Here me out before accusing me of being a billionaire toady.
Not really, at least not in the US. Charitable contributions are a deduction from taxable income, not a credit, so it is still a net financial loss to donate.
Where the benefit comes is the PR and power over the organization they donate to and its sphere of influence.
It is a net loss if you donate your own money, in this situation Company isn’t donating from its own revenue. It is donating customers money.
If I donated 1000$ and claimed tax deductible it would be a net loss. But if I asked everyone for donations, raised 1000$, donated that and claimed tax deductible that wouldn’t be a net loss.
Even if it is revenue, it is still a net loss. All it does is reduce taxable income, which is still makes the donation a net loss.
For anyone not aware, the current federal US corporate income tax rate is 21%. So if a company gives 100 dollars to charity, they only save 21 dollars in taxes, so they are still down roughly 79 dollars, depending on the state taxes of where they are incorporated.
Yeah if it is a person asking me to donate on behalf of a company I’m like “why would I let this company take all the credit?” That usually ends the conversation as they impersonate an NPC immediately having to go into ‘think mode’.
Those donations you make can help them deduct from taxes, right?
Here me out before accusing me of being a billionaire toady.
Not really, at least not in the US. Charitable contributions are a deduction from taxable income, not a credit, so it is still a net financial loss to donate.
Where the benefit comes is the PR and power over the organization they donate to and its sphere of influence.
It is a net loss if you donate your own money, in this situation Company isn’t donating from its own revenue. It is donating customers money.
If I donated 1000$ and claimed tax deductible it would be a net loss. But if I asked everyone for donations, raised 1000$, donated that and claimed tax deductible that wouldn’t be a net loss.
I think that’s a myth as it isn’t income it goes into a separate fund to transfer 1:1.
Even if it is revenue, it is still a net loss. All it does is reduce taxable income, which is still makes the donation a net loss. For anyone not aware, the current federal US corporate income tax rate is 21%. So if a company gives 100 dollars to charity, they only save 21 dollars in taxes, so they are still down roughly 79 dollars, depending on the state taxes of where they are incorporated.
deleted by creator
Yes, which is why you should donate yourself if you are inclined to do so.
Yeah if it is a person asking me to donate on behalf of a company I’m like “why would I let this company take all the credit?” That usually ends the conversation as they impersonate an NPC immediately having to go into ‘think mode’.