I’ve seen large corporations brag about donating large sums of money to charity.
Are donations collected at checkout (E.G Checking out at Publix and the cashier asks “Would you like to donate to cancer research?”) included in those sums?
Are donations collected used for tax benefits of the corporation?
In: Economics
Something that rarely comes up when this question is asked is that the charity has a role to play. It’s up to the charity to be aware of where the donations are coming from and whether it’s actually out of the company’s pocket or if they ran a collection. If the latter, the charity legally can NOT issue a receipt,so there’s no tax break for the company. Period. So if the charity is doing its due diligence and following receipting laws, it’s a non-issue.
Source: I work at a charity and am responsible for receipting. I legally can’t issue receipts in these cases or it puts our charitable status in jeopardy.
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