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I always assumed the reason was to generate $XXX million in donations for a tax deduction for the grocery store chain.



It doesn’t work like that with regards to taxing. What they do get is a good PR image at no cost to themselves (many places don’t match any donations[0]). Worse, some even keep a percent in “administrative fees” [1]

And there is concern that these checkout charities are replacing more traditional means of corporate giving, reducing net contributions.

Whether or not they make you feel ambushed, due diligence is worth hope before giving, as some companies (and the non-profits they give to) are more worthy than other.

[0] Such as walgreens. But there are some places, like Costco, that will match customer and employee giving.

[1] Petco


I'm not a tax attorney but I don't think that's how deductions work.


Do you mind explaining more?

I was under the impression that a corporation can take a tax deduction for charitable donations. There's a line item for it on Form 1120 (https://www.irs.gov/pub/irs-pdf/f1120.pdf)


In order to take the tax deduction of an expense to a charity they have to first recognize the income the customer just gave them.

Since the income and the deduction directly offset each other, this is a zero sum maneuver.


Ah, okay. Thanks!




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