your grocery store can only get a tax benefit from a donation if they are donating a share of sales. in the more common case where you “round of up for charity,” you are the one who is eligible for a tax write off
It’s not the tax write off that benefits the executives. It’s the fact that they appoint themselves as executives of the charity too, and as such they can legally pay themselves a salary out of the donations they receive.
Got $10m in charity donations? Whoops looks like our executives’ salaries cost $9.9m, guess we can only donate $100k
common misinformation
your grocery store can only get a tax benefit from a donation if they are donating a share of sales. in the more common case where you “round of up for charity,” you are the one who is eligible for a tax write off
I appreciate the info, I had no idea :)
It’s not the tax write off that benefits the executives. It’s the fact that they appoint themselves as executives of the charity too, and as such they can legally pay themselves a salary out of the donations they receive.
Got $10m in charity donations? Whoops looks like our executives’ salaries cost $9.9m, guess we can only donate $100k