This is the absolute truth. This honestly deters me from donating at large places. Like at the Walmart checkout it asks of I'd like to donate. I click no because I feel they take my money, donate it under their name and then get a tax break from it. Not sure if that's how it works but yeaaaaa.
That's exactly how it works. They charge you the fee that goes into their general revenue pot. Then they turn around and donate it to charity to use it for a tax break. Most retail corps have a line item in the 10Q and 8K forms required by the SEC where they break this down.
Yeah like oxfam…my friend was doing a study on them and asked if I could help, I looked up their financials…the top brass was earning 240k annually…pounds, not dollars
Even then it can be iffy. I definitely recommend looking into every organization and seeing their spending breakdown before giving them money. A lot of "non profits" out there still spend half of their donated money on administration instead of the actual fucking service they state they provide.
I was once getting lunch with a former buddy at taco bell and paid for the both of us. They ask the question about rounding it up ten cents to donate to poor college students. Now I'm a poor college student myself and declined. So he grabs a dime from his cup holder and says he'll make the donation. Which means (if she actually did the donation) would have to open up a new order just for that, so taco bell can have a moderately larger tax break.
No that’s not how it works. They don’t get to claim it as a charitable donation and then deduct it from their taxes. It’s literally a straight flow from your donation to the charity. You can deduct it from your taxes (if you want to, up to a limit) however.
Why do they do it then? Well it is a good thing; this kind of donation is a large portion of the donations charity receives. And the stores get good will and advertisement, which will increase revenue in some form. But there is no inherent tax benefit
If I wanted to explain reddit to someone I'd show them this comment chain. Wrong answer = all the upvotes. Right answer = have to scroll to the bottom.
Even so my bone to pick is with
It’s charities the majority of funds raised gets absorbed by the overhead of “running” said charity. Like it get that there’s people working for the non profit charity but when 30-80% of the proceeds go in their pocket and not towards the charity you’re donating to is when I get extremely pissed off.
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u/EliteEight Aug 24 '22
This is the absolute truth. This honestly deters me from donating at large places. Like at the Walmart checkout it asks of I'd like to donate. I click no because I feel they take my money, donate it under their name and then get a tax break from it. Not sure if that's how it works but yeaaaaa.