How does a business quickly take care of its excess inventory problem, take an up-to twice-cost federal income tax deduction, and do it without going through liquidation? One solution is donating products to the U.S. non-profit National Association for the Exchange of Industrial Resources.
A business first contacts NAEIR (http://www.naeir.org) and gets approval on its donation. “Upon approval you just send us all your underperforming SKUs, discontinued models, seconds, buybacks, returns, and any excess inventory you need to eliminate,” explains President/CEO Gary Smith. “Then from our massive warehouse in Galesburg, Illinois, we will carefully control the distribution of your goods to worthy, pre-screened schools and nonprofits nationwide.”
Appliance OEMs like Salton are making use of NAEIR. Association literature says that using NAEIR fits with Salton’s philosophy of “helping deserving causes while taking care of business.” Salton VP of Sales Keith Hamden says the tax deduction they get from a NAEIR donation is a better value than going through liquidators to eliminate excess inventory.
In the second quarter of 2009 NAEIR received several donations from the appliance industry, including Wahl clippers from Spectrum Brands and health care products from personal care appliances producer Kaz, Inc.