BUSINESS Donations

Donating to Charity

If you are interested in finding out how business donations can help your business then continue reading this article to help you find the best ways to donate. Do your research before donating to any charity or non-profit.

Donate money or property to charity.

Research

Research the charity before you give money or goods. You must verify that the charity you are considering donating to is legitimate. Many agencies provide information that will help you assess the operation of charities.

• The Internal Revenue Service provides tax tips to donors.
• You can check a charity’s exempt organisation database to verify its 501(c). If you want to deduct your donation from your federal taxes, a charity must be 501(c).
• Your state’s attorney general often licenses charities. They might also keep records of complaints against charities.
• The Better Business Bureau provides reports on how large charities use their money.

BUSINESS Donations

Types of Donations 

Monetary

You can make financial donations using a check or credit card. These payment options can be used to keep track of your donations. These payment methods can protect you against charity frauds.

Goods and Personal Property

Non-cash donations are accepted by some charities, including clothing and household goods. Good (or better) condition items are acceptable. For your taxes, keep a record of all the items that you have donated.

Vehicles

Donate your vehicle, whether it is a car, truck, boat or any other vehicle, to charity. A charity may donate a vehicle that it has donated to someone. They might also use it for operation or sell it at an auction. You will need to transfer the vehicle’s title to charity if you are donating it. Before you donate the vehicle, take out all registration and license plates.

Other Properties

Other types of items can also be donated to charities

• Art
• Jewellery
• Stocks
• Real Estate
• Patents

An expert appraisal may be required to determine the value these items. It is possible that the value of these items will depend on the time and whether there are offers to purchase them.

BUSINESS Donations

Charity Scams 

To take advantage of the generosity of the public, some scammers create fake organizations. They profit especially from tragedies and natural disasters.

How to protect yourself from charity scams

BUSINESS Donations

Federal Tax Deductions for Charitable Donations

If you donate to a 501(c)3 organisation, you may be eligible for a federal tax deduction. You must submit a Schedule 0 along with your tax form to deduct donations. You can deduct cash or vehicle donations if you have the proper documentation. You can also use Form 828 to deduct non-cash donations.

Small businesses can claim a tax deduction for charitable donations. When a small business donates, the IRS has very specific reporting requirements.

• Non-food inventory
• Food
• Intellectual property

Donating services will not qualify for a tax deduction. However, you might be able deduct travel and materials expenses.