Excess inventory can become a growing challenge for corporations, as slow-moving, discontinued, or surplus products take up valuable space and incur storage costs over time. Rather than liquidating inventory at a loss or paying to dispose of it, businesses can donate those products to nonprofit organizations and receive several benefits in return.
Significant Tax Savings
Donating excess inventory makes financial sense. S corporations can deduct the cost basis, and C corporations can claim up to twice the cost basis. C corporations can see how much they could save with WIN Warehouse’s donation tax benefit calculator(opens in new tab).
Reduced Storage Costs
Inventory carrying costs, also known as holding costs, represent the total expense a business incurs to store unsold inventory. This typically accounts for 20% to 30%(opens in new tab) of a company’s total inventory value each year. By donating excess products, businesses can alleviate these expenses.
ESG Reporting Benefits
Many companies use ESG reporting(opens in new tab) to disclose sustainability efforts and governance practices. Donating excess inventory supports these initiatives by reducing landfill waste, conserving resources, and demonstrating responsible business operations. These scores, which aid investors and stakeholders, also attract socially conscious investors, consumers, and potential employees.
Positive Community Impact
Donating excess inventory gives businesses the opportunity to support nonprofit organizations that help people in need. Through WIN Warehouse, donated products are sorted, cataloged, and made available to nonprofits nationwide. In turn, nonprofits can dedicate more resources to serving their communities.
Turn Overstock Into Opportunity
With WIN Warehouse, you can turn your excess inventory into a force for good. Here’s how it works. First, corporate donors(opens in new tab) save warehouse space and get tax deductions by donating excess inventory to WIN. Then, nonprofit members(opens in new tab) across the country have access to these products at up to 90% off the retail price. In the end, by saving money, nonprofits can make an even greater impact.
Fill out our form(opens in new tab) or give our team a call at (314) 385-3006 to get started!