frequently asked questions
How do I receive a distribution from Agape Inventory Donation's (A.I.D.) inventory?
The best way is to complete the online application on this site. If you have a copy of your IRS determination letter you can upload it will your membership application for faster processing. Once your free membership is verified and on file in our system - you can order items online. If you are in the St. Louis area, you are always welcome to visit the AID warehouse during our regular hours of operation. You can also fax your requests/purchase orders to us and we will ship your merchandise as soon as possible.
How much does a membership cost?
Your membership is 100% free. AID was founded upon this principle so that organizations of any size or budget to take advantage of donated distributions. The only costs associated with membership are a shipping and handling fee. This enables us to keep the warehouse.
How soon will I receive our AID distribution?
Most distributions ship from our warehouse within 1-2 business days of placing your order. Larger distributions can sometimes take a little longer. If you have any questions regarding a specific product or order, feel free to call us, emails us, or fill out our contact form.
What if I don't have a copy of our IRS Determination Letter?
We use Guidestar as a service to verify the non-profit status of organizations. If your organization is registered with Guidestar, you can search on their site to find your organization’s FEIN and Determination Letter. Understand that you must be authorized to receive merchandise on behalf of your organization. As standard practice, AID may require additional verification such as a letter on official letterhead from a listed agent of your organization advising the names of individuals authorized to receive merchandise. You can search Guidestar’s database here.
What does an IRS determination letter look like, and how can I verify Agape Inventory Donation's (AID) non-profit status?
To view or download the IRS Determination Letter for AID click here. You can also view Guidestar’s reports on AID here.
Why do you charge a shared management fee?
Unlike most non-profit organizations, AID does not spend any money or investment into fundraising to cover expenses. AID also does not charge membership fees so that non-profits of any size or budget can receive donated distributions. Instead, AID charges a small shared management fee (sometime's refereed to as a handling fee) based on the value of the respective merchandise. It is always less than one third of the retail price, and most times much less.
How long does it take to be approved?
During regular business hours, new members can be approved in as little as 1-2 business days- given that we have all the proper information and screening completed. After business hours, approval is usually the next business day or so. To expedite approval, make sure that you represent a qualifying non-profit organization; that you are indeed authorized to receive donations on behalf of your organization, and you have a copy of your organization’s IRS Determination letter. If you need immediate assistance during normal business hours, feel free to call us directly. For more information on free memberships click here.
I would like to order items that require freight shipping (in excess of 150 lbs). What are my options?
Although AID does not directly handle the freight shipping of your distribution, we do recommend FreightQuote.com based upon feedback from other clients, and our personal experience. AID will provide all of the information you need to use any third party shipper. We ask only that you coordinate the shipping date and time in advance so that we can have your distribution packaged and ready to go.
When will you receive more product?
AID is dependent on its corporate donors to send the items which are distributed to not for profit organizations. A few donors send on a regular basis, but most send excess inventory only a few times each year. Each shipment may not contain items which you have received from AID in the past. AID is not able to “back order” any items, and maintaining a waiting list is not feasible for us or for your organization. Please check with us periodically to see if we have the items you are looking for. Also- refer to our updated catalog online to see what items are available.
I am an individual or work for an organization that is not a registered non-profit. Can I receive products from AID? AID is a 170(e)(3) public charity whose mission is to connect non-profit organizations with excess corporate inventory. Because our status as a charity hinges upon this stated mission, an organization must be a non-profit organization as recognized by the IRS. Individuals requesting distributions of donated materials through AID must be authorized to receive donated materials on behalf of their organization. For more information on free AID memberships click here.
Is there a charge for this service? How does AID operate?
There is no charge to donors for AID’s services. AID does not solicit monetary donations or grants. AID charges it’s not for profit partners a very small fee to cover expenses. This shared management fee is based on a valid and objective valuation of the donated items. With this fee, AID is completely self-sufficient and able to serve hundreds of charities, many of which depend heavily on AID.
Who pays the shipping when excess inventory is donated to AID?
The donor is responsible for the tax-deductible cost of delivering the donation to the AID warehouse centrally located in St. Louis, Missouri.
How is the donation process started?
The donation process is very easy. Simply send AID an inventory list of items to be donated. AID's policy is to accept all donated items promptly with no “cherry picking” or delayed shipments. AID will fax an acceptance letter within 24 hours and follow up to arrange a mutually convenient shipping date.
What are the advantages of donating versus disposal?
When inventory is scrapped only the cost may be deducted for tax purposes. Donation to AID allows a tax deduction of cost plus half the difference between cost and fair market value up to twice cost, a double tax write-off.
What are the advantages of donation versus liquidation?
Sometimes donation can be more profitable than liquidation. A corporation’s finance department or tax staff should analyze its numbers of cost, fair market value and tax rate. The “break even” point is where donation and liquidation earn the same amount of benefit. Money received from liquidation – which is a sale of the product and is a very low percentage of cost – is taxable income which should be considered in tax analysis. Also consider the following intangible costs:
Who determines Fair Market Value?
The IRS defines fair market value as the price that would have been received had the taxpayer sold the contributed property in its customary market. This may be tricky, as the price may have changed due to factors such as obsolescence or decrease in demand. AID recommends that you contract with an appraiser experienced in asset donation to offer you indemnity. AID can refer such an appraiser for asset valuation upon request.
What happens to merchandise after it is donated?
Upon receiving donated items, samples are displayed at the AID warehouse and some items on this web site. Items are available for pick up for local St. Louis area charities and shipment to national and international charities. AID maintains relationships with a number of missionary organizations which supply humanitarian aid, and as much as is feasible is sent offshore. AID’s local marketing efforts focus on poorer charities, which is why AID charges a very minor shared management fee instead of annual membership fees. After all, if an organization can afford the expensive membership required by other distributing charities, they can probably afford your product.
How do charities qualify to receive donated items from AID?
All charities must have a tax-exempt letter on file with AID to substantiate their not for profit status. They must also sign a statement that donated items will be used solely for the care of the ill, the needy, or infants in accordance with the provisions of IRS Code 170(e)(3). Accordingly, they agree not to exchange donated items for money, other property or services.
My company is organized as an S Corporation. Can I benefit from a donation to AID?
Under the IRS regulations, only C Corporations can directly receive the additional deduction (the amount above the cost) for donations of excess inventory. Nevertheless S Corporation's are still eligible for a standard deduction of up to 100%.
My company is carrying a loss from prior years, or has a loss or minimal profit in the current year. How can we benefit when the IRS restricts the allowable deduction to 10% of our taxable income?
First, consider carrying the deduction forward. The IRS allows you to carry an unused deduction forward for up to five years. Also, the process mentioned in the paragraph above for S Corporation shareholder is also available for C Corporation shareholders. We would be happy to discuss this with you.
Why donate to AID instead of a local charity?
If a local charity has need of your product, consider the local charity. However, consider what AID has to offer:
Why donate to AID instead of another charitable intermediary?
Consider the following:
AID offers prompt reporting and professional service
No “cherry picking” – AID’s policy is to take all kinds of merchandise.
Prompt communications – AID will issue an acceptance letter within 24 hours of receiving an inventory list of a donation proposal.
The best way is to complete the online application on this site. If you have a copy of your IRS determination letter you can upload it will your membership application for faster processing. Once your free membership is verified and on file in our system - you can order items online. If you are in the St. Louis area, you are always welcome to visit the AID warehouse during our regular hours of operation. You can also fax your requests/purchase orders to us and we will ship your merchandise as soon as possible.
How much does a membership cost?
Your membership is 100% free. AID was founded upon this principle so that organizations of any size or budget to take advantage of donated distributions. The only costs associated with membership are a shipping and handling fee. This enables us to keep the warehouse.
How soon will I receive our AID distribution?
Most distributions ship from our warehouse within 1-2 business days of placing your order. Larger distributions can sometimes take a little longer. If you have any questions regarding a specific product or order, feel free to call us, emails us, or fill out our contact form.
What if I don't have a copy of our IRS Determination Letter?
We use Guidestar as a service to verify the non-profit status of organizations. If your organization is registered with Guidestar, you can search on their site to find your organization’s FEIN and Determination Letter. Understand that you must be authorized to receive merchandise on behalf of your organization. As standard practice, AID may require additional verification such as a letter on official letterhead from a listed agent of your organization advising the names of individuals authorized to receive merchandise. You can search Guidestar’s database here.
What does an IRS determination letter look like, and how can I verify Agape Inventory Donation's (AID) non-profit status?
To view or download the IRS Determination Letter for AID click here. You can also view Guidestar’s reports on AID here.
Why do you charge a shared management fee?
Unlike most non-profit organizations, AID does not spend any money or investment into fundraising to cover expenses. AID also does not charge membership fees so that non-profits of any size or budget can receive donated distributions. Instead, AID charges a small shared management fee (sometime's refereed to as a handling fee) based on the value of the respective merchandise. It is always less than one third of the retail price, and most times much less.
How long does it take to be approved?
During regular business hours, new members can be approved in as little as 1-2 business days- given that we have all the proper information and screening completed. After business hours, approval is usually the next business day or so. To expedite approval, make sure that you represent a qualifying non-profit organization; that you are indeed authorized to receive donations on behalf of your organization, and you have a copy of your organization’s IRS Determination letter. If you need immediate assistance during normal business hours, feel free to call us directly. For more information on free memberships click here.
I would like to order items that require freight shipping (in excess of 150 lbs). What are my options?
Although AID does not directly handle the freight shipping of your distribution, we do recommend FreightQuote.com based upon feedback from other clients, and our personal experience. AID will provide all of the information you need to use any third party shipper. We ask only that you coordinate the shipping date and time in advance so that we can have your distribution packaged and ready to go.
When will you receive more product?
AID is dependent on its corporate donors to send the items which are distributed to not for profit organizations. A few donors send on a regular basis, but most send excess inventory only a few times each year. Each shipment may not contain items which you have received from AID in the past. AID is not able to “back order” any items, and maintaining a waiting list is not feasible for us or for your organization. Please check with us periodically to see if we have the items you are looking for. Also- refer to our updated catalog online to see what items are available.
I am an individual or work for an organization that is not a registered non-profit. Can I receive products from AID? AID is a 170(e)(3) public charity whose mission is to connect non-profit organizations with excess corporate inventory. Because our status as a charity hinges upon this stated mission, an organization must be a non-profit organization as recognized by the IRS. Individuals requesting distributions of donated materials through AID must be authorized to receive donated materials on behalf of their organization. For more information on free AID memberships click here.
Is there a charge for this service? How does AID operate?
There is no charge to donors for AID’s services. AID does not solicit monetary donations or grants. AID charges it’s not for profit partners a very small fee to cover expenses. This shared management fee is based on a valid and objective valuation of the donated items. With this fee, AID is completely self-sufficient and able to serve hundreds of charities, many of which depend heavily on AID.
Who pays the shipping when excess inventory is donated to AID?
The donor is responsible for the tax-deductible cost of delivering the donation to the AID warehouse centrally located in St. Louis, Missouri.
How is the donation process started?
The donation process is very easy. Simply send AID an inventory list of items to be donated. AID's policy is to accept all donated items promptly with no “cherry picking” or delayed shipments. AID will fax an acceptance letter within 24 hours and follow up to arrange a mutually convenient shipping date.
What are the advantages of donating versus disposal?
When inventory is scrapped only the cost may be deducted for tax purposes. Donation to AID allows a tax deduction of cost plus half the difference between cost and fair market value up to twice cost, a double tax write-off.
What are the advantages of donation versus liquidation?
Sometimes donation can be more profitable than liquidation. A corporation’s finance department or tax staff should analyze its numbers of cost, fair market value and tax rate. The “break even” point is where donation and liquidation earn the same amount of benefit. Money received from liquidation – which is a sale of the product and is a very low percentage of cost – is taxable income which should be considered in tax analysis. Also consider the following intangible costs:
- Storage – How much does warehouse cost per square foot?
- Cost of Sales – Donation liberates the sales force from concentrating on marginal or loss items to sell higher margin items.
- Product Value – Items sold at liquidation prices may cause a “fire sale” and determine a lower market value for your product.
Who determines Fair Market Value?
The IRS defines fair market value as the price that would have been received had the taxpayer sold the contributed property in its customary market. This may be tricky, as the price may have changed due to factors such as obsolescence or decrease in demand. AID recommends that you contract with an appraiser experienced in asset donation to offer you indemnity. AID can refer such an appraiser for asset valuation upon request.
What happens to merchandise after it is donated?
Upon receiving donated items, samples are displayed at the AID warehouse and some items on this web site. Items are available for pick up for local St. Louis area charities and shipment to national and international charities. AID maintains relationships with a number of missionary organizations which supply humanitarian aid, and as much as is feasible is sent offshore. AID’s local marketing efforts focus on poorer charities, which is why AID charges a very minor shared management fee instead of annual membership fees. After all, if an organization can afford the expensive membership required by other distributing charities, they can probably afford your product.
How do charities qualify to receive donated items from AID?
All charities must have a tax-exempt letter on file with AID to substantiate their not for profit status. They must also sign a statement that donated items will be used solely for the care of the ill, the needy, or infants in accordance with the provisions of IRS Code 170(e)(3). Accordingly, they agree not to exchange donated items for money, other property or services.
My company is organized as an S Corporation. Can I benefit from a donation to AID?
Under the IRS regulations, only C Corporations can directly receive the additional deduction (the amount above the cost) for donations of excess inventory. Nevertheless S Corporation's are still eligible for a standard deduction of up to 100%.
My company is carrying a loss from prior years, or has a loss or minimal profit in the current year. How can we benefit when the IRS restricts the allowable deduction to 10% of our taxable income?
First, consider carrying the deduction forward. The IRS allows you to carry an unused deduction forward for up to five years. Also, the process mentioned in the paragraph above for S Corporation shareholder is also available for C Corporation shareholders. We would be happy to discuss this with you.
Why donate to AID instead of a local charity?
If a local charity has need of your product, consider the local charity. However, consider what AID has to offer:
- We specialize in bulk donations that many small charities cannot house or distribute.
- There are advantages to sending the merchandise out of existing market areas.
- Consolidate your giving. Several of our donors, when contacted by charities requesting merchandise, simply give out the AID phone and fax numbers.
Why donate to AID instead of another charitable intermediary?
Consider the following:
AID offers prompt reporting and professional service
No “cherry picking” – AID’s policy is to take all kinds of merchandise.
Prompt communications – AID will issue an acceptance letter within 24 hours of receiving an inventory list of a donation proposal.
