[nSLUG] Donate Hardware to FMM

Daniel AJ Sokolov daniel at falco.ca
Fri Jul 8 01:03:38 ADT 2016


On 2016-07-07 at 12:11, D G Teed wrote:
> I'm reading news articles which say they can't take other people's
> money and claim it as their own charity donation.

That is the law as I understand it, yes.

> But I'm not sure it is all trackable when it is simply done as a cash
> donation container.

That would be fraud.

> Knowing how well big business takes advantage of
> anything available, I wouldn't be surprised there is some loophole
> which allows the money to be reclassified as their donation.  For
> example, if the fund raiser states "proceeds to charity" it will
> result in the company getting the tax deduction out of running the 
> business.

Yes, but that is a different situation. In the situations we are talking
about, no proceeds are donated. Just the money raised as a donation is
passed on as such.

They could only get a tax deduction for that if they recognized it as
revenue first and paid taxed on that. That would be a very bad deal for
them.

What they may be able to do: Supermarkets pay ~1% in credit card fees
when you donate that way at the checkout. If they cover those fees out
of their own profit, maybe they can claim that as a donation. I'm not
sure, but I hope they can do that. Because, financially, it would be
better for them not to cover those fees. And maybe they don't.

> In the very least, the
> company gets the recognition, and the person who donates $2 fifty
> times a year doesn't get to claim it.

That is correct. That is why the company invests time and effort to
raise the money from customers.

That the customer doesn't get a tax deduction is the price they pay for
the convenience, and the small amount. I don't think anyone gives you a
receipt when you donate $2. It has to be at least $20.

BR
Daniel AJ


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