this post was submitted on 17 Nov 2024
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[–] Bassman1805 202 points 5 days ago (28 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.
[–] danc4498 52 points 5 days ago (12 children)

I assumed this was true also, but I also believe the company is receiving some sort of kick back from this otherwise they wouldn’t be doing it.

[–] [email protected] 130 points 5 days ago (5 children)
[–] Serinus 19 points 5 days ago

And, if it's a big enough portion of the charity's funding, influence over the charity. But not tax breaks.

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