Generous Colorado LLCs and corporations give back to their communities in many ways, such as through charitable donations and time. The Feb. 20th Denver Business Journal has a nice article on how Colorado small businesses can help local non-profits and charities. Denver’s own Community First Foundation reports that $12.4 million was raised for over 925 local non-profits during its annual Colorado Gives Day.
Let’s hear a round of applause for community support! If a Colorado business forms in a community, then support for that community will pay them back in many, many ways.
There are some basic guidelines that may help a small business figure out how much to give:
- Size of the business, such as number of employees or revenue
- Earning and profit expectations for the coming year
- Strategy of the business. Many companies find it most rewarding to give to charities whose goals or values align with their own. Another strategy is to find out if there are certain organizations that employees already give their time and money and match this.
Corporate charitable giving does not have to be ad-hoc. It can be planned out at the beginning of the business year, and set much like a strategic goal. Besides giving back to the community, a Colorado S Corp, C Corp or LLC can also reap some nice tax benefits. The IRS even provides an “Exempt Organizations Select Check,” where you can find a list of organizations eligible to receive tax-deductible charitable contributions. The IRS has some fairly strict rules governing tax laws and giving, so it may be wise for a small business to check with their CPA or Colorado small business attorney on the best strategies for their particular circumstance.
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