When a taxpayer makes a payment to a §170(c) charity, there are two possible deductions available for that payment:
- A charitable contribution deduction under §170, or
- A trade or business deduction under §162.
A §162 trade or business deduction is generally superior to a charitable deduction. It is above-the-line, reducing adjusted gross income (AGI), income tax, and self-employment tax for sole proprietors and partners. Reducing AGI can also unlock other tax credits and deductions limited due to the taxpayer’s income.
https://www.tomtalkstaxes.com/p/how-to-shift-charitable-deductions (Apr 18, 2025)