Does your stock room look like this? Is your business in a dilemma as to what to do with goods that you just can’t shift? We’ve identified five ways in which retailers can benefit when they donate stagnant and unwanted stock to charity. What’s more there is an App that can help you achieve this quickly, easily and with no cost to the user.
#1 Create valuable space in your stockroom and save money on storage.
Judging how much stock to order each month can be a tricky business. Whether it is a sudden change in what’s trending or your demand forecasts were a little ambitious. It’s not uncommon for retailers to find themselves with excess stock that quickly gathers dust on stockroom shelves. This is often the case with seasonal products. An excess of plastic Christmas trees perhaps or a fast passing trend in fashion. Whatever the reason, the effects are the same – a cluttered stock room that can tie up capital and prevent a business from storing fresh stock. This can make your day to day operations slower to run. Not only that but depending on the levels of excess, retailers may even have to pay out more money for extra storage:
You go very quickly to almost bursting at the seams with product everywhere…we had to not just fill our own warehouses; we paid a premium to store it somewhere else because we didn’t have space for it. – James Merwin
By donating stagnant stock to charity, retailers will have the space to store high-performing products and free up more space to resume a more efficient work place. Decreased clutter will enable themn to fulfill orders more quickly, which may in turn increase customer satisfaction.
#2 Retailers can benefit from tax relief
According to Sleigh & Story Chartered Certified Accountants
Your business can get tax relief if it makes a gift of equipment or trading stock to a charity. You’ll be able to reduce the taxable profits your business makes by the cost of the gift made so you’ll pay less tax. This applies whether you’re in business as a sole trader, a partnership or a company… you don’t have to include anything in your sales income for the value of the gift. So you can reduce your business’s taxable profits by the full cost of the goods.
This is worth bearing in mind if a business is doing an office refurbishment or updating some equipment. As Sleigh & Story go on to say:
If you’re in business as a sole trader, a partnership or a company, you may be able to benefit from full capital allowances on the cost of equipment that you give to a charity. You must have used the equipment in your normal business activities for it to qualify, and it must be considered plant and machinery for capital allowance purposes – this could includes things like office furniture, computers and printers, vans and cars, tools and machinery.
The Gone for Good App can arrange free collection of large items so delivery doesn’t need to be an extra hurdle in the donation process.
#3 Help grow your Corporate Social Responsibility (CSR) program
We have already covered the benefits of incorporating CSR within an organisation, in a previous blog. Please see here for more details.
However, in summary, it can:
*Improve your public image
*Employees are more likely to choose you as an employer and stay with you for longer
*Clients will see you in a better light
*It can save you money
*It can improve your business connections
By encouraging staff, customers and suppliers to use the Gone for Good app retailers can have a wider social benefit. This can help to enhance a reputation, to the advantage of a business. It doesn’t need to be a “big bang” initiative; lots of people doing lots of little things over time can amount to a lot of “Impact”. Donating products helps make employees feel good about their workplace. Employees like working for companies that have heart. Seeing that their company is reaching out to help those in need is a great way to express that.
Gone for Good is able to quantify the value of goods donated to charities by your staff, so that you can include those figures in your Corporate Social Responsibility reports. This allows you to have an even bigger social impact than just cash fundraising and it takes little effort to implement.
#4 Ensure that you are providing a safe retailer work space
With languishing stock there comes the risk of increased clutter, heavily laden shelves & unstable piles of boxes. This can pose risks to the health and safety of yourself, your staff and your building. A document by The Royal Borough of Kensington & Chelsea states that:
Storerooms can be used for food, clothing, stationery, chemicals, and a variety of other items. If they are left to get untidy and cluttered the hidden hazards may pose a risk to staff who use the storeroom. It is important to regularly clear out any redundant equipment and to ensure shelves are secure and stacked properly.
#5 Help Reduce Landfill
A predicted 235m items of Britons’ unwanted clothing are expected to end up in landfill unnecessarily this spring, according to new research.
So, every item that can be reused and donated to charity can make a real difference to our environment.
We appreciate that the time and resources needed to organise donating unwanted stock to charity can put businesses off doing this and that sometimes the easiest option is to just throw stuff in the bin…
However, we have a solution!
Gone for Good is a smart phone App which can take the hassle out of donating surplus and unwanted inventory to charity.
Here’s how it works:
Take a photo.
Choose a charity from those available to collect in your area.
Upload a few contact details.
The charity will then contact you directly to arrange a time to come and collect your donation for FREE!
“We here at myswitchshop.com, believe in helping where we can. So, we decided the best way to help is to donate our discontinued lines and non-moving stock to charity. We’ve had it in our warehouse taking up valuable space. We then had to find an easy solution to donate. After a little research I came across the App Gone for Good. The App itself is very user friendly. I would recommend the Gone for Good App to anyone who is looking to donate, especially businesses who have stagnant stock that is taking up valuable space. myswitchshop.com will definitely be using the Gone for Good App again.”
Bina De Wilde, Business Development and Innovation, Retail at Cancer Research UK said:
With support from Gone for Good, even more companies will be able to donate goods to us, helping us to beat cancer sooner. Donations such as the one from My Switch Shop can raise hundreds, if not thousands, of pounds to fund our life-saving research.
Instead of leaving products to gather dust, Gone for Good will give them to people who really need them. It’s a great—and easy—way to make a difference in people’s lives.