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Inventory Donation Tax Benefits

Donate Smart - Double Your Deduction

Not All Donations Are The Same

Typically, when you dispose of excess or unused inventory you can only deduct its cost. Donating is usually better, as organizations can instead give you a tax receipt for the Fair Market Value of the donation

WIN, however, doubles the benefit of your donation by qualifying for a special rule by the U.S. government. Donations to WIN may allow your organization to claim the inventory’s cost plus half the difference between cost and fair market value up to twice the cost, or a double tax write-off.

Donating vs Liquidating
Reduces Gross Income

Donating goods is considered a loss by the government, reducing your gross income so you pay less in taxes. This tax benefit is often MORE than the income you’d get from liquidating.

Adds to Gross Revenue

Liquidating goods results in added revenue, so you pay more in taxes. This added revenue from these goods is often LESS than the tax return you’d get from donating them.

200% Tax Deduction

C Corps can receive a federal tax deduction equal to up to 200% of the cost (basis) of the donated products.

5-8% Return on Goods

Liquidators will often pay only 5-8% of retail value.

Help Others in Need

Donated goods create real benefits for the nonprofits that receive them.

Positive Brand Perception

Liquidating goods can harm a brand by devaluing it in the eyes of consumers.

Positive Brand Perception

Companies that are involved with charities are often perceived better by consumers.

Nothing to Boast About

Liquidating goods does nothing to differentiate a brand from its competitors.

Donating vs Liquidating
Reduces Gross Income

Donating goods is considered a loss by the government, reducing your gross income so you pay less in taxes. This tax benefit is often MORE than the income you’d get from liquidating.

Adds to Gross Revenue

Liquidating goods results in added revenue, so you pay more in taxes. This added revenue from these goods is often LESS than the tax return you’d get from donating them

200% Tax Deduction

C Corps can receive a federal tax deduction equal to up to 200% of the cost (basis) of the donated products.

5-8% Return on Goods

Liquidators will often pay only 5-8% of retail value.

Help Others in Need

Donated goods create real benefits for the nonprofits that receive them.

Positive Brand Perception

Liquidated goods offer no benefit beyond a relatively small monetary gain.

Positive Brand Perception

Companies that are involved with charities are often perceived better by consumers.

Nothing to Boast About

Liquidating goods can harm a brand by devaluing it in the eyes of consumers.

This is because the goods you donate aren’t sold – they are used. When you donate to WIN, your excess inventory ends up in the hands of nonprofits to help them further their mission. Take a look at some of the amazing things WIN members have already accomplished.