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.
Why would they bother? It costs them next to nothing to stick an ad on the screen. But matching donations would be far more expensive.
Besides “matching donations” has always been a scam. These agreements inevitably amount to “Person/Org X agrees to donate up to $X in matching funds”. But $X is so small that its trivial to hit. And I’ve never heard of someone failing to get the whole amount regardless of the donation rate. It’s just an excuse for the folks running the donation drive to scream “PLEASE! PLEASE! PLEASE! Your refusal to donate an extra $1 is costing us $10!!! Why are you being so stingy!!!”
Why do they never offer to match donations? I’d probably consider it if they did.
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.
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Your friend is wrong, or the company he works for is committing fraud.
I had a friend who once told me his brother discovered Alaska while riding in a hot air balloon. I wonder if we have the same friend.
“Had a friend at a business report that the business was casually doing fraud to lower their tax liability.”
“Oh yeah? Well I had a friend who reported he is a talking monkey who lives in Mars.”
“Damn, both of these stories sound equally far-fetched and unbelievable.”
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They can lie and misreport. And if nobody in the state/federal bureaucracy follow up, they get away with it.
Why would they bother? It costs them next to nothing to stick an ad on the screen. But matching donations would be far more expensive.
Besides “matching donations” has always been a scam. These agreements inevitably amount to “Person/Org X agrees to donate up to $X in matching funds”. But $X is so small that its trivial to hit. And I’ve never heard of someone failing to get the whole amount regardless of the donation rate. It’s just an excuse for the folks running the donation drive to scream “PLEASE! PLEASE! PLEASE! Your refusal to donate an extra $1 is costing us $10!!! Why are you being so stingy!!!”