find very gratifying. These stories make terrific content for your company newsletter and adds another dimension to your CSR program.  

Giving Is the Right Thing to Do

Beyond benefiting your CSR program, in-kind giving allows you to put your merchandise into the hands of needy people who can genuinely use it, while helping worthy nonprofits deliver on their mission. You care enough to develop a CSR program…why not do even more good with your excess goods? Get started with NAEIR today.