FREQUENTLY ASKED QUESTIONS

Listed below are some Frequently Asked Questions about donating products to NAEIR. Click on a question to jump to the response.



Why should our company donate its excess inventory to NAEIR?

Most corporations donate to earn the federal tax deduction. For regular (C) corporations, the deduction is equal to the cost of the inventory donated, plus half the difference between cost and fair market selling price. Deductions may be up to twice cost.

But we're an S corporation and only earn a straight cost deduction. What's the benefit for us?
The second most frequent reason is to clear out warehouse space, and that certainly applies to S corporations, partnerships and sole proprietorships, too.

We've got excess inventory, but warehouse space is not a problem. Tell me why we should donate this product to NAEIR instead of clearing it through liquidators, as we have always done in the past.
Sometimes, liquidating is the right solution, but there are times when it makes more sense to donate. Let's say you've got a high-end product or line. You don't want to liquidate because those products will end up in discount houses -- maybe competing against you, and maybe damaging your regular suggested retail price. Depending on your markup, you can often come out better at tax time by donating and claiming the deduction.

Why should we give it to a big outfit like NAEIR instead of our local schools and charities?
It's fine to donate locally, and many of our corporate donors also do that, but:

  • How do you chose who receives it locally?
  • What if you have too much product for all of your locals to absorb?
  • What if you don't have enough to satisfy everybody?
  • Do you have the manpower and time to make all those individual gifts?
When you give it to NAEIR, it's one decision and you ship it to one place. Your product gets spread across the United States, protecting your local or regional markets. We do all the distribution and make sure your products go to qualified recipients.

Do we have to pay for shipping to get our inventory to your facility?
Yes, but that expense is also tax deductible. Our Traffic Department can often arrange excellent rates for you because of the volume of business we do with carriers.

We have always liquidated our excess inventory. Our upper management may not want to change that policy. What would you say to convince them?
If it's a straight bottom line decision, you will have to let your financial department work the numbers. The formula for the deduction is very clear. They should easily be able to tell whether it's in your company's best interest to donate product. Some of the best-run corporations in America (Microsoft, Gillette and Russ Berrie) donate their excess inventory to NAEIR. Those corporations would not donate if it didn't make good business sense.

How much hassle is involved?
We require that you send us a proposal of the products you wish to donate. Once we approve your proposal, we will send you shipping labels along with new donor information. You will ship directly to our warehouse in Galesburg, Illinois. Within two weeks of your donation, we will send you the tax documentation needed to claim your deduction.

What if there's a snag somewhere?
Our full-time professional Corporate Relations staff has handled literally thousands of donations. They are just a phone call (800.562.0955) away if you have a question.

After NAEIR receives our merchandise, then what happens to it?
We will inventory, sort, and write descriptions of it for our catalogs. The merchandise will then be offered to members via our programs.

In the end, who will receive our goods?
NAEIR's membership base is composed of 9,500 schools and nonprofit organizations all over the country. Your products will go to students, as well as ill and needy people in nursing homes, hospitals, shelters for abused women and children, along with social service agencies, camps, homes for the developmentally disabled, and a variety of other nonprofit groups. Your goods may also be used in the administration or maintenance of these organizations.

How do we know that our products are being put to proper use?
All of NAEIR's members are qualified schools or 501 (c)(3) nonprofit organizations. We require that members sign an application form attesting that they understand the terms and conditions of NAEIR membership which includes that they will use the goods for the care of the ill, needy or minors, and that they will not barter, sell or trade the items.

Why should we give our product to NAEIR instead of another gifts-in-kind organization?
There are several reasons:

  • NAEIR does not charge you for our service.
  • NAEIR was the first gifts-in-kind organization in America, founded in 1977. Our experience will work for you.
  • We have successfully placed over * worth of donated inventory, covering a broad spectrum of products. 
  • NAEIR redistributes goods to education, as well as the nonprofit sector.
  • We think you will be satisfied with the professionalism of our organization. Respondents to our donor surveys show that 98.9% of the companies who have donated inventory to NAEIR would use our service again. We think that is a solid endorsement.
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