Kmart partners with Gifts in Kind America - Kmart's charitable soul

Discount Store News, Nov 4, 1996

ALEXANDRIA, VA. -- For many retail companies, corporate giving is part of the culture; at Kmart, it appears to be part of its soul.

The Troy, Mich.-based retailer has long embraced charitable causes as its own, often not mentioning the efforts to the public.

"Kmart is one of the most generous companies in the retail industry," proclaimed Susan Corrigan, president and chief executive officer of Gifts In Kind America, a charitable organization that matches corporate donations with needy charities. Kmart has been involved with Gifts In Kind for more than 10 years, and its merchandise contributions have helped many in need, Corrigan said.

Kmart is considered a leadership donor for Gifts In Kind, which means that it is among the largest donators to GIK. It contributed more than $18 million in GIK goods last year, the most ever. Other leadership donors include Sears and Wal-Mart.

This year, Shawn Kahle, vice president of corporate affairs, is on GIK's board of directors, the first time that Kmart has held a board post.

One of the most unique characteristics of Gifts In Kind is its ability to identify need, Kahle said.

For nearly 14 years, GIK has worked with 50,000 charities worldwide--33% of the global 500 companies and thousands of smaller companies--and it distributed $200 million in products last year. In the last four years, giving has grown 50% annually in terms of products, Corrigan said.

"We really try to meet with the company on an individual basis and develop a program that fits into their parameters," Corrigan explained.

GIK works like this: A company calls the organization to donate products outright or asks GIK what it needs, or both. Product is either sent to a GIK distribution center, GIK picks up the donation or charities pick up merchandise at the retail store. Companies can specify the types of charities they want to donate to, specific charities they want to help or ask GIK to suggest a worthy charity for their goods. GIK also will accept the donation outright and make a fit later.

The most sought-after donation by charities is office products, Corrigan said. Only new products are accepted. The only exception to this rule is for technology, and then only computers with 386 microchips or higher are accepted for donation.

Most types of product are accepted for donation, except pharmaceuticals and food.

Kmart gives mostly clothing, some hard lines, too, in various configurations: by truckload, pallet size and even by the armful.

Corrigan noted that Kmart once donated paint after a labeling issue caused the retailer to remove the cans from the shelves. Instead of sending the cans back to the manufacturer, Kmart, through GIK, had local charities pick up the cans at the store. This allowed Kmart to make a direct contribution to charities in its neighborhoods.