Charitable Tax Contributions
This article provides professional advice on how to compliantly solicit donations from accountants and small businesses when establishing a charity to help veterans with felony records. It clarifies that charitable donation tax deductions do not directly reduce tax bills by the donation amount, but rather indirectly save taxes by lowering taxable income, and provides correct calculation examples. It also emphasizes avoiding conflicts of interest, adhering to professional ethics, and recommends building long-term donor relationships through education and transparent communication.
I am opening up a charity to help Fallen Military personal that have made a mistake in life and ended up with a felony. Would it be against ethics to solicit accountants to possibly suggest their clients to donate to my charity for tax savings? What would be the best way to go about doing this? Should I offer like a "I scratch your back your scratch may back" kind of offer? Also, what are the benefits exactly to a company? I would like to go to small businesses and inform them on how giving to may charity will actually save them money in the long run. I am kind of looking for an educated example of this. Something like a cost comparison so that they can see what their savings would be like if they donate. For example, Non-donating if you make $100,000 in profit after everything your tax bill would be $12,000. Donating option, if you make $100,000 in profit, Donated $4,000 then your tax cost would be $7,000 saving the company $1,000 in taxes. I don't know if the benefits of charitable donations are set up in a way to help the company out like I have put into the example. Thank you for any advice