So you’ve decided to donate an hour of your professional time to a local charity’s auction. If your time is worth $200/hour, does that mean you get a $200 tax deduction??
Not so fast. The IRS says “no deduction is allowable for a contribution of services.” This is true for both general volunteer time and the donation of professional services. You can, however, take a personal deduction for your mileage to/from the charity.
After you’ve helped out the local charity, you can help your small business, too! Send out some press releases about the worthy cause and how you helped them. It will give the charity some good press and spread the word about you and your business! People love stories about somebody in their community who is making a difference.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
