Charitable giving is one of the most overlooked tax strategies for successful family businesses–and the year-end deadline sneaks up fast.
You’ve worked hard to build your family business, and now you’re in a position to give back. But here’s the truth: charitable giving isn’t just about writing a check in December. For family-owned businesses, it’s an opportunity to reduce taxes, reinforce core values, and shape a long-term legacy that lasts well beyond the current fiscal year.
At Boris Benic & Associates, we see giving as part of a much bigger picture. Not just generosity, but strategy. August is the ideal time to start thinking about year-end giving because it gives you time to plan ahead, choose the right vehicles, and make decisions that benefit both your business and your family.
Give With Intention: Why Timing Matters
Most business owners wait until Q4 to think about charitable giving. By then, it’s often rushed, reactive, and disconnected from their broader financial goals. Starting in late summer lets you:
- Evaluate your projected year-end profits
- Explore different giving strategies before deadlines hit
- Coordinate with your advisory team to maximize impact and minimize tax
Giving strategically isn’t just smart. It’s generous with precision.
Personal vs. Business Giving: Structuring the Gift
One of the biggest questions we hear is: “Should this come from me personally, or from the business?”
The answer? It depends on your entity type, income level, and overall tax strategy. Some guidelines:
- S corporations and partnerships typically pass deductions to the individual level
- C corporations can deduct charitable contributions up to 10% of taxable income
- In some cases, it may make sense to split giving between business and personal to take advantage of both sets of rules
This is where our advisory team helps map out what makes sense for your family and your structure.
Involve the Next Generation: Giving as a Teaching Tool
For many of our clients, giving is more than financial. It’s about instilling values and preparing younger family members to become stewards of the business and the family’s wealth.
We often recommend:
- Creating a family giving mission statement
- Involving kids in evaluating nonprofits or causes
- Using donor-advised funds (DAFs) to engage the next generation while maintaining control
This isn’t just tax planning. It’s succession planning with heart.
Maximize Your Impact (and Minimize Your Tax Bill)
Some powerful charitable tools you may want to consider before year-end:
- Donor-Advised Funds (DAFs): Immediate deduction, long-term distribution flexibility
- Appreciated Stock Donations: Eliminate capital gains tax and deduct full fair market value
- Qualified Charitable Distributions (QCDs): Direct from IRA for those 70½+
- Charitable Remainder Trusts (CRTs): Income + legacy combo
These tools don’t just help you give — they help you give smarter.
Documentation & IRS Scrutiny
The IRS has increased scrutiny on charitable deductions in recent years, especially large or noncash gifts. You need:
- Proper acknowledgment letters
- Appraisals for certain gifts
- Documented board or partnership approvals (where applicable)
This is where your tax and audit partners make sure you’re covered.
Want to build a giving strategy that reflects your values, protects your tax position, and sets your family up for long-term success? Let’s get ahead of it, while your options are still wide open. Schedule a consultation with our team.