this post was submitted on 17 Nov 2024
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[–] Bassman1805@lemmy.world 156 points 15 hours ago (26 children)

Ah, this again.

The mega corporation did not receive any tax benefit from collecting donations. They are able to write off the amount of donations from their income, so that they aren't paying tax on the money they collected specifically to be donated.

  1. Company collects $1 donation from customer
  2. Company has $1 extra income
  3. Company donates $1 to charity
  4. Company writes that dollar off of their income.
  5. Company reports the exact same profit/loss as if they had not collected donations.
[–] zante@slrpnk.net 1 points 15 hours ago (1 children)

Company launches marketing campaign about how much they raised for charity …. Company matches donations and get relief on that…..

NEVER give to charity through a corporation.

[–] disguy_ovahea@lemmy.world 8 points 15 hours ago

If they match donations, they are entitled to a tax break on their own donations.

The only issue with matching is that you don’t have a say in the charity. Do your homework. If it’s a legitimate charity, then it’s better to donate through a company that matches donations.

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