FYI it’s really a donation to McDonald’s, they take your donation and claim it for their own deductions on their own taxes. I think donating to charity is a great hing everyone should do even of they can only afford a few cents, but doing it through a storefront like that allows the store to claim your donation as their own.
Less than 20% of Americans should be donating to charity. Half are living paycheck to paycheck and another 30% on top of that do not have enough money saved for retirement. If the rich paid their fair share of taxes, we wouldn’t even need charities.
Im poor too but i can afford a dollar of charity every once in a while, even if it’s letting a friend sleep on the couch.
Yes taxes are completely fucked up and the oligarchs are running the country into the ground here in the US, but it doesn’t change the fundamental human benefit of being charitable where you can.
That’s why, imo, directly help the people who need it.
For example, our local area has a thing called “Real Change,” and the money goes directly to the people who need it. I read it online, so I just give them cash instead.
If you know someone that needs $10 (or whatever you can afford) here and there to survive, give it to them right out. I’d much rather see communities helping people directly than the CEO money grabbing charities get the money. Also, fuck goodwill.
If they did that it is illegal, the customers can retain receipt and claim as charitable deduction, the business cannot as they are just a middle man funds collector.
Ohhh.
I thought it was just an image/PR thing, but that makes so much more sense, because there is direct financial benefit.
Thanks for educating!
Still, at least the charities also benefit from it.
Probably does feel easier for most people to spare a few cents while shopping, potentially avoiding small change, instead of having to actively donate a few dollars.
If they did that it is illegal, the customers can retain receipt and claim as charitable deduction, the business cannot as they are just a middle man funds collector.
They don’t get a deduction. Only the customer donating can claim the deduction with their receipt. McDonalds ( or others ) are just transferring funds on behalf of you
I’m not convinced it does, corporation tax is charged on gross profit, usually if a corporation makes a charitable donation this reduces their profit and therefore their tax liability (but not more than the cost of the donation)
If you round up 20c then the cooperation makes 20c revenue and loses 20c when they donate leaving their profit unaffected and therefore their cooperation tax is unaffected.
There might be some financial magic I am missing but nothing I have seen in this thread explains exactly how this is could be advantageous tax wise.
Yeah I’m no expert either, but I do think there is some kind of accounting shit (are they loopholes if it’s intentional?) that they do.
I think there’s something around “pass-through” entities that they use to lower their tax burden… But again, I know very little about this stuff.
Actually, looking at Google… Apparently though, with donations made at the cash register (e.g. round your order up), the corporation is just collecting the donation on behalf of the charity and can’t use that to lower their tax burden. So that might just be pure PR.
The little jars at the register are treated differently though I think.
FYI it’s really a donation to McDonald’s, they take your donation and claim it for their own deductions on their own taxes. I think donating to charity is a great hing everyone should do even of they can only afford a few cents, but doing it through a storefront like that allows the store to claim your donation as their own.
Less than 20% of Americans should be donating to charity. Half are living paycheck to paycheck and another 30% on top of that do not have enough money saved for retirement. If the rich paid their fair share of taxes, we wouldn’t even need charities.
Im poor too but i can afford a dollar of charity every once in a while, even if it’s letting a friend sleep on the couch.
Yes taxes are completely fucked up and the oligarchs are running the country into the ground here in the US, but it doesn’t change the fundamental human benefit of being charitable where you can.
That’s why, imo, directly help the people who need it.
For example, our local area has a thing called “Real Change,” and the money goes directly to the people who need it. I read it online, so I just give them cash instead.
If you know someone that needs $10 (or whatever you can afford) here and there to survive, give it to them right out. I’d much rather see communities helping people directly than the CEO money grabbing charities get the money. Also, fuck goodwill.
If they did that it is illegal, the customers can retain receipt and claim as charitable deduction, the business cannot as they are just a middle man funds collector.
Edit: Misinformed.
Ohhh. I thought it was just an image/PR thing,
but that makes so much more sense, because there is direct financial benefit.Thanks for educating!Still, at least the charities also benefit from it. Probably does feel easier for most people to spare a few cents while shopping, potentially avoiding small change, instead of having to actively donate a few dollars.
If they did that it is illegal, the customers can retain receipt and claim as charitable deduction, the business cannot as they are just a middle man funds collector.
Thanks for the correction!
Surely the revenue the report from your donation counteracts the loss they get from their donation to charity?
Unless there is some accounting magic I am missing?
They don’t get a deduction. Only the customer donating can claim the deduction with their receipt. McDonalds ( or others ) are just transferring funds on behalf of you
You might be right, reading more about how it’s actually accounted might not make any benefit to their accounting bottom line.
Still it’s our money and then they print up a big funny check and take a picture and act like they’re the charitable ones.
It lowers their tax burden though. Which is the whole point
I’m not convinced it does, corporation tax is charged on gross profit, usually if a corporation makes a charitable donation this reduces their profit and therefore their tax liability (but not more than the cost of the donation)
If you round up 20c then the cooperation makes 20c revenue and loses 20c when they donate leaving their profit unaffected and therefore their cooperation tax is unaffected.
There might be some financial magic I am missing but nothing I have seen in this thread explains exactly how this is could be advantageous tax wise.
Yeah I’m no expert either, but I do think there is some kind of accounting shit (are they loopholes if it’s intentional?) that they do.
I think there’s something around “pass-through” entities that they use to lower their tax burden… But again, I know very little about this stuff.
Actually, looking at Google… Apparently though, with donations made at the cash register (e.g. round your order up), the corporation is just collecting the donation on behalf of the charity and can’t use that to lower their tax burden. So that might just be pure PR.
The little jars at the register are treated differently though I think.