Giving to a Charity

Hello again,

We had our first snow fall in the Salt Lake Valley last night. Winter and the holiday season can now begin!

If you aren’t already, you should be starting to think about organizing your year-end paper work and assessing your financial situation. If you are looking for a way to minimize your tax burden, the holiday season is an excellent time to donate to a charity.

Giving to qualified charities can not only help someone in need, but it can help reduce your taxes significantly. You can find innovative, effective ways to give to promising organizations seeking support at any level. You can tap into community foundations, set up donor-directed and charitable gift funds, or even start your own nonprofit organization.

As a company, you can also get your employees involved. Perhaps you promise to match any donations your employees give. Giving to charities is a win-win for you, as you feel the warm fuzzies that come from doing something good and know you’ve reduced your tax liability, too.

Read on for more ways to give and save!



Vice President and Manager
Zions Business Resource Center

BBB Guidelines for Charitable Giving

The Better Business Bureau Wise Giving Alliance offers four basic tips on charitable giving to help donors make wise giving decisions:

1. Do not give cash; always make contributions by check and make your check payable to the charity, not to the individual collecting the donation.
2. Keep records of your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time. Although the value of your time as a volunteer is not deductible, out-of-pocket expenses (including transportation costs) directly related to your volunteer service to a charity are deductible.
3. Don't be fooled by names that look impressive or that closely resemble the name of a well-known organization.
4. Check out the organization with the local charity registration office (usually a division of the state attorney general's office) and with your Better Business Bureau.

According to the BBB, it is imperative that individuals and businesses do their homework to make certain their contributions are used appropriately to help organization accomplish their mission.

Small Biz  Partners & Resources

SCORE -- Provides counseling to small businesses

Ogden SCORE - E-mail
ogdenscore158@aol.com

Salt Lake SCORE - Chapter 0049
310 South Main St., N. Mezzanine, Salt Lake City. Phone: (801) 746-2269; Fax: (801) 746-2273; Email: mallen@slcscore.com

Wayne Brown Institute -- Runs the oldest and most successful non-profit venture accelerator program in the country, helping technical entrepreneurs from every social economic level raise money for their businesses.

Small Business Development Centers
-- Provides counseling and training to small businesses.

Small Business Administration -- Provides information about small business (Click here for Utah SBA)

Utah Micro Enterprise Loan Fund -- Provides counseling and funding for small business

The Pete Suazo Business Center -- Provides counseling and training for Hispanic/Latino business.

Utah Business.gov -- Provides online access to Utah Government services; one stop shop business registrations.

Export.gov -- Provides information on how to export your product.

Feature

What's Your Generosity Index?

Do you have a giving spirit? Probably so. According to a report by the nonprofit Catalogue for Philanthropy, which promotes charitable giving, Utahns with incomes over $200,000 were the fifth most generous in the nation.

Wyoming residents with incomes of $200,000 or more per year gave the most to charity in 2005, followed by residents of Oklahoma, South Dakota, Arkansas and Utah. The Catalogue for Philanthropy's “Opportunity Index” ranks states based on federal tax data, comparing each state’s average income to its average giving to charity.

On a broader scale, data from the Catalogue for Philanthropy shows that during the decade from 1995 to 2004, total itemized giving more than doubled nationally — an increase of 117 percent (from $74.8M to $162.2M).

Charitable giving is one of the best ways that small businesses can give something back to their communities. Many people associate charitable giving with financial donations, and while your small business is likely to receive numerous requests for financial contributions, giving back to your community can take many forms. What’s more, your generosity doesn’t have to be limited by the amount of money you can afford to give. It’s been said that the impulse of a good heart always multiplies its usefulness with a well thought out plan of giving. Like other business strategies, charitable giving should be something for which you plan and budget.

When you consider how your company can make a difference, consider your most important resource -- your employees. With a wealth of skills and passions of their own, this group should be invited to participate in your business' charitable endeavors. Doing so will extend the reach of your charitable giving and help your employees become part of worthwhile community causes.

Charitable Giving Strategies for Small Businesses

• Organize a charity committee at your business and let your employees help determine your charitable causes—there are more good causes out there than you can imagine, once you start looking.
• Mobilize employees as volunteers in the community and encourage them to become involved in causes important to them. Where possible, make it easy for employees to participate and contribute.
• Volunteer for or contribute gifts to the Sub for Santa program in your community (in Salt Lake the Salvation Army is leading a consolidated Sub for Santa program), or the YWCA’s Candy Cane Corner.
• Take up a collection of baby food, diapers, formula, baby bottles, wipes, pacifiers and other items for the Christmas Box House, a one-stop assessment center for abused and neglected children.
• Organize a food drive for your local Food Bank or homeless shelter. In the Salt Lake Valley, your donations can benefit individuals and families supported by a variety of organizations, including the Utah Food Bank, The Road Home, The Salvation Army, and the Catholic Community Services' St. Vincent de Paul Resource Center.
• Join the Zions Bank charity drive to benefit local food banks and nonprofit organizations seeking new gifts for those in need. Clients and the community can contribute food and gift donations at local Zions Bank branches through Dec. 12.
• Contribute to your local United Way chapter as a partner, volunteer, or through donations. Thanks to the support of local corporations and foundations participating in the Cornerstone Partner program, the United Way of Salt Lake has a 100-percent promise, which means that every donation received goes directly into the community to help those most in need. United Way of Salt Lake supports a variety of community partnerships and programs that address the “Pathways to Prosperity,” such as improving financial stability, opening doors to educational achievement, strengthening children and families, and protecting and meeting basic needs. For information regarding how your business can support these important initiatives, contact Jason Castor, corporate relations director, (801) 736-7708 or email him a jason@uw.org.
• Organize employee participation in a charitable event, like the annual Primary Children’s Radiothon hosted annually by KSL Radio.
• Donate your old business vehicles to a charity—numerous charities have vehicle donation programs, like the Kidney Foundation and American Diabetes Organization, to name a few.
• Hold a blood donation event at your office—challenge your competitors to come and participate, or match your donations.
• Offer your professional services, such as fundraising, marketing, or public relations services, to a charitable organization.
• Become a partner or volunteer with Big Brothers Big Sisters http://www.bbbsu.org, or sponsor a child.
• Get involved with Junior Achievement www.ja-utah.org by volunteering in a classroom, making a donation, or joining the staff.
• Donate your old computer technology when you upgrade equipment.
• Donate excess inventory—many companies make donations of obsolete, excess, erroneously packaged, or slow-moving inventory. Generally speaking, tangible property can be deducted on your tax return in the amount of the property’s fair market value.