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When the cashier asks if I want to round up and donate my 28¢ to help sick kids in hospitals
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this post was submitted on 30 Jul 2026
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In the end, the corporation gets their tax deduction from your donation.
Or worse, the "Sick Kid in Hospital" is Mitch McConnel.
Write-offs aren't magic. There's no way to write off a donation in a way that will reduce your tax burden to lower than it would have been without the donation.
If you donate $100 to charity and write it off, it reduces your income by $100. If you pay 30% in taxes, it reduces your tax burden by 30 bucks, so you're still losing $70 versus not mak8ng the donation.
The difference with these round-up measures is that the donation is only given if the customer pays for it, so it breaks even after the cost of implementation/overhead of the system.
Yes, but the donation is not coming from their income. They give 100 bucks away they did not earn and therefore were not actually taxed on. But those 100 bucks are still reducing their income. So, taking your numbers, they pay 30 bucks less without any loss on their actual income.
Not really. What they get is free publicity and goodwill.
Except they don't. You give them $1, they write off that exact $1, they get no tax benefit.
What this really gives them is good will. They can say they donated 10 million to charity that year and everyone glazes them for it.
Edit: also yes, they might be donated to really shitty charities.
I've seen stores donate to there own foundation. I'm sure it's all by the book as they can't keep the money for themselves but you don't know where the money is going. If it's going to cancer research just say so. I shouldn't have to look on your website to see the last 30 charitys but no idea where it's going now.