Charitable giving strategies for business owners

Privately-held businesses can make a big difference in their communities and for the causes they care about most by utilizing charitable giving strategies that maximize impact as well as benefits. And now, the participation of privately-held businesses in the local giving sector is more important than ever. When it comes to giving, most businesses believe they get back much more than they give.

Unsure where to start? Consider these strategies to maximize the impact of your giving:

1. Cash Donations: Cash donations qualify for the maximum allowable income tax deduction.

2. In-Kind Donations: Sometimes businesses have extra inventory, vehicles or other machinery they are no longer using, which can be donated to a charity. This is particularly useful if the donated item is something the organization needs and will use, such as a vehicle to transport clients, furniture for a homeless shelter or working computers.  Some businesses may own a vacant parcel of property on which the charity could build.

Services, such as advertising space or legal guidance, can also be donated in-kind. Be sure to collect acknowledgments from the recipient for these contributions.

3. Employee Volunteer Program: Many individuals in the current workforce are looking for ways to participate and make a difference in their communities. More often, over the last five years, they've looked to their employers for opportunities. Businesses can encourage employees to use company time to volunteer at a pre-selected organization or a charity of that employee's choosing. Businesses might encourage employees to serve on an organization's board or offer to match employee contributions for a sponsored event. Companies may receive public acknowledgement for their time or gifts, but these programs also result in positive morale, new skills, and community engagement among employees.