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Wholesale Business and the Non-Profit Organization

By: Drawlon Tsang

Traditional businesses purchase wholesale good with the intent to resell. An NPO can use the huge cost savings afforded by wholesale and liquidated merchandise to improve the bottom line, and have more cash reserves to provide better social services. There are four main types of non-profit organizations: universities and colleges, churches, social service provider (e.g. homeless shelter, Red Cross), and issue based organizations (e.g. political action committees, environmental organizations).

Traditional businesses purchase wholesale good with the intent to resell. An NPO can use the huge cost savings afforded by wholesale and liquidated merchandise to improve the bottom line, and have more cash reserves to provide better social services. There are four main types of non-profit organizations: universities and colleges, churches, social service provider (e.g. homeless shelter, Red Cross), and issue based organizations (e.g. political action committees, environmental organizations). All four raise funds in similar ways-- they can charge a fee for their services like a university, raise funds from donors, or be funded partially or wholly from government monies. In any case, most organizations are looking for the greatest bang for the buck when purchasing items for the organization's day to day operations.

Wholesale goods can stretch an NPO's dollar by providing inexpensive alternatives to retail goods. NPOs require goods to provide services, to hold fund raising events, and to run regular business operations such as administration. Before offering a wholesale buying opportunity to an NPO, a wholesale specialist must think of items in his or her inventory that will suit an NPO's needs. Let's look at the following examples:

NPO's that run homeless shelters or emergency services can always use bargain domestic goods. Items such as close out or customer returned clothing, dishes, bedding, and possibly even small appliances would all be a perfect fit. These organizations typically aid those in distress, and brand new items are not always a necessity.

A fund raising event typically requires invitations, labels for envelopes, accounting tablets, and sometimes even door prizes or giveaways with each donation. The wholesale answer for this problem is most certainly surplus office supplies, close out electronics, and even dollar store type merchandise to pass out to each donor. Purchasing these items retail could negate the gains of funds raised!

Day to day business operations are where NPOs especially try to save money. Issued based non-profit organizations usually have the highest budget allocation for office supplies, computer needs, and office or lobby furniture. Wholesale distributors can provide all of these, and since the items are not for retail sale, gently worn or last year's model won't be a problem.

There are two areas of concern prior to selling wholesale goods to a non-profit organization. Not all non-profit organizations are tax free. It is important to receive a copy of any documentation regarding the organization's tax status before honoring such a request. Also, be sure the NPO's mission or goals do not conflict with your own, your wholesale company's, and possibly even any major wholesale trade partners. There are some very controversial NPOs in operation out there, and supplying them with deeply discounted goods could be misconstrued as support for their cause. Typically this isn't a major problem, but could cause some conflicts if not carefully thought through.

Most often supplying a non-profit organization with wholesale goods is a positive experience for a wholesale distributor. The sale opportunities are great when working with a non-profit organization. Frequently, for consumable items such as clothing, paper products, and other domestic items, the organization knows exactly when it expects to "run out." A wholesale distributor could then set up a regularly scheduled delivery of liquidated goods, with the peace of mind that they aren't likely to be returned. Household goods used to replace lost or damaged household goods for victims of disaster are not going to mind scratched and dented washers and dryers.

This doesn't mean products you know are junk, or do not work properly, should just be dumped onto an organization serving the poor or distressed. It only means damage not affecting an appliance's function or less than perfect clothing will be more appropriate in this context than at a retail store. NPO sales are also a way to procure a bona fide tax deduction, if the goods are simply given, or severely marked down even from the wholesale price. After all, these organizations are more than used to a donation or two!

Article Source: http://www.articlesinsight.com

www.rhinomart.com has been a provider of quality and affordable wholesale goods since 1994. We at Rhinomart.com prize high customer service, and are proud of our 'A' ranking with the Better Business Bureau online.

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