Businesses frequently make cash donations to charitable organizations. But what happens to the deductibility of those donations under the state and local tax limitations imposed by the 2017 tax law? This issue continues to be the subject of discussion, but your business clients should be encouraged by the IRS’s commentary. The IRS has taken the position that a business taxpayer can usually deduct payments to a charitable entity by treating them as Section 162 ordinary and necessary business expenses. Indeed, reducing the impact of state and local taxes itself constitutes a business purpose. 

The continuing relevance of this topic is a reminder that philanthropy remains a priority in advising your corporate clients. Let the Community Foundation of Anne Arundel County help your corporate client’s philanthropic goals with a Corporate Advised Fund. A CFAAC Corporate Advised Fund takes the work out of corporate giving, allowing company executives and employees to stay focused on the business while enjoying the many benefits of giving back. CFAAC can create a customized corporate philanthropy program. CFAAC offers flexibility in our service delivery, meaning companies can outsource their entire charitable giving program or just a portion of it for expert management and maximum impact.