this post was submitted on 21 Jun 2023
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Mildly Infuriating

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[–] [email protected] 13 points 1 year ago

First, please don't link to Reddit...

Many Of The Largest Charities In America Are Giant Money Making Scams
http://thetruthwins.com/archives/many-of-the-largest-charities-in-america-are-giant-money-making-scams

[–] [email protected] 12 points 1 year ago (2 children)

My favorite one is when our utility company asks me to donate to help pay for people's utilities like they aren't raking in record amount of cash.

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[–] [email protected] 11 points 1 year ago (1 children)

Those charities have huge overhead. Very little money goes to the actual cause.

[–] [email protected] 4 points 1 year ago (1 children)

There are sites to check how much actually goes out. Check before you donate.

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[–] [email protected] 11 points 1 year ago (2 children)

Remember kids, they also get to use the money they guilted off of you to reduce their tax liability because they get credit for donating your money!

[–] [email protected] 5 points 1 year ago (1 children)

They do not, at least in the US.

[–] [email protected] 5 points 1 year ago

It depends on exactly what the store is doing.

If the store is representing the extra charge as a donation to a specific charity, generally, the customer can deduct that.

If it's far more vague, like, "Give $10 to help poor kids in Africa" the ultimate destination for the funds could be the company's own ledgers, which it would then use for its own charitable activities and collect the tax deduction, as long as they "help poor kids in Africa."

And some stores are just lying. CVS, for instance, was sued as part of a class action suit when, after the company pledges $10 million to the American Diabetes Association, then collected money from customers to fund that pledge.

[–] [email protected] 7 points 1 year ago (3 children)

Those donations you make can help them deduct from taxes, right?

[–] [email protected] 4 points 1 year ago* (last edited 1 year ago) (1 children)

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.

[–] [email protected] 7 points 1 year ago* (last edited 1 year ago)

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.

[–] [email protected] 3 points 1 year ago (2 children)

Yes, which is why you should donate yourself if you are inclined to do so.

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[–] [email protected] 2 points 1 year ago (2 children)

I think that's a myth as it isn't income it goes into a separate fund to transfer 1:1.

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[–] [email protected] 6 points 1 year ago (1 children)
[–] [email protected] 2 points 1 year ago

And redirecting you attention on to the "offsets" scam too.

Ever wonder why climate change is such a problem if 1.5 pence per liter petroleum burnt can undo the damage? Spoiler: it can't. You can't sequester CO² for that cheap, and CO² isn't the only issue. "Offsets" are not certified by any trustworthy third party, and companies intentionally don't pry too much, so they can say "Oh sorry, didn't know" if anyone investigates and discovers they did squat-all.

[–] [email protected] 5 points 1 year ago (2 children)

Or just...donate the perfectly good food they constantly throw out into the cadged dumpsters designed to keep homeless people out... Litteraly would cost them nothing...

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[–] [email protected] 3 points 1 year ago* (last edited 1 year ago) (5 children)

Just FYI this is a sort of scam. ~~The company donates the money on your behalf and they get the tax write-off for your donation while also appearing philanthropic for PR purposes~~. that's why they do it.

EDIT: US companies cannot do this in the US you can claim up to $300 on taxes. This is legit in the US.

[–] [email protected] 2 points 1 year ago (1 children)

@zombuey I've heard that a lot, but it is apparently not true unless the company claims your donation as a profit and then writes it off, which negates any tax benefit. I think it's more just a PR thing to make you feel good about that company while using your own money.

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[–] [email protected] 1 points 1 year ago

They cannot, and do not, claim your donations on their taxes.

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[–] [email protected] 3 points 1 year ago (1 children)

Just wait until you get a tip prompt on a self checkout kiosk...

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[–] [email protected] 2 points 1 year ago (2 children)

People that give money for those charities are giving those companies free tax write offs.

You donate $10 or whatever. The company can then claim that $10 as a write off via donation to that charity. Campaign as a whole (either regional or national) collects $1M USD. Corporate accountants write off donation. Tax liability reduced.

[–] [email protected] 4 points 1 year ago (2 children)

That's not how tax write offs work. The only way to claim that money in a write-off would be for the business to also claim it as revenue. That would even out, with no tax savings. Businesses also don't handle donations that way, they usually serve as a collection agent that just passes your donations on without being able to claim it towards their revenue or their tax write offs. The only person who can write-off their donation is the person who actually made it.

The reason businesses do it is for marketing. They get to put out a press release saying "They helped donate $10 million to puppies without borders."

[–] [email protected] 3 points 1 year ago

That’s not how tax write offs work

Jerry: So we're gonna make the Post Office pay for my new stereo now?

Kramer: It's a write-off for them.

Jerry: How is it a write-off?

Kramer: They just write it off.

Jerry: Write it off what?

Kramer: Jerry, all these big companies, they write off everything.

Jerry: You don't even know what a write-off is.

Kramer: Do you?

Jerry: No, I don't.

Kramer: But they do. And they're the ones writing it off.

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[–] [email protected] 2 points 1 year ago (1 children)

No, that's not how it works. In order to do so, they'd have to first claim the money received as income.

That said, there are scummy things that they do. At the least, it's saying "we [bigcorp] donated $1,000,000 to charity" when in reality all that they did was collect it. In other situations, companies like Sobey's doesn't actually pass on food bank donations as cash, but rather have then as credit to buy products only from Sobey's.

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[–] [email protected] 2 points 1 year ago

I hate when any company I'm buying something from does this.

[–] [email protected] 2 points 1 year ago (3 children)

I don’t trust them to actually donate anyway. How would you ever find out? I suspect these are scams to hold the money and get interest off it even if they do ultimately donate it.

[–] [email protected] 1 points 1 year ago (1 children)

Not sure if this is 100% accurate, but I heard that how it works is they donate the money first, get the tax write-off and then try to hit people up at the checkouts to refund all the money after the fact. That way they get the tax break for donating the money without actually being out of pocket. I don't know what happens if people donate more than the amount they spent, but I think I can take a reasonable guess.

[–] [email protected] 1 points 1 year ago

I think that’s what CVS got busted doing:

https://www.fastcompany.com/90820744/cvs-asks-for-donations-at-checkout-but-are-customers-being-guilted-into-paying-the-pharmacys-debts

“according to a lawsuit filed by a New Yorker, this money is allegedly being used to repay a $10 million commitment that the pharmacy chain has already made to the ADA, unbeknownst to customers. The suit accuses CVS of engaging in fraud and violating consumer protection laws in all 50 states. In essence, it argues, CVS is guilt-tripping customers in the checkout line to reimburse its own charitable donations.”

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[–] [email protected] 2 points 1 year ago

It's still fine.

Some big international store in europe is asking to buy food from them for full price and donate it to food bank. Fuckin hilarious for making profit on charity.

[–] [email protected] 1 points 1 year ago (1 children)

And I will never ever give these fools my actual phone number for discounts. Just use any area code w/ 867-5309 to get around this.

[–] [email protected] 1 points 1 year ago

Jenny Jenny, who can I turn to? You give me something I can hold on to. I know you think I’m like the others before who saw your name and number on the wall

[–] [email protected] 1 points 1 year ago (1 children)

PSA: most Americans can get up to $300 deducted from their annual taxes through donations.

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[–] [email protected] 1 points 1 year ago

Then they will say it is more efficient to merge the donations with regular revenue and make bulk donations every quarter or something.

[–] [email protected] 1 points 1 year ago

To be fair, I bet these companies strike deals with the charitable organizations to in turn raise visibility of those charities among the company's customers.

[–] [email protected] 1 points 1 year ago (1 children)

I hate when they pull this shit at drive through fast food. “Would you like to round up to donate to our charity?”

Who knows what the person taking my order thinks about this charity, and what they might do to someone’s food who says no.

[–] [email protected] 6 points 1 year ago (2 children)

I can assure you that nobody working at the fast food restaurant gives a shit if you donate to charity.

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[–] [email protected] 1 points 1 year ago

I just say no

[–] [email protected] 1 points 1 year ago (2 children)

Bad example, grocery stores usually have small margins and aren't making a lot of money off of you

[–] [email protected] 2 points 1 year ago

This is actually true. But those small margins add up to a huge profit overall. Still, they probably could not afford to donate $20 per shopper.

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