NAEIR solicits donations from manufacturers, wholesalers and retailers all across the United States. While many products are offered as donations, NAEIR only accepts donations of items that members want and need for the administration of their schools and nonprofit organizations. Only brand new products are accepted.

Companies donating merchandise to NAEIR often receive tax deductions, clear out warehouse space and receive the philanthropic benefit of knowing that their products are going to be used at deserving schools and nonprofit organizations.

The formula for the tax deduction under IRC section 170(e) (3) is quite specific: Donors may deduct cost, as carried on their books, plus half the difference between cost (basis) and the fair market value, except that the tax deduction cannot exceed twice the cost. For example, items carried on the books at a cost of $100 that have an established fair market value of $200 may be donated and a deduction of $150 may be taken. If however, those items carried at a $100 cost have an established fair market value of $300, they may be donated and a deduction of $200 may be taken.

Of course, as is the case with any financial matters, your company should consult its own tax advisors.

Schools and nonprofit organizations pay a membership fee to participate in NAEIR. Organizations that become NAEIR members must agree to use the merchandise received through NAEIR in accordance with IRC section 170(e)(3), which states that the merchandise must be used for the care of the ill, needy or minors and cannot be bartered, traded or sold. The merchandise can be given directly to the qualifying individuals an organization serves or used in the administration of the organization.

Donating merchandise to NAEIR is quick and easy. It's not unusual for donors to have their product on the way to NAEIR a week after initial contact.

1. Prepare a list of the merchandise to be donated with a brief written description, quantities, and a retail value. Attach descriptive information such as catalogs, brochures or tear sheets. Include product samples whenever possible.
2. Mail or fax list to:

3.  A member of NAEIR's Corporate Relations will contact you upon receipt of your donation request. An acceptance letter, along with detailed instructions will be faxed or mailed to you after NAEIR's Donation Review Committee 'approves' the donation. NOTE: Do not ship until you have received NAEIR's acceptance letter.

4. Ship material to NAEIR's warehouse, prepaid (freight costs are tax deductible). If you prefer, NAEIR's Traffic Department can assist you in acquiring excellent rates and coordinating the shipment of your product. Collect shipments are accepted only on NAEIR Traffic Department managed shipments. A packing list MUST be faxed prior to shipping.

5. NAEIR will send you the documentation required by the IRS for tax purposes, within 14 days of receiving your merchandise and a final list of the donation.