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
There is no “tax break” on corporate charitable donations. It’s just treated like any other business expense like marketing or payroll.
And any donations collected at the register are tax neutral, since the money collected has to be either accounted for as revenue (which is then offset by the donation), or its accounted for directly into a fund for the recipient (in the latter case, it may still be deductible to the donor).
Donations collected at the point of sale are not considered donations by the company. The company is merely collecting it, in the same way they do with sales taxes.
And if you’re at the grocery store, and they have a bin to collect stuff for food banks, don’t bother. It’s better to donate cash so the food bank can purchase what they need from distributors at wholesale prices.
If you put in a can of soup that you paid $1 for, that won’t go as far as donating a dollar to the food bank who can buy 2 or 3 cans of soup (if that’s what they need – they may need toilet paper, for instance)
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