• zombuey@lemmy.world
    link
    fedilink
    English
    arrow-up
    5
    arrow-down
    2
    ·
    edit-2
    2 years ago

    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.

    • Sendbeer@kbin.social
      link
      fedilink
      arrow-up
      2
      ·
      2 years ago

      @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.

      • Dravin@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        edit-2
        2 years ago

        I think it’s more just a PR thing to make you feel good about that company while using your own money.

        Yep, even without any direct financial benefit there is certainly a reason to engage in such behavior. The store gets you to associate it with the charity campaign and they’ll make hay over the amount of donations they helped collect and their partnership with the charity. Drives for employee donations can also be used in a similar manner.

    • seang96@spgrn.com
      link
      fedilink
      English
      arrow-up
      1
      arrow-down
      1
      ·
      2 years ago

      They also store it in a bank before donating to collect interest on it cause why not?

      • zombuey@lemmy.world
        link
        fedilink
        English
        arrow-up
        0
        arrow-down
        1
        ·
        edit-2
        2 years ago

        Furthermore, there is no contractual agreement on how or when they donate that money. So for example those companies might and likely will hold that money in trust to the non-profit. That way the company can use money as a hedge on taxes in future fiscal periods if they had an excess.