Is Charitable Donations Tax Deductible for Your Business?

No, charitable donations is generally not tax deductible as a business expense. The IRS considers this a personal expense, even if it has some connection to your work activities. However, there may be limited exceptions in specific circumstances.

Key Rules for Deducting Charitable Donations

Sole Proprietors, S-Corps, and Partnerships pass charitable contributions to the individual's Schedule A. They are NOT business expenses that reduce self-employment tax. Exception: C-Corps can deduct up to 10% of taxable income.

Requirements to Claim This Deduction

• NOT a business expense for pass-through entities
• Deductible on personal Schedule A (itemized)
• C-Corps: up to 10% of taxable income

How to Document Charitable Donations for Tax Purposes

Proper documentation is critical for any business deduction. For charitable donations, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRC § 170. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.