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Boost business deductions with a charitable-gift program

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in Small Business Tax,Small Business Tax Deduction Strategies

You probably contribute your fair share to charity. In fact, you might make some last-minute donations to boost your charitable deductions for 2006. But is your small company doing anything to help those less fortunate?

Strategy: Set up a charitable “matching” program for your business. This is the same concept the corporate giants use: For every dollar an employee contributes — up to a specified limit — your company matches it in whole or in part.

This is a win/win strategy: Employees can deduct their contributions on their personal returns, your company can deduct its matching donations (limited to 10 percent of its taxable income for the year if the business is a C corporation), and the funds help people in need.

Here’s how it works: You establish the gift-giving program through regular payroll deductions. The company generally agrees to match the designated contribution on a dollar-for-dollar basis up to a spec...(register to read more)

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