Reverse logistic professionals strive to minimize waste and maximize revenue as they process returns, discontinued products, and other items no longer being sold through regular marketing channels.
Typically, firms focused on reverse logistics sell products still in demand to third parties. Some of these products are then sold for re-sale at a discount, while other products are sold to be recycled. Some products that appear to have limited market potential either remain on shelves or are disposed of as waste.
One option that doesn’t get much attention is to donate the excess inventory.
Donating product may seem counter intuitive, but may be a practical solution to consider within the reverse logistics industry.
A few of the benefits:
• Provides tax benefits to all businesses and special tax benefits to “C” corporations
• Provides a public relations platform to publicly highlight the generosity of your firm
• Frees up warehouse space that can be used for more profitable purposes
• Provides marketing opportunities to highlight the importance of reverse logistics
• Reduces waste within the industry
America Responds With Love® has actively been working behind-the-scenes to utilize excess inventory. America Responds With Love provides resources to people and communities truly in need that are overlooked by others throughout the United States.
This national 501(c)3 non-profit organization has worked with the Reverse Logistics Association and member firms for more than twelve years and has been utilizing excess inventory for more than 27 years.
Students at Alabama State University help fix computers donated to America Responds With Love.
Key to the success of the efforts of America Responds With Love has been the ability to get the products needed in the quantities needed at the time of need to the places in need.
Members of the Reverse Logistics Association are encouraged to consider donating excess inventory and helping with the logistics and program service costs of America Responds With Love.
While you may never have heard of America Responds With Love, you likely know if its work. A few examples:
America Responds With Love acted as a back-up to the Town of Newtown at the time of its school tragedy. The community received more than 63,000 teddy bears and other stuffed animals from donors throughout the nation. A local real estate company donated the temporary use of a 20,000 square foot warehouse to store the stuffed animals and other donated products. At the end of the three months, the warehouse needed to be cleared out. Yet, 21,000 stuffed animals remained in this temporary warehouse. America Responds With Love handled the logistics and program services to move all of the excess inventory out of Newtown. The non-profit organization then utilized the stuffed animals to provide comfort and joy to abused children, domestic violence victims, and others truly in need. Communities were helped from Aurora, Colorado, to Austin, Texas, and from The Bronx in New York to Wilmington, Delaware.
School children at an assembly in New Jersey were among the thousands that received stuffed animals from America Responds With Love. A few of the stuffed animals provided to people truly in need in Aurora, Colorado.
Five shelters for women and children were destroyed when Hurricane Katrina hit the Gulf Coast. Other shelters, while not destroyed, were devastated during the storms. It was America Responds With Love that provided the logistics and program services to move truckloads of furniture from Washington State and Chicago to restore operations in communities from New Orleans and Saint Bernard to Mobile and Pascagoula. Mattresses from Long Island were moved by America Responds With Love from Long Island to Gulfport, via Atlanta, to help those that could not sleep on cots – for example, pregnant women and elderly people with severe health conditions. Refrigerators were moved into place by the non-profit organization from a business in Iowa that had donated the products via New Orleans.
Furniture was moved from Chicago and Washington State by America Responds With Love to help restore services at shelters throughout the Gulf Coast.
The Holiday Season always brings tourists to Times Square in the City of New York. A major consumer products company ran a promotion for a few years where it offered free public toilets in Times Square during this important retail season. The public toilets were stocked with products from this major consumer products company. At the end of the promotion, between Christmas and New Years Day, the subcontractor hired by the firm needed to clear out all of the remaining products. That meant more than 27,000 tampons needed to be moved out of Times Square. America Responds With Love handled the logistics and program services to move the tampons out of the City of New York and into 34 distribution sites within the State of New Jersey. Among those helped through the non-profit organization were domestic violence victims, homemakers, women with AIDS, and others truly in need.
What do you do with 9 million flower bulbs?
Well, if you’re America Responds With Love, you figure out the logistics and program services to get the resources to communities truly in need. The non-profit organization has been able to utilize this excess inventory to help restore landscapes and enhance the environment in communities throughout the nation. From Moore, Oklahoma, and Joplin, Missouri, to Tuscaloosa, Alabama, and Union Beach, New Jersey, public parks and schools devastated by tornadoes and hurricanes were restored through the efforts of America Responds With Love. Beyond communities hit by disasters, there are many communities that have been helped by the non-profit organization simply because they were truly in need. These communities ranged from Los Angeles to Philadelphia and many in between. Three interstate highways – Interstate 10 in Mississippi, Interstate 49 in Louisiana, and Interstate 76 in Pennsylvania were landscaped in portions by America Responds With Love.
Some of the 9 million flower bulbs donated by America Responds With Love to restore landscapes and enhance the environment.
Not every project is large-scale. Some are rather modest. For example, America Responds With Love provided 45 books detailing the history of San Diego to young people and libraries in San Diego. These books were part of 4,000 books donated by a publishing house in South Carolina.
Businesses that donate excess inventory of products are able to get tax deductions for the fair market value of the donated products as well as for the shipping costs and the costs for logistics and program services provided by the non-profit organization.
“C” corporations get an extra benefit. “C” corporations have the ability to take up to twice the costs of their products if the excess inventory is donated to charities like America Responds With Love. In addition, shipping costs and the costs for logistics and program services provided by the non-profit organization are 100% tax deductible. “C” corporations can utilize this extra benefit for up to 5 years.
LLCs and other businesses are able to get tax deductions for 100% of the costs of their products. Transport of the donated products and the costs for logistics and program services provided by America Responds With Love are also 100% tax deductible.
As with any aspects of taxation, member firms are encouraged to check with their accountants to determine which tax benefits are available to your specific firm.
Some of the books donated by America Responds With Love to a school whose library was destroyed in an arson fire.
America Responds With Love could provide the logistics and program services to utilize a wide variety of products. Almost every product that members of the Reverse Logistics Association process, manufacture, distribute or retail could be utilized by America Responds With Love.
You can view details about America Responds With Love at their new website (in the process of being expanded) at: americarespondswithlove.org
In addition, you can also view additional details about the non-profit organization at its legacy website (which is in the process of being updated). This website includes more than 1,100 webpages that detail charitable activities of the non-profit organization through the years. It can be viewed at: respondwithlove.org
This is the site of the Respond With Love Flag Garden. Excess inventory of thousands of American flags were donated by a cemetery and re-utilized in public gardens and in thank you letters to active-duty military personnel and military veterans.
Since 1989, America Responds With Love has received excess inventory of a wide range of products from third-party logistics firms, retailers, manufacturers, distributors, wholesalers, governmental entities, and other organizations through the years. The non-profit organization has utilized this excess inventory to help people and communities truly in need that are overlooked by others.
Beyond products, America Responds With Love can also utilize empty space to store products as well as utilize back-haul routes to transport products.
Excess inventory of water and ice were donated by a Houston firm for use in rural Louisiana.
If you’re interested in considering this aspect of reverse logistics, please contact Richard McDonough, President and CEO of America Responds With Love. He can work with you on the details regarding specific products, storage, transport, and logistical and program services funding from your firm. The organization operates in 28 states from coast to coast, including in Arizona, Arkansas, California, Colorado, Delaware, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Missouri, Montana, Nebraska, Nevada, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Virginia, West Virginia, and Wyoming. Additional states can be added.
Mr. McDonough can be reached at email@example.com as well as by telephone at 1-321-AMERICA (1-321-263-7422).
Richard McDonough is President and CEO of America Responds With Love, a national non-profit organization operating in 28 states from coast to coast. Since 1989, the organization takes products and services not needed by anyone else and utilizes those resources to help people and communities truly in need throughout the United States. Within the reverse logistics industry, America Responds With Love has utilized a wide variety of products - from computers and electronics to stuffed animals and books. McDonough has been honored for his civic efforts by both Presidents Ronald Reagan and George H. W. Bush as well as by the American National Red Cross, The Salvation Army of New York City, the City of Raleigh, and the National Conference of Christians and Jews.