What is Gifts In Kind (GIK)?
Gifts In Kind (GIK) are quality donated goods which WER sends to overseas partners. GIK from WER varies according to local needs but typically includes quality goods such as clothing, educational materials, food and shelter provision, medicines and medical supplies.
How does WER get GIK?
In discussion with our project partners and local humanitarian and development agencies, WER assesses the needs and requests of communities in need and seeks to source the required goods from a global network of businesses and charities. These requests are also matched with offers we receive from manufacturers and wholesalers throughout the world.
Does WER take gifts from individuals?
Sometimes, but only when the quantity is appropriate for our cost-effectiveness.
How does WER decide when to ship GIK?
WER only ships GIK when a partner organisation or a government agency, such as a Ministry of Health, has requested it, and when plans for local distribution and use have satisfied WER assessment standards.
In times of crisis, such as the aftermath of an earthquake and other natural disasters, WER works together with other agencies to ensure rapid and efficient distribution of emergency aid, such as food, medical supplies and temporary accommodation, to those in urgent need of humanitarian assistance.
Are any GIK not acceptable to WER?
WER does not take anything which is unsafe for human or animal consumption, such as expired medications or out-of-date consumables. We do not normally accept used clothing unless it has been adequately cleaned and sorted by gender, age and season. Nor do we accept goods that would be inappropriate for our programme goals or inconsistent with our core values.
How does WER value GIK?
We use procedures outlined in the AERDO Interagency GIK Standards, followed worldwide as the de facto accounting principle for GIK. Valuation depends on several factors: the size, quantity and packaging of a donation in terms of its fair market value, verification of valuation from an independent third party, discounts for encumbrances (eg damaged packaging or mislabelling) and standard industry “per pound” valuations for mixed goods.
Each GIK transaction requires at least 15 different legal documents, ranging from a Donation Letter to Bills of Lading and feedback reports, before its value can be accounted as a donation. If one of those documents is missing or the information is inconsistent, the shipment is not counted. Likewise, if a GIK value can not be determined, we may ship the commodity but declare no value for accounting purposes.
How does the procedure of shipping GIK work?
When WER accepts a GIK donation, we assume total responsibility, risk and liability for it. We need to keep the commodity safe and secure, for example away from thieves, water and heat damage or rodents, and to prepare it for shipping, including any mandatory procedures for both export and import. We arrange all shipping details, from the point of donation to port, then overseas to the in-country port and perhaps then hundreds of miles of difficult and dangerous roads to our beneficiaries. We see that the goods are properly documented to satisfy customs in the host country and we normally cover any penalties, such as extra storage costs, for customs delays, even though such delays are beyond our control.
When GIK reaches its destination, WER ensures the goods are safeguarded against theft, as well as any potentially unsafe distribution. Feedback reports from our overseas partners are essential so that we can provide proof to auditors and regulators that our GIK is real and has been successfully deployed.
Do GIK shipments ever fail?
Rarely, but it can happen, usually through unexpected delays or unforeseeable regulatory complications overseas. Fortunately we have had very little theft of GIK over the years. One reason for this is the security offered through working in partnership with local people we trust and know on the ground.
What impact does GIK have on the local economy?
WER always seeks to ensure that GIK donations do not adversely affect local manufacture or economics. GIK shipments are never employed by WER as a means of disposing of ‘surplus’ goods but are always quality and locally-appropriate items which have been requested by our overseas partners or government agencies. A formal agreement is signed setting out the use of GIK goods, emphasising that our support is on the basis of free distribution and that the goods must not be sold locally.
WER ensures that GIK donations always comply with stringent import and export regulations of the beneficiary country and only ships goods that the local partner is legally registered to receive. WER only sends GIK that is appropriate for the local needs and where there is ability to manage and maintain.
Donations to communities in need often go hand-in-hand with long-term development projects within the community to ensure that all donated goods can be of maximum benefit to those most in need. WER only sends GIK overseas after carefully considering the impact that the donated goods will have on the local community and shipments are commissioned only after WER is confident that the goods will bring tangible benefits to children and their families living in need throughout the world.
If you would like more information on WER GIK shipments, or if you would like to discuss the possibility of donating GIK to WER, please do email us or call WER on 0870 429 2129
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