One part of the tax code more people should take advantage of is the tax deduction available for charitable giving. This deduction doesn’t only extend to individual tax payers. It also extends to corporations. All corporations should consider taking advantage of this deduction. It doesn’t only lower your tax burden. It also can do a lot of good in the world. If your company is looking for ways to pay less in taxes before the year is over, charitable giving is an excellent strategy with plenty of benefits.
Use Charitable Giving to Re-Enforce Your Values
Charitable giving isn’t just about avoiding taxes or shallow Twitter style virtue signaling, it’s about changing the world for the better in a substantive way. Do so in a way that matches the values your company holds as important. If your company sells products to children, for example, you should certainly be looking for child-geared charities to donate to that do things like research new ways to treat childhood cancer.
Help Fund Disaster Relief Efforts
There are always disasters going on across the globe due to earthquakes, forest fires and extreme weather. Many people are put into dire straits due to those disasters and need help. Consider using your corporate charitable giving to make a difference for those victims.
Give Back to Local Communities
Corporations, unlike smaller businesses, have a reputation for being cold and unconcerned with the affairs of the local communities they do business in. You can use your charitable giving to help change people’s minds by giving back to those communities in substantive ways. For example, you could run food drives during the holidays. You could fund local homeless shelters. You could even sponsor youth sports teams.
Invest in Education
One of the best corporate donation opportunities you can deduct from your taxes is donating to education funds. Doing so can lower your tax burden. However, it will also help do the important job of developing the next generation of business leaders. The brightest minds that could someday lead your industry don’t all have the finances to pay for a college education. There are programs that help from everything from tuition assistance to literacy programs that use animals to ease anxiety. Find a program that fits your company’s mission statement.
Make Sure Your Charitable Giving Qualifies
There are many ideas you may have for charitable giving. However, not all of them may qualify for a tax deduction. You should probably discuss the possibilities over with a tax professional or even a lawyer. The rules can get quite technical. In general, if your company somehow directly benefits from the donation, it is probably not tax deductible.
Overall, charitable giving is a great way to lower your tax burden. It can also allow you to give back to the community as well as people that could really benefit from your company’s charity. Give it serious consideration.