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[–] 23 points 7 hours ago (13 children)

The worse is H@m or Ikea asking to give money for charity (then use those amounts to ask government tax cuts).

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  • [–] 42 points 6 hours ago* (4 children)

    It’s a common misconception but it is in fact illegal to claim other’s donations as donations by the corporation, and it’s not too likely that very large organisations would do that. Of course, it’s possible they’re breaking the law. It is also irritating. Why doesn’t the multibillion company just make the donation instead of harassing me.

    https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0

    The store serves only as a collection agent for your gift. Assuming the business is following the law, it will not include your donation as part of its business receipts, or income, nor will it claim the charitable gift as an expense.  In other words, your gift has zero impact on the store’s income taxes.

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  • [–] 4 points 5 hours ago (3 children)

    Wait.

    My donation it's not an income, it's just a donation. So it has its own "reference".

    When the company will declare how much donation has done in the year my money will be added to that count there. In Sweden gov gives a tax break of about 30% of the donation's total amount and I guess my money will be counted there.

    I don't see any other reasonable reason to mob your own customer at any purchase.

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  • [–] 5 points 4 hours ago (1 child)

    If you go door-knocking asking for donation to help the needy, you are not permitted to claim the cash as your donation. If you collect 1000 kr from your neighborhood and add 100 to it from yourself, you can claim 100 kr. Not the 1100 kr. It is the same with stores.

    But Swedish and USA law may differ here.

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  • [–] 4 points 3 hours ago

    Hopefully I'm wrong there. Still hard to understand why they want to bake that stuff in every single purchase made by card. People don't like it. Probably they're just happy to could show how much "we" donate on their campaign.

    Btw, it would be much nicer if they say something like.."we would double any amount you give". That makes much more sense to me but it's not what's happening.

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  • [–] 21 points 6 hours ago (5 children)

    This myth will not die...

    A company that collects your donations cannot claim those donations as tax deductible. They are your donations; you can claim them on your taxes.

    Even if the company could claim them, it would be income that they would then offset, resulting in a net of zero. There would be no benefit to this.

    Companies cannot and do not claim your donations to receive tax benefits. Companies do a lot of shitty things, but soliciting pocket change en masse for charities is actually one of the few good things they do.

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  • [–] 1 point 4 hours ago (4 children)

    TIL. Is this true everywhere in the world?

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  • [–] 3 points 4 hours ago* (3 children)

    I'm speaking primarily for the United States and Canada, where this myth seems to be most prevalent in my experience. I am not confident enough about other places' laws to speak on them. However, many countries have similar rules regarding tax deductible charitable donations.

    And unless taxes work wildly different in other countries, the part about it not being of any benefit is still true. They'd have to not claim it as income, and claim it as a tax deductible donation for there to be any net benefit, and that's just plain fraud which anyone can do.

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  • [–] 1 point 1 hour ago (2 children)

    The reason is persists is because no one believes that any company would do this without a reason. Altruism just isn't a realistic motivation for this many publicly traded companies, so what do they get out of it? I don't believe for a second that they aren't somehow making money off of this. Otherwise it would've died out long ago.

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  • [–] 2 points 1 hour ago*

    Its marketing. It allows them to generate "goodwill," which is an intangible asset that companies actually list on their balance sheets.

    They get to crow about "donating to charity" while spending $0 dollars, and the only operational cost is an annoying menu prompt and a separate account at the bank for the donations.

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  • [–] 3 points 4 hours ago

    McDonalds does this too. So infuriating. "Here's your overpriced shit food we are making a ton of profit on, would you like to donate to charity as well? Think of the poor children! Feel the guilt! Ok thanks, I'll tax those tax credits from the government in which you also pay. Bye!"

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