What’s the deal behind all the chain retail stores soliciting for some charity?
In: 3
First off, it’s not a tax benefit. The donations flow through to the charity on your behalf, and nobody actually gets a tax benefit (at least in Canada, I would assume it’s the same in the US).
The real reason is twofold: first, it’s advertising. Ronald McDonald house is a great example – McDonalds doesn’t get any benefit from your donations at the till, and they for sure don’t make enough in tax benefits to offset the money the put into the Ronald McDonald house. The benefit to McDonalds is the commercials they get to make showing off the good that RMDH does in the community.
There’s also the investment aspect – investors are looking more and more for companies that take an interest in their communities and the issues affecting them. As a large company/chain, your biggest asset is typically your brand, and driving charity contributions are good for your brand.
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