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AlldayCPA® Blog


Recent Posts:


  • Summer Activities and Taxes – Did You Know?

  • National 529 Day – Did You Know?

  • Understanding your CP53E notice

  • Guide to Making Louisiana Online Payments on LDR Website

  • Make Church and Charity Gifts Business Write-offs

  • Claim Motor Home Deductions Right—Or Lose Like Jackson

  • How to Convert Your S Corporation into a Tax-Favored QSBC

  • One-Time Pay: 1099, Kiddie Tax, IRA—Get It Right, Now


  • Make Church and Charity Gifts Business Write-offs

    Recent tax law changes make it more challenging to receive meaningful tax benefits from charitable giving.

    Under the current 2026 rules, higher standard deductions and new limitations mean many taxpayers receive little or no benefit from itemizing charitable contributions. Additionally, personal donations are made with after-tax dollars, often increasing the overall cost of giving.

    But as a business owner, you can beat this problem.

    Your business can structure certain payments to charities as ordinary and necessary business expenses. When structured this way, your business takes the deduction on its business return, reducing not only income taxes but also (potentially) self-employment taxes or, if applicable, payroll taxes. In addition, the business deduction generally lowers your adjusted gross income, improving eligibility for other tax benefits.

    To qualify, the payment must have a clear business purpose and a reasonable expectation of financial return. In practice, this means the expense should function as advertising, promotion, or customer development.

    There are several proven strategies:
    • Sponsoring charitable events to promote your business
    • Donating a percentage of sales to encourage customer purchases
    • Supporting local organizations to enhance community branding
    • Using coupons or rebate-style programs tied to charitable giving

    Proper documentation is essential. To support the deduction, maintain records such as sponsorship agreements, marketing materials, and evidence of business intent.

    If you want to discuss how to use your business to support charities, please call us on our direct line at 504-835-4213.


    Kaylin Keller | 05/10/2026



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