How to Dispose of Your Excess Inventory

Even the janitorial industry needs to do its own spring cleaning. When you find yourself with excess inventory you simply can’t put to use, what do you do with it?

Do you sell it to a liquidator? Do you try to resell it online at one of the many marketplaces?

As you know, this takes hard work, and you really get back just a small return for your effort. In business terms, it doesn’t make much sense.

Have you ever considered an alternative idea, like donating your excess inventory to your favorite local non-profit?

Yes, you get a tax deduction for that. But think of the many other additional benefits also:

1. Improve Your Local Reputation

What’s your company without a good reputation? You can raise awareness that you’re the kind of company who cares about everyone in the area.

This can get you good, personal public relations. It may not lead to additional clients right away, but you might have a few who come in later on.

2. Win Greater Employee Engagement

Employees, and especially Millennials, like to work with companies who show more interest than only in the bottom line. Since they like your company more, they serve you and your customers better.

That strengthens your position in the marketplace. It also reduces turnover if you show you have a serious long-term commitment to this.

3. Save Your Company Time

Whatever method you use to eliminate your excess inventory currently takes more hard work than simply donating to charity. “Gifts-in-kind” nonprofits actually administer this process for dozens of clients so it’s easy for them to eliminate mass amounts of excess stock.

4. Reap A Little-Known Tax Reward

IRS tax code 170(e) (3) actually allows you to deduct up to twice the cost of your inventory if you’re a C-corporation and you donate to charity. If your product costs $15, and stores sell it for $30, you can add back in half the difference between your product’s cost and the retail price.

The difference in this case is $7.50. So, add that to your product cost of $15.00 to get a $22.50 deduction.

5. Benefit from Helping Those in Need

This is what it’s all about, isn’t it?

What seems to you like no big deal could actually be a huge thing for an organization or person in need. Some nonprofits have to decide if they can turn the air conditioning on. Or, they may constantly turn the heat down during the winter. You don’t know what a box or two of cleaning supplies really means to them.

If they in turn donate goods directly to people, those people may be grateful because they live in a messy house and don’t have any money to buy even basic necessities.

So while you and your company may not struggle with the basics, there’s actually a great chance someone else does.

And you feel great and they feel awesome too because you’ve helped them meet their needs.

So, whether you’re a C-Corporation or not, consider donating your excess cleaning stock to nonprofits. There’s so many wins to be had!

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