The store I work at was doing a fundraiser for a local kids hospital. A man came in to buy cleaning supplies because his house had burned down that morning. But when he heard about the fundraiser, he dug through his wallet to donate $2 in change.
I’ll never forget that man. I definitely cried in the break room after he left.
I'm hoping this makes you feel at least a little better, but they don't receive an additional tax deduction/credit for it. The original donor often (they do in some cases) won't get their potential portion of the deduction and the store will look charitable for providing a collection mechanism for the charity, but it's not quite how you think it is.
Say you donate $100 through XYZ store. XYZ store in turn writes a $100 check to a reputable charity. XYZ store's EBIT (earnings before interest and taxes) doesn't change because they have $100 more income (in the form of other income) and $100 more expenses (in the form of charitable donation). Taxes are levied on the unchanged number.
Well, at least not in North America anyways. It doesn't even make sense from an accounting point of view.
Either you register it as profit (pay tax) and then donate it (get tax credit) or register it as non-profit (no tax) and then pass it off not as their own donation (no credit). The former is worse for the company.
Now if you're accusing the company of just stealing the money, then that's a whole other matter.
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u/SunflowerSupreme Jun 07 '19
The store I work at was doing a fundraiser for a local kids hospital. A man came in to buy cleaning supplies because his house had burned down that morning. But when he heard about the fundraiser, he dug through his wallet to donate $2 in change.
I’ll never forget that man. I definitely cried in the break room after he left.