What We Do

What We Do (and Do Better): Inventory to Donations for Both Publishers and Product Companies

Celnik Inventory Solutions (CelnikIS) administers a corporate donation program to IRS-recognized charities. Under Internal Revenue Code (IRC) Section 170 (e) (3) publishing companies/corporations may receive a tax deduction equal to manufacturing costs by donating inventory to charities that serve the needs of ill, needy, and infants. 

PUBLISHING COMPANIES

In the case of publishing companies, the deduction — known as the twice cost deduction — is equal to twice the cost of paper, printing, and binding (PPB).

Tax Deduction

You can receive a tax deduction OF up to two times the cost of your donation. For regular C corporations, your deduction is equal to the cost of the inventory donated, plus half the difference between the cost and fair market-selling price, not to exceed twice the cost. But don’t just take my word for it; consult your tax department.

The special incentive permits not only the cost of a donated item to be deducted, but also 50% of its appreciation, with an upper limit of twice cost as a deduction. This would mean that an item costing $2.00 which sold for $6.00 would allow the $2.00 cost to be deducted as well as 50% of the $4.00 appreciation, or an additional $2.00 for a total deduction of $4.00. If the item sold for $7.00, the deduction would still be limited to $4.00, which in this instance, is also twice the donated item’s cost.

PUBLIC RELATIONS ADVANTAGES

In addition, there are significant public relations advantages to participation in a corporate donations program including:

  • Increased social awareness of the corporation and cause
  • Enhanced media spotlight
  • Fulfillment of corporate responsibility
  • Affirmation of company culture and ethics

CELNIKIS ADVANTAGES

  • CelnikIS’s recipient network is global and covers an extensive scope across all industries, including non-profit and faith-based organizations.
  • CelnikIS carefully matches the available inventory from corporations and trade publishers (elementary/high school, college, and professional) to the prospective charity recipient, ensuring that they meet all required prerequisites.  
  • CelnikIS exhaustively investigates prospective recipients to determine if they qualify, as per the IRS code.
  • CelnikIS does not accept any fees from recipients, maintaining program integrity, and our commitment to the business, publisher or corporation.
  • CelnikIS gives you peace of mind, knowing that all donated materials will be used legally and appropriately to achieve the full potential of your tax benefit with valid documentation available for IRS audit.

Product Manufacturers

In addition to publishers, CelnikIS also matches the available inventory from producers of art materials, paints, clothing, footwear, scientific equipment and material, toiletries, sports gear and equipment, and electronics.

We continually monitor and review all selected recipients for their continuing eligibility on an annual basis, including:

  • Assure corporate specifications and any limitations you set are strictly adhered to by recipients
  • Ensure all inventory donated will not be transferred by the recipient for money, other property, or services
  • Confirm that all donated materials will be used legally and appropriately so that your company will achieve the full potential of the tax benefit. We will maintain documentation of the donation and retain it to address an IRS audit properly, should the need arise.
  • Arrange for proper documentation, transferring title of inventory from the donor to the recipient.
  • Require recipients label all inventory Not For Resale(as per IRS code) in the United States before re-distribution.