Newspapers / Philanthropy Journal of North … / Sept. 1, 1998, edition 1 / Page 12
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12 Philanthropy Journal of North Carolina September 1998 Gifts in Kind disputes Philanthropy Journal article Dear Editor; Your July 1998 front page story on the emerging trend of corporate product dona tions, “Corporate support shifting from cash,” fell far short of the standard we have come to expect from your publication. I’m delighted that the Journal brought this growing trend to your readers’ attention. However, 1 am deeply disappointed in the misstatements of facts, the liberal license taken with my quotes and the sweeping generalizations and conclusions drawn about our organization. Gifts In Kind International, from a handful of anecdotal sto ries. For the benefit of your readers, let me set the record straight on some of the most trou bling inaccuracies: • Regarding charges of high shipping, administrative and membership fees: \ As a nonprofit organization ourselves, we’re very sensitive to cost issues. We’re devoted to being good stewards of the products donated to us and to getting these products to our member charities as economically and effi ciently as possible. Since 1993, we’ve held the line on our registration fees while increasing the number of services we provide for those fees. Our organization’s annual administrative costs, which include shipping donations to recipient charities has been, on average, under 2 percent of the fair market value of the prod ucts donated to us for the past 15 years. In 1997 we operated at a mere 1.8 percent of the value of goods we distributed. Any way you add it up, that’s an astoundingly low adminis trative expense. • The charge that our products are mostly available in quantities “too large, such as by truckload or pallet” is simply false — and your reporter knows it. I addressed this misconception with your writer during a telephone interview. I reviewed with her our Gift Update Catalog which clearly lists options including carton sizes, which con tain fewer product quantities. We make 85 per cent of our products available in these carton . LETTER TO THE EDITOR sizes to address requests of registered chari ties. Large quantities, such as by “truckload” and “paOet” as stated in the article, are sent to organizations that distribute goods to other charities, such as food banks. United Ways, and similar groups. • The charge we “fail to deliver orders in a reasonable time and are slow to refund money on failed shipments” is simply untrue. Our Gift Update Catalog clearly states that, on average, a charity may expect delivery of its requested products in 4-6 weeks. However, on many occasions it takes only 8-10 days to fulfill the request if the product is immediately avail able in the distribution center. Some product donations require the 4-6 week delivery time so that a contributions committee from a donor company can review donation request applica tions to ensure the products are going to orga nizations and causes the company supports. When this is the case, the additional time is noted on the donation application. When con tributions originate from the donor’s facilities, we must distribute goods as the donor’s “deck and loading” abiUty allows. This is another reason we established the 4-6 week delivery period. • The assertion that we provide “only vague descriptions of some bulk donations in the gift catalogs It distributes to nonprofits” is true. In fact, we say throughout the catalog and in all of our request information that the gift descriptions are provided directly to us by the donors and, on occasion, lack specifics. We think it makes good sense to let people know as much as possible about the products so they can make their own choices about ordering. But sometimes, we simply don’t have the infor mation. As a result, we are careful not to over state or misrepresent products in the Gift Catalog Update. • The assertion we “don’t return phone calls and offer little help to solve problems” is puzzling. Here’s why: A year ago we instituted a quality assur ance program. Rather than calling our fulfill ment service with questions as had been the case previously, our charities call Gifts In Kind International employees. Our number one responsibility is to make sure all phone calls are returned within 24 hours and that gift requests, questions or concerns expressed by the charity are handled promptly. It’s our goal and our practice to work with a concerned charity until their questions are resolved. After your story appeared, we began con tacting those agencies quoted as being dissat isfied with us. One of the organizations in your story acknowledged that they had never reported their problem to us. It’s hard to fix something-when you don’t know it’s broken. The charity was invited to receive a second full shipment at no cost. As I told your writer, on rare occasions when recycled computers have not worked we have offered replacement equipment. We do our best to ensure that re cycled computers are in good working condi tion. Nobody benefits if the product is broken. • The allegation that we “sign corporations to exclusive contracts” is patently false. There are no contracts. Together with the corporate donor we develop a distribution plan for their particular product donation. The cor poration may decide to use our services only once or on an ongoing basis. There is nothing written or implied that discourages our corpo rate partners from making products available directly to their favorite local or national char ities. As with other forms of philanthropy, we beUeve it is solely the donors’ choice to deter mine whom to support. Particularly disturbing w'as the quote attributed to me suggesting Gifts In Kind International would rather work with larger agencies since “The program for smaller agen cies is not as cost effective.” Not only do I not believe this statement, I didn’t say it. The fact is the vast majority of organizations we work with are small. These groups, which typically have tighter budgets and fewer resources, look to us to help proride blankets, clothing and personal care items for their homeless shel ters, computers tor their schools and youth programs, or building supplies to repair or build homes. Local, homegrown and grass roots agencies are exactly the kind of groups we’re here to help. When we hear from our registered charities that they would like additional services, we do something about it. To borrow an advertising tagline from The Ford Motor Company — for us, “quality is job one.” That means better and more effective service for our registered chari ties and donor companies. During the next 18 months we’U be enhancing our order tracking and warehouse distribution systems which should further reduce costs and improve logis tic services for recipient charities. Gifts In Kind International has grown 44 percent each year for the past six years. This speaks volumes about the quality of our ser vices and the confidence recipient charities and corporate donors have in us. This incredi ble achievement was totally overlooked by your writer. The Philanthropy Journal does a disser vice to its readers and the charitable sector when it publishes unsubstantiated and unproved allegations such as those in this story. It’s our hope the magazine will be more accurate in its future reporting. Regards, Susan Corrigan President & Chief Executive Officer Gifts in Kind International Editor’s note: The limit on length was waived to allow a fuller response. To see the original story, go on the Web to http://www.pj.org/njonprof/giki0798.htm> mM For over 12 years, non-profits of all sizes have promoted their organization or rewarded loyal contributors with awards and gifts in crystal from • Extensive Selection of awards/gifts affordably priced • Etched, monogrammed glassware for special awards or donors ' Quick turn-around time and guaranteed satisfaction Free Catalog! 1-800-852-3111 A division of The Crystal Shoppe ® Independence Blvd. at Indian Trail RosSiJchnstonEsRKerstin^ A full service consulting firm providing development counseling for non-profit organizations J. David Ross President Todd T. Lindsley Vice President 3326 Chapel Hill Blvd., Suite C220 Durham, North Carolina 27707 919-286-0721 rikinc@mindspring.com Fax; 919-402-9199 WACHOVIA INVITES YOU TO SUBMIT A NOMINATION FOR THE 1998 \WchOVia Awaid AN Employee Recognition program for Community Service Wachovians share a rich tradition of high ideals and commitment to family and community Bound together by a common acceptance of the importance of giving to others, we strive to help and to improve the quality of life in communities we serve. Wachovia is proud to honor its employees through the Spirit of Wachovia Award and invites you to nominate a deserving Wachovian for this community service award. The Spirit of Wachovia award recognizes employees in each of Wachovia’s home states who display exemplary citizenship and demonstrate exceptional volunteer senice. The overall winner in each state receives $1,000 to be given to the charitable organizations of their choice. The remaining 27 finalists each receive $300 to designate to their chosen charities. Nominees must be full-time employees of a Wachovia Corporation company* Only volunteer service with educational institutions and nonprofit, charitable organizations that have tax-exempt status under section 501(c)(3) of the Internal Revenue Code will be considered. Volunteerism with religious, fraternal or professional groups that provide services to members only are not eligible for consideration. To obtain a 1998 Spirit nomination form, contact Jenny Moore at (336) 732-7370 or Jenny.Moore@Wachovia.com. All nominations must be postmarked by October 2, 1998. ^^ACHOVIA North Girolina, South Carolina, Georgia, Virginia and Florida locations only. Lefi mhed:
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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Sept. 1, 1998, edition 1
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