Gifts to charities by a business are not alweays deductible, but in some cases they are. The IRS Chief Counsel recently issued an Advice Ruling in which he said that when a business conducts a promotion where it advertises that a certain percentage of its sales will be given to charities, the gifts will be deductible as an ordinary business expense. They are deductible under IRC §162 because “the business had a reasonable expectation that its promotion would enhance and increase its business.”  The gifts can be to charities which are not recognized as §501(c) charities and even for-profit business which have a social mission.