West Collingswood, NJ, 25th March 2009. It’s often unusual to think of a charity as something that can help to contribute to a business bottom-line during a recession but with changing times come new opportunities for corporations to improve the value of assets on their books while reducing their overheads and tax liabilities.
Project Educate Africa is one charity looking to make a difference by giving something back to its corporate donors. By partnering with the Ormita In-Kind Donations Program, the organization is offering corporations who donate goods or services with tax deductions up to full-market value.
Project Educate Africa is a non-profit organisation which aims to build libraries, provide educational opportunities and increase literacy rates for the population of Southern Nigeria. Besides direct donations of much needed books, computers and educational materials Project Educate Africa, via Ormita, will soon be able to accept almost any type of product or service offered to them, and reward donor businesses appropriately.
"Businesses are always looking for an additional way to increase customer loyalty, create goodwill and publicity," says Jim Gielarowski, Partner of Ormita USA. “By making an in-kind donation to Project Educate Africa a business reduces their idle production time, increases staff loyalty, creates goodwill and publicity and receives a direct tax benefit to their bottom-line.”
Ormita acts as an official “marketplace”
SUMMARY OF BENEFITS TO DONORS
Donor businesses benefit in the following ways:
- Directly improves the companies bottom line by reducing their overall tax liabilities
- Recovers value from their idle capacity, surplus stock and unsold time
- Takes their excess product off-market while providing them with full tax-deduction value for their product
- Creates savings in warehouse space and disposal costs
- Continues the spirit of giving during difficult times
- Earns them recognition as a Socially Responsible Corporate Citizen
- Helps fulfill their philanthropic and social welfare goals.
- Translates into goodwill with staff, suppliers, shareholders and customers
ACCEPTING IN-KIND DONATIONS
Unfortunately, due to lack of storage capacity, issues with handling, inappropriateness of the donated item or other logistical issues, many non-profit organizations turn away a constant supply of substantial in-kind donations, most of which end up in landfills. Even if an item is accepted for onward sale donors need to know that their product is not going to end up on-sold to a competitor or an existing cash customer.
As a participant in the Ormita In-Kind Donations Program, Project Educate Africa is provided with an off-market environment for the exchange of donated goods and services. Donors can specify restrictions on offered goods and, in some instances, may receive the additional benefit of creating brand awareness in new markets that they are not currently active in.
“While some donated baby car seats or food items may not be particularly useful to us, they can make the world of difference to another charity,” says Rev. Mike Ezeatu, Founder and President of Project Educate Africa. “In-turn, other non-profit organisations may also have access to goods and services that we need. With 100% of all of our donations going to those in need it simply makes good economic sense for us to expand our network of collections and trade.”
Ormita provides its service free of charge to non-profit organisations and their donors and has also enrolled the Gahanna American Legion Post 797 and The Foundation for Development Cooperation as foundation partners, amongst others.
“There is 9.6 trillion dollars in unsold or under-utilised inventory and capacity going to waste across the globe every day,” says Mr. Gielarowski. “By harnessing just a small fraction of this, charities such as Project Educate Africa can reduce their overall cash outlay and give back even more to their communities.”
