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Pass through Donation?

  • 1.  Pass through Donation?

    Posted 11-16-2021 09:12 AM
    Our Foundation supports a system of CCRC's. We have a donor that would like to make a significant gift to fund the repair/refurbishment of scooters on our campuses. Those scooters would then be resold and/or donated (The repairs/refurbishment and reselling would be overseen by the organization not the Foundation). It's not clear that any "profit" from the sales would be donated back. 

    Something about the reselling [vs. donating] isn't sitting right with me, can anyone help me understand if this may be a generally accepted practice?

    Claudia Sauers
    Director of Development Operations
    Asbury Foundation

  • 2.  RE: Pass through Donation?

    Posted 11-16-2021 10:00 AM
    Claudia, I'm not sure I fully understand the details. Who owns the scooters right now? And if they are needed, why would they be sold or donated on? Is the issue that they may not be able to be used in your grantees' environments, but might still be useful to someone?

    It is normal for repair and refurbishing businesses in general to have a means for dealing with products that can't be fixed or restored to the required standard. How that works will vary a lot based on the underlying value of the products and their salvage costs. But there's nothing untoward about it - it's a service to the customer that the repair company handles that stuff. You can usually negotiate on this point, and say you'll deal with it instead. The price then may go up or down, depending on whether this is a profit or a cost center to the business.

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151

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