“The Business Case for Product Philanthropy,” a 63-page report published Indiana University School of Public and Environmental Affairs “evaluates the business case for product philanthropy and provides managers a framework for analyzing the costs, benefits, risks, and opportunities of implementing a product philanthropy program in their own operations.”
Considering that the AAFRC Trust for Philanthropy estimates that 60% of $15.9 billion in corporate donations to charity made in 2010 were gift in-kind (GIK) or $9.54 billion, it’s pretty likely that many corporations have already done their own evaluation.
“The Business Case for Product Philanthropy,” report includes the following sections to help make a well-reasoned case:
- Executive Summary
- Introduction
- Why Do Businesses Give?
- The Role of GIK Intermediaries
- Cost-Benefit Analysis of liquidating, disposing or donating inventory:
- Tax Benefit of Donating Product
- Logistics
- Broader qualitative advantages of donation
- Signaling positive corporate values
- Attracting customers
- Employee engagement
- Attracting new talent
- Cultivating a business friendly environment
- Attracting investors
- Return On Investment Analysis: Cash v. Product Philanthropy
- Socio-Economic Impact of Product Donation
The report concludes that: “Overall, the business case for product donation demonstrates such programs can result in substantial financial and social benefits for minimal cost and risk.”
NOTE: If you think tax calculations and mathematical equations are super sexy, then you will looooove this report – it’s chocked full of them. Thankfully, it also translates complicated information into a user-friendly format (to some degree) that includes examples. Worksheets also offer business managers assistance in calculating ever-important cost-benefit analysis and ROI.
Here are links to several Gifts In Kind Intermediary Organizations, should you choose to further explore this strategic corporate social responsibility opportunity:
Good360 (formerly Gifts In Kind International)
The Good360 mission is to fulfill the needs of nonprofits with corporate product donations. Good360 is driven by a vision that demands constant innovation, leveraging the latest technological and social networking developments to create new and engaging online solutions that strengthen nonprofits and expand corporate citizenship. By:
- Providing product resources that help nonprofits meet their mission
- Helping companies give back to the communities where they live and work
- Helping individuals increase the impact of cash contributions that help ship donated products to qualified charities
- Creating corporate, nonprofit and environmental “win-win” outcomes for unsold products and excess inventory
- Keeping products from going to landfills and instead, getting a second life with those who need
MedShare is a nonprofit organization dedicated to improving the environment and healthcare through the efficient recovery and redistribution of surplus medical supplies and equipment to underserved healthcare facilities in developing countries.
Medshare shipments of medical supplies and equipment have brought healing and the promise of better lives to more than 85 countries and countless patients. MedShare is a top ranked charity by Charity Navigator, and is headquartered in Atlanta, Georgia, with a second distribution center in San Leandro, California.
KIDS (Kids In Distressed Situations)
Since its inception in 1985, K.I.D.S. has provided 67 million underprivileged and disaster-struck children with over one billion dollars of NEW clothing, toys, basic necessities, juvenile products, books and much more. The donations of new products are distributed through an established network of nearly 1,000 local community social service agencies in the U.S. and abroad. K.I.D.S.’ efforts reach youth, age 0-18, and their families who are challenged by poverty, homelessness, domestic abuse, low literacy, military family service, major illness, incarcerated family members and disaster survival.
