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When the cashier asks if I want to round up and donate my 28¢ to help sick kids in hospitals
(lemmy.world)
this post was submitted on 30 Jul 2026
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"Would you like to help our megacorp reduce its tax bill, pweeze?" is what they're really asking. Absurd.
Edit: Differs between countries and relevant legislations (having to explain internet 101 in 2026!?).
This is wrong, and it's wrong for obvious fucking reasons. Like Accounting 101 reasons. Like, go to prison for fraud reasons.
Let's say you own a business. You make sales and you partnered with a nonprofit for donations. You ask your customers to donate to that charity.
When you take that money, you set it aside. It does not belong to your company, specifically because you wouldn't want to inflate your profits or offset your losses with money you don't have. If your company loses money and you took this money, then you wouldn't even be able to write off the full amount you took because you wouldn't have any taxable income.
So, since this money isn't yours, when you donate it, you do not write it off your company's profits. Because it didn't come from the company's money because you don't want that to touch your profits. If you do write that off, that's a little something financial experts like to call fraud.
But, let's pretend you did take it, and counted it in your profits because you like to be stupid and risky. When you donate that money, you are writing off the portion of your profits that would have been added. So, even if you did donate that money yourself to write-off, you already took it as profits.
This isn't even a US thing. This shit wouldn't be legal anywhere. If it was legal, then they could donation roulette to continuously donate the same dollar over and over to write off all of their taxable income, and, honestly, it would be easier to just buy art. Art is the real fucking tax scam.
This is not true. Customers can claim their point-of-sale donations on their taxes, but the business that collects the donation can not.
https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0
Edit: My link is for USA, but my understanding is that the principle holds in most places.
...for your jurisdiction.
Welcome to the international internet.
I can’t find any evidence for this being true in any country that speaks English as their primary language. Do you have evidence to the contrary?
Picking the UK at random, this took 10 seconds to find so I doubt you tried to find anything:
It also allows the company to play PR games with how much "they" give to charity.
... But they would be donating the value of the money you gave them. So that money shouldn't be profit, and this would be zeroed out. They did not gain invisible donation money.
Congratulations on being wrong in ten seconds.
You're extraordinarily angry in both your comments to me. It baffles me as to why.
Perhaps take a moment to read the things I've said and the things you're assuming I meant, and then compare the two.
It's possible for companies to give money to charity (nobody has suggested otherwise) and gain significant benefit for themselves in doing so. Both parties win, and done within local laws.
Still worth knowing. Which is why your verbose rant is baffling.
The only thing the company does is put their name on it. They do not write it off their taxes because they can't. That's a stupid myth that stupid people stupidly spout and then gets spouted again, and I have to spend time explaining why it's stupid.
Also, if you're offended by my tone, I dunno, go outside for a bit. Sorry it fucking bugs you. People die every day, and I'm supposed to be happy or something? Fuck on outta here!
Like, if you want to claim stupid tax write offs, buy art, let it "increase in value", and donate it! Way easier, way more legal, way seedier. There, you got your tax scam. But call it right.
I don’t see anything about point-of-sale donations in that link. Of course a business can write off an actual donation they make, but they’re not donating anything if they are just collecting donations from customers and passing the money along. I can find no evidence to the contrary.
I think it comes down to who the tax authority sees as being the source of the funds. It seems in the UK, at least, the payer to the charity is the donor and, if that donor is a company, they get a corporate tax break for it.
The charity gets their money either way (otherwise would be fraud), but the company isn't necessarily doing it out of the goodness of their heart: their tax bill goes down as a direct result.
Personally, I think the recipient charity getting the benefit of all those rounding up transactions is a good thing overall. But my original comment was about not allowing yourself to believe a comfortable lie: it's business, not philanthropy. Or perhaps, philanthropy in the typical rich benefactor style of giving - it's still a mutually beneficial transaction.
But they don't give any money to charity, you do. I would be extremely surprised if that resulted in any reduction in taxes.
Wait fuck, those donations actually go to the company tax relief?! I would be 😠 if I wasn't so
Yeah. You’re donating to a dedicated account managed by the company and they in turn make a huge donation at the end of the year for maximum tax write off. So you donate and they benefit
Incorrect. You get credit for the donation; it does not affect the company's taxes. Its just that most people don't claim the tax credit, because most of us don't donate enough to itemize rather than take the standard deduction.
Is that on a company by company basis? Because I used to think the same until I saw a receipt from Panda Express that said to hold on to it so you can claim the donation on your taxes. Which would mean Panda can’t claim it on their taxes.
Usually they can't do that.
You're not giving companies a tax break you're just contributing to their marketing / good will budget. They collect so they 'can be good cooperate citizens' and hand someone a giant check and make a press release.
Not saying someone in the company would get a kickback for their choice "charity". Or that the charity chosen is a tax shelter for board members.
Even if their not getting direct tax relief, never assume goodwill.
You have to always think, why would the company want to do this, then find the shittiest reason, and that's usually the reason.
Please donate to our corporate approved charity you've done zero research about to see if they're even a legitimate charity doing something you actually want to support right now at point of sale impulsively!
This is provably false, please stop spreading this lie.
Its different in different countries.
What countries is it different in? I couldn’t find any evidence of it being true in any English-speaking country.
Its actually proved true. This is an actual thing thst happens.
A company here or there may illegally do it, but on the whole, it is illegal, it is generally traceable, and it is not what many of the megacorps typically do.
If they do and you have proof, get a class action lawsuit going, you will win.
Also you can legally claim the round-up donation as a deduction on your taxes.
Once again people in your comments are like America is the only country in the world. 🙄
So happy he annoyed you off! made my morning! Thank you for for your tears :)