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The National Association for the Exchange of Industrial Resources (NAEIR), Galesburg, IL, offers a solution to garment screen printers who have overcrowded warehouses but don’t want to liquidate overstocked products at low rates or count them as losses. The solution, free of charge, allows companies to rid themselves of new product overruns, returns, or usable seconds and increase their net profit by invoking tax exemption 170(e)(3).

According to NAEIR, the exemption allows for regular (C) corporations to deduct the cost of the inventory donated, plus half the difference between the cost and fair market value, up to twice cost. Other corporations, such as S-corporations, partnerships, and sole proprietors are eligible for a straight-cost deduction. The deduction has been available since 1976, and since NAEIR’s founding in 1977, more than 7000 large corporations have donated more than $2 billion in inventory to the organization.

According to NAEIR, donated products will only be distributed to 501(c)(3) non-profit organizations, which eliminates concern about flooding the donors’ markets. NAEIR accepts donations of new, overstock merchandise, and then provides the proper tax documentation. Donated goods are redistributed to more than 9500 qualified schools and non-profit organizations nationwide. For more information, contact NAEIR, 560 McClure St., Galesburg, IL 61401, 309-343-0704, fax: 309-343-0862, e-mail:, Web:

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