Capital Goods

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Are unused capital goods costing you?

We enable companies to do greater good with their capital goods

Capital goods such as plant & machinery are typically depreciated over time and require resources to house them, maintain them, and operate them.  Unfortunately, once they reach the end of their useful life, they require additional resources to house and insure them. The cost of carrying such assets for a company is therefore a combination of a cash outlay as well as an intangible depreciation expense.

Why do companies hold assets after they have finished using them ??  The answer is simple. The cost of “carrying” the unutilized assets and putting them into storage is far less than the potential negative impact of disposing these assets, which if sold to a liquidator, typically leads one to enter a “loss on sale of assets” on the balance sheet.

Through donation or other charitable transactions, Proactive Philanthropy helps companies convert this surplus “capital equipment problem”, into a “funding for nonprofit organization opportunity”.

Through donation, Proactive enables companies to convert surplus capital goods at the end of their useful life into charitable funding and avoids any negative impact to their balance sheets.  Proactive creates additional options for the company to achieve their charitable goals without the need to utilize “cash” only.  Everybody wins.

 

Proactive helps companies maximize their giving

And helps charitable organizations receive increased support from their corporate donors

Proactive enables companies to free up their unutilized capital goods which are simply depreciating on their books.   Proactive converts the assets into cash and reinvests the proceeds into charitable organizations through grants, allowing the donor companies to be recognized for their role in creating the charitable funding and acknowledging “This grant made possible by ABC Corporation…”  Donating surplus goods avoids a potential “loss on sale” by selling to liquidators for pennies on the dollar and the company gets the credit for the grants when the sale proceeds are reinvested in a charitable organization through Proactive.  That is the definition of win-win !!

 

Download a Brochure on Capital Goods.

 

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