Can Small Businesses Make Donations for Disaster Recovery Efforts?

<a href="https://www.freepik.com/free-vector/people-carrying-donation-charity-related-icons_3226146.htm#&position=0&from_view=collections">Image by rawpixel.com</a> on Freepik

If you are a small business earning less than $50,000 a year, can you donate to disaster recovery efforts? The answer is a resounding YES. The size of your donation will vary depending on the company’s financial capacity. Also, you may have seen or heard commercials from organizations requesting financial support and that every contribution counts.

Determining an amount the company is comfortable donating without adversely impacting operations is important. Remember the adage, “There is strength in numbers”. According to Census.gov, in 2021, there were 4,614,481 companies with less than five employees. So, a $5.00 donation from those establishments would amount to over $23 million - $23,072,405, to be exact.

Those donations can be made to reputable disaster relief organizations or directly to affected communities through established channels. Websites such as Charity Navigator or BBB Wise Giving Alliance can help you evaluate some of those organizations. You can also review their IRS Form 990, provided they are a 501(c)(3) organization and received over $50,000 in donations since they are exempt from certain federal and tax exemptions enabling your gifts to be tax deductible.

Monetary donations are not the only kind of contribution; goods or services can also be offered.

Please remember to support disaster recovery or humanitarian efforts, in-kind or monetarily, as it demonstrates corporate social responsibility and can positively impact the affected communities and the company's reputation.

Which organization will you be supporting? Let us know.

Reference:https://www.census.gov/newsroom/stories/small-business-week.html