Here’s a tax tip: Don’t pay any! Well, not exactly, however, the National Association for the Exchange of Industrial Resources (NAEIR, Galesburg, Ill.) has some tips even tax experts are not aware of: Donating excess inventory to charitable organizations.
NAEIR takes donations of new, overstock or discontinued product and redistributes that product to schools and 501 (c)(3) non-profit groups nationwide.
These materials and supplies not only benefit these organizations, the companies that contribute can earn an above-cost income tax deduction for the product donated. Regular (C) corporations can get cost plus half the difference between cost and fair market value. (S) corporations or sole proprietorships can earn a straight cost deduction. This is all made possible by the Internal Revenue Tax Code Section 170 (e)(3).
NAEIR accepts donations of general, finished goods such as school and office supplies, educational material, toys, games, clothing, building material tools and more. More than 7,000 large corporations have donated more than $2 billion worth of material since NAEIR’s founding in 1977.
You can obtain a donation information kit by calling 800 562-0955 or email to [email protected].
Source: National Association for the Exchange of Industrial Resources