Showing up for your community (and what the tax code has to say about it)

Showing up for your community is one of the best things you can do for it, and for yourself. And yes, the tax code has opinions about it. Here's why it matters, and the rules to know before you give.

Why showing up matters

Communities aren't built by big gestures. They're built by people who keep coming back: to the market, the gala, the chamber meeting, the neighbor's fundraiser. We see it every year. From supporting the Greater Phoenix Equality Chamber of Commerce to answering tax questions at local markets, the best relationships we have started with simply being there.

Showing up also means bringing what you know. For us, that's taxes. For you it might be cooking, coaching, building, or just a free Saturday. All of it counts.

Where taxes come in

Giving back can lower your tax bill, but only when you know the rules. These are the ones we explain most often.

• Your time isn't deductible. Hours spent volunteering, however valuable, never become a deduction. Your out-of-pocket costs can: supplies you buy for a qualified charity, and charitable mileage at the IRS rate of 14 cents per mile.
• Only qualified charities count. A GoFundMe for a friend, a gift to a neighbor in need, or a donation to a political campaign is generous, but not deductible. Check that the group is a recognized 501(c)(3) before you count on a deduction.
• Keep the paper. Every cash gift needs a bank record or receipt. A single gift of $250 or more needs a written acknowledgment from the charity before you file.
• Tickets aren't all donation. When you buy a gala ticket, only the amount above the value of what you received (dinner, entertainment) is deductible. The charity usually tells you that number.
• Non-itemizers get a break starting in 2026. New law lets people who take the standard deduction deduct cash gifts to qualified charities, up to $1,000 single or $2,000 married filing jointly.

Can a business sponsor a community fundraiser?

Yes. Businesses of every size sponsor fundraisers, and it's one of the most common ways companies give back. How it's treated for taxes depends on two things: what the business gets in return, and how the business is set up.

• Sponsorship with recognition. If your business gets visibility in return, like a logo on a banner or a mention in the program, the cost is usually an advertising expense for the business. That often beats a charitable deduction, because it reduces business income directly.
• A straight gift with nothing in return. That's a charitable donation. A C corporation can deduct it on its own return, within annual limits. For sole proprietors, LLCs taxed as partnerships, and S corporations, the gift usually passes through to the owners and is claimed on their personal returns.
• Keep the paper either way. Save the sponsorship agreement or acknowledgment letter, proof of payment, and a note of what the business received.

Give first. The rest follows.

When the giving is genuine, good things tend to come back on their own:

• Real relationships. People get to know the person behind the business, and that trust grows naturally over time.
• Stronger local ties. Supporting local causes, markets, and chambers keeps money and energy in the neighborhoods where you live and work.
• Being known in your own community. Event listings and chamber directories help neighbors find local businesses they already recognize.
• The costs often count. Vendor booth fees, event sponsorships, banners, printed materials, and branded giveaways are usually ordinary and necessary business expenses. Mileage to the event and supplies for your table can count too. Keep the receipts and a note of what each event was for.

The bottom line

Keep good records, because the IRS cares. If you want help giving in a way that fits your whole tax picture, that's part of what we do all year. Want to say hi in person? Check our upcoming events.

But mostly, just show up. Not for the write-off, and not for the business. Show up because it matters to you.