Should You Tithe or Give From Your Home Business?

by Kori Rodley Irons | More from this Blogger

23 Mar 2007 11:33 AM

Charity, tithing and giving to the community may be a value that you hold dear (or at least subscribe to) in your family life, but have you considered whether or not you should also be making charitable donations from your home business?

Giving from and through your business can actually serve several purposes. Some business owners find that donating to community projects and charitable causes from their business not only provides them with a means to support good causes and work, but it also helps promote the business. Many large corporations use portions of the marketing budgets to sponsor charitable events and support community causes. Even small businesses can support local nonprofits, church events, or sponsor a Little League Baseball team.

If you cannot give cash, you may be able to donate products, goods, or services--or some of your professional expertise--from your home business. You may be able to keep track of the value of your in kind donation and treat is as a charitable donation on your taxes.

It is important to see your accountant or financial advisor regarding tithing or making donations from your business. In general, if you receive something in return for your donation (advertising, marketing, tickets to an event, etc.) then the entire value or donation is not tax deductible. You'll need to get professional advise in order to make sure that you are keeping accurate records for your taxes and that you take the deductions you are allowed.

Of course, many of us make our charitable donations without much regard to the tax benefits. You may not really be concerned with whether or not your business receives recognition or the public relations benefits either. But, this doesn't mean you shouldn't keep track of the sort of charitable or in kind donations you make through your home business. You'll still want to keep accurate records so you don't get into trouble while you're actually trying to help!

See Also: Planning for NEXT YEAR'S Taxes and Keeping Track of Business Expenses

Learn more about Kori Rodley Irons

Bio has been removed by administrator

View Full Profile | More from this Blogger