Companies benefit in a number of ways when they support charitable causes — some direct and financial and others more subtle.

“Businesses with philanthropic activities generate good will,” says North County tax preparer Steven Kafoure. “That actually can come back in business and income. It’s invaluable and heartfelt.”

Firms benefit most, he says, as do individuals, “when they choose one charitable cause and support it in a big way,” rather than giving small amounts to many causes.

From a tax perspective, Kafoure says, there is a lot of difference between giving to an individual or family or to a recognized nonprofit organization. Giving to an individual “is not illegal; it’s a wonderful thing to do, but there is no tax benefit.”

Don Daucher, an attorney in the San Diego office of Paul, Hastings, Janofsky & Walker, says his firm believes companies should share their good fortune with the community. So when the Paul, Hastings lawyers moved into a new building and celebrated with an open house, it gave a “housewarming” gift of $25,000 to the YWCA’s Becky’s House for battered women and their children. The attorneys also gave $10,000 for fire aid.

Paul, Hastings, with offices in other California cities, contributes regularly to legal services, both with money and volunteer time. It also gives regularly to varying charitable concerns. The selection process is flexible and informal. “We consider other charitable organizations where our lawyers are active, and we take suggestions from other staff members,” says Daucher.

Kafoure has some additional suggestions for businesses selecting a charity. “Pick an organization you have some affinity with, a cause you can believe in.” The choice does not have to be connected with the business in any way. Kafoure cites a client who found a simple project of giving away bicycles so satisfying that he started a nonprofit organization called Bikes for Kids. “Last year, Bikes for Kids gave 175 new bicycles to orphans and disadvantaged kids,” says Kafoure. “This year he’s trying for 500 bikes. It’s meaningful to him.”

Choose one charity and concentrate on it. Become important to that charity. And, Kafoure says, check to see that the organization is a recognized nonprofit to enjoy the maximum possible tax advantage.

— Sandy Pasqua