this post was submitted on 17 Nov 2024
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[โ€“] Bassman1805@lemmy.world 156 points 15 hours ago (26 children)

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.

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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