Tax Deductibility

If you have a product or service that costs you 25% or 50% or even 75% of the $1000 retail price to produce,

Which we would otherwise need to purchase at retail, but you instead donate it, your incremental cost is $250 but the value we receive from your donation is $1000.

If we then provide you with $1000 value by promoting your brand, and provide you with an invoice for that $1000 of value but credited to $0 in lieu of payment of your product or services also valued at $1000,

That $1000 advertising expense reduces your taxable your taxable income by $1000.

In comparison, if you donated $1000 cash, and claimed it as a tax deduction is a contribution to a charity, you would only realize 35% or $350 reduction in your taxable income.

So the value of the donation is leveraged 4x or by whatever ratio of your increment COGS of produce the next unit, and the value of the reduction in taxable income is leveraged 3x or a net total of 7x leveraging versus a peer cash donation.

That's a win-win for a nonprofit organization and their sponsor!