Corporate Donations

Manufacturers, retailers, and wholesalers of children’s products (including school supplies) work with us to reduce the cost of carrying extra or outdated inventory. Many of our corporate partners tell us that they just don’t like to see goods gathering dust on shelves when there are children out there who could really use those goods. In many cases, this kind of corporate vision and generosity generates tax savings. Federal tax law provides very favorable tax treatment for a donation by a corporation (other than a Subchapter S corporation) of inventory for distribution to children. The deduction is computed as the lesser of (a) the donor’s adjusted tax basis of the items plus one half of the difference between the basis and fair market value, or (b) 200% of the tax basis of the donated items.Please consult your tax adviser for more information about the tax advantages of donating goods to Cradles to Crayons.