Donations In-Kind
A donation in kind is where a product, equipment or capacity of a business is donated to a charitable cause (usually local). This can vary from imperfect stock, to spare or overproduced stock, old equipment, low cost office space or spare transport capacity.
This can help save the need to throw away or clear out items at low prices; whilst helping good causes. This type of donation usually requires more thought than a financial donation, but can be extremely useful to good causes at little cost to your business. It is important however to check with the charity or scheme that your donations are needed.
There are some organisations that collect donations of new goods, and distribute them to worthwhile causes; if you are unsure of a cause to donate to, these could help see your contributions are given to those who will benefit.
Examples of Donations In-Kind:
1. A business upgrades its computer systems, and donates the old computers and printers to a charity collection organisation.
2. A sandwich makers often ends up with spare products and a number of items that are slightly imperfect; and offers these to the local homeless shelter at the end of each day, rather than throwing them away.
3. A toy manufacturer produces a number of items with minor cosmetic flaws; and donates these each month to a local children’s charity.
4. A Nationwide Haulage Delivery company always has half empty Lorries on Fridays, and offers the spaces to charities that need to send goods between branches or to distant locations; saving them transport costs.
Donating Time
This is where your business donates employee time to local charities, allowing an employee(s) to carry out work on behalf of the charity, using either free time off, or whilst being paid for by you. This could mean a week each year, or maybe one day a month; depending on the needs of the charity and your schedule.
This can provide a charity with valuable extra help, allowing them to do more work without having to pay for extra staff or attracting volunteers. Although you lose employee time, you can help organise the ‘donations’ for when your business is quiet or usually overstaffed; this way it is costing you less as the absent employees will not hinder your business.
Allowing your employees to use some of their time to help charities can help improve their skills, but will need careful planning to make sure you are not left short of staff.
Useful Links
Inland Revenue Charity Information
Details of Payroll Giving organisations
Some Worthwhile Causes
The British Red Cross
