Put Your Excess Inventory Back to Work Now!
By John Saban
Does your company have excess inventory that is expanding your corporate waistline?
Want to trim those unwanted products that are weighing your company down?
Put your excess inventory back to work now! Here is a unique way.
The IRS allows businesses to earn a federal income tax deduction by donating their idle merchandise to a qualified charity that uses these non-cash donations to meet their mission. A donation of inventory allows businesses to earn a generous tax write-off and support a charity without having to write a check.
Consider the benefits of donating excess inventory:
- The IRS tax deduction. A good trade-off for your stale inventory.
- Released warehouse space. Whether you own or rent warehouse space, storing product can be expensive. It doesn’t make business sense to hold stagnant inventory that isn’t earning its keep.
- Focus on the top sellers. Non-moving inventory can consume a disproportionate amount of your business resources. Clear out the dormant inventory to a charity and concentrate your resources on the money makers.
- Community Service. Fulfill your corporate charitable obligations through the donation of excess inventory. Help the community while solving a business problem.
Consider the alternatives to donating your excess inventory:
- Inventory Liquidation. Liquidators pay pennies on the dollar and may not want to buy all of your excess leaving you a problem of what to do with the leftovers.
- Waiting six more months for the market to change. Most inventories lose value with time and cost money to store. The clock is not kind to idle inventories.
To earn this deduction make sure that the non-profit recipient is a 501 c (3), since only that IRS classification of non-profits qualifies to issue a tax donation receipt.
For more information on donating excess inventory, contact Educational Assistance Ltd. Corporate Development Director Post Office Box 3021 Glen Ellyn, IL.60138; phone 630-690-0010; e-mail [email protected]
John Saban is the Corporate Development Director for Educational Assistance Ltd. a not-for-profit based in Wheaton, IL.