• zombuey@lemmy.world
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    1 year ago

    Just FYI this is a sort of scam. The company donates the money on your behalf and they get the tax write-off for your donation while also appearing philanthropic for PR purposes. that’s why they do it.> e fair, I bet these companies strike deals with the charitable organizations to in turn raise visibility of those charities among the company’s customers. Furthermore there is no contractual obligation they actually donate that money or how. They could just be lying to you.

    • Sendbeer@kbin.social
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      1 year ago

      @zombuey I’ve heard that a lot, but it is apparently not true unless the company claims your donation as a profit and then writes it off, which negates any tax benefit. I think it’s more just a PR thing to make you feel good about that company while using your own money.

      • Dravin@lemmy.world
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        1 year ago

        I think it’s more just a PR thing to make you feel good about that company while using your own money.

        Yep, even without any direct financial benefit there is certainly a reason to engage in such behavior. The store gets you to associate it with the charity campaign and they’ll make hay over the amount of donations they helped collect and their partnership with the charity. Drives for employee donations can also be used in a similar manner.

    • seang96@spgrn.com
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      1 year ago

      They also store it in a bank before donating to collect interest on it cause why not?

      • zombuey@lemmy.world
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        1 year ago

        Furthermore, there is no contractual agreement on how or when they donate that money. So for example those companies might and likely will hold that money in trust to the non-profit. That way the company can use money as a hedge on taxes in future fiscal periods if they had an excess.