New York SBDC Research Network

Most small businesses make charitable donations. In fact, surveys have shown that about 75 percent of small business owners donate some portion of their profits — about 6 percent on average — to charitable organizations each year. As we’re in the midst of the holiday season (and tax season looms), many small business owners are likely considering charitable contributions and wondering how such donations might impact the bottom line in terms of tax deductions. First, it’s important to choose the right charity and avoid certain pitfalls that could leave you in a bind. Read more from SBA.gov .

As 2012 comes to a close, individuals and businesses need to remember some key tax provisions for making contributions to charity. The IRS offers these reminders for year-end giving: To deduct monetary donations you must have a bank record or written document from the charity stating the name of the charity, the contribution amount and the date. Contributions are deductible in the year made, even if the credit card bill isn't paid or the check isn't cashed until 2013. Only donations made to qualified organizations are tax deductible. Make sure the organization you want to donate to is qualified before making any contribution. Individuals must itemize their deductions on Form 1040 Schedule A or use a short form (Form 1040A and 1040EZ) to claim the standard deduction. Find more year-end giving tips from the IRS.

I recently worked on a question about getting a business to want to contribute to a non-profit. (It was more complex than that, but that'll do for this purpose.) In researching the query, I came across Business Nonprofit CONNECTIONS, Inc. The About Us page poses this question: "Is your company’s giving making a difference in your community...and your bottom line?" The founder and CEO of the company, Susan Hyatt, "provides small and mid-sized companies with ideas and tools for actively managing their community impacts and giving strategies." Also, there's a lot of free, useful advice in blog articles and links to other resources at the site. And I've been getting some start-up e-mails from her that are commonsensical but useful; e.g., "Lesson One - Your Business is NEVER 'Too Small' To Make A Difference." One can sign up for a "free 12-page report, Great Gifts That Make a Difference, for ideas on alternative giving this holiday sea...

"I have a patron who is looking for nonprofit organizations' IRS form 990" Foundation Center.org has a database. I looked for those in NYS in 2005 and discovered that 44991 documents matched, though only 100 documents are displayed, so narrowing by name will be necessary. Grantsmart.org showed 85844 Matches Found for New York, though it may cover more than one year. It claims to have over 620,000 tax returns filed by over 100,000 private foundations and charitable trusts. If you're looking for aggregate tax data about charities, or for that matters, businesses generally, go to the web page of our good friends at the IRS . Hurry up and file those taxes!