• Login
    • Join
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Formulary
    • Exclusives
    • Top Companies
    • Raw Materials
    • End-User
    • Packaging
    • Directories
    • Events
    • Jobs
    • More
  • Magazine
  • News
  • Formulary
  • Exclusives
  • Top Companies
  • Raw Materials
  • End-User
  • Packaging
  • Directories
  • Events
  • Jobs
  • Current / Back Issues
    Features
    Columns
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    Top Features
    Stepping into the Spotlight for 2021

    The Independent Beauty Association Supports Sensible Reform

    Essential Workers

    A Clean Commitment

    Deliver & Delight
    Online Exclusives
    Association News
    Breaking News
    Financial News
    Industry News
    International
    Marketing News
    New Products
    News Front
    Packaging News
    Patents
    Personnel
    Regulations
    Snapshots
    Top News
    Live From Shows
    Top News
    Amyris Named a Top Social & Environmental Impact Company

    L'Oréal Bans Animal Hair in Brushes

    Ashland Launches Antaron ECo Gel

    Isosorbide Di-(Linoleate/Oleate) Treats Xerotic Pruritic Skin

    Estée Lauder Appoints SVP, New Business Development
    Blog
    Online Exclusives
    Infographics
    Podcasts
    Whitepapers
    Videos
    Expert's Opinion
    HappiTV
    eBook
    Surveys
    International Top 30 Report
    Top 50 Report
    Top Companies
    31. Energizer Holdings

    10. LG Household & Healthcare

    27. Scentsy

    8. Coty

    7. Beiersdorf
    Actives
    Functional Ingredients
    Pigments
    Polymers
    Preservatives
    Surfactants

    Amyris Named a Top Social & Environmental Impact Company

    Isosorbide Di-(Linoleate/Oleate) Treats Xerotic Pruritic Skin

    Nu Skin Launches ‘Clean’ Formula Line

    HydraFacial Adds Murad Booster

    Coty's Not KO'd by Kylie
    Air Care/Environmental Fragrance
    AP/Deo
    Color Cosmetics
    Disinfectants
    Fine Fragrance
    Hair Care
    Household Cleaning
    I&I Marketplace
    Laundry Care
    Oral Care
    OTC/Medicated
    Packaging
    Personal Cleansers
    Skin Care
    Sun Care
    Testing

    Amyris Named a Top Social & Environmental Impact Company

    L'Oréal Bans Animal Hair in Brushes

    Ashland Launches Antaron ECo Gel

    Isosorbide Di-(Linoleate/Oleate) Treats Xerotic Pruritic Skin

    NYC Restaurant Serendipity 3 Launches Fragrance
    Lab Equipment
    Mixing
    Packaging
    Testing

    Logo Design Trends for 2021 & Beyond

    Coming Clean About Stink

    Henkel Reaches Sustainable Packaging Milestone

    Ross Designs Mixer for Increased Shear

    CGF Coalition Finalizes 'Golden Design' Rules
    Contract Manufacturing / Private Label Directory
    Buyer's Guide
    Add New Company
    Corporate Profiles
    International Buyers Guide Companies
    Centerchem Inc

    Comprehensive Research Group Inc.

    Praan Naturals

    Jeen International

    QRS (Quality Resourcing Services)
    Live From Shows
    Meetings
    Webinars
    Snapshots
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Formulary
    • Directories
      • Buyer's Guide
      • Contract Manufacturing / Private Label Directory
      • Corporate Profiles
      • Add Your Company
    • Raw Materials
      • Actives
      • Functional Ingredients
      • Pigments
      • Polymers
      • Preservatives
      • Surfactants
    • End-User
      • Air Care/Environmental Fragrance
      • AP/Deo
      • Color Cosmetics
      • Disinfectants
      • Fine Fragrance
      • Hair Care
      • Household Cleaning
      • I&I Marketplace
      • Laundry Care
      • Oral Care
      • OTC/Medicated
      • Packaging
      • Personal Cleansers
      • Skin Care
      • Sun Care
      • Testing
    • Packaging
      • Lab Equipment
      • Mixing
      • Packaging
      • Testing
    • Top Companies
      • International Top 30 Report
      • Top 50 Report
    • Online Exclusives
    • Experts Opinion
    • Slideshows
    • HappiTV
    • Videos
    • Podcasts
    • eBook
    • Infographics
    • Blog
    • Whitepapers
    • Surveys
      • R & D Salary Survey
      • Sales & Marketing Salary Survey
    • Job Banks
    • Events
      • Industry Events
      • Live from show Events
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Does Your CSR Program Include In-Kind Donations?

    Gary C. Smith, president & CEO, NAEIR, explains why it should.

    Does Your CSR Program Include In-Kind Donations?
    Donating excess inventory offers a number of tangible benefits.
    Does Your CSR Program Include In-Kind Donations?
    Gary C. Smith
    Related CONTENT
    • Third Generation To Lead CSR at Clarins
    • Vantage Earns Gold Rating from EcoVadis
    • Olvea Publishes OLVEAct Now Report
    • Gattefossé Fights Skin Aging
    • Sederma Joins the UEBT
    Gary C. Smith, President/National Association for the Exchange of Industrial Resources01.20.20
    It’s no secret that corporate social responsibility (CSR) programs are good for business as well as communities. They improve employee engagement, increase customer loyalty and elevate corporate brands. But while most companies build their CSR programs around monetary donations and employee volunteerism, there is another form of giving that many overlook—namely, making in-kind product donations.
     
    In-kind giving is ideal for offloading overstocks, obsolete merchandise, discontinued products—even returns. Just because some inventory no longer benefits your business, it can still be very useful to those in need, and there are ways to optimize the donations you make.
     
     
    The Business Benefits of In-Kind Giving
    In addition to adding another facet to your CSR program, donating excess inventory offers a number of tangible benefits, including: 
     

    It’s an Easy Way to Move Unwanted Stock
    Whether you currently discount, liquidate or auction your non-selling merchandise, it undoubtedly takes a certain amount of time and labor, while yielding a poor ROI. Done right, making in-kind donations can be fast and easy (no negotiating with liquidators, no creating online auctions) and it makes better financial sense, too.
     

    It’s Tax Deductible, Times Two!
    Product donations are tax deductible. Better yet, if your company is a C Corp, you’re eligible for a tax deduction up to twice the cost of the merchandise you donate. 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. For example, if your product costs $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.   
     

    It Keeps Your Warehouse Up-to-Date
    Every square foot of wasted warehouse space costs you money, every day. According to studies, the real cost of holding onto stale inventory exceeds its cost value. Each time you donate outdated stock, you free-up valuable warehouse space for more profitable products. 
     

    It Protects Your Brand Value
    Discounting and liquidating your products lessen their value and detracts from your brand. But a smart gift-in-kind organizations will use a careful allocation system to 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.
     
     
    How to Find a Nonprofit Partner  
    Businesses 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—can be a full-time job in itself.  An easier approach is to join a gifts-in-kind organization. These groups are licensed 501c3 nonprofits that collect all types of unwanted merchandise from member corporations, then redistribute it to member nonprofits—i.e., charities, churches 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.  
     
    How do you choose a quality gifts-in-kind organization? Look for one that:
    • Does not charge corporations membership or donation fees.
    • Accepts donations of nearly any kind at nearly any time.
    • Provides proper tax documentation of every donation for your records.
    • Shares annual results publicly, so you know how much merchandise was accepted and redistributed.
     
     
    How Gifts-in-Kind Programs Work
    After you choose a gifts-in-kind organization a work with, you need to become a corporate member. Ideally, that should be as easy as making a phone call or sending an email to the organization. Once you’re accepted, you should be able to make donations at any time. You may decide to donate quarterly, between seasons or whenever your warehouse demands it. Each time you wish to donate, you first provide the organization with an inventory list. Once it’s approved, you simply ship it to a designated location, where it will be sorted, cataloged and made available to member nonprofits.You’ll receive tax documentation for your records. Eventually, you’ll also learn what charities received your goods—a gratifying experience for the whole company. This makes 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 unwanted goods?
     

     


    Gary C. Smith
    About the Author
    Gary C. Smith is President and CEO of NAEIR, National Association for the Exchange of Industrial Resources, the largest gifts-in-kind organization in the US. Galesburg, Illinois-based NAEIR has received donations of excess inventory from more than 8,000 US corporations and redistributed more than $3 billion in products to more than 110,000 nonprofits. During fiscal year 2018, NAEIR collected more than $99.5 million in inventory and distributed more than $105 million. Smith may be reached at 800-562-0955.
    Related Searches
    • president
    • business
    • approved
    • it
    Related Knowledge Center
    • Oral Care
    • Disinfectants
    • Color Cosmetics
    Suggested For You
    Third Generation To Lead CSR at Clarins Third Generation To Lead CSR at Clarins
    Vantage Earns Gold Rating from EcoVadis Vantage Earns Gold Rating from EcoVadis
    Olvea Publishes OLVEAct Now Report Olvea Publishes OLVEAct Now Report
    Gattefossé Fights Skin Aging Gattefossé Fights Skin Aging
    Sederma Joins the UEBT Sederma Joins the UEBT
    Alban Muller Awarded Gold Status Alban Muller Awarded Gold Status

    Related Expert's Opinion

    • Color Cosmetics | Hair Care | Skin Care
      Recession Proofing Your Brand

      Recession Proofing Your Brand

      It’s only a shock if you’re not prepared. Here are four ways to be ready for the next downturn.
      Mark Jeffreys, Founder, 4Sight 12.14.20

    • Actives | Functional Ingredients | Personal Cleansers | Surfactants
      Lather Up Long-Term Hand Hygiene

      Lather Up Long-Term Hand Hygiene

      For Global Handwashing Day, several Henkel campaigns are aimed at improving compliance for everyone, but especially students.
      Martina Spinatsch, Vice President, Beauty Care, R&D, Henkel North America 10.15.20

    • Actives | Functional Ingredients | Skin Care
      Start a Skin Care Line with Low Minimums

      Start a Skin Care Line with Low Minimums

      Smaller orders enable brands to capitalize on the hottest ingredients, environmental recommendations and cause-related promotions.
      Gavin Collier, Dynamic Blending 10.11.20


    • Color Cosmetics | Preservatives
      Cosmetic Preservatives Outlook

      Cosmetic Preservatives Outlook

      Snapshots of North American, European and Asia-Pacific marketplaces.
      Amit Rawat, Global Market Insights 08.14.20

    • Color Cosmetics | Skin Care

      AR Is Crucial Post-COVID19

      Augmented reality is the new reality for the beauty industry, explains David Ripert.
      David Ripert, Poplar 08.09.20

    • Color Cosmetics | Fine Fragrance | Hair Care | Personal Cleansers | Skin Care | Sun Care
      Beauty & Social Media Marketing

      Beauty & Social Media Marketing

      It's a new frontier for everyone, says Lisa Hurst of Upshot Agency.
      Lisa Hurst, Upshot Agency 06.14.20


    • Actives | Disinfectants | Functional Ingredients | Household Cleaning | Surfactants
      Cleaners, Consumers & COVID-19

      Cleaners, Consumers & COVID-19

      Lisa Mabe details what consumers want and how marketers can deliver it.
      Lisa Mabe, Green Purse PR 05.04.20

    • Color Cosmetics | Pigments | Skin Care
      Cosmetics & COVID-19

      Cosmetics & COVID-19

      There are some cosmetics that GenZ just cannot live without, explains Chris Becker, founder of Rising Consumers Market Research.
      Chris Becker 04.25.20

    • Functional Ingredients | Hair Care | Pigments | Surfactants
      Maintaining Hair Color During the Pandemic

      Maintaining Hair Color During the Pandemic

      There are ways to enhance and extend hair color while stay-at-home orders remain in place, according to Dr. Serkan Aygin.
      Serkan Aygin, MD, Serkan Aylin Clinic 04.20.20


    • Functional Ingredients | Personal Cleansers | Skin Care
      Keep Your Hands Healthy After Washing

      Keep Your Hands Healthy After Washing

      COVID-19 is taking a toll on hands; here's some help from Aprinnova.
      John Toner , Aprinnova 04.13.20

    • Color Cosmetics | Hair Care | Oral Care | Personal Cleansers | Skin Care | Sun Care
      SBA Loans Under the CARES Act

      SBA Loans Under the CARES Act

      Foley & Lardner attorneys explain this small business lifeline.
      Jamie N. Class Frank S. Murray Jr Erin L. Toomey Thomas B. Spillane Leslie A. Pinney Casey K. Fleming Daniel A. Kaplan Sarita R. Olson, Foley & Lardner LLP 04.06.20

    • Color Cosmetics | Functional Ingredients | Hair Care | Personal Cleansers | Pigments | Polymers | Preservatives | Skin Care | Sun Care | Surfactants
      Beauty Gives Back

      Beauty Gives Back

      The Panama Beauty Project's profound impact on the women of Portobelo, Panama and an executive who was there.
      Caren Dres-Hajeski, Acme-Hardesty 03.30.20


    • Actives | Functional Ingredients | Personal Cleansers
      Bell International Expands Sanitizer Production

      Bell International Expands Sanitizer Production

      Expects to manufacture 22 million units in the coming weeks.
      Marisa Plescia, Bell International Laboratories 03.27.20

    • Color Cosmetics | Hair Care | Skin Care
      How To Find the Right Design Agency

      How To Find the Right Design Agency

      A good agency should feel like an extension of your team.
      Paul Woodvine, Managing Creative Director, Vault49 03.10.20

    • Actives | Functional Ingredients | Personal Cleansers | Skin Care
      USDA Certified Organic CBD Products Emerge

      USDA Certified Organic CBD Products Emerge

      Brightfield Group's Virginia Lee explains what it means for consumer product companies.
      Virginia Lee, Brightfield Group 12.12.19

    Trending
    • Formulating Liquid Laundry Detergents
    • Croda Partners With Genesis Biosciences
    • P&G Opens Virtual LifeLab At CES
    • ACI: EU Enviro Model Overestimates Surfactant’s Impact
    • Beauty Brands Must Prepare For A 'Decade Of The Home'
    Breaking News
    • Amyris Named a Top Social & Environmental Impact Company
    • L'Oréal Bans Animal Hair in Brushes
    • Ashland Launches Antaron ECo Gel
    • Isosorbide Di-(Linoleate/Oleate) Treats Xerotic Pruritic Skin
    • Estée Lauder Appoints SVP, New Business Development
    View Breaking News >
    CURRENT ISSUE

    January 2021

    • Stepping into the Spotlight for 2021
    • The Independent Beauty Association Supports Sensible Reform
    • Essential Workers
    • A Clean Commitment
    • Deliver & Delight
    • Reusables for Consumables In the Pandemic and Beyond
    • A Rebound for Beauty
    • Beauty Brands Must Prepare for a 'Decade of the Home'
    • A Societal Shift
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    NSF Begins New Certification Program
    Eriocitrin Shown to Have Metabolic Benefits in Recent Study
    EverGrain Introduces Sustainable Barley Ingredients
    Coatings World

    Latest Breaking News From Coatings World

    Zeppelin Acquires MTI Mischtechnik
    Ezio Braggio Joins ChemQuest Europe
    IFS Coatings Announce Carbon Offset Program
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    U.S. TAVR Market Projected to Reach Nearly $5 Billion by 2030
    FDA Clears Canon Medical's Compressed SPEEDER for 3D Exams on 1.5T MR
    Cognito Therapeutics’ Lead Product Receives FDA Breakthrough Device Designation
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Sanofi Unveils EUROAPI as Name of New European API Company
    Thermo Fisher Acquires Viral Vector Manufacturing Business from Novasep
    Precision Medicine Group Acquires Project Farma
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    W.S. Badger is Named a ‘150 Top Impact Company’
    Mana Products, Meiyume and RPG Form The Vertical Beauty Alliance
    The Estée Lauder Companies Appoints SVP, New Business Development
    Happi

    Latest Breaking News From Happi

    Amyris Named a Top Social & Environmental Impact Company
    L'Oréal Bans Animal Hair in Brushes
    Ashland Launches Antaron ECo Gel
    Ink World

    Latest Breaking News From Ink World

    Techkon USA, Konica Minolta Partner
    Mondi Celebrates 8 Wins at 2021 WorldStar Packaging Awards
    Scodix Enhances 50+ Million Holiday Cards in North America for 2020 Holiday Season
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Exhibitor registration opens for virtual.drupa
    FTA planning in-person Forum & INFOFLEX
    Fortis Solutions Group achieves SGP certification
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Shemesh Adds U.S. Headquarters
    TZMO USA, Special Needs Group Form Partnership
    BAHP Announces 2021 Officers, Board of Directors
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Rapid Recovery Protocol Can Lead to Increased Range of Motion After TKA
    Boston Scientific Releases WaveWriter Alpha Spinal Cord Stimulators in U.S.
    New Chief Clinical Officer on Board at IncludeHealth
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Roadsimple Modernizes Warehouse Ops with Zebra Technologies
    SOI Industry Consortium Joins SEMI as Strategic Association Partner
    Farmacorp Selects Zebra Technologies, Reflexis Systems to Modernize On-site Store Audits

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login