Remember kids, they also get to use the money they guilted off of you to reduce their tax liability because they get credit for donating your money!
this post was submitted on 21 Jun 2023
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Mildly Infuriating
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They do not, at least in the US.
It depends on exactly what the store is doing.
If the store is representing the extra charge as a donation to a specific charity, generally, the customer can deduct that.
If it's far more vague, like, "Give $10 to help poor kids in Africa" the ultimate destination for the funds could be the company's own ledgers, which it would then use for its own charitable activities and collect the tax deduction, as long as they "help poor kids in Africa."
And some stores are just lying. CVS, for instance, was sued as part of a class action suit when, after the company pledges $10 million to the American Diabetes Association, then collected money from customers to fund that pledge.
My favorite one is when our utility company asks me to donate to help pay for people's utilities like they aren't raking in record amount of cash.
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First, please don't link to Reddit...
Many Of The Largest Charities In America Are Giant Money Making Scams
http://thetruthwins.com/archives/many-of-the-largest-charities-in-america-are-giant-money-making-scams
Shell's audacity too...
And redirecting you attention on to the "offsets" scam too.
Ever wonder why climate change is such a problem if 1.5 pence per liter petroleum burnt can undo the damage? Spoiler: it can't. You can't sequester CO² for that cheap, and CO² isn't the only issue. "Offsets" are not certified by any trustworthy third party, and companies intentionally don't pry too much, so they can say "Oh sorry, didn't know" if anyone investigates and discovers they did squat-all.
Those charities have huge overhead. Very little money goes to the actual cause.
There are sites to check how much actually goes out. Check before you donate.
Those donations you make can help them deduct from taxes, right?
Here me out before accusing me of being a billionaire toady.
Not really, at least not in the US. Charitable contributions are a deduction from taxable income, not a credit, so it is still a net financial loss to donate.
Where the benefit comes is the PR and power over the organization they donate to and its sphere of influence.
It is a net loss if you donate your own money, in this situation Company isn't donating from its own revenue. It is donating customers money.
If I donated 1000$ and claimed tax deductible it would be a net loss. But if I asked everyone for donations, raised 1000$, donated that and claimed tax deductible that wouldn't be a net loss.
Yes, which is why you should donate yourself if you are inclined to do so.
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I think that's a myth as it isn't income it goes into a separate fund to transfer 1:1.
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Or just...donate the perfectly good food they constantly throw out into the cadged dumpsters designed to keep homeless people out... Litteraly would cost them nothing...
"But if we feed them then those broke homeless people won't come in and spend their (nonexistent) money on our food!" -upper management
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PSA: most Americans can get up to $300 deducted from their annual taxes through donations.
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I hate when any company I'm buying something from does this.
To be fair, I bet these companies strike deals with the charitable organizations to in turn raise visibility of those charities among the company's customers.
And I will never ever give these fools my actual phone number for discounts. Just use any area code w/ 867-5309 to get around this.
Jenny Jenny, who can I turn to? You give me something I can hold on to. I know you think I’m like the others before who saw your name and number on the wall
I just say no
Just FYI this is a sort of scam. ~~The company donates the money on your behalf and they get the tax write-off for your donation while also appearing philanthropic for PR purposes~~. that's why they do it.
EDIT: US companies cannot do this in the US you can claim up to $300 on taxes. This is legit in the US.
@zombuey I've heard that a lot, but it is apparently not true unless the company claims your donation as a profit and then writes it off, which negates any tax benefit. I think it's more just a PR thing to make you feel good about that company while using your own money.
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It's still fine.
Some big international store in europe is asking to buy food from them for full price and donate it to food bank. Fuckin hilarious for making profit on charity.
Then they will say it is more efficient to merge the donations with regular revenue and make bulk donations every quarter or something.
I hate these donate screens because I have no idea where the donation actually goes and i don't want to have to do a ton of research at the grocery checkout about whether its a good charity.
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They wouldn't be rich if they donated THEIR money, right?
People that give money for those charities are giving those companies free tax write offs.
You donate $10 or whatever. The company can then claim that $10 as a write off via donation to that charity. Campaign as a whole (either regional or national) collects $1M USD. Corporate accountants write off donation. Tax liability reduced.
That's not how tax write offs work. The only way to claim that money in a write-off would be for the business to also claim it as revenue. That would even out, with no tax savings. Businesses also don't handle donations that way, they usually serve as a collection agent that just passes your donations on without being able to claim it towards their revenue or their tax write offs. The only person who can write-off their donation is the person who actually made it.
The reason businesses do it is for marketing. They get to put out a press release saying "They helped donate $10 million to puppies without borders."
That’s not how tax write offs work
Jerry: So we're gonna make the Post Office pay for my new stereo now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry, all these big companies, they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do. And they're the ones writing it off.
Puppies do not recognize your silly imaginary borders and will commit zoomies across any such lines.
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No, that's not how it works. In order to do so, they'd have to first claim the money received as income.
That said, there are scummy things that they do. At the least, it's saying "we [bigcorp] donated $1,000,000 to charity" when in reality all that they did was collect it. In other situations, companies like Sobey's doesn't actually pass on food bank donations as cash, but rather have then as credit to buy products only from Sobey's.
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