Automatic “Charitable Contribution” Charged to Folio
#18




Join Date: Jun 2012
Location: New England
Programs: DL, UA, AA, B6, 2V, Marriott, Hilton, Hyatt
Posts: 6,139
If people don't realize why companies do this, it is basically this:
* You donate $1 to the company (hotel/grocery store/whatever)
* They they donate it to the charity, but since it is now 'their' money, they take the tax write off for it. Their shareholders and management team thank you for making them more profitable.
So it is another scam for corporations to lessen their tax burden, by being the middle man on a 'charitable' donation.
* You donate $1 to the company (hotel/grocery store/whatever)
* They they donate it to the charity, but since it is now 'their' money, they take the tax write off for it. Their shareholders and management team thank you for making them more profitable.
So it is another scam for corporations to lessen their tax burden, by being the middle man on a 'charitable' donation.
However, they can take a portion of the raised funds for "handling and administrative fees" which would be legal and can be a source of income. Most charities agree to this because large chain stores have more reach than their own efforts. And they get to take pictures of the big fake check presentation for PR purposes, and the charity would thank them in promotional materials leading to free advertising as well.
#19




Join Date: May 2003
Location: RDU
Programs: TSA/INS/FBI Platinum (stopped last 12 of 13 int'l returns - the computer broke once)
Posts: 2,653
They can take "social credit" even if they can't get a tax credit, so I think that's at least part of the reason these are promoted, and as noted they may get to take a percentage of it as a fee for their own efforts (just like professional fundraisers do). I always turn these down, as I prefer to make my donations directly to the charity - I know they received it, I know they got the full value of it, and I know exactly which charity is involved that it's one which I want to support. There are plenty of times I encounter one of these "round up for XXX" requests that's for a charity I already support, but I'm still going to turn it down and stick to my donations that are direct to the organization itself.



