Discover the IRS tax rules pertaining to charitable contributions vs. business expenses for self-employed individuals.

Generally, for a self-employed individual, charitable contributions are not deductible on Schedule C and can only be deducted on Schedule A.  However, transfers to a charity that are directly related to a taxpayer's business and are made with a “reasonable expectation of financial return commensurate with” the amount transferred may be deductible as business expenses, and not as charitable contributions. But no business expense deduction is allowed for the transfer if any part of it is deductible as a charitable contribution. (Reg § 1.162-15(a)(2))