• Sarmyth@lemmy.world
      link
      fedilink
      arrow-up
      7
      ·
      5 months ago

      I used to believe this too. I was corrected and informed that if it collected as a donation it is not the company making the donation and they can not gain tax benefits from it. They also aren’t paying a sales tax on that money either.

      The benefit is exclusively the good PR from arranging the donation, which to be fair, they did. If the donation came through a credit card they may have covered the ~3% transaction fee, although they could potentially write that off for the portion that the donation increased the fee by.

      • Tlaloc_Temporal@lemmy.ca
        link
        fedilink
        arrow-up
        1
        ·
        5 months ago

        That make complete sense, thank you for correcting me.

        I think I was conflating the practice of matching donations with this, as both have a corporation encouraging you to donate to the charity they choose.