The purpose of these is that the company gets to deduct charitable donations from its revenue before taxation. Even if you are in a position to give you probably shouldn’t use this method.
If they’ll actually open their own wallet in e.g. a fund matching program, there might be net benefit, but don’t do it just to help companies avoid their fair share of taxes.
If they get an extra million in these donations, they can deduct that extra million. It’s a net zero improvement. It does not help them at all financially.
But it’s free good will and they can advertise that THEY donated a bunch. It’s just to make them look good.
The purpose of these is that the company gets to deduct charitable donations from its revenue before taxation. Even if you are in a position to give you probably shouldn’t use this method.
If they’ll actually open their own wallet in e.g. a fund matching program, there might be net benefit, but don’t do it just to help companies avoid their fair share of taxes.
This isn’t correct.
If they get an extra million in these donations, they can deduct that extra million. It’s a net zero improvement. It does not help them at all financially.
But it’s free good will and they can advertise that THEY donated a bunch. It’s just to make them look good.
They can’t actually deduct a penny from it.
You’re wrong. Companies that collect donations on behalf of a charity can’t deduct a single penny of it.