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.
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.
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.
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.