These corporations and their write offs...what do you think?

I thought this would be a good topic to share here. Have you guys seen how corporations handle donations? Let me know your thoughts!

This article explains it well. The companies aren’t using your donations for their tax deductions, but you could be missing out on a charitable donation deduction, especially if you don’t itemize.

@Taylor
They might not use them for tax purposes, but they sure do use the donations to promote themselves. They love looking charitable without actually spending their own money.

Kelby said:
@Taylor
They might not use them for tax purposes, but they sure do use the donations to promote themselves. They love looking charitable without actually spending their own money.

True, but they usually say something like, ‘We raised $xxx,xxx for XYZ charity,’ which is technically correct. Without the round-up campaign, that money wouldn’t go to the charity. Seems like a win to me.

Taj said:
@Terry
[deleted]

I don’t mind some acknowledgement. It helps create awareness. Round-up campaigns are usually low pressure, and the extra money goes to a good cause. What really bugs me are those workplace campaigns that pressure people into donating to huge charity conglomerates that skim off the top for their own operations. I prefer to give directly to the charity I choose.

Kelby said:
@Taylor
They might not use them for tax purposes, but they sure do use the donations to promote themselves. They love looking charitable without actually spending their own money.

Is it really such a problem when they say, ‘We helped raise $43 for salamanders with lupus?’ These companies have locations and the means to reach more people and raise more funds. Sure, they spin it for PR, but why shouldn’t they as long as they’re not lying? The matching donation programs can also double what people give, which is great for the cause.

Taj said:
@Cade
[deleted]

Exactly. Sometimes the promotion brings in more donations than would have come in without it. If they’re helping charities with donations or logistical support, why not give them credit? Whether it’s for PR or not, the donations still help.

Kelby said:
@Taylor
They might not use them for tax purposes, but they sure do use the donations to promote themselves. They love looking charitable without actually spending their own money.

But don’t they make money off the interest while they hold the donations?

@Sage
No, companies can’t take gifts. They have to account for that money, pay taxes on it, and be taxed again on the interest. It would make no sense for them to do that.

@Sage
They might make some interest, but it’s hardly a reason to do it. For example, if Walmart raises $30M for charity, they could make about $1M in interest at 5%. But that’s only if the money comes in evenly throughout the year, so it’s more like $750K. Walmart’s annual profit is $15B, so the interest is peanuts in comparison.

@Darby
But a million is still a lot of money! Why are you acting like holding money takes a lot of effort?

Sage said:
@Darby
But a million is still a lot of money! Why are you acting like holding money takes a lot of effort?

It does take effort. Coordinating the donations and tracking them is a lot of work for a tiny gain in profit. They’re better off putting their efforts into something like theft prevention, which would save them way more.

@Darby
Just because it seems small doesn’t mean it’s not worth it. A million dollars can still fund various departments, like the charity team.

Sage said:
@Darby
Just because it seems small doesn’t mean it’s not worth it. A million dollars can still fund various departments, like the charity team.

The issue isn’t that they’re throwing away money, it’s that managing donations for the sake of earning a bit of interest isn’t worth the effort. They do it for the PR, not the interest.

@Taylor
Thanks for sharing! I’m not the person in the screenshot, just thought this would be interesting to discuss here.

What’s worse?

Boomer Facebook misinformation or Gen Z TikTok misinformation?

Tilden said:
What’s worse?

Boomer Facebook misinformation or Gen Z TikTok misinformation?

Yes.

Tilden said:
What’s worse?

Boomer Facebook misinformation or Gen Z TikTok misinformation?

Boomer TikTok misinformation.

River said:

Tilden said:
What’s worse?

Boomer Facebook misinformation or Gen Z TikTok misinformation?

Boomer TikTok misinformation.

Yeah, all those Skyrizi conspiracies on BoomerTok are wild.

It’s funny how people assume these companies are being so generous. In reality, they’re just crowdfunding through their customers to support charities. For those familiar with corporate tax returns, how do companies account for these donations?