Can my business deduct the value of the professional work we donated to a charity?
A business generally cannot deduct the value of donated professional services or the owner's time as a charitable contribution.
By AE Tax Advisors Team · Updated October 29, 2026
A business generally cannot deduct the value of donated professional services or the owner's time as a charitable contribution. Qualifying unreimbursed costs may have different treatment, and wages or supplies already deducted cannot generate a second deduction through a notional service value. Entity and recipient eligibility still matter.
A specific business-owner situation
A design firm completes a nonprofit project and values the work at its normal client fee. Forgoing that fee does not create a charitable deduction equal to the invoice the firm chose not to issue.
Illustrative example, not a client result.
What to establish before filing
- Separate time value from actual expenditures.
- Identify costs already deducted.
- Review any qualifying unreimbursed charitable expenses.
Which fact changes the answer?
Cash or property actually transferred differs from unpaid personal effort. A genuine paid transaction followed by a separate donation would require its own complete reporting.
A mistake to avoid
Do not book imaginary fee revenue and an equal charitable deduction to manufacture a benefit.
Records that support the decision
- Project scope.
- Payroll and supply records.
- Charity acknowledgment.
The decision to document
Deduct only amounts supported under the applicable expense or contribution rules and avoid counting the same outlay twice.
Business-owner tax planning and preparation scope · Discuss advisory scope with AE
Related questions
- We donated depreciated equipment worth more than its basis. Can we deduct fair market value without adjustment?
- A charity quickly sold equipment we donated for its use. Can that affect our earlier deduction?
Sources and editorial context
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.