The Season of Giving: Helping our Silicon Valley Neighbors

FREMONT, Calif., December 30, 2010 - The 2009 US Census determined the federal poverty level for a family of four (two adults, two children) is $21,756 – but research suggests families, on average, need income of about twice that amount to meet their most basic needs.

In the Silicon Valley region, the income required to meet basic needs is nearly triple the amount of the federal poverty level marker. And according to community-based initiative Step-Up Silicon Valley, more than one-quarter of the population in Santa Clara County can't make ends meet – that’s roughly 120,815 households.

With 2010 coming to a close, many Bay Area companies are considering how, where and what to donate to charities and other nonprofits in an effort to provide emergency aid to their local communities. Among them is Greenstein, Rogoff, Olsen & Co., LLP, which was recently listed on the San Jose/Silicon Valley Business Journal’s top 50 list for charitable giving – the only locally based CPA firm to make the list.

Alan L. Olsen, CPA, MBA (Tax), managing partner of the firm, says, "More than anything, what our country, communities and families require are everyday folks who can rise above their own circumstances to give back to the community. In doing so, they become true leaders – and that’s exactly what we need right now."

According to the Silicon Valley Council of Nonprofits (SVCN), charitable organizations and other nonprofits are increasingly concerned about massive cutbacks from traditional government funding sources. A 2009 SVCN survey revealed a 39 percent decrease in corporate donations for that year – a trend that continued through 2010. This means many emergency service organizations are struggling to meet the growing need for aid.

For businesses that donate to local charities and nonprofits, there are tax benefits. Olsen emphasizes that most corporate donations are tax deductible and offers the following five tax tips for businesses making charitable donations this year:

Only contributions to charities listed as "qualified organizations" by the IRS are deductible.
Contributions of more than $250 require a letter of receipt from the qualified organization. For contributions of less than $250, a canceled check is sufficient.
You cannot deduct a contribution that has already been written off as a depreciated asset.
If you receive a gift in exchange for a charitable donation, for example, you can deduct only the amount of the contribution that exceeds the value of the gift.
In general, you can deduct contributions only in the year you make them. Pledged contributions cannot be deducted until they are actually paid.

Giving back also can go a long way toward enhancing a business’s reputation and earning customer loyalty. Consider the following facts from a recent GoodPurpose study conducted by Edelman Public Relations:

Seventy-two percent of consumers surveyed report that they are more likely to give their business to a company that has fair prices and supports good causes than to a business that provides deep discounts, but does not contribute to good causes.
More than half of the consumers surveyed say they are willing to pay more for a product that donates a portion of its profits to a good cause.
Nearly half of those surveyed said they would not invest in a company that does not actively support a good cause.

“Giving money or one's time back to the community is more than just a good thing to do,” says Olsen. “There are many tangible financial benefits to businesses that have established a clear giving strategy and effectively live up to it.”

The tax tips provided above are generalized. For additional information, please contact Alan L. Olsen, CPA, MBA (Tax) at Greenstein, Rogoff, Olsen & Co., LLP, 510.797.8661.

About Greenstein Rogoff Olsen & Co., LLP, CPAs

Since 1964, Greenstein Rogoff Olsen & Co. has been trusted advisors to the highly successful in the Greater Bay Area. A full-service CPA firm, GROCO provides accounting, tax, financial, wealth preservation, and strategic planning support. Consistently ranked as one of the Top Accounting Firms in the San Francisco Bay Area, it has been recognized nationally as one of the Best-Managed CPA Firms in the U.S., Best Financial Planning Firms in the U.S., Fastest-Growing Companies and Best Place to Work in the Bay Area.

With offices in Fremont, Danville, Palo Alto, and San Francisco, GROCO specializes in accounting and consulting services to leading Venture Capital partners and emerging companies in the Silicon Valley. Expert services include income tax planning, income tax preparation, strategic business consulting, business valuations, bill paying, estate planning, estate administration, trustee services, financial statement preparation, and much more.

Offices:
39159 Paseo Padre Pkwy, Ste 315, Fremont, CA 94538
370 Diablo Rd, Ste 103, Danville, CA 94526
2479 E. Bayshore Rd, Ste 700, Palo Alto, CA 94303
50 California St, Ste 1500, San Francisco, CA 94111

Phone: 510.797.8661 = Fax: 510.797.1791 = www.groco.com

Media Contact:
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Rebecca Seipert
P: 510.797.8661
F: 510.797.1791
rseipert@groco.com