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Genuine question: Are US grocery stores really asking for such exorbitant amounts to donate, or is this comment an exaggeration? Where I live, they do ask too, but for like $1 - $2 max.
That’s the fun part, if you donate, they get the corporate credit for it.
They also collect the money from those donations, invest it to make money, eventually donate the original amount, then pocket the profit and the tax credit.
If you want to donate don’t do it there, just donate directly. And do a lot of research, there’s some real scummy “charities” out there.
I remember donating like $500 to a charity and they actually sent me a form for my taxes. But then when it came down to do them my tax person said the amount I donated wouldn’t affect my tax return because it was such a small amount. I was stunned because to me $500 I thought was pretty significant.
The reason for that is you’re allowed to claim you’ve donated a certain amount of money each year without proof. If you go over that amount you need to prove the entire amount including the original amount that you’re not required to prove. For example let’s say that’s $1,000, you donate $1,200 to charity. You need to prove You donated $1,200 to charity, not $200 in order to claim the full $1,200. Or you could just claim you’ve donated $1,000 without any sort of proof. Because of this most people just claim that they donated the maximum they can Even if they’ve never donated anything
No, they don’t. In order for them to receive a tax credit for it, they’d have to take those donations as revenue first. They can’t just claim a donation of someone else’s money on their taxes.
Companies use those donations not in your name, but theirs and use it for tax’s. Because you can write off charitable donations. So imagine how much they can write off.
No they don’t. That’s illegal and heavily audited by the government.
This is assuming that these entities follow such tax laws to a T - doubtful. Let’s remember that we’re referring to the companies which have greedily jacked up prices by over 30%, excluding inflation, on nearly everything in the past 3 years while people are struggling to get by
If a company wanted to commit tax fraud there are countless better ways to do it. Not to mention the defense can’t be that they will simply commit tax fraud and do it anyway. You cannot just make up scenarios in your head where companies commit crimes in order to justify why a company shouldn’t be allowed to do a perfectly legal thing.
Corporate donation tax deduction
A corporation is entitled to a tax deduction for the donation amount against their income. By reducing taxable income, the corporation reduces their tax liability. A corporation does not need to claim the full donation in a particular year. Donations can be carried forward for up to five years. Generally, a corporation can claim a deduction for charitable donations up to 75% of the corporation’s net income for the year.
Most of the companies who are asking for donations have already donated to said charity. They’re essentially asking you to repay what they donated so they have a free tax break
And you know they’re using your donations for a tax write off.
Just don’t get in an elevator with this chick.
Because if YOU donate, they can write it off and make even more money after taxes.
No they can’t, it’s not income for them to donate
They do donate. They donate what you give them in that donate function and use it as a corporate tax donation.
That’s not how that works. If they wanted to use it to lower their taxes, they’d need to accept the donations as revenue first making their total deduction net zero
Sounds like Randy Marsh talking sensibly and not doing anything crazy
Don’t ever donate when a store asks you too. Your donating on there behalf so they get a tax break. If you ever feel compelled to donate, donate directly to em
Your donating on there behalf so they get a tax break.
No, they don’t.
I heard those donations are actually a scam where you donate in their name, which helps them get a tax write off without actually giving any money.
How would that happen? You donate $20, the company accepts that as revenue, donates it, writes of $20. The net effect of this is zero.
They must have mixed them up with the sports watch
Billion dollar companies doing their bit by asking the poor to donate to the poor
They do 1 better, they donate YOUR money and they get the tax benifits and the credit for YOUR donation. And they probably keep a certain % to cever their “overhead”.
It’s freakin brilliant when you think about it.
You have to be a moron to be the person to donate like that.
They get: a shiny 100% tax write off w/YOUR MONEY. You get: a warm fuzzy feeling.