cost-effective
The Case For Donating
Choosing the best solution for excess goods can be challenging, especially with unknowns that may impact your company’s bottom line. An Indiana University study found,
“Based on financials alone, product donation is superior to disposal in most circumstances. While reselling inventory through liquidation or salvage markets often results in keeping just 10-30% of the value of the product, the special tax deduction [of donating] can be as much as twice the cost basis…”
Kelli L. McGiverin-Bohan
The Business Case for Product Philanthropy
The study found additional benefits to product philanthropy:
- Product donations enhance the image of a company similar to marketing and advertising programs.
- Consumers are swayed more by a company’s social purpose than brand loyalty.
- Employees demonstrate greater commitment to employers they view as socially responsible.
- Job seekers show a greater willingness to accept offers from companies that are socially and environmentally responsible.