Do you have a couple extra widgets lying around your plant, or maybe some components that never made it to the design stage?
Well, the National Association for the Exchange of Industrial Resources wants to hear from you. Through the NAEIR you can donate new, overstocked or discontinued product and earn an above-cost income tax deduction for the product donated. NAEIR will then redistribute the product to schools and 501 (c)(3) non-profit groups in the U.S. (These non-profit groups must use the product for the care of the ill, needy or minors, and cannot barter, sell or trade the product they receive from NAEIR.)
More than 7,000 corporations, including Microsoft, Gillette and General Electric have donated more than $2 billion worth of materials since NAEIR was founded in 1977.
According to Cruz Ramos, vice president, corporate relations, the association makes it easy for manufacturers to quickly dispose of excess product without having to look for other avenues to move product.
"With excess inventory, manufacturers do have several options, none of which are particularly lucrative," noted Ramos. "They can do nothing and just let the product sit there in the warehouse gathering dust; they can destroy the product; or liquidate it for just pennies on the dollar."
Or, send a proposal to NAEIR, tell them what product you want to donate, and if accepted, ship the product to NAEIR's warehouse. Except for shipping costs, there is no charge to the donor.
"A manufacturer can clear out warehouse space of unused or not needed product, and free up room for more profitable product," Ramos said. "The donated product will be put to good use by over 14,000 schools and non-profit organizations."
NAEIR will accept almost anything - from teddy bears to industrial supplies, maintenance products, apparel, office supplies, books, sheet rock, and furniture.
"Manufacturers might find it worthwhile to donate production machinery, which will find a good home in a vocational tech training school or a trade school," Ramos said.
Manufacturers can take tax deductions on donated product under the Internal Revenue Service Code 170 (e)(3). Regular (C) corporations can get cost plus half the difference between cost and fair market value. Sole proprietorships can earn a straight cost deduction.
"Because the NAEIR donation review committee meets every day of the week," said Ramos, "a manufacturer who suggests a donation will have an answer within 24 hours. They will receive an acceptance letter and a donation number."
Although a manufacturer must pay for the cost of shipping product to NAEIR's warehouse, that cost is also part of the donation and is tax deductible.
And a manufacturer does not even have to worry about how to arrange for shipping.
"NAEIR has its own traffic department," explained Ramos. "They can suggest the most cost-effective method for shipping a donation, but, of course, a manufacturer can choose their own method."
NAEIR has two warehouses, with 450,000 square feet of space in one and 70,000 square feet in the other.
"We can handle one or two pallets of product," Ramos said, "or 10 or 30 or 40 truckloads of product."
The National Association for the Exchange of Industrial Resources can be contacted at www.naeir.org.