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Retailers requests for charitable donations

Ironwood

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Was in a Winners outlet (TJMax for you stateside) yesterday and like many retailers was asked if I would like to donate $2 to some charity of the week. Do you know what happens to your donations? They do go to the charity and I would hope that every dollar goes where intended.....but the money goes into a company general coffer with a lump sum donation made and a corporate charitable donation claimed for tax purposes. They collect our donations and claim a bulk tax deduction for themselves from all of our collective donations.....it's fraud! And they get the press coverage of being outstanding corporate citizens in supporting local causes! And they are not the only retailer doing it!
 

vacationhopeful

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Our local chain supermarket also has "charity" drives.

I really "donate" to them EXCEPT they take my money and give me a sandwich. Last one was about a month ago, was a Pulled Pork sandwich (with cheese, for no extra cost) and peppers for $2. Bottle water or canned soda was $1 extra.

Another was Hot Dog on bun (with or without sourkauht) for $1 and the same water/soda for $1 more.

And they too are the BIGGEST local charity group - claims they donate the food and drink (or is it they donate the labor and their suppliers donate the food products?)

All I know is, for $1 or $2, it is the cheapest lunch around and ALWAYS very fresh rolls. And there is a line.
 
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Weimaraner

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I like the idea of buying a meal and money going to charity. But it is sooo annoying how many companies ask you to donate $1 to charity every time you check out. One of the major pet stores always ask me to donate a $1 for a tennis ball to give to a rescue dog which is kind of ridiculous. I'm already involved in a rescue and I don't think a $1 tennis ball is going to be the solution to the problem. And I didn't even think of the fact they are using it for taxes. :mad:
 

Fern Modena

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Making the cashiers ask for charitable contributions (and then making "Woo Hoo!" announcements when they get one) really fries me.

I have my own charities, which I decided on based on my personal criteria. I decided long ago what/where society needed help, what was important to me, and that is where I donate.

I, too, believe that the corporations who solicit for donations for causes unrelated to themselves then use the donated money to show what good "Community Responsive Corporations" they are. They also get tax breaks for donating money from customers, since it is comingled with their money.

Another factor, we don't know if they pass along the entire donated amount or take some percentage out for "administration." When a charity itself solicits, they have to tell you what percentage goes to the cause and what to administrative, fundraising, etc. Your grocery or other store does not.

I say do it yourself. And stores, stop bugging us!!!

Fern
 

LUVourMarriotts

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That's why we don't donate at places like that, because we have never believed that our money goes directly to the charity. I guarantee that not only do they place the donation in their name for the write-off, but they also probably take an administrative percentage for themselves.

We donate direct to the organizations we have strong interests/feelings towards. Or through events.
 

Passepartout

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When asked, I just say 'No' and drop it. It always seems cheeky of them to even ask.

Interesting how in some cultures- Thai in particular, they make a point of donating alms to the monks, feeling that karma comes back on the giver.

I don't aim to help retailers get good karma.

Jim
 

Patri

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Thanks for pointing that out. Penney's asks to round up to the next dollar, so it is never much. Other stores ask frequently. I usually say no, but now I believe I always will. It would be cool if they made the donation on behalf of their customers, but they should not take credit.
 

falmouth3

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A place where I used to work made health products for animals. Most of us were pet lovers and had at least one. One of the employees organized bake sales at the company several times a year. Others of us baked and manned the tables. She always took the cash and wrote a check to the animal shelter. It was not a big deal, really, but she got the tax deduction too.

At least the animals benefited too.
 

kwindham

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Im glad to have this information. I always donate at petsmart. Now I may have to look into that!
 

dioxide45

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I think though that they actually ring the donation in to the register, so it shows as income. They are then donating the same amount. The write-off cancels out the income. Of course they are donating it in their name and getting the good press for it. Remember, in the end the customer always pays for everything. So even if a company donates it's own profits, the customer is the one that gave them the profits.
 

MRSFUSSY

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Please note................

After hurricane Sandy one of the big box stores asked me if I'd donate $1.00 to the relief fund. Never knowing if the money ever gets to the correct source I answered no.

The gal looked at me and then asked me if I would care to donate $2.00????

Go figure!
 

PigsDad

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A place where I used to work made health products for animals. Most of us were pet lovers and had at least one. One of the employees organized bake sales at the company several times a year. Others of us baked and manned the tables. She always took the cash and wrote a check to the animal shelter. It was not a big deal, really, but she got the tax deduction too.
Unless she claimed the money as income, that is a clear case of tax fraud. You could probably turn her into the IRS and get a reward, if you wanted. ;)

Dioxide is correct -- what these stores are doing is not fraud (despite the OP's opinion), since they must claim it as income. No business (and certainly not a national chain) would risk improperly accounting for funds collected for a charity.

Personally, I choose my own charities and find it insulting that every store is always begging for my donation. Retail stores should stick to selling retail, not being an agent for charity donations, IMO.

Kurt
 

Ironwood

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There is a brief story in one of our regional papers this morning about someone complaining they were asked to donate $2 to a charitable cause at a supermarket check out register. When they volunteered $1 instead of $2 they were told, the register was programmed to only take $2 donations and the $1 was refused! I won't donate this way to anything.
 

LUVourMarriotts

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The register will have a SKU, or something similar, to identify the funds as a charitable donation. I doubt it counts as income. But, like I said before, the store can then take an administrative percentage from that before donating in their name. I think I read once that the government allows up to 40% admin fee.

The article I read a while ago was about famous people and their "charitable donations". The govt was investigating them for fraud. Some took as much as 92% as admin costs.
 

SMHarman

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I won't do this because my employer will match my donations $ for dollar. If I give $50 (the minimum for a match) to the Red Cross they also write a $50 donation making the total $100 (of course they get a $50 write off as well). If I donate at the register that match would never happen. I had not thought about the other consequences.
 

Rose Pink

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I usually just say "no" and let it go at that.

If I were really upset about being asked/pestered I would write a letter to the corporate office since they are the ones making the decisions. The cashier has no choice in the matter and can be reprimanded for not getting enough donations. Don't crab at the poor cashier/clerk. She is getting the pressure from both ends. I know, I hear about from DD almost every day.

Also, since the donation appears on my receipt, I have taken the tax deduction. I have the receipt. I paid it. I get the deduction.
 
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