How A Charitable Donation Can Help Your Business


Giving to Giving Center and other non-profit organizations is a great way for your small business to build goodwill in the community and is often part of an overall public relations strategy. For many businesses, making charitable donations in cash, property and even time can be a benefit when it comes time to file your business taxes. Many types of contributions are tax-deductible. Though, there are limitations on these contributions and processes to follow in order to comply with strict tax laws.

Qualifying Donations

The IRS recognizes both cash and non-cash contributions from businesses. Non-cash donations can be property, goods and inventory. You also can deduct expenses related to volunteering for a qualified charitable event or service project. This doesn’t include the value of the time you spent but can cover gas and mileage required to attend an event, along with supplies donated to the cause. Often, charitable donations can be made in exchange for something of value. In that case, only the amount of the donation above the value of the good or service received is tax-deductible.

Qualifying Organizations

In order to fully utilize the charitable donation deduction, your business must give to organizations recognized by the IRS as 501(c)(3) nonprofit organization like Giving Center. This means Giving Center is able to receive tax-exempt donations. Keep in mind, gifts and donations to political organizations, parties or candidates, or to specific individuals, aren’t recognized by the IRS as tax-deductible donations. You are able to find out if a company qualifies by asking to see its letter from the IRS naming it a tax-exempt organization. You also can search for qualifying organizations by using the IRS Exempt Organizations Search tool.

Limitations

While individuals donating to Giving Center, a qualifying 501(c)(3) organization, are allowed to deduct up to 50% of their adjusted gross income as charitable contributions, businesses are limited to 10% of their taxable income. Many businesses often opt to donate the maximum amount allowed each year to Giving Center.

Record Keeping

Record retention and bookkeeping is very important for businesses that wish to deduct charitable contributions. You must keep the proper paperwork and all transactions. If your business makes a donation of less than $250, a receipt written out by the Giving Center is sufficient, as does a canceled check or credit card or bank record. For cash donations above $250, Giving Center will give you an official receipt. There is no additional IRS form to fill out for a cash donation.
You will also get a qualifying receipt from Giving Center for all non-cash donations. To deduct this type of donation, you must appraise the fair-market value of the items and use that amount as your deduction. If the value is greater than $500, you will need the IRS Form 8283 when you file your taxes. If your donation is worth more than $5,000, you also need a written appraisal of the goods and have the appraiser sign Section B of Form 8283.

Comments

Post a Comment

Popular posts from this blog

Sacramento Furniture Donations

Image
If you live in Sacramento California and have furniture that you no longer need, there is a great charitable organization that will be happy to take most items off your hands. Whether you live in Rosemont, Elk Grove, Rancho Cordova, or any other cities close to Sacramento, you can make an easy   furniture donation   with the   With Causes Charitable Network . Sometimes, the easiest way to deal with moving furniture from one location to the next is to not move it at all. It can easily end up costing you  more  to have movers ship all of your old furniture to your new home. Or maybe you are just replacing your furniture in your home or office. Whatever the case,  donating furniture  to charity is a fantastic solution for offloading used household items. All throughout California, there are many charities that will gladly take your items off your hands. However, if you are in the Sacramento area, consider donating to the  With Causes charitable Netwo...
Read more

Businesses And Charitable Contributions

Image
Some new studies coming out are showing millennials have driven the social responsibility movement to all new heights, with 70% of them reporting that they are planning to spend more with brands that  support causes . Given that millennials represent $2.45 trillion in spending power, the idea of “giving back” can be very powerful for your company’s sales, not to mention, it’s overall purpose. Enterprise businesses have come up with some really creative ways of doing social good. You do not need a huge budget or full marketing team to execute a strong “giving back” campaign. Corporate donation is a great way to generously help a  charitable organization  that matter to you, your employees, and your community. Most businesses are able to make charitable donations each year. There are lots of benefits to corporate donations, but here are four that you might want to consider. Employee Morale Corporate donations allow companies to take active rolls in their own commun...
Read more

Wondering What To Do With That ATV That's Been Taking Up Space?

Image
Does your family have an idle like an ATV taking up space in the garage? Reliable, trustworthy, rewarding  ATV donation   is possible online with   Giving Center . Giving Center promises to deliver the best   impact on the community   with your generous   ATV donation …by carefully screening recipients, spending as much as possible of the proceeds on beneficiary programs, as well as by giving back to you. When you   donate ATV , all proceeds (or repurposing) help a great variety of programs and peoples alike— including you. You qualify for a   fair market value tax deduction   because when you make a donation with us, you are making a donation to an IRS qualifying nonprofit charity. Small recreational vehicles like ATVs are fun and useful, but they can often be much more difficult to sell than other vehicles. When the time comes to upgrade or simply get rid of your used ATV, donation is an easy option. Rather than dealing with the headac...
Read more