How to write off social purpose gifts made to individuals
We have an S-Corp and do a lot of social works, helping support widows, missionaries, low income people with medical bills, rent, etc. We consider ourselves a Social purpose company and our main purpose in making money is helping others. In doing that we have a VERY large (relative to our net income) number of gifts made. Often our amount given out is more than 50% of what would be otherwise our taxable income. But the vast majority of these gifts are NOT to registered non profits. How could we classify these kinds of things so as to be able to deduct them as expenses (Employee morale? They have a HUGE positive impact on that, but they often run as much or more than our total payroll.) while still not being a huge red flag likely to trigger many audits.
