Assuming the business is following the law, it will not include your donation as part of its business receipts, or income, nor will it claim the charitable gift as an expense.
In other words, your gift has zero impact on the store’s income taxes. Keep in mind that the store chooses the receiving charity, so make sure it is one you can support. As a customer, the donation will appear on your receipt and you can claim it as a charitable deduction when you file your income tax return.
The store takes your donation, then they donate it and take all the credit.
“Store name” donated $1 million to XYZ Charity.
Not only do they get the credit, they also get tax benefits from the donation.
Update: Seems I am incorrect! Thanks for the polite discourse.
I don’t think they can get a tax break, but they definitely get the media attention.
Well if they donate that money to their own charity then I’m sure they figure out some way to keep most of it. "Admin costs " and such.
They totally do, at least in the USA they do. Well documented corporate practice.
edit: FALSE! Was this ever true? I was indeed confident. No longer, for now… Thanks for bringing all the receipts, so to speak.
I thought so too.
https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0
Bring the proof. Because it’s a myth.
https://www.usatoday.com/story/news/factcheck/2021/06/10/fact-check-false-claim-checkout-charities-offset-corporate-taxes/7622379002/
So, let’s see your documentation please.
They make a dollar, they donate a dollar. No change to tax.
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