Product Philanthropy Turns Operational Liability Into Positive Social Impact

Companies can donate excess inventory to benefit schools and nonprofits, while also helping their bottom line.

Published on Mar. 9, 2026

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Many schools in the United States are underfunded, with teachers often spending hundreds of dollars out of their own pockets to supplement student resources. Meanwhile, manufacturers, wholesalers, and retailers may be facing tight inventories and uncertain economic conditions. Product philanthropy, where companies donate excess inventory to qualified nonprofits, can help address these challenges by equipping under-resourced classrooms, supporting after-school programs, and providing tax benefits for the donating companies.

Why it matters

Product philanthropy is a win-win, benefiting both the community and the company. It helps get much-needed supplies into the hands of teachers and students, while also allowing companies to potentially generate tax deductions and improve their environmental, social, and governance (ESG) metrics by keeping items out of landfills.

The details

Companies can donate a wide range of products, from notebooks to backpacks to winter coats, through product philanthropy organizations like NAEIR. These nonprofits collect the donations, vet the recipient organizations, and handle the logistics of distribution. For the donating company, this ensures the products are used appropriately and their brand is not diluted on the open market. Additionally, regular C corporations can receive a tax deduction of up to twice the cost of the donated products.

  • In 2026, the outlook for inventories is mixed, with announced job layoffs already outpacing 2025 and an uncertain tariff landscape.

The players

NAEIR

The National Association for the Exchange of Industrial Resources, the largest product philanthropy organization in the U.S. that has received donations from more than 8,000 U.S. corporations and redistributed more than $3 billion in products to nonprofits and schools.

Paula DeJaynes

The president of NAEIR, who states that "In-kind donations not only benefit nonprofits and teachers; they also can help a company's bottom line."

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What they’re saying

“In-kind donations not only benefit nonprofits and teachers; they also can help a company's bottom line.”

— Paula DeJaynes, President, NAEIR

What’s next

Companies facing uncertain inventory levels should get acquainted with product philanthropy organizations like NAEIR to explore how donating excess inventory can benefit their business and the community.

The takeaway

Product philanthropy is a smart solution that allows companies to turn an operational liability into positive social impact by donating excess inventory to support underfunded schools and nonprofits, while also potentially generating tax benefits and improving their environmental footprint.