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In-Kind Donations and Non-Profit Organisations

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In-kind giving" refers to contributions of goods and services that are of value to a non-profit organization. Businesses do it, corporations do it, and so do individual donors. …

In-kind giving" refers to contributions of goods and services that are of value to a non-profit organization. Businesses do it, corporations do it, and so do individual donors.

This document discusses how in-kind donations can help non-profits meet their goals and provide a new revenue stream to the organisation without any manual handling of the goods or services donated.

Unsold production time, empty rooms, unfilled advertising space, vacant appointment time, depreciating inventory, mislabelled stock, end-of-line items, last seasons merchandise, entry tickets and idle assets all have potential value which could be harnessed by your organization.

See www.ormita.com for more information about how the Ormita Commerce Network can help your non-profit organisation (free of charge) facilitate its in-kind donations.

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  • 1. 9.3 Trillion Dollars of Unproductive or Unsold Assets Are Going to Waste Every Day. By working together we can harness this value.
  • 2. The Trillion Dollar Facts “In-kind giving” refers to contributions of goods and services that are of value to a non-profit organization. Businesses do it, corporations do it, and so do individual donors. “Research has shown that more than half of all charitable contributions by companies were in the form of merchandise not cash. In fact, local companies show such great support that, in the year 2004, they do- nated more than half a billion dollars in goods.” – Worthington, D. (2006), Heart & Sold, Cavill & Co. “Non-cash gifts represented a growing share of contributions made by companies to charities as well and rose 18% this year alone.” – Debra Blum., Newsletter of The Chronicle of Philanthropy “Businesses reported to the Conference Board that 28% of last year’s domestic donations were in forms other than cash, including products, equipment, real estate, and intellectual-property rights. That was more than double the percent reported for non-cash gifts in 1990.” – Center for Local Public Health Services, Community Development Services “Non-Cash trade, in one form or another, accounts for nearly 30% of the world’s total business.” – (2004)., Department of Commerce Fact Sheet. USA DOC. “Approximately 65% of all New York Stock Exchange-listed companies engage in excess capacity ex- change.” – Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. “On the 60th anniversary of the Swiss WIR excess capacity trading system, annual volume reached 2.5 billion Swiss Francs (over $2 billion US dollars) and coasted nearly 80,000 members nationally. The WIR enjoys a base of nearly 20% of all Swiss businesses in a country of only 7 million people” – Valentini, E. (2003)., Switzerland’s WIR System and Barter Worldwide As the impact of the recession is felt more widely, the opportunity to acquire and make use of unproductive assets will increase.
  • 3. Why Accept In-Kind Gifts Unsold production time, empty rooms, unfilled advertising space, vacant ap- pointment time, depreciating inventory, mislabelled stock, end-of-line items, last seasons merchandise, entry tickets and idle assets all have potential value which could be harnessed by your organization. You can acquire goods and services that you need without spending cash Your organization can suddenly acquire goods and services which you otherwise might never have been able to purchase. Approaching a prospective donor and receiving an in-kind donation provides an opportunity for that organization to support your cause without needing to turn you away entirely. An in-kind donation can be the beginning step of a substantial relationship. Provides a way for you to continue your activities during difficult financial times. Does not affect your existing cash donor relationships.
  • 4. Why Businesses Want To Give You In-Kind Donations It takes their excess product off-market, thereby retaining the market value for their goods. Creates savings in warehouse space, disposal costs and staff time. Allows them to meet their Corporate Social Responsibility goals. If they plan to close or consolidate a warehouse or distribution centre, it may be more cost effective to donate that inventory rather than move it to another location. Helps reduce their waste footprint. Provides an efficient way to keep their balance sheet intact without needing to dispose of their goods. The tax benefits may be greater than income received from a sale. Helps reduce waste and meet environmental goals. Staff and customers want to see their surplus goods going to people in need rather than to the dump. Donated goods are generally only deductible at cost. Using the Ormita In-Kind Donation Program their donation is eligible for a tax deduction at full retail value. Gives potentially new customers market exposure to their product or service. A single email or phone call to Ormita or their nominated charity can take all of their surpluses off their hands.
  • 5. How We Can Help You Increased Revenue Ormita Income Decreased Cash By becoming a member of a network Expenses 1 of non-profit organizations you can convert any “in-kind” donation into Costs Paid in Ormita Credits anything you need. Cash Income Cash Income Costs Paid in Cash Costs Paid in Cash Without Ormita With Ormita By working together non-profit or- 2 ganizations can trade their in-kind donations – thereby expanding their overall capabilities while keeping their own contacts close at hand. Something that is not useful to an- 3 other non-profit organization may be useful for your own. Using Ormita there is no need for 4 direct barter with other non-profits as we have a centralized market- place which takes care of recording transactions. As a community-focused organization we provide our service to you and your donors at no cost
  • 6. Why Your Organizations Size Does Not Matter From an organization of hundreds of thousands of donor relationships to those just starting out, in-kind donations provide those businesses and individuals passionate about your cause the ability to support your efforts. Every person or business who you come in contact with is a potential “in-kind” donor. Businesses always have excess product going to waste: • Empty rooms • End-of-line items • Excess capacity • Expired items • Incorrectly packaged items • Liquidation stock • Outmoded inventory • Overstocked goods • Perishable goods • Slow-moving assets • Surplus products • Stock overruns • Test / trial products • Unfilled seats • Unsold tickets You already have the existing infrastructure to support this process. Size does not matter! What matters is your ability to just ask the question “can you support us by donat- ing anything you have.” A single donation could be worth $100,000 to another organization, thereby giving you $100,000 worth of credit to spend on things you need. Businesses want to donate their excess and idle inventory because it solves their accounting, storage and disposal issues.
  • 7. Just Some Of The Costs You Can Offset By Trading Your In-Kind Donations ADVERTISING Engineering Stereo and Alarm Equipment Rental Tires Ad Specialty Gardening Towing Billboards Gas Installation Transmission Repair Blimps Gas Repairs and Maintenance Truck Lease Coupons General Contractors Truck Purchase Direct Mail / Flyers Glass & Mirror Installation Warrants / Permits Fax Broadcasting Glass Tinting Window Tinting Internet Advertising Grading & Excavation Vehicle Lease Magazine Heating Installation Vehicle Purchase Messages on Hold Heating Repairs and Mainte- Newsletters COMMUNICATIONS nance Newspaper Hot Water Installation Line Rental PR Management Hot Water Repairs & Mainte- Long Distance Services Printing nance PABX Purchase/Upgrade Radio Landscaping PABX Rental Sidewalk Light Fittings Telephone Answering Signage Lightbulbs Telephone on Hold Telemarketing Locksmiths Telephone Repair Television Painting & Decorating VOIP Solutions Trade Show Exhibits Parking Lot Maintenance Videos COMPUTERS & Pest Control NETWORKING ADVERTISING Plumbing Installation SPECIALTY Plumbing Repairs & Mainte- Audit nance Computer Cabling Audio Visual Prod Roofing Computer Repair Graphic Design Snow Removal Consulting Desktop Publishing Tree Removal Hardware Engraving Tree Trimming Internet Access Silk-screening Ventilation Network Installation Film Separation Window Cleaning Network Maintenance Photography Window Tinting Network Monitoring Printing Network Support Publishing AUTOMOTIVE Printer Repair Recording Studio Air Conditioning Printer Toner Web Page Design Brakes Security AMENITIES Detailing Software Glass Repair Training Awnings Muffler and Exhaust Website Design Building Inspection Painting Website Hosting Building Maintenance Parts and Accessories Electricians Repair and Maintenance Elevator Maintenance
  • 8. CONSULTANTS HR Consulting Security Specialists Newsletters Taxation Specialists Communications Secretarial Services Telecommunications Consultants Food Seminars & Trade Shows Translation Health Temporary Services Human Resources SECURITY Trophies & Awards Market Research Alarm Installation & Monitoring PR & Marketing OFFICE SERVICES Fire Audit & Control Systems Sales Carpentry Investigations Special Events Carpet Cleaning Security Audit and Equipment Training Cleaning Supplies Security Patrols EMPLOYEE HEALTH Drapery Cleaning STATIONARY Dry Cleaning Addiction Recovery Furniture Cleaning Binding Equipment Chiropractors Janitorial Services Binding Supplies Dentist Repairs and Maintenance Cleaning Products General Practitioners Upholstery Cleaning Coffee & Beverages Massage Therapy Filing Materials Optometry POSTAGE & FREIGHT Lamination Orthodontist Air Freight Office Misc. Psychiatry Bulk Mailing Office Supplies Surgery Container Hire Paper Supplies EQUIPMENT Container Storage Pens / Pencils Couriers (Local) Photocopy Services Art & Art Hire Envelopes Printing Books Freight Logistics Management Water Coolers Computers Freight Storage Water Filters Electronic Equipment International Freight Equipment Lease TRAVEL Long Distance Freight Equipment Repair Mail Handing Equipment Air Fares Food Handling Equipment Mail Handling Supplies Airport Transfers Furniture Moving Service Backpacker / Hostels Indoor Plant Rentals Offsite Storage Car Rentals Machinery Packaging Services Conference Rooms Medical Equipment & Supplies Packaging Materials Hotels Office Furniture Pallets Interpreters POS Equipment Rail Freight Long Term Corporate Suites Shelving Sea Freight / Containers Luggage Specialist Products Truck Rental Restaurants Stationery Supplies Taxi Fares PROFESSIONAL SERVICES HUMAN RESOURCES … and much more Accounting Services Catering Audit Data Entry Customers / Freight Brokers Employee Testing Financial Planning Employee Training Legal Professionals Employment Recruiting Management Consultants First Aid
  • 9. Who Is Ormita? Ormita acts as a clearinghouse for the trade of excess capacities, goods and services and works through a combination of manual clearing, online e-commerce trading, 24 hour telephone brokering and independ- ent licensees and brokers. At the core of the business is an electronic trading platform that allows participants to buy and sell their excess capacity and/or stock in return for: • Cash-flow enhancing products and/or services (advertising, media, public relations, special promo- tions, new product lines, employee rewards, customer incentives etc) • Already budgeted for products and/or services (turning surplus assets into truly valuable and useful products and services). • Investments in new micro-enterprise and small businesses. • Tax-write offs and community goodwill (full market value donations to registered non-profit organizations) Companies often characterize themselves as REVOLUTIONARY, inevitably resulting in an element of corporate chaos. We regard ourselves as EVOLUTIONARY. Ormita is about putting our clients, licensees, employees and communities in control, so that the value of their collaboration can be fully realized. Our Values: Integrity: We act with courage, consistency and respect to do what is honest, fair and trustworthy. Innovation: We anticipate and respond to challenges and changing needs with creativity, enthusiasm and determination. Responsibility: We are accountable to our partners, employees, colleagues and the community for the results of our decisions and actions.
  • 10. China Germany Malaysia tina Romania Our Leadership Team Croatia Hungary Mexico Spain lia Cyprus Ireland Netherlands Sweden in Czech Republic Israel New Zealand Switzerland m Denmark Italy Norway Thailand Global Experience Global Board Of Directors Estonia Japan Pakistan Turkey ia Latvia Finland Peru United Kingdom a • Economists France Lithuania United States Gielarowski James (Jim) Poland Experienced CEO and Business Analyst • Accountants Over three decades of business management, with more than 10 years as a recognized leader • Community Organizers China Germany in theMalaysia trade industry. Argentina Romania non-cash Croatia Hungary Mexico Spain Australia Cyprus • IT Specialists Ireland Netherlands Sweden Bahrain Daniel Evans Czech Republic Israel New Zealand Switzerland Belgium Denmark Italy • AttorneysBrazil Norway Experienced CEO and Senior Economist Thailand Estonia Japan Background in IT and Economics. Global Pakistan Turkey Bulgaria Latvia Finland experience in counter-trade, offset trading, and more … Peru United Kingdom Canada retail trade, community currencies and more. France Lithuania Poland United States Chile China Argentina Croatia Australia Worsnop Miriam Cyprus Bahrain Experienced CEO & Certified Trade Broker Has worked extensively in Australia, Bosnia-Republic Czech Romania Belgium Denmark Herzegovina, Canada, New Zealand, Norway, Spain Brazil Estonia Singapore, Thailand, Turkey and the USA. Malaysia China Germany Sweden Argentina Bulgaria Finland Croatia Hungary Switzerland Mexico Australia Canada Global Board Of Advisors France Romania Cyprus Ireland Netherlands Thailand Bahrain China Germany Malaysia Argentina Chile Romania Spain Czech Republic Israel New Zealand Croatia Hungary Mexico Belgium Turkey Spain Australia Sweden IrelandDenmark Italy Norway Chris Cook Lynnea Bylund Sjaak Adriaanse Cyprus United Kingdom Bahrain Netherlands Sweden Brazil Switzerland Israel Estonia Japan Czech Republic Pakistan United States New Zealand Switzerland Former director of the International Petroleum First female to be awarded a Broadband PCS Mathematician and computer scientist. Involved Bulgaria Belgium Latvia Italy Finland Thailand Denmark Exchange and the originator of the Iranian Oil operating permit. Worked extensively with the First in several Dutch community currencyThailand and projects Norway Peru Canada Brazil Japan France Lithuania Turkey Estonia Brazil, Ruth Cordosa. Nationally recog- Bourse project. LadyChile of maintains over 400 complimentary economics links. Poland Pakistan Turkey Bulgaria nized spokeswomen for the emerging alternative Latvia United Kingdom Finland Xi Sun Peru China GermanyKingdom United Chris LindstromCanada Argentina video and information delivery industries. United States France Lithuania Germany Malaysia Romania Poland Croatia Hungary States United Managing Director of Beijing Barter International. ChileBerkShares. Author Australia Founding board member ofMexico Hungary Mark Gauvin Spain Organizer of the International Forum for Commu- Cyprus Ireland Bahrain on Community Currencies. Netherlands the E.F. Consultant to Ireland Sweden Founder of NetPortedItems S.L. creator of the nity Economy and Credit Systems.Israel Masters Degree Czech Republic Schumacher Society and promoter of sustainable Belgium Israel New Zealand Switzerland DigitalShadowCaster technology. Serves as DMP of Economics and Masters Degree Italy of Law. Denmark currency development. Italy ChairThailand of Requirements and on Board of Directors. Brazil Norway Estonia Japan Specialist in digital representation and manage- Japan Bulgaria Pakistan Latvia Finland Turkey ment of objects of value. Canada Latvia Peru France Lithuania United Kingdom Lithuania Chile Poland United States Our Leaders have Professional Memberships in the following organizations: • American Economics Association • Commonwealth Association of Public Administrators • Canadian Association of Economists • Law and Economics Society of New Zealand • The Economic Society of Australia • The Internet Society • New Zealand Association of Economists
  • 11. What the Press Says About Non-Cash Trade
  • 12. Global Product Placement Sourcing Capabilities Not all organizations will allow their product to be distributed locally Ormita has the ability to place product globally across 5 continents, 40 countries and 142 cities. United States United Kindom of America 36 Locations 27 Locations New Zealand 4 Locations Australia Italy 17 Locations 14 Locations China Germany Malaysia Argentina Romania Croatia Hungary Mexico Spain Australia Cyprus Ireland Netherlands Sweden Bahrain Czech Republic Israel New Zealand Switzerland Belgium Denmark Italy Norway Thailand Brazil Estonia Japan Pakistan Turkey Bulgaria Latvia Finland Peru United Kingdom Canada France Lithuania Poland United States Chile
  • 13. Trading Your “In-Kind” Donations Ormita provides your organization the option to exchange your donated goods or services with other or- ganizations in return for things you need. Instead of trading goods and services directly, you will list your offered products with Ormita and sell them to other organizations for “Trade Credits”. Trade Credits record the real market value for the product or services acquired by each organization. These credits can then be used to acquire other market-value goods or services without the need for cash. Receives offer for donated Receives an offer for some medical equipment School donated school books Charity Needs some school books Needs a photocopier Community Group Receives an offer for some donated printing credit Receives offer for a Welfare donated photocopier Needs some medical Organization equipment Needs some printing
  • 14. How We Advertise Your Donated Products To Other Organizations Buy & Sell Online Export 24 x 7 Telephone Coordinator Brokers Email Newsletters Fax Broadcasts Online Networking Directory Meetings Ormita International Magazine Affiliates Trade Printed Brokers Directory Exhibitions
  • 15. Accounting & Tracking In-Kind Donations Rather than promoting direct trade between participants, Ormita brokers transactions through a centralized marketplace. Transactions are recorded in a centralized “ledger” which notes the value of the items purchased from other non-profits (debit) and sold to other non-profits (credit) – much like a clearinghouse does for stocks, or a commercial bank does for cheques. 1. In-Kind Donation offers are listed in an online database by your organization. 2. When a donated product or service is passed to another organization you receive “trade credits” for the value of the item. 3. 1 Trade Credit = $1. 4. Pricing for items is set by you although buyers and sellers can negotiate online and offer prices. 5. Non-profit donor and recipient transactions are not subject to commissions or any fees. Radio Station Accountant • Donates $2000 • Buys Advertising worth of Advertising • Buys Printing • Sells Advertising • Donates to Charity Printer Charity • Sells Printing • Receives Donations • Buys Advertising • Buys Printing • Buys Accounting • Buys Accounting
  • 16. The Joining Process
  • 17. Receiving Donations Received via email Received donation form Non-Profit receives offer via fax or in person of donated product Received from online donation form from non-profit website Offered product is Faxed or emailed to Ormita Broker logged into Ormita online database Entered directly by non-profit Online website Ormita sends regular notification of all Promoted directly to those offered products groups who have pre-registered their interest in that type of offering Order Placed online directly by another group Someone requests offered product online Broker entered order directly from database Ormita software sends email notification of pending sale to non-profit OR Non-Profit issues tax receipt Non-profit issues tax receipt to donor for sale valve and to donor for sale value and advise organization will advises broker who arranges collect and arrange freight. collection by purchaser Non-Profit account is credited within Ormita System with dollar value of sale and they can now acquire own goods or services with that credit.
  • 18. Acquiring Goods & Services Via Ormita Non-profit maintains an account within the Ormita system Weekly emails Receives regular offers of available Fax Broadcasts goods and services from both other non-profits and Ormita Corporate Online Directory Members Contact with their assigned broker Direct online Makes Purchase request Via broker Email notification received and broker calls to assist Purchase request approved with delivery Some donors/sellers will deliver at their cost Works with seller to collect or ship the purchased product Some donors/sellers may require you to arrange your own collection Your account is debited within the Ormita System.
  • 19. How We Will Make This Work For Your Organization All Ormita Non-Profit Organizations are backed by wide-ranging resources available through our sales and marketing support teams. Marketing Materials • Our online Marketing Library has a range of valuable presentation ready literature for you to provide to in-kind donors. • We can customize or design new materials for you to give to potential in-kind donors. 24x7 Telephone Support • Ormita offers 24x7 telephone support to help you find what you are looking for. Training • Ormita can organize telephone training sessions with your donor relations team on the best way to acquire “in-kind” donations without it affecting your existing cashflow. Logo Usage • All approved organizations may use the Ormita logo to promote their association. Public Relations Support • Ormita has a database of many media outlets in your location and will work with you to draft a press release suitable to attract “in-kind” donations to your organization. Sales Support • Ormita can include a member of our sales team in joint telephone calls to potential donors to help close a pending donation deal. Newsletter • Ormita keeps its non-profit partners up-to-date with news about goods and services that are available through e-newsletters. Your Own Dedicated Broker • A dedicated broker will be assigned to your organization to help you acquire needed goods and services through our network and settle any “in-kind” donations you are offered.
  • 20. What We Need From You Ormita is currently launching in your area. There are hundreds of organizations like yours who we are approaching but to make this work we need you! There is no commitment until we launch – but we do need your organization to register with us prior to launch so we have a solid base of non-profits to move forward with. This program is provided as a free community service to your organization. We need you – now. We have several charities who we are talking with and a database of thousands in your local area. Together we can use our collective contacts to harness millions of dollars of products and serv- ices that are currently going to waste. Businesses want to dispose of this inventory in an environmentally friendly, “marketable”, and accounting “friendly” manner. Together we can make a difference to your organization and others like you. Please join us.
  • 21. AUSTRALIA Derby 0133 291 7004 MARYLAND Dundee 0138 260 5000 Edinburgh 0131 606 0044 Baltimore (443) 692 0121 Glasgow 0141 421 0051 AUSTRALIAN CAPITAL TERRITORY MASSACHUSETTS Gloucester 0145 249 8010 Canberra (02) 6160 1477 Huddersfield 0148 461 0011 Boston (857) 524 5135 Ipswich 0147 339 5000 NEW SOUTH WALES MICHIGAN Kingston upon Hull 0148 269 0011 Campbelltown (02) 4602 4115 Leeds 0113 358 0166 Detroit (313) 733 2939 Dubbo (02) 5804 5111 Leicester 0116 330 0033 Gosford (02) 4304 1501 NEVADA Liverpool 0151 151 0211 Newcastle (02) 4016 6127 London 0203 355 1381 Las Vegas (702) 446 0899 Penrith (02) 4702 0513 Manchester 0161 421 0177 Sydney (02) 8197 7017 NEW JERSEY Newport 0163 337 0011 Tamworth (02) 5711 1203 Norwich 0160 391 1010 Newark (973) 741 6884 Nottingham 0115 817 0011 QUEENSLAND NEW YORK Oxford 0186 557 6041 Brisbane (07) 3121 9657 Peterborough 0173 351 7070 New York (347) 527 7677 Gold Coast (07) 3166 5304 Plymouth 0175 239 9006 Sunshine Coast (07) 5313 3411 OHIO Preston 0177 221 7010 Townsville (07) 4795 0409 Reading 0118 331 0020 Columbus (614) 754 5884 Rotherham 0170 927 0000 SOUTH AUSTRALIA PENNSYLVANIA Saint Helens 0174 471 0000 Adelaide (08) 7423 0109 Sheffield 0114 301 0004 Philadelphia (215) 695 3040 Swansea 0179 267 6001 Pittsburgh (412) 360 8450 TASMANIA Swindon 0179 329 6077 Hobart (03) 6281 4775 TENNESSEE Watford 0192 337 9010 Memphis (901) 328 7278 VICTORIA Melbourne (03) 9095 3402 NEW ZEALAND TEXAS Austin (512) 499 2345 WESTERN AUSTRALIA Dallas (214) 461 4818 Bunbury (08) 9774 0105 NORTH ISLAND Fort Worth (817) 439 6909 Kalgoorlie (08) 9051 5200 Auckland (09) 974 9159 Houston (713) 820 9464 Mandurah (08) 9512 8010 Wellington (04) 974 9061 Perth (08) 6465 9631 UTAH SOUTH ISLAND Salt Lake City (801) 618 0488 ITALY Christchurch (03) 974 9041 Dunedin (03) 974 8014 WASHINGTON Seattle (206) 691 8191 Bari 080 214 9618 UNITED STATES Bologna 0511 990 7661 Brescia 030 207 7648 OF AMERICA HEADQUARTERS Cagliari 070 773 8241 Firenze (Florence) 055 535 7643 Genova 010 893 7302 ARIZONA AUSTRALIA Messina 090 896 8832 Phoenix (602) 427 5620 PO Box 638 Padova 049 859 7942 Booval, QLD, 4304 Palermo 091 619 3644 CALIFORNIA St Vincent 016 687 1130 Los Angeles (323) 443 0233 Facsimile: (07) 3123 5908 Taranto 099 987 1038 San Francisco (415) 358 1808 Email: aus@ormita.com Torino 0111 983 9445 San Jose (408) 538 0208 Verona 045 485 8775 NEW ZEALAND COLORADO PO Box 132009 ROMANIA Denver (303) 997 1666 Sylvia Park, Auckland DISTRICT OF COLUMBIA Facsimile: (028) 890 637 Washington DC (202) 380 3223 Bucharest (021) 519 1421 Email: nz@ormita.com FLORIDA UNITED KINGDOM UNITED STATES Tampa (813) 200 4844 PO Box 16120 Orlando (321) 281 3766 Pittsburgh, PA, 15242 U.S.A BBasildon 0126 843 0010 GEORGIA Birmingham 0121 264 0130 Atlanta (678) 298 3210 Facsimile: (412) 360 8403 Blackburn 0125 441 0010 Email: usa@ormita.com Blackpool 0125 358 0011 IDAHO Bolton 0120 423 0001 Boise (208) 906 1188 Bradford 0127 444 9121 Bristol 0117 361 0030 ILLINOIS Chelmsford 0124 576 0050 Chicago (773) 337 4770 Coventry 0247 699 8602 Ormita is a registered trademark of Ormita International Limited and/or its affiliates. Other names may be trademarks of their respective owners.

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