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       In This Issue
1    WANTED!                                                WANTED!
2    Converted to Cash!             The “Wanted!” listing includes some of the problematic inventories and distressed
                                    assets which your Corporate contacts may consider as a donation to your Nonprofit
                                    Organization. AdTech’s work is to take approved donated inventories and convert
     Corporate Tax Matters          them to cash funding for your Nonprofit Organization.
     Accessing Large Gifts                                     New Web Site Feature Page
                                           AdTech International, Inc. is posting this WANTED! list at the web site:
     National Vehicle Donation
4    Program Survey
                                         See “Inventories Wanted”
     “You can now go national”      AdTech will continue to update this web site page on an ongoing basis so your
                                    Organization can track any given day what the current opportunities are for finding
                                    new funding sources for your Nonprofit work. Mark this web site in “Favorites” so
                                    you can easily and often check for the current “continuous funding” opportunities
          AdTech                    being developed. This same web site will also feature “Inventories Converted” giving
    International, Inc.             current and typical illustrations of Corporate inventories being converted to cash
    Solving Business Problems       funding by AdTech for various Nonprofit Organization clients around the country and
                                    the world.
                                    Specific world markets have a need for these “Wanted” inventories. Buyers that
AdTech specializes in               AdTech has confirmed are ready to purchase these and other products with cash.
managing Non-Cash                   These inventory conversions become cash funding for your Nonprofit Organization.
donations for Non-profit
                                                Wanted Listings (Partial)                    Volumes        Schedule
Organizations. With existing
domestic and worldwide                          Continuous (Always)
markets and buyers, AdTech                      Used Cell Phones                           100,000 units    per month
is able to take a wide range of
                                                Monthly magazines, store returns           2 truckloads     per month
donated inventories from
Corporate Donors and convert                    Books, trade, general topic, new or used   10 truck loads   per month
them to cash to increase                        Food, canned, dry                          4 truckloads     per month
funding to your Nonprofit
                                                Toys                                       5 truckloads     per month
                                                Special (Today)
Inventories being donated and
converted to NPO funding                        Yachts, 40 foot plus                             2          per year

include:                                 For a complete Inventory Listing, you may view and download it from the website.
•    Raw food products –
     seafood, dairy, juices.
•    Consumer merchandise -
     toys, books, hardware,
                                    Converted to Cash! … Continued page 2
                                    Representative stories of donated corporate inventory converted to cash funding
     clothing, canned food.         for our non-profit organization clients. More on page 3 and by visiting our web site at:
•    Commercial products –                    See “Inventories Converted”
     building materials, tools.
•    Industrial equipment -
     motors, machinery.
•    Vehicles of all kinds -        Corporate Tax Considerations                                       … Continued page 3
     boats, yachts, planes, cars,   Understanding Tax Considerations for Gifts In Kind (GIK) Donations
     trucks and farm                This column will regularly feature a number of tax considerations, which Corporations
     equipment.                     may have in mind regarding any corporate inventory donations.
Inventories Converted to Cash                                                         LARGESS 2004

Ongoing accounts of donated Corporate inventories will be posted at the
AdTech web site on a regular basis. We have managed the conversion
  of the following inventories to cash funding for various Nonprofit
Organizations. Your Development Office will find additional ideas for
   industry contacts it can solicit for your own mission. Mark your
                browser “Favorites” with this web site. See “Inventories Converted”
                           A few examples :
 Feed processing factory. A $20,000,000 facility, recently shut down
and replaced with another processing plant, included equipment up to 45
   years old. Donor Corporation donated the plant “as is, where is”.
 AdTech was able to convert the 100 truckloads of used equipment to a
 good cash value for the receiving Nonprofit Organization. The Donor
Corporation was able to avoid the $1,000,000 direct cost of dismantling
                       and disposing of the plant.
Books. 20 truckloads of children’s books. Restrictions included the tax
        objectives of the Corporate Donor, which limited the
         books to distribution in public and school libraries.
  Toys. 10 truckloads of toys remaining from a Corporate promotion
program. Marketing restriction included moving the product outside of
 North America. AdTech was able to move the product into a special
               children’s program in the Middle East.
Seed wheat. Eight 40 foot containers of treated seed wheat. Marketing
restriction included moving the product away from the USA because of
 the specific seed treatments and export and import rules involved with
  hybrid seeds. AdTech placed the product with farmers in the Bosnia
and Serbia regions after the cessation of war there, replacing seed wheat
                  lost by farmers during that long war.
Salmon from Alaska. This donation included four truckloads of whole,
 frozen Keta and Pink salmon from Alaska. Motivation for donation of
 these excess salmon was for certain fishing companies from Japan and
      Russia to catch salmon for the milking of salmon eggs for the
  production of caviar products. Federal and State law prevents fishing
companies from catching fish for eggs only and discarding the resulting
whole fish. AdTech has developed several new markets for all kinds of
whole, frozen and canned fish and converted this inventory of salmon to
           good cash funding for the Nonprofit Organization.
Books. 6 truckloads of new school textbooks. Restrictions for the end
 use of this donated product involved no sale, barter or trade and no
 placement in 130 countries of the world. AdTech was able to place
   these books in African nations where school libraries had been
  destroyed during periods of Communist control of those nations.
               Crayons. Industrial grade, 36,500 pieces.
      Boots. 1000 pair of overstock industrial boots, 1 truckload.
      Surgery kits. New medical, over production, 4 truckloads.
                      Cell Phones, PDAs , used.

 2                                                                          AdTech International, Inc.
  Corporate Tax Considerations continued from page 1…                                                                                 LARGESS 2004

                                                                                                       Accessing Large Gifts
         Understanding Tax Considerations for
                                                                                                        For Your Nonprofit
            Gifts In Kind (GIK) Donations
                                                                                       Your Nonprofit Organization can access large gifts, and
This column will regularly feature a number of tax considerations, which
                                                                                       in some cases, continuous Corporate contributions.
Corporations may have in mind regarding any corporate inventory donation. We
                                                                                       These new sources of large cash funding can be
are not qualified to offer tax advice, and request that any ideas or suggestions
                                                                                       generated from donated Gifts In Kind (GIK), that are
made here are referred to your CPA or tax attorney for their counsel to you.
                                                                                       permitted for conversion to cash funding of the NPO.

                                                                                       Discovering prospective Corporate inventories which are
                  Consideration of IRS Code 170e3                                      ready for disposal and which can be structured as a
                                                                                       charitable donation, depends primarily on your
90% of all Gifts In Kind (GIK) which AdTech manages for Nonprofit                      Organization’s direct relationships with Corporations.
Organizations have no tax deduction motivations involved. The most common              These Corporate contacts include those businesses which
motivations for a Corporation to dispose of a Corporate inventory utilizing a          produce, manufacturer, distribute, or retail various kinds
Donation Transaction include avoidance of disposal costs, avoidance of                 of consumer merchandise, commercial products, and
liquidation markets, fulfilling commitments to Charitable causes with Non-Cash,        industrial equipment.
and seeking careful management of the excess inventories of the Corporation.
                                                                                       Productive contact with Corporations can be developed
It is also true, that when a Corporation has any specific tax deduction motivations,   through financial professions who are motivated to serve
it is critical that the tax intention is known and understood by the receiving         their Clients. Banks, CPA Firms, Law Offices,
Nonprofit Organization and by AdTech so the involved inventory donation can be         Insurance Companies, Management Companies, and
properly managed.                                                                      Warehouse owners have unique relationships with 100s
                                                                                       of Corporations that must deal with problematic
Corporate donors utilize two basic tax features. The most common is the cost           inventory and non-performing assets.
basis, simply writing off, against Corporate profit, the cost basis remaining after
any depreciation schedule.                                                             Bank managers and officers must deal often and
                                                                                       directly with foreclosures. When a bank is forced to take
Occasionally a Corporation wants to utilize the special tax deduction described in     a position on the assets and inventory of a foreclosed
IRS Code 170 e 3. This IRS provision allows a greater or enhanced tax deduction        business or bankruptcy, the bank becomes responsible
for a Corporation making a donation of an inventory of goods to qualified              for the liquidation or disposal of that inventory and/or
Nonprofit Organizations, which will utilize the inventory of goods inside of their     asset. Many bank managers have never considered the
mission to meet the needs of the sick, needy or children. Typical inventory            option of structuring the disposal of the inventory, in
donated using this provision includes pharmaceuticals, medical equipment and           whole or in part, as a charitable transaction. In many
goods, food, books, computers, clothing, toys, and other similar goods useful to       cases, the donation option may be to their advantage,
these broad end uses.                                                                  both from cost savings and management considerations,
                                                                                       as well as possible tax advantages.
When such goods are donated for these specific purposes, the donated goods are
restricted from being sold, bartered or traded by the Nonprofit Organization
(NPO). The receiving NPOs are allowed, in some cases, to forward these                 Recent Big Mergers In
restricted inventory donations to other NPOs, which are more qualified to receive
and utilize the inventory donation. In such cases, the receiving NPO is permitted
                                                                                       Pharmaceuticals Industry
                                                                                       NEW YORK, Jan 23 (Reuters) - A possible merger between French drug makers Sanofi-
in most cases to receive a “handling fee” to cover transportation, warehousing and     Synthelabo <SASY.PA> and Aventis <AVEP.PA> could resume consolidation in the
costs associated to staff and management services.                                     pharmaceuticals sector, which has been relatively quiet since Pfizer Inc.'s $60 billion
                                                                                       takeover of Pharmacia last year.

When your Organization learns of any Corporation with certain inventories that
might qualify under this IRS Code, AdTech would be glad to become involved in          CPA firms commonly deal with Corporations in such
reviewing the inventory, tax objectives, and requirements to properly manage           situations as downsizing, acquisitions, mergers, and
these kinds of Corporate donations.                                                    provide advice related to problematic inventories and
                                                                                       assets produced by these changes in business structures
For a more complete treatment of this Tax consideration, please visit our web site     and market changes. CPA firms are uniquely positioned
at: See “Tax Considerations/IRS Code 170e3”                    to advise the Corporations on any cost avoidance and/or
                                                                                       tax benefits of structuring the disposal of problematic
At this web site you will be able to study an example of one large business            inventories as a donation. When any Corporation is
problem, which can be resolved best by structuring the disposal of a bank-owned        involved in downsizing, mergers or acquisitions, the
excess inventory through a Donation Transaction. The benefits to the Donor             inventory related problems are immediate and sometimes
Corporation for utilization of the special tax deduction associated with               costly to liquidate.
Code 170 e 3 can be significant and worth careful consideration.
                                                                                       Law firms that specialize in work with Corporate clients
You will also find a list of IRS documents and related instructions your Nonprofit     which are terminating their business, downsizing,
Organization can order from the IRS which define a wide range of tax issues            changing supplier contracts, entering into merger and/or
related to Gifts In Kind donations and the considerations involved with any            acquisition contracts, will know of excess inventories
Corporate inventory donation.                                                          involved with associated changes of labels, closing out
                                                                                       models, and distribution agreements.

  AdTech International, Inc.                                                                                                                                          3
                                                                                                       For more information and
 Every NPO Can Now Solicit Vehicles Nationwide                                                         regular updates, bookmark
                          Large & Small Organizations Welcome                                                    the …
Now you can solicit vehicles on a nationwide basis! Have you considered a web-based                      Web Site for
automated donation program with no phone calls to your office? Take this survey below to
see if AdTech’s National Vehicle Donation Program is right for you!                                         AdTech
    Features                                         AdTech                        Other                 International
                                                     Program                       Programs 
1. Fee, salvage vehicles of sale value               $3.00 each                    ________%
   * (70% of all donated cars)
2. Fee, auctioned vehicles                           27%                           ________%
   * (30% of all donated cars)
3. Title process fee additional?                     $50 / $55 in Ohio             ________

4. Towing costs additional?                          No, on salvage vehicles       ________
                                                     Yes, varies per haul

5. Auction charges additional?                       No, on salvage vehicles       ________
                                                     Yes, varies per auction

6. Program coverage                                  50 states, plus Canada        ________           LARGESS (lar’ jes)
7. Boats sold privately to maximize value            Yes                           ________
                                                                                                      “A generous gift, that
8. Accept boats without trailers?                    Yes                           ________           abounds to the benefit of
                                                                                                      many others”.
9. Accept specialty vehicles?                        Yes                           ________

10. Accept farm ag equipment?                        Yes                           ________           LARGESS is AdTech’s
                                                                                                      seasonal report of the
11. Accept heavy construction equipment?             Yes                           ________
                                                                                                      creative generosity of
12. Provide web site link dedicated to NPO           Yes                           ________           corporations and
                                                                                                      individuals through the
13. Provide link from NPO web site to Yes                                          ________
    donation form?
                                                                                                      “Continuous Funding
                                                                                                      Solutions” programs.
14. Charge additional fee per vehicle for            No charge                     ________
    web site listing and link?

15. Reject disqualified vehicles to avoid            Yes                           ________                  LARGESS
    risks and negative charges?
                                                                                                            Is published by:
16. Track steel pricing per state and utilize                 Yes                  ________                     AdTech
    data to accept/decline salvage grade vehicles?                                                        International, Inc.
17. Marketing plan development assistance?                    Yes                  ________
                                                                                                             P.O. Box One
                                                                                                          215 S. Main Street
18. Advertising assistance?                                   Yes                  ________               Whitewater, Kansas
19. Monthly report of donor mailing list to NPO?              Yes                  ________
                                                                                                              67154 USA
                                                                                                          Tel: 316-799-2166
20. Vehicle Donations Program operations                      Yes                  ________               Fax: 316-799-2877
    notebook for NPO reference                                                               
21. Publish national averages vehicle sales report            Yes                  ________
    to predict NPO experience with vehicle sales?

* National Average

 Call 1-316-799-2019 or Email to: for complete details
              about this program or go to
                     See “National Vehicle Donation Program”
If you are currently using a local program or service that provides only city or state coverage for
your current vehicle donation program, consider the potential of soliciting vehicles nation-wide!

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