The Bottom Case for Product Philanthropy

Featured In Social Research Digest - January 2012 Summary The study provides the first detailed examination of the return on investment for donating inventory as opposed to liquidating or destroying it. In addition to providing an economic justification for retailers, manufacturers and distributors to donate excess merchandise, the report gives managers a framework for analyzing the costs, benefits, risks, and opportunities of implementing a product philanthropy program. Key Findings Businesses can do well by doing good through product philanthropy. Donating products to charities helps corporate bottom lines, reduces waste in landfills, and provides relief for people in need. Product giving presents a considerable financial advantage over cash donations because it can carry an enhanced tax deduction. Product donations can provide the same image enhancement benefits as marketing and advertising programs and at a lower cost. Companies that engage in product philanthropy avoid fees and negative branding implications associated with disposal of excess inventory. Product donation is superior to liquidation in most circumstances, and the report provides a rule of thumb for companies wishing to make quick cost comparisons. Author(s) Indiana University Source PDF report

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