Why Donating to Charities is Good For Your Small Business

donations

 

Donating to charities is an act of kindness and goodwill. Charitable gifts come in many forms. There are many benefits when donating to charities as a small business. It supports your business values. Connects your business to the community. There are also opportunities for tax deductions. A small donation can make a big difference to nonprofits. 

 

donating to charities

It Fits Your Business Values

Every business has core values and standards that they believe in. These values and standards entice customers to buy from your business.

Donating to charities is one way to promote social responsibility as a small business. No matter what your business values are, there is a charity that fits with what your business stands for.

Connects Your Business to the Community

Share your objectives and mission with everyone in your community. Doing so helps develop a cohesive business model. Spread awareness about donating to local charities. This encourages others in the community to donate.

Set up a canned food drive. Offer a donation to charity for every sale made. Ask customers if they would like to add on a donation to their purchase, while your business matches every amount.

Sometimes when charitable donations are made, your business can receive free PR. This could be in the newspaper, local news station, or an online article. Link these to your website and share it on social media. This promotes unity in your community. People support businesses that care about their community.

Receive Tax Deductions

Charitable contributions to a nonprofit might qualify your small business for tax deductions. Make sure the nonprofit is a 501(c) (3). Check to make sure with this IRS search tool

 

Deduct these charitable gifts on your taxes this year: 

  • Cash
  • Gifts of property or equipment
  • Travel expenses accrued when helping a charitable organization

 

There are many rules and regulations for charitable tax deductions. Some donations are not tax-deductible, including: 

  • Political donations
  • Gifts to individuals
  • Gifts to for-profit schools

 

Although deductions are one of the many benefits of donating to charities, this should not be your main driving force. Donate to charities that you and your business have a connection to. If your customers mainly live in your city, choose a local charity that gives back to the community. 

Get Expert Advice and Help

It is always best to check with a tax advisor familiar with charitable donations. A financial expert will help you decide what charity is best for you to support. 

We customize our services to each of our clients and their business plans. Each one of your ideas is unique to your business, and we understand that. Our one-on-one interactions are a valuable resource for both your team and ours. 

 

We are here to answer questions you have about donating to charities as a small business owner. If you would like to set up an appointment, call us at 410-764-3731 or book a time with us at https://calendly.com/michaelplc.

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