Why you should also donate during the Koons “25 Days of Giving” this year:
This is the time of year to give and Koons has always felt that giving back to the community is a way to demonstrate good corporate stewardship. We are hoping more corporations will follow our lead and donate to local charities.
As Koons kicks off its “25 Days of Giving,” we would like to issue a challenge to other local area businesses to give as well! Koons Automotive has always given back to the surrounding communities of its dealerships. Those donations include gifts to area food banks, shelters, youth programs, disabled veterans, and many more.
Koons 25 Days of Giving is a program designed to provide local organizations and services with cash donations. Each day, for the next 25 days, Koons Automotive will be highlighting one local organization by giving them a donation to help in their daily operations or services. Follow us on Facebook and Twitter as we help these worthwhile organizations.
Koons is a company that is blessed with strong leadership and smart employees who have always been able to weather economic slowdowns and financial hardships with little to no adverse effects. Through the lean years, Koons has been able to maintain strong alliances and support of our vendors and suppliers. They in turn have benefited from the strong leadership and have grown as well. They are a big part of why we are able to give this time of year. It is a team effort and Koons is happy to be able to be able to help out.
This year Koons Automotive will be sharing its prosperity with over 30 organizations throughout the DelMarVa region. The list of receiving organizations is varied but includes senior and youth groups, homeless and women’s shelters, cancer survivors groups, and veterans.
Donating this time of year is a good thing to do and benefits everyone. Individuals and small businesses that donate money or time and services can lower their tax profiles and take advantage of different matches and incentives offered by other large companies and national corporations specifically designed to spur greater giving.
But as a small business or individual you should always be careful of who and how you donate, fraud runs rampant around this subject, so donate wisely. You should also be aware of some of the rules around charitable donations and avoid some of the legal pitfalls. Here are a few bullet points on the subject:
- Monetary contributions – Cash or other monetary contributions may be tax deductible as long as they are not set aside for use by a specific person. Contributions must also be made during the tax year to be eligible for a deduction, regardless of the accounting method you use.
- Donations of property, including business inventory – These are also considered a valid tax deduction. Donations are evaluated and deducted based on their fair market value (basically what a consumer would pay for these goods in an open market). Deductions are limited in most cases to 50 percent of your adjusted gross income.
- Volunteering – While you can’t deduct the value of your service, you can deduct certain expenses incurred and related to your volunteer work. For example, if you host a party or fundraiser for the organization, you can deduct the costs. Other deductibles include supplies (e.g. stationery), the costs of a uniform and telephone expenses.
- Benefits you receive as a result of your charitable contributions – If you received something in return for your donation, you can only deduct the amount of your contribution that is over and above the value of the benefit you receive. For example, say you attended a fundraiser and placed a winning bid on a weekend in Las Vegas where the trip is valued at $2,500, but you actually bid $5,000. Your deductible contribution (i.e. the fair market value of the trip, in this instance), is the value of your total contribution ($5,000, minus the benefit you receive ($2,500), for an allowable charitable contribution deduction of $2,500.
When in doubt, consult your accountant or tax attorney and always keep good records.
This is an absolute must when it comes to preparing your taxes and ensuring you can back up your deduction claims should the IRS initiate an audit. If you have any concerns the IRS offers information on the records you need to keep for monetary, non-monetary and out-of-pocket cash expenses when donating your services click here for more on that subject.
Check back over the next 25 days. We will be spotlighting each charity and sharing their contact info so you can follow our lead and give back, too! We would love to hear from you about how you’ve helped, so share your story below.
Happy Holidays from all of us here at Jim Koons Automotive!