How to Make a Corporate Donation Tax Deductible
If you are passionate about a cause and believe you can make a difference look into community projects that have been set up as non-profit corporations. Donations to these types of organizations are income tax deductible, and the process is an easy one.
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Instructions
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Develop a list of ten to fifteen local or national charitable organizations or corporations that you would feel good about giving to.
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Analyze your list of corporate organizations. As you analyze your list, select organizations that support issues for which you have a personal interest. If you do not have a strong interest in a cause, select an organization or corporation that is conducting business or accomplishing something that you support. Consider local organizations or corporate entities where you can easily observe their programs. Your goal for this step is to reduce the number of possibilities on your list. After your analysis, choose 3 to 5 corporations to contact.
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Contact the corporations on your final list. Write to the Public Relations Department. The inquiry is for you to discover the preferred acceptable tax-deductible donation type. Do they accept "gifts in kind" or monetary donations only? Make certain to include in your name, return address and a contact phone number in your correspondence.
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Decide from the company and organization responses where you will donate. Make certain the organization accepts the type of donation that you are proposing. Send your monetary donations in the form of a personal check. In the memo notation on the check, be sure to write, "Tax deductible donation."
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Attach your canceled check to the thank you letter from the organization. Your selected organization will respond with a thank you letter indicating a description of the tax-deductible gift and the nature of your donation. File this letter, along with your canceled check, or value description of "gifts in kind," with your tax papers. Provide copies to your tax accountant for verification.
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Tips & Warnings
When donating to any organization to obtain a tax deduction, always consult your tax accountant prior to making any donation.
