Processor.com: Charitable IT Donations
Filed under: Earth 911 - November 29, 2007
By Don Reisinger
Business ethics, while a relatively new phenomenon, has become one of the most important elements of any company looking to make a difference in the community. And while some of that revolves around doing what is right, an important element of acting ethically involves charitable donations. After data center managers decide they can reuse their old IT equipment (see “Prep Equipment For Exit” on page 1), some may consider donating it to a reputable charity.
Managers should consider a host of issues before they make the decision to donate electronic equipment to schools or other charitable organizations. Unfortunately, a slew of pitfalls can trick data center managers into donating equipment to fake charitable organizations that actually intend to sell the equipment for a profit.
In the end, though, finding the right charity for your small to midsized enterprise is an important step in becoming a more socially responsible company. And if that wasn’t enough to justify a contribution to a charity, most charitable donations are tax-deductible.
Find The Right Charity
Finding the right charity is not a simple task. Instead, the process may take some time for data center managers to consult the right organizations and find the charity that could benefit most from the equipment.
Before they begin their search for reputable organizations, data center managers should be aware that some organizations, while they purport to take equipment and deliver it to worthy individuals, actually resell the equipment for a profit. These organizations are usually left off such trusted charity lists as Charity Navigator (www.charitynavigator.org) or Charity Watch (www.charitywatch.org).
A good place to start for most companies is a local charity. Instead of finding a national charity that doesn’t necessarily represent the community the company is a part of, a local charity could provide a number of benefits. In fact, if a company is concerned with giving back to the local community, charities in the general area typically have a better idea of what groups may need the equipment.
More often than not, local charities are the easiest to donate to. Instead of searching for national organizations that a company has no knowledge of, local charities typically have a more public face in the community, and consulting a newspaper or area Web site usually yields the contact info needed to get the ball rolling.
On the other hand, some organizations want to appeal to people on a more national level. If that’s true, managers should be aware that not all organizations donate to the same place. If a data center manager wants to donate to schools, she should consider the National Cristina Foundation (www.cristina.org), which takes donated IT equipment and delivers it all over the country to schools or to people with disabilities.
If a data center manager wants to donate equipment to low-income families that may not be able to purchase computer equipment for their homes, The On It Foundation (www.theonitfoundation.org) may be a viable possibility. Unlike some charities that send products to schools or other not-for-profit organizations, The On It Foundation focuses solely on bringing the community into the charitable process by providing free computers to local families who have school-age children and meet the requirements. The charity also provides 20 hours of training with each computer.
Factors To Consider
As Trey Granger, content manager of Earth 911 (earth911.org), an organization dedicated to making the public aware of charitable opportunities to save the environment, says, “There are several important things to consider when disposing of electronics.”
Perhaps the most important element in the charitable donation of equipment is security. While donating equipment is certainly an important step that any organization should take, it’s also important for that organization to realize that equipment will be leaving the building, so managers should remove all data in its entirety.
Granger says, “If an organization is recycling an electronic device that stores personal information (computer, cell phone), data center managers should make sure the device is wiped clean before it is donated. There are plenty of programs available that allow managers to erase an entire computer hard drive without the threat of losing important data.”
Data center managers also need to take into account the environmental factors that go into transporting electronic equipment. According to Granger, managers should strive to work with organizations that employ an electronic waste collector. These people are trained in how to transport electronic equipment in a way that is environmentally safe.
Another important consideration when donating to a charity is public perception. Simply put, if a company donates to a charity that does not represent the best interests of the public at large, the public’s perception of the company could be damaged.
The Advantages Of Charitable Donations
One of the most important elements of any charitable donation is how it affects your company. By offering equipment to the community, your company can enjoy the benefits of increased visibility, an expanded network that could allow for future growth, and the public’s knowledge that your company has given something back.
On the other hand, charitable contributions also behoove an organization from a financial standpoint. Instead of saving no tax dollars through a recycling program, organizations can enjoy a slew of tax benefits upon donating equipment to a charity. In fact, as long as a donation is made to a public charity and is recognized as such under federal taxing statutes, an organization can deduct donated equipment at its fair market value. In other words, an organization gets the benefit of tax liability deductions without sacrificing any expenses already taken against the donated assets.
Charitable donations are an important part of a solid and well-run organization. And while most SMEs are looking for ways to donate equipment in a way that would behoove them the most, there are a number of pitfalls that could easily throw that off. But with some diligence and the dedication to get equipment into the hands of people who need it most, a charitable organization that leads an industry in ethical behavior may be in any IT manager’s future.