Espresso Martinis and Impact
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  | 

Product Philanthropy - Good for Business


Friday, 27th January 2012 at 11:04 am
Staff Reporter
Businesses could benefit significantly by donating products to charities, according to new research in the U.S.

Friday, 27th January 2012
at 11:04 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Product Philanthropy - Good for Business
Friday, 27th January 2012 at 11:04 am

Businesses could benefit significantly by donating products to charities, according to new research in the U.S.

The research, from Indiana University, concludes that ‘product philanthropy’ – the donation of business goods to charitable organisations – can actually help corporate bottom lines, reduce waste in landfills and provide relief for people in need.

Lead researcher for the study, Assistant Professor Justin Ross, said that the research demonstrates that donating products can result in substantial financial and social benefits to an organisation for minimal cost and risk.

“Additionally, working with a nonprofit that can match companies with charities lowers corporate costs associated with product philanthropy,” Ross said.

The report also found that product donation is superior to liquidation in most circumstances and provides a rule of thumb for companies wishing to make quick cost comparisons.

The report also provides managers with a framework for analysing the costs, benefits, risks, and opportunities of implementing a product philanthropy program.

Good360, a U.S.-based Not for Profit organisation, approached the School of Public and Environmental Affairs at Indiana University to undertake the study last year.

The study is the first of its kind in the area of product philanthropy, providing detailed examination of the return on investment for donating merchandise as opposed to liquidating or destroying it.

Good360 says that with a record number of Americans living in poverty, product donations allow people to use their limited resources to pay for food, health care, prescription drugs, utilities and other vital needs.

“We hope that the report will inspire more companies to consider product donation as a viable alternative to liquidation or disposal,” said Cindy Hallberlin, president and chief executive of Good360.

“For many there is an untapped strategic opportunity to use product giving to advance the business and have substantial social impact on the communities and causes about which they care deeply. Rarely is there such a win-win between business and social good.”

In Australia, Wesley Mission Victoria saw a rapid growth in business donations to the charity last year, receiving 43 tonnes of non-perishable food and toiletries.

A spokeswoman for Wesley Mission, Paula Gething, said that product philanthropy could definitely benefit charities providing the donations were needed.

“We don’t want to be seen as a dumping ground,” Gething said. “When businesses donate in large quantities there’s always the issue of storage, sorting and disposal.”

“We have to wear the cost of storage of goods which can be difficult at times, so people need to be mindful of that.”

 
Want Pro Bono Australia News delivered straight to your inbox? Subscribe now – it's free!



Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au


Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

ALP pledges to be champions of the charity sector

Luke Michael

Thursday, 18th April 2019 at 8:00 am

What philanthropy wants: A more giving Australia

Sarah Wickham

Tuesday, 16th April 2019 at 8:05 am

Chinese giving grows to $33 billion

Luke Michael

Friday, 12th April 2019 at 3:33 pm

What charities want: A little more respect, a little more certainty

David Crosbie

Thursday, 11th April 2019 at 8:54 am

POPULAR

‘They don't see eye-to-eye’: Leadership turmoil engulfs the ACNC

Luke Michael

Tuesday, 16th April 2019 at 8:24 am

People with severe mental illness left behind in NDIS transition

Luke Michael

Tuesday, 16th April 2019 at 4:25 pm

NFPs struggling to measure their impact

Luke Michael

Thursday, 11th April 2019 at 4:33 pm

What does a leader look like?

Maggie Coggan

Wednesday, 10th April 2019 at 4:19 pm

Salary Survey 2019
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!