Small, scattered year end checks may not earn a deduction anymore.
Planned, purposeful giving still does.
Every year, business owners sit down with their accountants to go over revenue, expenses, deductions, and taxes. This year, there's something new on the table that most of them haven't heard about yet.
Starting in 2026, corporations can deduct only the portion of their charitable giving that goes above 1% of taxable income, still capped at 10%. For a company with $1 million in taxable income, the first $10,000 given is no longer deductible. A handful of small, scattered year end checks may now produce no tax benefit at all.
The companies that come out ahead are the ones that give with intention: fewer organizations, larger commitments, planned well before December. The tax code now rewards exactly what purposeful giving has always asked of us.
A Payment Versus a Purpose
Here's the part I believe matters even more.
A tax payment fulfills an obligation. A charitable contribution can fulfill a purpose.
Every company has to decide where its money goes. Some dollars will keep the lights on. Some will pay employees. Some will grow the company. Some will go toward taxes.
But there's something powerful about choosing to dedicate some of those dollars to changing another human being's life.
For a survivor of trafficking, rebuilding doesn't happen in a weekend or a 30 day program. It takes years of safe housing, counseling, job training, and people who stay. That's the kind of work a planned corporate gift makes possible.
Plan It Now, Not on December 30
Choose an organization whose mission matches your company's values. Learn where the money goes. Bring your employees into it. Then make the gift on purpose instead of in a hurry.
Make sure the organization qualifies to receive tax deductible contributions, and keep the documentation the IRS requires. Your CPA can tell you what your company can deduct based on its structure, income, and circumstances. Gifts above the 10% cap can generally be carried forward for up to five years.
Become a Founding Corporate Partner
You Are My Light Foundation is building a pilot healing center where survivors of trafficking and exploitation receive the long term care, training, and stability they need to rebuild their lives. Right now, a small group of businesses has the chance to be part of it from the very beginning.
A founding corporate gift does more than clear a deduction threshold. It helps open the doors of a place where survivors learn to live free.
Before your next meeting with your CPA, reach out at youaremylight.org/contact-us. We'll walk you through the impact your gift will have and give you the documentation your accountant needs.
Don't wait until December to discover what your company could have done all year.
Starting in 2026, corporations can deduct only the portion of their charitable giving that goes above 1% of taxable income, still capped at 10%. For a company with $1 million in taxable income, the first $10,000 given is no longer deductible. A handful of small, scattered year end checks may now produce no tax benefit at all.
The companies that come out ahead are the ones that give with intention: fewer organizations, larger commitments, planned well before December. The tax code now rewards exactly what purposeful giving has always asked of us.
A Payment Versus a Purpose
Here's the part I believe matters even more.
A tax payment fulfills an obligation. A charitable contribution can fulfill a purpose.
Every company has to decide where its money goes. Some dollars will keep the lights on. Some will pay employees. Some will grow the company. Some will go toward taxes.
But there's something powerful about choosing to dedicate some of those dollars to changing another human being's life.
For a survivor of trafficking, rebuilding doesn't happen in a weekend or a 30 day program. It takes years of safe housing, counseling, job training, and people who stay. That's the kind of work a planned corporate gift makes possible.
Plan It Now, Not on December 30
Choose an organization whose mission matches your company's values. Learn where the money goes. Bring your employees into it. Then make the gift on purpose instead of in a hurry.
Make sure the organization qualifies to receive tax deductible contributions, and keep the documentation the IRS requires. Your CPA can tell you what your company can deduct based on its structure, income, and circumstances. Gifts above the 10% cap can generally be carried forward for up to five years.
Become a Founding Corporate Partner
You Are My Light Foundation is building a pilot healing center where survivors of trafficking and exploitation receive the long term care, training, and stability they need to rebuild their lives. Right now, a small group of businesses has the chance to be part of it from the very beginning.
A founding corporate gift does more than clear a deduction threshold. It helps open the doors of a place where survivors learn to live free.
Before your next meeting with your CPA, reach out at youaremylight.org/contact-us. We'll walk you through the impact your gift will have and give you the documentation your accountant needs.
Don't wait until December to discover what your company could have done all year.
