THIS always annoys me.
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You should delete your misinformation.
No, they should leave it up as it is immediately debunked in the next comment, which is good.
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I wasn't going to comment initially but, thinking again, I will.
According to what I was once explained, the scheme runs like this.
a) organization X starts a fund raising campaign
This alone can be deducted as an expense, as any amount of hours can be attributed to planning, preparing, etc, the entire thing.
As this time as no profitable end, it can be deducted.
b) You donate. But now it's their money.
Your money is siphoned to a separate bank account or just tallied and earmarked as for charitable purpouses but this does not mean the entity needs to hand it over immediatly.
That money is held within the company's vaults, figure of expression, and, as such, counts towards the overall financial assets of the company.
It still needs to be handed to the end recipient but until it does it can be used to leverage loans and be invested into short term investment products, like overnight deposits (with hundreds of thousands or even millions it does gain interest overnight).
c) the money gets donated eventually but not by you
Eventually, all that money gets handed over but it is now their money, not yours. And as such, they get the tax deduction. And, again, with hundreds of thousands to millions in donations, the deduction gets very high.
This deduction, on your expense, goes towards clearing more of their profits.
Want to do something good?
Volunteer. Help your neighbour. With your own efforts, actions and work. Don't hand over money.
wrote on last edited by [email protected]And as such, they get the tax deduction.
This part, at least, is not correct. (explanation at apnews.com, alternate snopes link)
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I wasn't going to comment initially but, thinking again, I will.
According to what I was once explained, the scheme runs like this.
a) organization X starts a fund raising campaign
This alone can be deducted as an expense, as any amount of hours can be attributed to planning, preparing, etc, the entire thing.
As this time as no profitable end, it can be deducted.
b) You donate. But now it's their money.
Your money is siphoned to a separate bank account or just tallied and earmarked as for charitable purpouses but this does not mean the entity needs to hand it over immediatly.
That money is held within the company's vaults, figure of expression, and, as such, counts towards the overall financial assets of the company.
It still needs to be handed to the end recipient but until it does it can be used to leverage loans and be invested into short term investment products, like overnight deposits (with hundreds of thousands or even millions it does gain interest overnight).
c) the money gets donated eventually but not by you
Eventually, all that money gets handed over but it is now their money, not yours. And as such, they get the tax deduction. And, again, with hundreds of thousands to millions in donations, the deduction gets very high.
This deduction, on your expense, goes towards clearing more of their profits.
Want to do something good?
Volunteer. Help your neighbour. With your own efforts, actions and work. Don't hand over money.
As mentioned in other comments - the tax deduction thing is not true. It is true, however, that they can ''donate' the funds to a charitable foundation that is run by the same people as the company (i.e. they are on the board of the charity as well as being C-suite execs of the company) thereby creating a slush fund disguised as charity that may only need to actually use 5% for charitable activities.
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I don't know. I don't know how high finance works, but a company who has the oportunity to take 1 dollar from every person is a big no for me. I do not care if they do donate the money or not, I don't do it because we let them carry that ridiculy amount of money, to the people that does know how high finance work. Maybe the money it is donate it, yea, but, what's next? I do not want to be rewarded, I wanna know if
my moneythe money of everyone was delivered as it should, that's all, and I don't think that a company uses the same time that spent to ask you for a dollar for letting you know that everything is fine. -
And as such, they get the tax deduction.
This part, at least, is not correct. (explanation at apnews.com, alternate snopes link)
I don't doubt your word. I paraphrased the explanation an accountant in my country (Portugal) gave me. It may work differently in other places and I sincerely hope so.
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As mentioned in other comments - the tax deduction thing is not true. It is true, however, that they can ''donate' the funds to a charitable foundation that is run by the same people as the company (i.e. they are on the board of the charity as well as being C-suite execs of the company) thereby creating a slush fund disguised as charity that may only need to actually use 5% for charitable activities.
A national supermarket chain has its own foundation and sometimes runs fund rallies for it, which they collect through their store front.
What I stated comes from an explanation I was once given by an accountant. It works (or worked, hopefully) like that here, Portugal.
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Never donate at the cash register. It's a tax deduction scam.
Donate to a real non-profit instead of blood sucking corporations.
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And as such, they get the tax deduction.
This part, at least, is not correct. (explanation at apnews.com, alternate snopes link)
whoever explained their "explainer" doesn't know taxes
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20 bucks is a fucking crazy auto request.
My grocery stores sometimes ask me to round my payment up to the nearest dollar and donate the change to various places.
(and they can fuck off sorry)
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Fuck big corporations using "charity" to pull tax avoidance scams. Why the fuck would I donate through you when I can go for a charity not associated to a corporation?
I have an idea, if you donate ten times the amount I donated from your profits, then I will donate through you. Otherwise you can fuck off.
