Business Contributions

Corporations often find themselves with excess inventory that could be donated to a charitable organization. These businesses may then receive a tax deduction. For example, if you contribute food or medical supplies to a charity that provides for the homeless, you may deduct not only the cost of the goods, but also half of the lost profit (not to exceed twice the cost).

Corporate contribution deductions are limited to 10% of the C corporation's taxable income before considering the donation.