this post was submitted on 17 Nov 2024
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[–] [email protected] 202 points 1 week ago (25 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.
[–] [email protected] 15 points 1 week ago (6 children)

Couldn't the CEO of the nonprofit be the spouse of the CEO and make a huge percentage of what they donate?

Not saying donating through a mega corporation is always bad, but I'd prefer to look into who I'm donating to rather than a split second thought at the end of a transaction.

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