Q:

Hi, I came across your site when I was doing some research for a meeting and hoped you might be able to help me and/or refer me to some materials that might be of assistance.

 

I have been asked to address a C corp regarding structuring a gift for a non-profit capital campaign.  Of course, they want to make their gift in the most tax advantageous way and have expressed interest in possibly matching the individual gifts of the members.  I know just enough to be dangerous on this topic, but I would think this would be a charitable gift (deductible up to 10% of AGI) rather than a business expense, which would be deductible at a higher level.  Can you point me to any resources that would be helpful?  Any other issues you can think of that I might need to make them aware of?

 

Thanks in advance for your help!

A:

As you mentioned, corporate charitable contributions do have a more limited deductibility than do other operating expenses.  If the 10% of taxable income limit would rule out an actual deduction for your donors, you may want to consider allowing them to use their donations to have advertising and promotional benefits, such as when large companies pay for the rights to put their names on sports and performing arts facilities.  They would then be able to deduct those costs as advertising and promotional expenses, which don’t have the 10% limit.

I hope this helps.  That’s what popped into my head from your question.

Good luck.

Kerry Kerstetter

Follow-Up:

Many thanks for your help.  I mentioned this to them as a possibility when we met last week, so I am glad to hear that I was on the right track.

 

Thanks again,

 

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