Key takeaways:

• Basic gift giving guidelines
• Easy gift ideas for any budget
• ‘Tis the season… for taxes (?!)
• Get organized to stay grounded
• Where to find great gifts
• It’s the thought that counts…

Love the holidays, packed with fun festivities and gift giving? Who doesn’t?

But it’s also okay to admit that sometimes we all feel a bit of apprehension (ahem overwhelm) over the season.

Whether it’s among family or at the workplace, most of us want to bring holiday cheer (except the grinch, of course).

When it comes to client and customer gifts it’s important to be intentional in our choices to avoid giving something that ends up being unwanted, or worse, inappropriate.

Following a few basic guidelines can ensure that your efforts can be meaningful, joy-filled, and respectful.

Basic Business Gift Giving Guidelines

It’s easy to get carried away with our enthusiasm – and our spending – during the holiday season. In our zeal for holiday festivities and spreading cheer, we need to make sure that we don’t overlook basic gift-giving etiquette:

• Give gifts that aren’t too personal. Gift cards are a smart choice.
• Don’t leave anyone out; make gifts as inclusive as possible.
• Be thoughtful. If, for example, you know the recipient enjoys coffee, consider a Starbucks gift card rather than a generic Amazon card.
• Don’t assume that everyone celebrates Christmas.
• Avoid gifts that are inappropriate or related to inside jokes; they can easily be misinterpreted.
• Don’t use your gift solely as a brazen opportunity to market your own products or services.
• To be fair to everyone, set gift giving limits.
• If you’ve received a gift…Don’t forget a “thank you.” If the gift was sent virtually, an email thank you is okay. Otherwise, a hand-written note of thanks is a great way to show your gratitude.

Easy Gift Giving Ideas for Small Business Owners

• Gift cards – Sending cards to clients, prospects, and vendors is a quick, easy way to say ‘Happy Holidays’.
• Small gifts – Gifts can vary greatly from small, branded trinkets, to personalized favorites.
• Donations – Making a holiday donation to a worthy cause in someone’s name is always a meaningful gesture.
• Giveaways – Setting up a holiday giveaway adds excitement to the season.
• A Party – Hosting a gathering is a great way to enjoy personal time with clients and colleagues.

‘Tis the Season… for Taxes

As if you didn’t have enough to think about this season… right?! Every savvy small business owner should know the tax implications of gift giving. It’s always important to consult with a licensed tax professional, but here is some general insight to consider:

It’s the question most business owners want to know: Are business gifts tax-deductible?

The short answer is yes – but there are definitely limitations. Direct from the IRS.gov website, here’s what to know:

If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:

• You deduct no more than $25 of the cost of business gifts you give, directly or indirectly, to each person during your tax year.
• Incidental costs such as engraving, packing or shipping aren’t included in the $25 limit if they don’t add substantial value to the gift.
• For purposes of the $25 per person limit, don’t consider gifts costing $4.00 or less that have your business name permanently engraved on the item and which you distribute on a regular basis.
• Any item that could be considered either a gift or as entertainment is generally considered entertainment and cannot be deducted.

Remember to keep clear records that prove the business purpose of the gift and include details such as the amount spent.

Make a List – and Check it Twice

Holiday time is hectic. While we all love the excitement, we don’t want to be overwhelmed – or leave anyone off our gift giving list. That’s where good organization comes in.

Here are a few tips for getting organized:

1. Make a List – list everyone that you need to recognize and thank during the holiday season, including clients, colleagues, employees, partners, and prospects – as well as any gift ideas. Complete your list before December 5th. Don’t forget:
   • Clients –This could be as simple as a card, a bottle of wine or box of chocolates, or a personalized gift that you hand pick. Consider Packed with Purpose, Harry & David, or Kiva.
   • Colleagues and Partners – it’s a great time to show your appreciation for the partners and collaborators who help to make your business a success. Consider useful gifts for the office or thoughtful gifts personalized for the individual. Check out Uncommon Goods or Think Geek.
   • Employees and Contractors – while appreciation for others should be year-round, holiday time is a time of year that warrants your expression of gratitude for the people who support you throughout the year. Consider gifts that will allow them to enjoy their down time or experience something new. Two popular sites are Send a Cake or Send Out Cards. Also, don’t overlook the option of a shared experience, such as a comedy show or other holiday themed event.

2. Create a Budget – begin with your total budget and then determine the per person budget, which can be based on a percentage of your total budget. Complete your budget before December 1st (given recent shipping delays, we like to have our list and budget organized by November 15th).
3. Get Organized –
   • Try to order as much as possible from the same source.
   • If ordering online, have gifts shipped directly to the recipient.
   • Choose quality, long-lasting retailers who will still be around next year to simplify reorders. <– This saves us countless hours year after year!
   • Aim to have your gift orders placed before December 10th (given recent shipping delays, we like to have our orders placed by December 1st to avoid higher shipping costs).

Where to Find Gifts for Clients & Customers

Here are some suggestions of where you might find gift items at reasonable prices:

• Send Out Cards – an easy way to send personalized holiday cards, gift cards, and small gifts for any occasion
• Harry & David – various gift baskets of fruit, chocolate, cheese, and more
• The Wine Buyer – mix and match cases of wine with free shipping
• Uncommon Goods – many unique gift ideas
• Think Geek – fun gift ideas for the geeks in your life
• Packed with Purpose – curated gift boxes with unique purpose
• Send a Cake – innovative cake gifts with flare

For those in Maine who want to shop local, there are some excellent options:

• L.L. Bean – lots of quality gift ideas from a Maine icon
• Wilbur’s of Maine – handcrafted Maine candy, chocolates, and fresh roasted nuts. They also offer corporate branding.
• Len Libby – Maine-made chocolates, taffy, and fudge
• Wine Wise – unique wine events and education in the Portland area
• Crate Full of Maine – a box of the best made in Maine gifts

Always meaningful are philanthropic options:

• Kiva – give the gift of entrepreneurship with gift cards that create small business loans
• American Red Cross – help provide meals, shelter, and more for those in need. Local to Maine? Consider donating to the Red Cross of Maine.
• Good Shepherd Food Bank – donate to help feed Maine’s hungry

Consider using a service like charity navigator to review an organization before making a donation. Take a look at AnotherJennifer.com for more philanthropic inspiration.

True Giving Comes from the Heart

Avoid getting caught up in the commercialism of gift giving, especially at holiday time. Gifts should come from the heart, so make your holiday gifts meaningful. Even if it’s a small gift certificate from a popular local coffee shop, it’s an opportunity for the recipient to unwind and relax and know that their work is appreciated.

Like the old saying, “It’s the thought that counts.”

Happy Holidays from The Marketecs Team!

Have another gift source or idea that you love to send or receive? Share the joy in the comments. 🙂