The following questions and answer sheet explains most issues involved with an in-kind donation:
1. Does Waste to Charity charge for its services?
No, Waste to Charity does not charge donors or business partners for its services.
2. Is Waste to Charity a Not-for-profit 501(c)(3) Public Charity?
Yes, Waste to Charity is a not-for-profit 501(c)(3) publicly supported foundation dedicated to the support of those in need, through the use of Waste.
3. Are There Tax Benefits for Donations by Individuals?
For individuals, the charitable deduction for contributions of goods,cars, boats, vehicles or real estate equals the fair market value (retail used value in the current market place) of the donated property. Shipping costs are also tax deductible under applicable rules and regulations.
For Instance: Here you will see a form where you can gain a benefit by participating in a “Bargain Sale To a Charity” > This is most often done with Real Estate, Exopensive Boats , Expensive Automobiles , Cars and Motorcycles. ( For example, a member of your family has passed away, and has left a Motorcycle behind..) We’ll let you know whether or not we can help. Just fill out the form found here, and we will contact you with further information! Click here
4. What Are the Tax Benefits to Corporate Donors?
The IRS code provides for a tax deduction for property donated to a charitable organization such as Waste to Charity under applicable rules and regulations. For Corporate donors, tax deductions are usually limited to the amount of the donor’s tax basis in the property contributed. Confirm eligibility for the deductions with your own tax advisor. Warehousing and shipping costs are also tax deductible under applicable rules and regulations.
- Tax savings …up to twice the cost of donated products.*
- Free Coordination of the entire process- we help you all the way!
- Reduction of inventory handling and reverse logistics costs.
- PR Opportunities- we’ll work with your corporate communications director hand in hand!
- IMMEDIATE SERVICE. No Cherry picking: If your items can add value to our efforts, we will take all of them.
- Support for the communities where you do business!
5. What Can We Donate? We want every item of value in your facility. Don’t let the name fool you- You can donate just about anything- even Frozen Foods! Waste to Charity accepts a wide variety of items and can usually place useful equipment with one of its partner organizations around the United States. A list of common donation items might include: *Excess Inventory *Closeout Products *Irregular Clothing *Misprints *Close-Dated Foods *Obsolete Clothing *Customer Returns *Buy-Backs *Freight Salvage *Automobiles *Obsolete inventory. *RMA’s * X-Outs. *Irregulars. *Leftover products *Boats *Real Estate *Or any other Property of Value!
6. What are the Special Benefits to Corporations for Donations of Inventory?
Under IRS Section 170(e)(3), corporations which donate inventory (i.e. Property sold in the normal course of business) to certain charitable organizations, such as Waste to Charity, may receive an additional tax benefit. Section 170(e)(3) provides a deduction for corporate contributions of inventory as much as twice the donor’s adjusted basis in the property. For this benefit to apply, inventory must be donated to a public charity (such as Waste to Charity) that will use the property for the benefit of the ill, the needy or minor children. The charitable deduction for contributions of inventory (from a C corporation) will be the total of the donor’s tax basis in the donated inventory plus one-half of the difference between the inventory tax basis and its fair market value. This is limited to 200% of the inventory tax basis plus any incidental costs (i.e., shipping, warehousing) associated with donating the inventory. If the fair market value of inventory is less than the donor’s tax basis in the donated inventory then the charitable deduction should be equal to the fair market value. Consult your tax advisor for consideration of this option.
7. What is an example of a Tax Benefit from Inventory Contributed to Waste to Charity?
Assume the following facts: Inventory cost (basis): $1,000 Inventory fair market value: $1,800 Inventory appreciation: $800 Shipping costs: $75 Please note that the tax deductible contribution is further subject to 10% of the taxable income limitation of a C corporation. What is the computation of deductible contribution? Inventory cost (basis): $1,000 Added benefit of 50% of inventory appreciation (cannot exceed the cost): $400 Shipping costs: $75 Tax deductible contribution: $1,475
8. I’m not a company, can I still donate?
Yes! In fact, individual donors like you is what allows Waste to Charity to help so many people all over the country. Waste to Charity provides tax deductions based on fair market value for individual donors as well as large companies. Shipping costs are also tax deductible under applicable rules and regulations.
9. Sounds Good, But I still have a few questions. Where do I go for help?
First fill out this form or call, Fax or E-mail us. Our staff will promptly get you the answers you need. The Staff of Waste to Charity is here to help you! Our programs can work for you, whether your issue is misshipped inventory, Insurance Claim inventory, Scratch and Dent inventory, Missprints, misprints inventory, Factory Seconds inventory, Canceled Order inventory, refused Shipment inventory, And any other type of items, which used in the normal course of business are no longer effective in your sales system. 10. Waste to Charity will take the time to listen to your concerns, answer questions, and make this process easy! 11. You will be contacted by an experienced professional right away. Decision Makers are just a few questions away. YOUR PHONE CALLS WILL BE RETURNED! 12. The reconditioning, remanufacturing and refurbishing products; we have handled just about any commodity you can think of, and many you wouldn’t think of. 13. The disposition of Obsolete equipment; we have worked with any type of factory equipment, injection molding machines, forklifts, haulers, ramps, conveyer systems, ingredients, etc. Please note- we work with businesses only on these items- as we need to work in bulk! 14. The recovery of business assets. We have helped businesses with all types of Asset recovery including: equipment, facilities, vehicles or technology. We Accept forklifts, Pallet Racking, Conveyer Systems, Scales, and Just about any type of business or industrial equipment.
10. Who pays for shipping when Inventory is donated?
That’s a HUGE question. We have a limited freight budget, but at the same time, we want to provide the best service we can. If your company sets up a program which recycles assets on a regular basis ( even twice a year ) , and has a full truckload available, we can USUALLY set it up so that the donor pays nothing in freight.
In these cases, we might have to get creative, and that can take time. If your warehouse is bulging with excess , obsolete, or RMA inventory, contact us. If you’re in a rush- ship it out to us.