Why small businesses should give donations or sponsorship’s?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Why small businesses should give donations or sponsorship’s?

A great way that small businesses can make an impact in the community is through charitable donations and sponsorship’s. Charities and not-for-profit organizations rely on these funds for their initiatives. Sponsorship’s are typically written-off as advertising and promotion as they promote your brand however charitable donations are treated differently if you are incorporated.

For a cash donation given by a non-incorporated business you need to include it as any other individual on a schedule on your personal tax return. This a non-refundable tax credit at 15% on the first $200 and then 29% thereafter. There is also a first time donor super credit of and additional 25% on the first $1,000.

For corporations you can deduct cash donations to a registered charity, up to a maximum of 75% of your net income. If you cannot use them in the current year you can carry them forward up to 5 years. Donating through a corporation does have its advantages as you can see.

Want to know more?

Shawn Oldridge

shawn@oldridgeaccounting.ca

519.995.1153

More To Explore

Has it been three years since our launch?

In October of 2017 I launched Oldridge Accounting as a Cloud-Based Accounting practice! When I started, the practice was initially a part-time practice where I

Do You Want To Know More?

Book a call!

Do you want to keep your books in order?

we've created a FREE Bookkeeping Checklist just for you!

Contact

We believe in free consultations as it gives all parties a chance to see if there is compatibility. As well, it allows us to gain an understanding of your business before providing recommendations.

Want to know more? Book a call with us today!