The Hewlett Packard Co. has long been a leader in reducing waste from its computer manufacturing processes. However, following recent renovations, the firm still accumulated materials, such as used furniture and unused computer paper.

Rather than view these items as waste or even candidates for recycling, the forward-looking company decided to donate the items to a local school. Not only did this act divert this potential waste from the landfill, but it also helped the school keep its operating costs down.

This success story is one of only a few and California's overburdened landfills could benefit from more like it. Just ask your local landfill operators.

For example, officials at one landfill have reported the disposal of new records, compact discs, campaign gear, clothing and other textiles. Landfill operators have seen truckloads of other shelf-ready merchandise -- including boots, laundry detergent and food -- dumped at landfills for the sole sake of clearing excess inventory.

Perhaps these businesses do not realize that under Internal Revenue Code Section 170(e)(3), cost tax deductions are available to many donors of excess inventory. This law allows "for profit" enterprises to donate their excess inventory to charitable organizations and receive a deduction of up to twice the cost. Shipping and handling expenses are also deductible.

If you manage a business and you aren't sure where or how to donate your excess inventory, you might consider contacting Gifts in Kind America. This nonprofit organization, formed in 1983 by the United Way, provides support to charities through in-kind donations from businesses. (In-kind donations are donations of service or materials instead of money.)

Based in Alexandria, Virginia, Gifts In Kind became its own independent nonprofit entity in 1984 and has made connections for businesses to donate over $250 million worth of products in its first eight years of existence.

Some of the organization's clients include Fortune 500 corporate giants such as Hewlett Packard and the Gillette Company; others are small, independent family businesses. Gifts in Kind also brokers and handles all "product giving" for computer firms such as Microsoft. Every year, the group disperses products to approximately 50,000 nonprofits nationwide. It also networks with nearly 400 retailers to donate clothing via the American Apparel Manufacturing Association.

Business owners and managers should consider donating excess inventory as an alternative to dumping it in landfills. We can all benefit if you give. Your motto should be simple: "Donate...Don't Dump!" It's a win-win situation for all of us and makes business "cents."