NAEIR Gifts-in-Kind Organization Marks 40 Years of "Empowering Generosity"
Industry: Non Profit & Charity
NAEIR is a non-profit gifts-in-kind organization that collects unwanted merchandise from American corporations and distributes it to qualified non profits. www.naeir.org
Galesburg, Illinois (PRUnderground) January 30th, 2017
NAEIR, a non-profit organization that collects unwanted merchandise from American corporations and distributes it to qualified non-profits, schools and churches, is celebrating its 40th anniversary.
NAEIR—aka, the National Association for the Exchange of Industrial Resources—is the oldest gifts-in-kind organization in the U.S.
Since opening its doors in 1977, NAEIR has collected donations of excess inventory from more than 8,000 U.S. corporations large and small, including 3M, Rubbermaid, Crayola, Stanley Black & Decker and Oreck. To date, NAEIR has redistributed more than $3 billion in products to member non-profits.
NAEIR was founded by Chicago executive Norbert C. Smith, who was joined in the venture by his wife, Laverne. Their son, Gary C. Smith, became President and CEO in 1999, after joining NAEIR as warehouse manager in 1980.
“Product philanthropy is a win/win for everyone,” says Gary C. Smith. “Corporations receive a tax benefit for donating goods, and it’s the easiest way to offload unwanted inventory.”
“Meanwhile, not-profits and schools get access to new, in-demand goods to help the people they serve—for free.”
NAEIR’s roots are in the city of Chicago. The organization moved several times in its early years, as inventory rapidly grew and the need for warehouse space increased. In every case, the building was donated to the 501(c)(3) by a corporate donor. In 1986, NAEIR moved into its current home in Galesburg, a 450,000 square foot facility that was donated by Outboard Marine Corporation.
The average non-profit member receives $18,000 worth of free merchandise each year, paying only a modest membership fee and shipping and handling charges. Available stock is displayed through catalogs and on NAEIR’s website, NAEIR.org.
The most popular items include office supplies, maintenance items and janitorial supplies.
After all these years, there are few things that surprise Gary C. Smith. But one that does is how few corporations understand the tax ramifications of gifts-in-kind donations.
“According to IRC Section 170(e) (3), C Corps can receive a federal tax deduction equal to up to twice the cost of the donated products,” says Smith. “You can see the light bulb go on over people’s heads when we explain how it works.”
But best of all, says Smith, is the satisfaction that comes from knowing that you’re putting supplies into the hands of people in need.
