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[-] Bassman1805@lemmy.world 203 points 1 year ago

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@lemmy.world 55 points 1 year ago

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.

[-] iAmTheTot@sh.itjust.works 132 points 1 year ago

The "kick back" is good PR.

[-] Ethalis@jlai.lu 46 points 1 year ago

And decision-makers at that company feeling good about themselves at no cost whatsoever for the company or themselves.

[-] thisbenzingring@lemmy.sdf.org 17 points 1 year ago

exactly

its not really charity if you don't give something up

[-] kambusha@sh.itjust.works 15 points 1 year ago

They really should match all donations.

[-] TheLowestStone@lemmy.world 7 points 1 year ago

The C-level executive should match all donations. Otherwise that's money that should be going to improving conditions for the workers.

[-] Serinus@lemmy.world 19 points 1 year ago

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

[-] ininewcrow@lemmy.ca 50 points 1 year ago

The kickback is also in saying that they donated the money to charity .... which was collected from other people

It's like I asked you to donate money to a charity and I said I had to be the one to collect it .... then I take your money and donate it in my name ... basically, I took your generosity and claimed it as my own.

In many cases company's also understand that they can't openly do this because it would be too obvious ... instead they just ride the generosity gravy train ... they encourage people to donate to charities through their store/company/business ... then the company may or may not give their own contributions but they get to attach their name to the donated amounts.

It's like a billionaire selling you a can a beans and then asking you to donate a penny to a charity .... I always say no because the idiot billionaire could spare 1% of their wealth and give millions of dollars to charities everywhere, why the hell are you asking me?

I never give to charities through a store/company or business ... I give directly to charities on my own.

[-] very_well_lost@lemmy.world 24 points 1 year ago

It's a marketing thing. Stuff like this creates the illusion that they're good corporate citizens.

Of course, they could donate a fraction of a fraction of a fraction of a percent of their own profits and make a much bigger impact, but that would set a bad precedent! Giving away your money is only for the working class!

[-] stupidcasey@lemmy.world 3 points 1 year ago

Also the political/social influence is real. Why bribe the government when you can outsource it to you and say it’s for a good cause. But the reality of the situation is they are giving a politician what they want and if the politician do something they don’t like they can move that “donation” to someone else.

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[-] Kichae@lemmy.ca 26 points 1 year ago

They do get a whole lot of advertising, social capital, and influnce over which causes get proped up, on the back of donating customers, while you're out a few bucks that you could have pooled for a single charity and gotten a tax receipt of your own for.

[-] spongebue@lemmy.world 4 points 1 year ago

They do get a whole lot of advertising, social capital, and influnce over which causes get proped up, on the back of donating customers

Sure, but that's not a tax write-off as originally said. Stick to the things that are actually things.

while you're out a few bucks that you could have pooled for a single charity and gotten a tax receipt of your own for

If your donations for the year exceed the standard deduction (hint: the standard deduction is about $15k. Most people take that instead of itemizing). Doesn't have to be one single donation, and if your receipt shows the donation (it should) and it's for a legitimate charity I don't see why you couldn't use that to deduct that donation if you itemize.

[-] TheBraveSirRobbin@lemmy.world 15 points 1 year ago

Couldn't the CEO of the nonprofit be the spouse of the CEO and make a huge percentage of what they donate?

Not saying donating through a mega corporation is always bad, but I'd prefer to look into who I'm donating to rather than a split second thought at the end of a transaction.

[-] grepe@lemmy.world 11 points 1 year ago

this! the megacorporation receives 500k donations, which they transfer to CEO's son's "charity" that spends 99% of it on the said son's salary. he buys another ferrari and the charity sends some flowers to a children cancer hospital.

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[-] iAmTheTot@sh.itjust.works 14 points 1 year ago

They don't even report it as income, because it's not income. It's your donation, not the company's donation.

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[-] Olhonestjim@lemmy.world 13 points 1 year ago

Yeah, because corporate charity is super regulated and never ever misused.

[-] sudoshakes@reddthat.com 10 points 1 year ago

That leaves out when the company prompting you charges an administration fee to collect part of that sum donated for their own profits.

It leaves out when they, like CVS did with the diabetes association charity collecting at checkouts, take the money as an IOU to the charity while making money out to offset loans in the near term.

It leaves out structuring of collected funds to allow a 503C arm of the corporation to have tax advantaged status while also specifically being chartered to help the for profit company that you are shopping at.

There are a variety of scummy practices employed by organizations collecting those funds and it absolutely can benefit them to do so.

[-] Sauerkraut@discuss.tchncs.de 4 points 1 year ago

I hate how charities are run by rich assholes who pay themselves or their family and friends 6 to 7 figures while doing very little to actually help people

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[-] iAmTheTot@sh.itjust.works 66 points 1 year ago* (last edited 1 year ago)

So sick and tired of this myth, how are Americans so goddamn ignorant of their own tax system that this continues to persist.

Corporations are evil for a million and one reasons. This isn't one of them.

[-] i_stole_ur_taco@lemmy.ca 43 points 1 year ago

I know people who still repeat the line that earning more money will push them into a higher tax bracket and they’d end up with less money than if they stayed at their current income.

[-] iAmTheTot@sh.itjust.works 21 points 1 year ago

Oh man don't even get me started on that one too. I knew some people that genuinely thought a bonus would make them earn less overall.

[-] 9488fcea02a9@sh.itjust.works 3 points 1 year ago* (last edited 1 year ago)

If i was a manager and someone turned down a raise/bonus because "tax" reasons, i would seriously evaluate my own managerial skills....

Like, how did i not notice this person is a complete moron and why did i offer them a raise?

[-] NotAnotherLemmyUser@lemmy.world 7 points 1 year ago* (last edited 1 year ago)

So, there are some misconceptions about this on both sides. While some may misunderstand how tax brackets work, there absolutely are certain income thresholds where barely going over a certain amount will net you less money overall.


Edit: To clarify, you should accept the raise. In most cases all you need to do to avoid "losing money" at any of these points is to lower your AGI by contributing to an IRA, 401K, etc.


For example (using 2025 numbers here for a single filer):



  • Medicare Premium Increase (for those on medicare)
    @ $106k your medicare tax increases by $888, so you don't want a raise that puts you between $106k and $~107k
    @ $133k medicare tax increases by $1.3k, so you don't want a raise between $133k and $134k
    @ $167k medicare tax increases by $1.3k again
    @ $200k medicare tax increases by $1.3k again
    @ $500k medicare tax increases by $444... https://www.nerdwallet.com/article/insurance/medicare/what-is-the-medicare-irmaa



There are probably a few other taxes/credits I didn't include, but this is just a quick example with what I could look up at the moment.

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[-] very_well_lost@lemmy.world 26 points 1 year ago

This myth is probably prevalent because corporations have spent the last 40 years squeezing every cheat and every advantage they can out of the system — to the point where anything that even smells like a "good gesture" is rightfully met with suspicion and contempt from the people they've been so blissfully exploring.

[-] edgemaster72@lemmy.world 18 points 1 year ago

how are Americans so goddamn ignorant

It's what we do best

[-] BlackPenguins@lemmy.world 14 points 1 year ago

how are Americans so goddamn ignorant

I mean did you see who we just elected?

[-] Lost_My_Mind@lemmy.world 4 points 1 year ago

Oh shoot.....I missed it. I DVR'd the election results, and never got around to watching it. Don't tell me! No spoilers! I want to see if it we finally elect our first black president. It's Obama vs McCain.

.........also, I've been in a coma for a while. 2024, huh? Do we have flying cars yet?

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[-] Lost_My_Mind@lemmy.world 3 points 1 year ago

Because we're Americans. Ignorant is kind of our power play! We'll angrily defend a position we know nothing about, and then call YOU wrong for being well versed on the matter.

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[-] auzy@lemmy.world 48 points 1 year ago* (last edited 1 year ago)

My gym took $2 from everyone's account in a once off for charity unless you opted out.

And then bragged about all the money they raised in their marketing.

Yeah, by illegally stealing it from members

[-] jaschen@lemm.ee 20 points 1 year ago

Gym's. The original shitty subscription company.

[-] lakemalcom10@lemm.ee 31 points 1 year ago

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

Tldr: no, it doesn't work that way. They can't get any tax breaks from your money.

[-] rational_lib@lemmy.world 28 points 1 year ago

Never trust a corporation, period. Their incentives are to maximize profits from whatever revenue streams they have, no matter what they tell you. There are ways they can do this that are at least in the gray area of legality,such as:

A class-action lawsuit was filed against CVS Health Corporation (CVS) in May 2022 accusing the company of “deceptive fund-raising in a campaign it held for the American Diabetes Association,” according to The Boston Globe. Also according to The Boston Globe article, “Prior to each customer’s transaction, a checkout screen prompts the customer with several options for pre-selected dollar amounts, as well as an opt-out option, allowing donations to the diabetes association. Yet, the plaintiff alleges, CVS did not forward donations to the diabetes association, but instead applied the donations toward a legally binding $10 million obligation CVS made to the diabetes association.”

Side note: I'm not an expert on these donations or anything, but rather the practice of corporations exploiting everything they can is so predictable that I knew all I had to do was search...

[-] KingJalopy@lemm.ee 10 points 1 year ago

I've been told since you donate it's a tax write off for yourself and therefore the company can't double write it off on theirs. Not sure I believe that these companies follow the rules but that's what I've been told.

[-] moody@lemmings.world 5 points 1 year ago

When you make a donation, you will get a receipt for it and that's what you use to declare it on your taxes.

The company taking your donation will have a copy of that receipt showing that you made the donation and not them.

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[-] Infomatics90@lemmy.ca 9 points 1 year ago

and that's how you lose your job.

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[-] AVincentInSpace@pawb.social 3 points 1 year ago

do they even get tax breaks from that?

[-] Jiggle_Physics@lemmy.world 10 points 1 year ago* (last edited 1 year ago)

No

When this happens you get a the receipt showing your donation to these charities. They can't take a program, where they collect donations on behalf of others, and then claim that intake was part of their income. This is something they use to put feel good PR in their ads, and cynically act like they do anything worth while for these people. They don't get a tax break for it though.

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this post was submitted on 17 Nov 2024
1002 points (94.0% liked)

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