If they get an extra million in these donations, they can deduct that extra million. It’s a net zero improvement. It does not help them at all financially.
But it’s free good will and they can advertise that THEY donated a bunch. It’s just to make them look good.
My original point is that there’s no additional financial benefit to the company by doing this. They don’t win or lose financially.
People make these donations out to be some kind of financial scam. They’re not. They’re a perception scam, because the company can say “we donated X, aren’t we great”.
This isn’t correct.
If they get an extra million in these donations, they can deduct that extra million. It’s a net zero improvement. It does not help them at all financially.
But it’s free good will and they can advertise that THEY donated a bunch. It’s just to make them look good.
They can’t actually deduct a penny from it.
They can claim it’s not income and they’re simply passing the money through. They don’t pay taxes on it.
Because it’s not income and they’re just passing the money through. Why would they pay taxes on it?
They wouldn’t.
My original point is that there’s no additional financial benefit to the company by doing this. They don’t win or lose financially.
People make these donations out to be some kind of financial scam. They’re not. They’re a perception scam, because the company can say “we donated X, aren’t we great”.
At most they can say they raised X amount for donations but that’s it.
It’s not a scam. Believe it or not, some people do want to help in whichever way they can