this post was submitted on 23 Feb 2026
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Well they will make the donation, but they'll do it with your money, and then they'll take the tax deduction for it, and reward themselves with a nice fat end of year bonus from the tax savings. Isn't capitalism fun?
That's not how tax deductions work. All the write-offs allow is for them to not count the money donated as income, so they make the same amount of money on the sale whether or not you donate.
The benefit to the company is PR or donating to a non-profit with a mission that aligns with their corporate goals. For instance, Bass Pro may ask you to donate to wildlands preservation non-profits that maintain environments in which people fish and hunt.
But isn't it true that whatever they don't pay in taxes via writeoffs, they get to keep and use however they want? They might choose not to give themselves a bigger bonus with those savings on taxes, but....I do doubt it for some reason
Write-offs are deductions from income, not reductions in taxes owed. They only get to deduct the taxes they would have paid if they had kept the donations.
Let's imagine their annual income was $10,000,000. Their nominal tax rate would have them owing $2,100,000.
If they received a $100,000 in donations, that would make their income 10,100,000. But with the donations they could write off the 100 grand, reducing their tax bill by $21,000, for a total of $2,100,000.
Either way, they pay the same in taxes with or without the donations.
I stand corrected, thanks! I always assume they're finding a way to directly enrich themselves further, because they often are.
It ends up being net zero. They're only writing off the money you donated. They still have to count the money you donated towards their overall revenue, increasing their tax bill, but then they pass the donation on, allowing them to write it off, reducing their overall revenue (and thus their tax bill) to what it would have been if you hadn't donated.
If they donate money out of their own profits, they CAN write that off. Which of course is also money you gave them, except it's money you gave them in order to buy their products, not for the purpose of having them donate it.