Waste To Charity’s Reverse Logistics Service Inventory Recovery by Donation
Quick Q & A About Inventory Donations:
1. Does Waste to Charity charge for its services?
No, the Waste to Charity does not charge donors or partner organizations 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. Look up Waste to Charity on the IRS Website.
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. Just fill out the form found here, and we will contact you with further information!
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!
• Support for the communities where you do business!
5. What Can I Donate?
Almost Anything but Trash!
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): $2,500
Inventory fair market value: $4,500
Inventory appreciation: $2,000
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): $2,500
Added benefit of 50% of inventory appreciation (cannot exceed the cost): $925
Shipping costs: $75
Tax deductible contribution: $4,000
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!
Disclaimer: We are not Tax attorneys, and that being said: we are not YOUR Tax Attorney. Data is provided for educational purposes, and any time you are considering a donation, we reccomend consulting a professional.
Also IRS Laws are subject to change: visit IRS.gov