news > 15/02/2012 - Businesses – it’s Official - Doing Good Can Make You Feel Good!

Naomi Webb of E.O.N

New research carried out in America says 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.

With a record number of Americans living in poverty, product donations allow people to use their limited resources to pay for food, health care, prescription drugs, utilities and other vital needs.

The study, released by Indiana University's School of Public and Environmental Affairs, provides the first detailed examination of the return on investment for donating merchandise as opposed to liquidating or destroying it.

And at Giving World Online, we are urging businesses in England to do likewise and help the thousands of needy and vulnerable. 

And one huge British business which realises the importance of this is energy giant E.ON. who have recently donated items to Giving World Online.

Naomi Webb, the firm’s Employment Officer said: “In the long run it’s saved us paying storage costs for the surplus stock, which we otherwise wouldn’t use.

‘’There is also the added bonus of somebody else using it, when potentially in the future we would have thrown the stock away to save us having to pay the storage costs.’’

E.ON donated portfolios that were later used by the Nottingham YMCA to give to youngsters when they go for job interviews.

The company also gave away laptop bags, and they are being used by people as school bags and by disabled people to fit into their scoter to take shopping.

Justin Ross, assistant professor of public finance and economics and the lead researcher for the study said: ‘’This demonstrates that donating products can result in substantial financial and social benefits for minimal cost and risk."

"Additionally, working with a non profit that can match companies with charities lowers corporate costs associated with product philanthropy."

Findings include: 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 and product donation is superior to liquidation in most cases and the report provides a rule of thumb for firms wishing to make quick cost comparisons.

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.

Rarely is there such a win-win between business and social good.

For more information on the research collaboration and links to research findings, visit http://about.good360.org/productdonationresearch