- cross-posted to:
- memes@lemmy.world
- cross-posted to:
- memes@lemmy.world
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Everyone is talking about how taxes work and no one is talking about how this meme works. He doesn’t need glasses anymore! It looks blurry with his glasses!
He’s even squinting!
This is not how tax deductions for charitable donations work.
- You round up to the dollar for a 50c donation
- The business has 50c extra income
- They write off 50c as tax deductible
- They pay the exact same taxes whether or not you make a donation
Sure, but they also get to advertise that they donated X thousands of dollars to charity, while the truth is that the actual donors get no tax benefits at all. And like OP said, I’d rather use https://charitynavigator.org/ to do my own research before giving money to a corporation to donate to some organization that may be mishandling their funds.
Yup, it’s not about stealing money it’s about stealing goodwill.
The customers at the grocery store don’t get thanked for donating $50 million to fighting awful childhood diseases, the grocery store does.
Then they can use that to argue they’re good for the community, and deserve massive tax subsidies when they go to open their next store.Unrelated, I’ve talked with people who work in the corporate philanthropy part of a business, and they’re fine. They’re just happy to get to use their position to organize charity, even though they know the point to the business is goodwill not giving.
It’s other parts of the business that then milk that goodwill in incredibly scummy ways.Then they can use that to argue they’re good for the community, and deserve massive tax subsidies when they go to open their next store.
So there is tax benefits, just with extra steps?
Yes, but not guaranteed, and usually “somewhere else”.
Instead of avoiding paying $50M in federal taxes like a lot of people think, they might be forgiven $1M in taxes at the local level, pending some sustained employment level for some duration or another.Point being, they’re usually not planning to do the charity to save tax money, but to gain goodwill. They definitely intend to use that goodwill to make or save money later, and a common way is “you want us in your community, don’t tax us in buying the land 🥺”.
They might also just use it for advertising so people forgive 5% higher prices.
The person who paid the round up donation (i.e. you) is the person allowed to use the donation for their tax benefit. If you save receipts with round up donations, you can deduct them on your taxes, but no one does that.
It’s difficult for individuals to get deductions for charitable contributions under current tax code. You’ve got to pretty much donate upwards of twenty thousand dollars before any benefits.
That stated number is different for every situation and is a rough estimate of average of what I see on returns.
If Trump tax sunsets in 2025, things will revert back to more easily getting benefits from donations, but that’s a long way away and entirely reliant on who’s running the show at that time.
Thats only because of how the standard deduction works; If you have to itemize, then any amount of charitable donations can be deducted (up to like 60% of your AGI i think). Basically anyone needs to “outweigh” the standard deduction with their own deductions, because doing otherwise is worse. Technically i think you could forgo the standard deduction and use your own, even if you don’t go over the standard deduction, but why would you?
That’s the point: almost nobody benefits from charitable donations because almost everybody takes the standard deduction, so “but you can get tax benefits for donating!” is a red herring in almost all cases.
That catch on current code is that they combined exemption with standard deduction. Makes it quite a bit more difficult than the before times.
I’ll leave it at that as I’m generally overwhelmed with unparalleled Internet tax expertise any time the subject arises.
That’s not how it works either. You’re the one naking a donation, you get a receipt for your 50 cent donation that YOU can claim on your taxes.
The business getting you to make a donation doesn’t get to claim your donation.
Both you and the business can claim that as a tax deduction.
They absolutely cannot.
this is misinformation. you are saying lies.
It’s not how Spider-Man works either.
This is a pretty good example of your typical misinformation karma whore clickbait ragebait bullshit post. Glad to see these make their way over from Reddit to Lemmy. Rip.
Another poster mentioned that they can use this to ask for subsidies. Some might not consider tax benefits, but imo it’s tax benefits with extra steps.
And you don’t even need to think of that, a for profit business only does what it benefits it. So if they ask, it’s mainly for their benefit, not mainly for sake of charity.
I agree that corporations are inherently evil. But misinformation is also evil. Both are bad. We should all strive to explain things accurately. That being said, this is a meme channel so we’re all looking too much into this. Gotta lay back and let the memes flow. Thanks for listening to my Ted talk.
I’m not trying to spread misinformation. Just saying that chances are, they will financially benefit from it, otherwise they wouldn’t do it.
Just using common sense and what a business is.
Saying company=evil is too simplistic for me. Imo it makes more sense to say, it can only do selfish things by design.
Fair enough man. I meant no disrespect. I was just talking in general terms.
Responses like this is why I come to lemmy!
There are plenty of toxic responses here too. Don’t get too excited, lol.
- They show boat about how much they do for charity
#2 and 3 don’t actually happen since it can’t be recorded on the P&L.
The donation would get recorded to cash and offset to a liability account, probably something named Charitable Donations Payable likely with a subaccount for the specific programs.
Overall, the effect is essentially the same, though. Fwiw, I like to use the same comparison as you did to show to people how dumb this belief is.
The individual who donated at the register also is allowed to claim the donation when they file their taxes.
That’s not how tax filing works. Your #2 is completely wrong that’s not considered income.
Are you retarded?
Confidently incorrect.
common misinformation, fact check here
Donations made by customers at checkout are not tax-deductible for the business, as the donation does not come from the company. According to TPC, the business only serves as a collector for charitable donations from its customers and has no right to claim any of the collected funds.
If you got this far in the comment, take a mental note to call this out the next time you see it. I too am very critical of the late stage capitalist hellscape we live in, but rounding up for charity is a rare instance of an unproblematic practice that is damaging to discourage as this post does. Charities do a lot of good and when you donate to them you are the one that gets the opportunity to do a writeoff.
Edit: If you are wondering why they do it then, it’s a psychological marketing technique. If you come to associate the good things that the Ronald McDonald House does with your McBurger, you are more likely to buy more tasty McBurgers. Sketchy? Sure, but it happens to be really effective at supporting charity work so it’s kind of a mutually beneficial arrangement.
Your meme is the wrong way around.
That’s not really how taxes work.
My charities are in my neighbourhood, like your friendly spiderman.
Like cooking for the less fortunate, giving kids my abandoned PC stuff, building together their new rig, supplying food packets to fams in need, like with the “to good to go” program here in the Netherlands. Supplying local food banks.
I have been homeless for a long time and now I share what I consider a very fat bank account. I certainly knew how to share when I had nothing, makes one humble, makes one appreciate rain on the window, or a shower whenever you want one. I got served a patato soup and a glass of port after eating nothing walking around hungry for days by a guy who had himself nothing, engraved in my mind.
We got all we need now and then some… Why not see a problem at close and solve it right there. I am surely not giving Bob Geldof any money, fuck that guy.
I’m pretty sure that’s illegal for the corpo
That said still don’t do it.
A multi-billion dollar corporation needs my 32 cents though!
Your meme is backwards
I will say don’t give corporate any money for charity, instead donate yourself to your favourite charity & get tax benefits for this.
deleted by creator
heads up this post is actually common misinformation, albeit with an understandable reasoning behind it.
I ask them if they wanna help pay my taxes and that I donate to who I chose and they should stop asking
Maybe don’t harass the cashier about it. They are just as helpless as you in dictating what the company does.
They could tell their managers the customer feedback. Otherwise the grift continues which sounds like you’re ok with
It’ll go much further if YOU tell the manager about your feedback, they actually have to at least pretend to listen to you.
But then I’ll have to go to my barber and ask for the Karen
Ah yes, I take issue with people giving helpless workers a hard time for the offenses of their employer. I must be in on it. 🙄 Get over yourself. You’re not accomplishing anything with that nonsense other than adding onto the strife of the worker unfortunate enough to ring you up.
Here’s a hot tip - even if every imaginary step you think should take place happened, the execs wouldn’t give a shit what your complaint is. You’re still forking over your money, and that’s the only “customer feedback” they care about. They don’t care about your thoughts on their “grift”. They don’t care about the worker you’re harassing. They just care about the money. Don’t give it to them if you actually want to send a message. Otherwise, just leave the poor employees alone.
Being ok with the grift continuing and being in on the grift are different things. I said the first.
I am fully aware that even the manager and their manager etc have no control.
I cut businesses out of my life constantly for this reason and others, like showing ads at the pump. But not before telling someone once. Sorry I don’t do it exactly as you like
I am fully aware that even the manager and their manager etc have no control.
And yet you still harass them and defend doing so. What a joke.
Someone’s triggered
Enjoy the rest of your day/night this convo is over
heads up this post is common misinformation. when you do a round up donation it’s you that are eligible to get a tax writeoff, and never the business collecting the donation. see my other comments for sources.
