Role & Purposes of Corporation - Rules

Question 1

Corporate Philanthropy

Answer 1

• Corporate gift-giving is an allowable method of increasing goodwill, but the gift should be less than 1% of capital and surplus and directed to an institution owning no more than 10% of company stock.
• The charity must be reasonable in relation to the corporate earnings, profits, and corporations’ goals.
• A corporation cannot give to pet charities—a type of charity where the giving is going to promote your own personal interest, as opposed to corporate interest.