Guidelines for Small Business Charitable Donations

As a small business owner you have probably been approached by charities for donations or have at least thought about giving to charity. Charitable donations are a part of business. They put you and your business in a good light, they help you give back and they can be quite beneficial for your business when tax season comes around. Figuring out what charities to give to, when to start donating and how much to give are all decisions that you will have to make and it is important to think through them carefully.

Finding a Charity

When you are just starting it is probably best to choose one charity to work with. You should choose something that is related to your business or a cause that means something personally to you. Make sure the charity is a legitimate charity. It has to be a public charity and you should check it out completely to ensure it is legitimate and that the money really does go to the stated charitable cause. Make sure to understand all the guidelines about your donation and how it will be used so you are sure your donation is being used to help out and not just pay administrative fees.

How Much to Give

Money is probably the most common charitable gift. You can check around to see what other businesses in the area have donated to get an idea of how much you should give. These donations are usually public and you can find out by asking the charity.

Money is not the only thing you can donate. If you are just starting out in your business you may not have the money to donate. Instead you can consider donating time or merchandise. For example, if you own a bakery and are giving to a charity that does a 5k race then offer to donate pastries for the workers at the race.

Tax Breaks

The tax rules about charitable donations are rather strict. You can’t simple write off just anything as a charitable donation. It is important to discuss your donations with your accountant to see just what can be used and what can’t. Not being able to write off a donation is no reason to not give to charity, though.

Giving to charity will reflect nicely on your business. People really respect businesses who are willing to help out good causes and give back. This shows a sense of community and shows you are a business that cares about others.

Avoid the urge to “out do” other local businesses. Giving to charity is not a game or a contest. Any donation is a welcome donation. You should do what you can. Do not put your business at risk just to donate. The charity will be grateful for any donation you make, whether big or small. You can always donate when you get the chance or have the ability to. Charities accept donations all year round, not just during times when they are doing a drive. You may not get the publicity for donating at other times of the year, but you will always get the great feeling that comes with helping out those who need it.