INCREASE YOUR RECOVERY ON EXCESS INVENTORY
By donating surplus inventory to Appalachian Sharing Network, your company can receive up to TWICE your cost, according to section 170 (e) 3 of the Internal Revenue Code. Obviously it is best that you ask your tax advisor. Mission West Virginia Inc. is recognized, 501 C3 Non-Profit Organization that can help your company’s bottom line. This is not a “tax-loophole”, but rather a deliberate recognition on the part of the United States Congress, and the Legislature of the importance of donating to qualified, IRS approved Organizations.
PROTECT YOUR MARKET INTEGRITY FROM SURPLUS DEALERS
Inventory sent to the scrap yard can end up in the hands of surplus dealers, competing with you and your customers. Organizations working with Waste to Charity must agree to abide by Internal Revenue Code 170(e) (3) which requires that the donated inventory must be used for the care of the ill, the needy or minors and cannot be sold, bartered, or traded.
INCREASE YOUR MARKET EXPOSURE
Appalachian Sharing Network actively works with your PR and marketing department to further enhance donations, by promoting goodwill with customers, vendors and employees.
INCREASE AVAILABLE WAREHOUSE SPACE
Free up valuable warehouse space when you donate your excess inventory.

Donate your excessive inventory to Appalachian Sharing Network:
Acceptable inventory donations range from excess, obsolete and end-of-the-season merchandise. This includes computers to building product overruns and products nearing expiration dates. For decades corporate America has been an advocate of philanthropy, and Appalachian Sharing Network makes it easier for managers, CFO's and CEO's to make a difference in the world by simply donating their surplus of stock.
Internal Revenue Code, Section 170e3 creates an enhanced deduction for corporations to take a deduction up to twice the cost of producing an item (when the value is higher than the cost). Before the enhanced deduction was put in place, companies could only deduct an amount equal to their cost for an item donated to an IRS 501c3 public charity. However, the inventory or other property may have a fair market value higher than its cost. Under 170e3, an enhanced deduction allows the donor to take a deduction up to twice the cost/basis of the item if the value is higher than the cost.
Donated property under 170e3 must be used for the ill, needy or infant (using IRS definitions). Equipment used by a facility providing service to the needy also qualifies. The same acknowledgement requirements that apply for any donations still applies under 170e3 donations. How does the enhanced deduction under 170e3 work? Ask your tax advisor for the solution that best suits YOUR Company. Please see a sample computation below and work with your accountant or tax advisor to see how you can benefit from donation of inventory!

Sample Computation:
Fair Market Value (Selling Price) = $1,000
Basis (Cost to Company)= $ 200
Gain = (Difference between FMV and Basis, or “mark up“)= $ 800
Step 1: Determine the Gain
Fair Market Value $1000 - Basis $200= $ 800
Step 2: Reduce the deduction to not more than 1/2 the gain
Gain $800 x 1/2 = $ 400
Fair Market Value $1000 - 1/2 Gain $400 = $ 600
Step 3: The deduction cannot exceed twice the basis or cost
$600 - 2 x Basis (2 x $200 = $400) = $ 200
Step 4: Add the limitation in Step 1 to the limit in Step 2 and subtract from the fair market value to determine the deduction
$1000 - Gain ($400 + $200) = $ 400
Deduction = Twice the Cost
The IRS allows a company to take up to half the gain (mark-up) on an item, but not more than twice what the company paid for it.