By Stacy Perman

BEYOND DEDUCTIONS.  Because tax laws change each year and vary from state to state, small-business owners should typically consult a tax professional or check the IRS's Publication 526 on charitable contributions, available online at www.irs.gov, before making donations.

Although in some cases there are no added tax benefits beyond regular business deductions, many entrepreneurs have found their charity can have a positive, if largely unintended, effect on the bottom line.

Since establishing Landis Communications, 15 years ago, president and CEO David Landis has made sure that charitable giving was a component of the culture at his San Francisco public relations firm. "While the economy has ebbed and flowed, we've had a variety of policies," he says. "But we've always given back." That effort has included direct financial contributions, discounted fees to non-profit clients and pro-bono work.

CIVIC-MINDED.  For starters, each year the firm gives about 5% of its revenue to a number of organizations. Last year, Landis says that his 12-person firm donated $60,000 to organizations such as Planned Parenthood and the Society for the Prevention of Cruelty to Animals. The firm always makes an annual donation to the nonprofit clients on its roster. "It shows that we appreciate them, and that they appreciate us," says Landis.

Three years ago, Landis Communications did the PR for the renovation of the city's Union Square, pro bono. "From a civic point of view," he says, "the employees felt good about what they were working on, and on top of that, we got business leads." Indeed, one of the area's retailers ended up hiring Landis for a national account.

One of the most traditional ways that small businesses have contributed is by giving their time and expertise. Owen Cleaners, a family dry-cleaning business in Paducah, Ky., started collecting used winter coats 18 years ago, cleaning them for free and then distributing them to needy children.

"ANNUAL RITUAL."  We've probably cleaned more than 84,000 coats," says David Perry, who owns and operates the 85-year-old company, which boasts eight locations and 55 employees. "It's like an annual ritual here."

Perry estimates that he spends about $7,500 a year on the Cal's Coats for Kids coat drive. Some employees volunteer their time while others get paid overtime. But, he says, "I don't really consider the tax deduction as part of the equation." His philosophy? "Every gift obviously adds up."

When it comes to small-businesses charity, even a little ripple can create a big wave.

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