Because you’re giving them money that they then donate and claim as their own. It’s a way to get around actually donating money from their profits, while making it look like they’re donating a ton for the tax write off.
A friend in the field had told me that they preemptively make donations to offset their taxes. Let say it’s 1million dollars. they put up 1 million dollars of their own money, then they gather donations at the till towards this charity to pay themselves back for the money they spent.
Because you’re giving them money that they then donate and claim as their own. It’s a way to get around actually donating money from their profits, while making it look like they’re donating a ton for the tax write off.
That’s not how it works, at all. Businesses can’t claim donations they collect on behalf of a charity as a deduction.
A friend in the field had told me that they preemptively make donations to offset their taxes. Let say it’s 1million dollars. they put up 1 million dollars of their own money, then they gather donations at the till towards this charity to pay themselves back for the money they spent.
Again just what I’ve heard.
Your friend is wrong, or the company he works for is committing fraud.